Ta Liang Technology Co., Ltd. (3167) AI Stock Analysis

Ta Liang Technology Co., Ltd.

(TWSE:3167)

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Rating:53Neutral

Price Target:TWD 711.00▼(-11.24% Downside)

Action:initiatedcoverage

Date:11/09/26

Ta Liang Technology earns a below-average score. The core issue is that a record profit year — revenue nearly doubling, margins at six-year highs and ~21% ROE — has not translated into cash, with operating cash flow at a fraction of net income and free cash flow slightly negative, while the asset base expanded faster than retained profits. Layered on top, the shares are in a pronounced downtrend, trading far below their 20-, 50- and 100-day moving averages with negative MACD and now testing the 200-day average, though deeply oversold readings leave room for a relief bounce. A P/E near 52 against peak-cycle earnings and a sub-1% dividend yield leave limited valuation support. The balance sheet and multi-year deleveraging are genuine strengths; investors should watch inventory, receivables and order sustainability for evidence that profits can convert into durable cash flow.

Positive Factors

Improved profitability and growthThe 2025 rebound combines higher revenue with materially stronger net and EBIT margins, indicating improved operating efficiency or product mix. If maintained, this creates greater internal funding capacity, supports reinvestment, and strengthens earnings power over the next several quarters.

Negative Factors

Weak cash conversionThe wide gap between reported profit and operating cash generation raises concern about earnings quality and the timing of cash realization. Negative free cash flow may constrain self-funded growth, increase reliance on financing, and reduce flexibility if weak conversion persists.

Ta Liang Technology Co., Ltd. (3167) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 78.32B
Dividend Yield: 0.49%
Average Volume (3M): 4.61M
Price to Earnings (P/E): 56.6
Beta (1Y): 1.58
Revenue Growth: 103.13%
EPS Growth: 231.77%
Country: TW
Employees: 241
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Ta Liang Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Taliang Technology Co., Ltd. is a Taiwan-based manufacturer specializing in a broad array of advanced industrial machinery. Their product portfolio includes semiconductor inspection systems, PCB routing and drilling machines, resin panel cutters, CNC...

Ta Liang Technology Co., Ltd. Financial Statement Overview

Summary

Earnings strength is offset by poor cash conversion. The income statement (79) is the highlight: revenue nearly doubled to NT$5.08bn, gross margin expanded to 38.5% and net income rose more than five-fold to NT$716mn — the best margins in six years. The balance sheet (70) is solid, with equity up to NT$3.42bn, ~21% ROE and debt-to-equity of 0.50, well below the prior-cycle peak of 0.90, though total assets ballooned to NT$8.41bn on heavier debt and liabilities. Cash flow (36) is the clear weakness: operating cash flow of just NT$140mn is under 20% of net income and free cash flow was negative at -NT$48mn in a record profit year, indicating working capital absorption. Revenue history is also highly cyclical, swinging from NT$4.44bn (2021) to NT$1.29bn (2023) and back, so current peak margins may not be sustainable.

Income Statement

79Positive

Balance Sheet

70Positive

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.77B	5.08B	2.60B	1.29B	2.37B	4.44B
Gross Profit	3.27B	1.95B	750.87M	327.19M	595.90M	1.15B
EBITDA	1.82B	965.49M	218.64M	90.12M	449.76M	646.61M
Net Income	1.28B	716.19M	124.39M	12.82M	313.14M	441.27M
Balance Sheet
Total Assets	12.10B	8.41B	5.20B	4.33B	4.84B	5.84B
Cash, Cash Equivalents and Short-Term Investments	1.50B	697.34M	317.79M	814.83M	582.93M	525.18M
Total Debt	1.61B	1.70B	1.08B	1.25B	1.64B	2.05B
Total Liabilities	7.80B	4.99B	2.53B	2.21B	2.55B	3.56B
Stockholders Equity	4.29B	3.42B	2.67B	2.11B	2.30B	2.29B
Cash Flow
Free Cash Flow	586.62M	-47.69M	-503.64M	850.21M	530.55M	-438.57M
Operating Cash Flow	734.80M	140.42M	-325.02M	1.01B	646.62M	-373.92M
Investing Cash Flow	-210.87M	-380.00M	-309.76M	-202.07M	138.19M	-431.20M
Financing Cash Flow	243.81M	588.79M	60.50M	-540.05M	-775.54M	596.74M

Ta Liang Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3167 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6187	69Neutral	TWD 98.80B	52.55	―	1.14%	0.81%	12.66%
TW:2467	66Neutral	TWD 50.73B	25.46	―	1.74%	71.68%	144.03%
TW:3131	66Neutral	TWD 49.68B	28.86	―	2.70%	37.72%	73.19%
TW:3450	59Neutral	TWD 53.83B	75.61	―	0.27%	-1.56%	-16.64%
TW:3583	59Neutral	TWD 40.40B	28.85	―	2.41%	7.90%	44.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3167	53Neutral	TWD 71.70B	56.60	―	0.49%	103.13%	231.77%

* General Sector Average

Performance Comparison

TW:3167 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3167	Ta Liang Technology Co., Ltd.	801.00	592.01	283.28%
TW:2467	C Sun Mfg. Ltd.	315.50	141.16	80.96%
TW:3131	Grand Process Technology Corporation	1705.00	325.39	23.59%
TW:3450	Elite Advanced Laser Corporation	369.50	119.00	47.51%
TW:3583	Scientech Corporation	486.50	164.99	51.32%
TW:6187	All Ring Tech Co., Ltd.	1025.00	691.24	207.11%

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

Ta Liang Technology Co., Ltd. AI Stock Analysis