Zenitron Corporation (3028) AI Stock Analysis

Zenitron Corporation

(TWSE:3028)

Select Model

Rating:56Neutral

Price Target:TWD 57.00▲(5.36% Upside)

Action:initiatedcoverage

Date:11/09/26

Zenitron scores in the mid-range as cheap valuation is offset by weak cash generation and poor price momentum. The dominant concern is financial quality: although revenue, margins and profits rebounded strongly, growth was funded by debt and working capital, with operating and free cash flow sharply negative and debt-to-equity climbing to 1.77 against thin 1.8% net margins. Technically, the shares trade below all key moving averages with a negative MACD, signalling an entrenched downtrend, though oversold RSI and Stochastic readings suggest selling pressure may be extended. Supporting the score are a low 6.4x P/E and a 5.2% dividend yield, which provide valuation and income support, but the sustainability of that payout depends on the company converting its earnings recovery into positive cash flow.

Positive Factors

Revenue RecoveryAfter sharp declines in 2022–2023, the 2024–2025 rebound shows the company can restore sales momentum when conditions improve. Sustained recovery would broaden the earnings base and support operating leverage, although the evidence points to recovery rather than consistently smooth growth.

Negative Factors

Thin Profit MarginsStructurally thin gross and net margins leave earnings highly sensitive to changes in pricing, sales volume, and operating costs. Even when revenue recovers, modest profitability limits the amount of revenue converted into durable earnings and reduces protection against business volatility.

Zenitron Corporation (3028) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 13.91B
Dividend Yield: 5.38%
Average Volume (3M): 859.33K
Price to Earnings (P/E): 6.3
Beta (1Y): 0.79
Revenue Growth: 75.87%
EPS Growth: 203.77%
Country: TW
Employees: 754
Sector: General
Sector Strength: 55
Industry: Technology Distributors

Zenitron Corporation Business Overview & Revenue Model

Company Description

Zenitron Corporation functions as a global distributor of semiconductor components, serving markets throughout China, Taiwan, and other international regions. Its comprehensive product portfolio includes supplier line cards, various IT equipment, han...

Zenitron Corporation Financial Statement Overview

Summary

Zenitron posted a strong earnings rebound, with revenue up about 14% to NT$41.5 billion, net income up 53% to NT$747.5 million, and wider gross (7.3%) and operating (3.2%) margins lifting return on equity to 11.9% (Income Statement: 68). However, balance sheet quality is weaker, with debt-to-equity rising to 1.77 and equity funding only about 27% of assets (Balance Sheet: 48). The biggest drag is cash generation (Cash Flow: 30): operating cash flow swung to negative NT$854 million and free cash flow to negative NT$876 million, driven by working capital build rather than capex. The recurring pattern of burning cash when growing and generating cash when shrinking means expansion is debt-funded, and razor-thin net margins (1.8%) plus cyclical revenue swings leave limited downside cushion.

Income Statement

68Positive

Balance Sheet

48Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	59.40B	41.45B	36.44B	32.57B	40.02B	42.04B
Gross Profit	4.65B	3.03B	2.28B	2.39B	2.73B	2.49B
EBITDA	2.53B	1.40B	1.09B	1.14B	1.30B	1.27B
Net Income	1.70B	747.52M	489.18M	455.97M	714.57M	877.71M
Balance Sheet
Total Assets	38.25B	23.43B	19.92B	21.08B	21.73B	21.79B
Cash, Cash Equivalents and Short-Term Investments	4.89B	2.67B	1.76B	1.52B	1.40B	1.64B
Total Debt	20.04B	11.16B	8.77B	9.93B	12.54B	10.94B
Total Liabilities	30.99B	17.13B	13.68B	15.31B	16.21B	16.49B
Stockholders Equity	7.25B	6.30B	6.24B	5.77B	5.52B	5.29B
Cash Flow
Free Cash Flow	-8.18B	-876.34M	1.45B	3.04B	-1.72B	-1.28B
Operating Cash Flow	-8.15B	-854.01M	1.47B	3.05B	-1.70B	-1.27B
Investing Cash Flow	-21.25M	13.76M	86.38M	99.96M	238.62M	5.01M
Financing Cash Flow	9.73B	1.84B	-1.54B	-3.03B	963.63M	1.28B

Zenitron Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3028 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6138	76Outperform	TWD 15.99B	14.17	―	5.07%	18.18%	48.17%
TW:8261	69Neutral	TWD 14.98B	20.24	―	3.97%	2.86%	10.89%
TW:2478	62Neutral	TWD 14.55B	20.88	―	1.97%	8.00%	72.87%
TW:3028	56Neutral	TWD 13.86B	6.29	―	5.38%	75.87%	203.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3234	39Underperform	TWD 17.63B	-97.86	―	―	33.49%	56.29%
TW:2340	30Underperform	TWD 17.77B	-22.74	―	―	5.05%	34.85%

* General Sector Average

Performance Comparison

TW:3028 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3028	Zenitron Corporation	54.10	15.39	39.77%
TW:2340	Taiwan-Asia Semiconductor Corporation	40.70	15.05	58.67%
TW:2478	Ta-I Technology Co. Ltd.	101.50	34.65	51.83%
TW:3234	Truelight Corporation	138.50	100.86	267.98%
TW:6138	Anpec Electronics Corporation	216.00	-15.23	-6.59%
TW:8261	Advanced Power Electronics Corp	126.00	31.18	32.89%

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

Zenitron Corporation AI Stock Analysis