ADDA Corp. (3071) AI Stock Analysis

ADDA Corp.

(TPEx:3071)

Select Model

Rating:53Neutral

Price Target:TWD 18.00▼(-4.51% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is held back primarily by weakening profitability and pronounced technical weakness. A sound equity base, positive cash generation, and attractive dividend yield provide support, but the high P/E and lack of confirmed momentum limit the overall rating.

Positive Factors

Revenue ReboundThe strong 2025 revenue rebound shows that ADDA retained the ability to regain sales momentum after the prior-year decline. If this recovery persists, a larger revenue base can support operating scale, improve capacity utilization, and provide a foundation for rebuilding profitability.

Negative Factors

Profitability CompressionThe revenue rebound has not translated proportionately into earnings, as both EBITDA and net margins weakened while net income trended down. Persistent compression would reduce the earnings benefit of growth, limit internal reinvestment capacity, and make future results more sensitive to operating costs.

ADDA Corp. (3071) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.18B
Dividend Yield: 4.24%
Average Volume (3M): 219.41K
Price to Earnings (P/E): 34.4
Beta (1Y): 0.99
Revenue Growth: 13.05%
EPS Growth: -39.05%
Country: TW
Employees: 300
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

ADDA Corp. Business Overview & Revenue Model

Company Description

Adda Corporation, a global enterprise headquartered in Pingtung, Taiwan, specializes in the development, manufacturing, and worldwide distribution of electronic thermal management products, primarily catering to the information technology sector. The...

ADDA Corp. Financial Statement Overview

Summary

The balance sheet is reasonably sound and cash flow is positive, but declining profitability, lower return on equity, moderate leverage, and inconsistent free cash flow constrain performance.

Income Statement

45Neutral

Balance Sheet

65Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.73B	2.33B	2.48B	2.40B	2.79B	2.50B
Gross Profit	827.17M	719.81M	742.97M	722.95M	719.65M	662.32M
EBITDA	316.97M	261.02M	364.86M	363.01M	315.70M	310.25M
Net Income	63.44M	62.76M	88.94M	132.73M	227.81M	203.05M
Balance Sheet
Total Assets	4.22B	3.91B	4.07B	3.85B	3.86B	3.21B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.58B	1.57B	1.51B	1.21B	949.69M
Total Debt	1.05B	1.07B	1.15B	1.06B	870.67M	657.51M
Total Liabilities	2.22B	1.98B	2.09B	1.94B	1.91B	1.68B
Stockholders Equity	1.54B	1.50B	1.53B	1.48B	1.55B	1.43B
Cash Flow
Free Cash Flow	89.37M	235.97M	64.52M	510.41M	404.79M	-46.26M
Operating Cash Flow	156.56M	303.86M	164.25M	540.23M	449.57M	44.19M
Investing Cash Flow	-54.78M	-38.21M	-130.06M	-16.45M	-270.15M	-89.61M
Financing Cash Flow	-180.30M	-251.56M	-68.48M	-150.37M	41.59M	-138.71M

ADDA Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3071 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3206	56Neutral	TWD 1.85B	15.48	―	4.80%	-0.47%	1.25%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6204	54Neutral	TWD 2.02B	83.02	―	0.57%	2.29%	-22.84%
TW:3071	53Neutral	TWD 2.03B	34.40	―	4.24%	13.05%	-39.05%
TW:3296	48Neutral	TWD 2.13B	-85.51	―	―	-4.42%	-123.67%
TW:3021	45Neutral	TWD 2.01B	28.73	―	4.20%	-2.04%	―
TW:3092	40Underperform	TWD 1.92B	-4.22	―	―	-6.23%	12.14%

* General Sector Average

Performance Comparison

TW:3071 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3071	ADDA Corp.	18.85	-3.34	-15.07%
TW:3021	Welltend Technology Corporation	21.50	4.33	25.23%
TW:3092	Hotron Precision Electronic Industrial Co. Ltd.	16.90	-0.45	-2.59%
TW:3206	Kingstate Electronics Corp.	31.25	-0.73	-2.29%
TW:3296	Powertech Industrial Co., Ltd.	22.95	1.80	8.51%
TW:6204	Taiwan Alpha Electronic Co., Ltd.	87.30	12.33	16.44%

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 10, 2026

ADDA Corp. AI Stock Analysis