WT Microelectronics Co., Ltd. (3036) AI Stock Analysis

WT Microelectronics Co., Ltd.

(TWSE:3036)

Select Model

Rating:62Neutral

Price Target:TWD 197.00▲(1.55% Upside)

Action:initiatedcoverage

Date:11/09/26

WT Microelectronics scores moderately well, driven by solid financial execution: rapid revenue scaling, 53% net income growth, improving ROE of 11.5%, and meaningful deleveraging to a 0.61 debt-to-equity ratio. Valuation is a clear positive, with a 9.2x P/E and 4.2% dividend yield providing both value and income appeal. These strengths are tempered by two risks. First, the technical picture is weak — the stock trades well below all key moving averages with negative MACD momentum. Second, the business model carries structural fragility: ~1% net margins, an equity base funding only about a fifth of assets, and free cash flow that more than halved this year as inventory and receivables absorbed growth. The result is an attractively valued, well-growing company whose near-term price trend and thin profitability buffers warrant caution.

Positive Factors

Revenue and Profitability ImprovementReaccelerating revenue and improving profitability indicate stronger recent operating performance and renewed business momentum. If sustained, better growth can support reinvestment and earnings progression, although the company remains exposed to the economics of a low-margin distribution model.

Negative Factors

Weak and Volatile Cash GenerationSharp free-cash-flow deterioration and a history of negative cash generation show that reported earnings do not consistently convert into liquidity. Working-capital swings can therefore constrain funding flexibility, reduce resilience during weaker demand, and make capital allocation less predictable.

WT Microelectronics Co., Ltd. (3036) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 248.26B
Dividend Yield: 4.02%
Average Volume (3M): 7.49M
Price to Earnings (P/E): 7.7
Beta (1Y): 0.70
Revenue Growth: 84.41%
EPS Growth: 138.07%
Country: TW
Employees: 2,300
Sector: General
Sector Strength: 55
Industry: Technology Distributors

WT Microelectronics Co., Ltd. Business Overview & Revenue Model

Company Description

WT Microelectronics Co., Ltd., together with its associated entities, operates within China, focusing on the creation and distribution of electronic and telecommunications parts. These components are utilized across a diverse range of sectors, includ...

WT Microelectronics Co., Ltd. Financial Statement Overview

Summary

Strong growth and improving returns offset by structurally thin margins and volatile cash flow. Revenue has more than tripled over five years to ~NT$1.18 trillion, net income rose 53% to NT$13.5 billion, and ROE improved to 11.5% from 8.6%. Leverage improved materially, with debt-to-equity falling to 0.61 from ~1.0. However, net margin of only ~1.15% and flat gross margin (~3.9%) leave little buffer against pricing or cost shifts, equity funds just ~22% of the asset base, and operating cash flow fell sharply to NT$18.0 billion from NT$42.4 billion as working capital absorbed growth. Capital intensity is low, so free cash flow still covers ~91% of net income, supporting earnings quality.

Income Statement

72Positive

Balance Sheet

62Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.76T	1.18T	959.43B	594.52B	571.20B	447.90B
Gross Profit	61.48B	45.87B	37.60B	18.41B	19.83B	16.99B
EBITDA	36.91B	22.64B	18.34B	9.65B	12.81B	11.28B
Net Income	24.73B	13.54B	8.84B	4.01B	7.63B	7.92B
Balance Sheet
Total Assets	812.74B	527.56B	412.49B	265.18B	200.20B	173.35B
Cash, Cash Equivalents and Short-Term Investments	38.08B	28.89B	40.11B	23.90B	5.40B	4.70B
Total Debt	66.42B	71.64B	102.41B	33.62B	57.76B	43.81B
Total Liabilities	688.06B	409.62B	308.63B	193.24B	145.23B	119.49B
Stockholders Equity	124.41B	117.66B	102.88B	71.11B	54.11B	53.77B
Cash Flow
Free Cash Flow	24.01B	16.32B	42.11B	40.77B	-6.36B	-13.16B
Operating Cash Flow	25.69B	17.99B	42.43B	41.03B	-6.04B	-12.98B
Investing Cash Flow	-2.07B	-2.75B	-108.89B	-738.64M	-4.95B	-992.87M
Financing Cash Flow	-19.36B	-26.21B	82.03B	-22.96B	8.63B	15.60B

WT Microelectronics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3036 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1229	76Outperform	TWD 69.58B	15.38	―	4.74%	-3.23%	11.13%
TW:5434	74Outperform	TWD 97.59B	16.52	―	2.58%	21.35%	55.48%
TW:3036	62Neutral	TWD 255.18B	7.73	―	4.02%	84.41%	138.07%
TW:6196	59Neutral	TWD 92.54B	19.17	―	1.52%	86.15%	58.05%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3702	54Neutral	TWD 162.00B	5.73	―	3.97%	57.69%	219.94%

* General Sector Average

Performance Comparison

TW:3036 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3036	WT Microelectronics Co., Ltd.	194.00	48.65	33.47%
TW:1229	Lien Hwa Industrial Holdings Corporation	38.00	-6.46	-14.53%
TW:3702	WPG Holding Co Ltd	91.70	28.60	45.33%
TW:5434	Topco Scientific Co., Ltd.	520.00	216.02	71.06%
TW:6196	Marketech International Corp.	424.50	182.42	75.36%
TW:6944	Mega Union Technology, Inc.	641.00	234.74	57.78%

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

WT Microelectronics Co., Ltd. AI Stock Analysis