I-Chiun Precision Industry Co., Ltd. (2486) AI Stock Analysis

I-Chiun Precision Industry Co., Ltd.

(TWSE:2486)

Select Model

Rating:40Underperform

Price Target:TWD 138.00▼(-21.59% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is weighed down primarily by a financially stretched profile: revenue is growing but net margin is under 1%, leverage has doubled to 1.01x debt-to-equity, and free cash flow has been sharply negative for two years as an aggressive capacity expansion is funded by debt rather than internal cash. Technicals reinforce the caution, with the share price well below all major moving averages and negative MACD momentum amid sustained selling. Valuation offers no offset, as the 92x P/E reflects depressed earnings and the 0.34% dividend yield provides little support. The investment case rests on execution — if new capacity fills and margins normalize, earnings leverage could be significant — but until then the risk profile remains elevated.

Positive Factors

Revenue GrowthRevenue acceleration shows improving demand for the company’s precision components and industrial parts after a softer prior year. If sustained, stronger sales can improve operating scale, support customer expansion across end markets, and provide a foundation for rebuilding profitability over the next several quarters.

Negative Factors

Very Thin ProfitabilityA net margin near 0.8% leaves little buffer against cost increases, pricing pressure, or unfavorable product mix. The sharp decline from earlier profitability also suggests that recent revenue growth is not converting efficiently into earnings, making the current profit base less durable without operational improvement.

I-Chiun Precision Industry Co., Ltd. (2486) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 41.02B
Dividend Yield: 0.28%
Average Volume (3M): 5.64M
Price to Earnings (P/E): 107.0
Beta (1Y): 1.53
Revenue Growth: 25.09%
EPS Growth: 698.97%
Country: TW
Employees: 1,610
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

I-Chiun Precision Industry Co., Ltd. Business Overview & Revenue Model

Company Description

I-Chiun Precision Industry Co., Ltd. specializes in the global design, production, and distribution of advanced, high-precision electronic components and associated solutions. Its diverse product portfolio encompasses optoelectronic lead frames, comp...

I-Chiun Precision Industry Co., Ltd. Financial Statement Overview

Summary

I-Chiun Precision is growing its top line — revenue rose to NT$6.05bn for a third consecutive year of expansion — and operating profit has returned to positive territory with stable ~14% gross margins. However, profitability is razor-thin: net profit of just NT$51mn equates to a 0.8% net margin and sub-1% return on equity. The balance sheet has become stretched, with total debt more than doubling in two years to NT$5.23bn and debt-to-equity rising from 0.49x to 1.01x while equity stayed flat. Cash flow is the weakest link: free cash flow was negative NT$1.34bn after negative NT$3.23bn the prior year, as heavy capital spending is funded almost entirely by new borrowing. The one positive is that operating cash flow exceeds net income, confirming earnings are backed by real cash and depressed largely by depreciation.

Income Statement

44Neutral

Balance Sheet

41Neutral

Cash Flow

31Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.78B	6.05B	5.49B	5.07B	5.20B	5.99B
Gross Profit	1.24B	859.57M	770.87M	717.11M	578.28M	1.17B
EBITDA	945.25M	598.53M	537.94M	758.11M	673.17M	1.01B
Net Income	275.62M	50.62M	18.81M	200.89M	103.29M	375.77M
Balance Sheet
Total Assets	15.12B	12.39B	11.02B	7.80B	7.79B	8.49B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.32B	1.58B	1.80B	1.52B	1.17B
Total Debt	6.76B	5.23B	3.98B	2.05B	2.33B	2.51B
Total Liabilities	8.71B	6.91B	5.63B	3.41B	3.57B	4.24B
Stockholders Equity	6.13B	5.19B	5.21B	4.19B	4.04B	4.07B
Cash Flow
Free Cash Flow	-2.02B	-1.34B	-3.23B	704.75M	608.32M	-913.73M
Operating Cash Flow	-120.07M	350.56M	220.01M	844.76M	1.03B	-431.17M
Investing Cash Flow	-1.92B	-1.67B	-3.45B	-185.24M	-569.71M	-455.70M
Financing Cash Flow	2.04B	1.13B	3.04B	-448.83M	-314.15M	1.05B

I-Chiun Precision Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2486 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2421	75Outperform	TWD 39.45B	13.48	―	3.81%	22.04%	41.51%
TW:6670	66Neutral	TWD 36.24B	10.80	―	6.06%	10.09%	6.62%
TW:6176	60Neutral	TWD 26.93B	9.50	―	9.91%	-11.20%	-42.48%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3376	48Neutral	TWD 23.40B	80.34	―	3.45%	-21.58%	-63.49%
TW:3714	48Neutral	TWD 38.16B	-138.29	―	5.97%	4.37%	―
TW:2486	40Underperform	TWD 40.28B	106.98	―	0.28%	25.09%	698.97%

* General Sector Average

Performance Comparison

TW:2486 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2486	I-Chiun Precision Industry Co., Ltd.	176.00	84.37	92.07%
TW:2421	Sunonwealth Electric Machine Industry Co., Ltd.	137.50	-39.52	-22.32%
TW:3376	Shin Zu Shing Co., Ltd.	116.00	-68.42	-37.10%
TW:3714	Ennostar Inc.	96.15	39.16	68.71%
TW:6176	Radiant Opto-Electronics Corp.	80.70	-79.28	-49.56%
TW:6670	Fusheng Precision Co. Ltd.	264.00	25.10	10.51%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

I-Chiun Precision Industry Co., Ltd. AI Stock Analysis