Aerospace Industrial Development Corp. (2634) AI Stock Analysis

Aerospace Industrial Development Corp.

(TWSE:2634)

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Rating:39Underperform

Price Target:TWD 48.00▼(-12.09% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held down primarily by deteriorating fundamentals: a roughly 10% revenue decline, margin compression at every level, a ~66% drop in net income, rising leverage (debt-to-equity near 1.5) and a second consecutive year of deeply negative free cash flow that is being financed with borrowings. Technicals compound the picture, with the stock trading below all major moving averages and a negative MACD, though oversold RSI and Stochastic readings hint at potential for a near-term bounce. Valuation offers little support, as a 25.7x P/E sits uncomfortably high against falling earnings, with only a modest 1.5% dividend yield and low beta as mitigating factors. Positives — continued profitability, a substantial equity base, and long-dated defense program visibility — are not yet enough to offset the cash-flow and leverage pressure; a turn in operating cash flow and stabilizing gross margin would be the key signals of improvement.

Positive Factors

Diversified Aerospace ModelAIDC’s presence across manufacturing, structures, components, MRO, aftermarket support, and engineering services provides multiple business lines rather than reliance on one activity. This breadth can support customer relationships and help distribute demand across military, commercial, and service markets over the next several quarters.

Negative Factors

Negative Cash GenerationThe sustained reversal to negative operating and free cash flow is a material weakness because accounting profitability is not translating into cash generation. Continued cash deficits can increase reliance on balance-sheet funding and constrain AIDC’s flexibility to invest, absorb volatility, or support future programs.

Aerospace Industrial Development Corp. (2634) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 50.96B
Dividend Yield: 1.42%
Average Volume (3M): 19.26M
Price to Earnings (P/E): 26.3
Beta (1Y): 0.72
Revenue Growth: 2.58%
EPS Growth: 141.02%
Country: TW
Employees: 5,399
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

Aerospace Industrial Development Corp. Business Overview & Revenue Model

Company Description

Aerospace Industrial Development Corporation (AIDC), headquartered in Taichung City, Taiwan, is a key global player in the aerospace industry. The company specializes in the comprehensive lifecycle management of aerospace systems and components, from...

Aerospace Industrial Development Corp. Financial Statement Overview

Summary

Financials are strained across all three statements. Revenue fell roughly 10% to about NT$35.5 billion, gross margin compressed to 7.1% from 9.5%, and net income dropped nearly two-thirds to NT$733 million, leaving a thin 2.1% net margin (Income Statement: 38). The balance sheet has become notably more leveraged, with total debt rising to NT$26.7 billion and debt-to-equity climbing to about 1.50 from 1.14, while ROE fell to 4.1% from 11.9% (Balance Sheet: 45). Cash flow is the weakest link — operating cash flow was negative NT$3.9 billion and free cash flow negative NT$5.2 billion, a second straight year of cash burn driven by working-capital build and capex, which is funding the debt increase (Cash Flow: 22). Offsets include continued profitability at every line, a nearly NT$18 billion equity base, and visible long-cycle defense order books that could restore cash conversion.

Income Statement

38Negative

Balance Sheet

45Neutral

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.56B	35.45B	39.34B	39.10B	30.24B	23.73B
Gross Profit	3.69B	2.53B	3.72B	4.36B	2.91B	1.77B
EBITDA	4.55B	3.09B	4.32B	4.58B	3.61B	2.25B
Net Income	1.95B	733.07M	2.17B	2.23B	1.63B	558.01M
Balance Sheet
Total Assets	49.92B	53.92B	49.38B	43.86B	42.71B	40.75B
Cash, Cash Equivalents and Short-Term Investments	5.23B	4.02B	4.27B	4.65B	3.33B	3.33B
Total Debt	20.03B	26.74B	20.79B	15.94B	17.78B	19.20B
Total Liabilities	31.55B	36.08B	31.13B	26.76B	26.88B	26.42B
Stockholders Equity	18.37B	17.84B	18.25B	17.10B	15.83B	14.32B
Cash Flow
Free Cash Flow	5.79B	-5.21B	-4.97B	2.72B	1.67B	3.12B
Operating Cash Flow	6.84B	-3.88B	-3.14B	3.87B	2.41B	4.52B
Investing Cash Flow	-1.12B	-1.04B	-929.79M	-973.21M	-691.72M	-1.32B
Financing Cash Flow	-5.61B	4.57B	3.45B	-2.83B	-1.72B	-4.47B

Aerospace Industrial Development Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2634 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2645	69Neutral	TWD 61.24B	20.85	―	3.06%	10.42%	77.82%
TW:7751	67Neutral	TWD 30.52B	42.13	―	1.59%	―	―
TW:6670	66Neutral	TWD 36.24B	10.59	―	6.15%	1.20%	-8.30%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2464	44Neutral	TWD 35.47B	47.13	―	0.30%	19.16%	―
TW:7795	42Neutral	TWD 28.85B	154.13	―	0.59%	―	―
TW:2634	39Underperform	TWD 51.43B	26.25	―	1.42%	2.58%	141.02%

* General Sector Average

Performance Comparison

TW:2634 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2634	Aerospace Industrial Development Corp.	54.60	4.87	9.80%
TW:2464	Mirle Automation Corp.	156.00	93.34	148.97%
TW:2645	Evergreen Aviation Technologies Corporation	163.50	25.44	18.43%
TW:6670	Fusheng Precision Co. Ltd.	260.00	21.10	8.83%
TW:7751	Horng Terng Automation Co Ltd	1135.00	675.58	147.05%
TW:7795	Eternal Precision Mechanics Co., Ltd.	366.00	165.03	82.12%

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

Aerospace Industrial Development Corp. AI Stock Analysis