Wah Lee Industrial Corp. (3010) AI Stock Analysis

Wah Lee Industrial Corp.

(TWSE:3010)

Select Model

Rating:60Neutral

Price Target:TWD 122.00▲(5.63% Upside)

Action:initiatedcoverage

Date:11/09/26

Wah Lee scores moderately. Fundamentals are solid but unspectacular: steady long-term revenue growth, an improving gross margin, a materially stronger capital structure and record free cash flow that comfortably covers dividends — offset by razor-thin operating margins, single-digit-to-low-double-digit ROE and working-capital-driven cash flow swings that turned negative as recently as 2024. The main drag is technical: the stock sits well below all key moving averages with negative MACD, signalling a sustained downtrend, even if oversold readings suggest the selling is stretched. Supporting the score is an attractive valuation — a 10.3x P/E and a 4.6% dividend yield backed by strong cash generation — which provides a cushion if the business cycle stabilises.

Positive Factors

Improving LeverageLower leverage and a growing equity base improve financial resilience and give Wah Lee more flexibility to fund operations or pursue opportunities. This reduces balance-sheet pressure relative to prior years and supports stability through the next several quarters.

Negative Factors

Volatile RevenueThe sharp year-over-year revenue decline highlights uneven demand and reduces confidence in the company's near-term growth trajectory. Persistent top-line volatility can make capacity planning, inventory management, and sustainable earnings expansion more difficult over the next several quarters.

Wah Lee Industrial Corp. (3010) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 30.22B
Dividend Yield: 4.59%
Average Volume (3M): 736.69K
Price to Earnings (P/E): 10.2
Beta (1Y): 0.74
Revenue Growth: 16.43%
EPS Growth: 44.01%
Country: TW
Employees: 9,139
Sector: General
Sector Strength: 55
Industry: Industrial - Distribution

Wah Lee Industrial Corp. Business Overview & Revenue Model

Company Description

Wah Lee Industrial Corporation engages in the manufacturing of materials, engineering and functional plastics, semiconductor process materials, and printed circuit boards in Taiwan. The company imports and exports various products, such as engineerin...

Wah Lee Industrial Corp. Financial Statement Overview

Summary

Wah Lee shows the profile of a stable but low-margin distributor. Revenue has grown from roughly NT$59.1bn (2020) to NT$78.2bn, gross margin improved to 8.1% and net income edged up to NT$2.29bn (Income Statement: 61). The balance sheet has de-levered meaningfully, with debt-to-equity down from 1.11 in 2022 to 0.69 and equity nearly doubled to NT$23.9bn, though debt remains elevated at NT$16.5bn and ROE has slipped to 9.6% (Balance Sheet: 63). Cash flow is the brightest spot, with record operating cash flow of NT$5.9bn and free cash flow of NT$5.1bn, far above net income, albeit after a negative 2024 that highlights working-capital volatility (Cash Flow: 66). Thin operating margins (4.0% vs 5.9% in 2021) and earnings still below their 2021 peak cap the score.

Income Statement

61Positive

Balance Sheet

63Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	85.05B	78.19B	80.03B	66.78B	73.57B	70.52B
Gross Profit	7.08B	6.31B	5.96B	5.36B	5.57B	5.98B
EBITDA	4.22B	3.59B	3.47B	3.99B	4.33B	4.55B
Net Income	2.90B	2.29B	2.25B	2.11B	2.48B	2.84B
Balance Sheet
Total Assets	64.13B	56.88B	52.38B	50.18B	49.17B	45.89B
Cash, Cash Equivalents and Short-Term Investments	9.52B	9.36B	6.22B	9.48B	9.02B	6.32B
Total Debt	16.73B	16.45B	15.11B	17.96B	18.53B	15.34B
Total Liabilities	34.33B	30.84B	27.86B	29.76B	30.63B	28.17B
Stockholders Equity	27.36B	23.88B	22.54B	18.58B	16.76B	15.70B
Cash Flow
Free Cash Flow	2.25B	5.06B	-759.04M	2.57B	1.88B	1.11B
Operating Cash Flow	3.08B	5.90B	-102.70M	3.17B	3.78B	2.32B
Investing Cash Flow	-2.69B	-2.22B	789.39M	-912.60M	-1.25B	-2.89B
Financing Cash Flow	-490.74M	-767.05M	-3.27B	-2.23B	471.63M	933.60M

Wah Lee Industrial Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3010 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6197	68Neutral	TWD 29.56B	19.11	―	2.89%	21.34%	60.27%
TW:8932	66Neutral	TWD 34.00B	37.64	―	0.90%	23.79%	55.87%
TW:2328	61Neutral	TWD 24.34B	1.21	―	1.92%	-13.85%	-78.67%
TW:3090	61Neutral	TWD 39.11B	15.97	―	3.53%	28.25%	67.56%
TW:3010	60Neutral	TWD 29.96B	10.24	―	4.59%	16.43%	44.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3033	53Neutral	TWD 19.77B	7.86	―	5.09%	19.40%	191.59%

* General Sector Average

Performance Comparison

TW:3010 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3010	Wah Lee Industrial Corp.	115.50	14.73	14.62%
TW:2328	Pan-International Industrial Corp.	46.95	-3.01	-6.02%
TW:3033	Weikeng Industrial Co., Ltd.	37.70	8.14	27.53%
TW:3090	Nichidenbo Corp.	136.00	43.92	47.70%
TW:6197	Jess-Link Products Co., Ltd.	239.50	96.41	67.37%
TW:8932	Wiselink Co Ltd.	79.80	8.99	12.70%

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

Wah Lee Industrial Corp. AI Stock Analysis