Yao Sheng Electronic Co., Ltd. (3207) AI Stock Analysis

Yao Sheng Electronic Co., Ltd.

(TPEx:3207)

Select Model

Rating:34Underperform

Price Target:TWD 29.00▼(-1.69% Downside)

Action:initiatedcoverage

Date:11/09/26

Yao Sheng Electronic scores poorly overall, driven primarily by deteriorating financial performance: margins have more than halved since 2023, the company has recorded two straight annual net losses, and both operating and free cash flow are deeply negative while leverage has risen sharply to fund capacity expansion. Technicals reinforce the caution, with the share price well below all major moving averages and negative MACD momentum. Valuation provides no cushion given negative earnings and no dividend. The main offsets are strong top-line growth, still-positive EBITDA suggesting losses are inflated by depreciation on new assets, and an oversold RSI that could allow a short-term bounce. Investors should look for margin stabilization and a return to positive operating cash flow before the expansion can be judged successful.

Positive Factors

Revenue AccelerationThe return to clearer revenue growth indicates improving demand or commercial execution compared with the prior year. Although growth has not yet translated into profits, a larger revenue base can support operating leverage if pricing and cost absorption improve over the next several quarters.

Negative Factors

Margin Compression and LossesSharp gross-margin compression shows that recent revenue growth is not converting efficiently into earnings. Negative operating profit and a deeper net loss reduce internal funding capacity and indicate that pricing, cost absorption, or product mix must improve before growth can produce durable shareholder returns.

Yao Sheng Electronic Co., Ltd. (3207) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.88B
Dividend Yield: ―
Average Volume (3M): 202.55K
Price to Earnings (P/E): -12.7
Beta (1Y): 0.87
Revenue Growth: 17.17%
EPS Growth: -859.04%
Country: TW
Employees: 39
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Yao Sheng Electronic Co., Ltd. Business Overview & Revenue Model

Company Description

Yao Sheng Electronic Co., Ltd. is a Taiwan-based enterprise specializing in the development, manufacturing, and global distribution of transformers and inductors. The company's extensive product line encompasses a wide range of transformers, includin...

Yao Sheng Electronic Co., Ltd. Financial Statement Overview

Summary

Financials are the weakest link. Revenue growth is impressive (NT$720M in 2020 to NT$1.92B latest), but gross margin collapsed from 27.1% in 2023 to 11.7% in 2025, producing an operating loss of NT$98M and a second consecutive net loss (-NT$54.1M). Cash flow is the biggest concern: operating cash flow deteriorated to -NT$202.8M and free cash flow has been negative every year, hitting -NT$356.1M. The balance sheet is holding up better, with a still-meaningful NT$1.74B equity base, but debt rose to NT$1.51B and debt-to-equity climbed to 0.87 from 0.31 in 2023 while equity shrank, and ROE is negative at -3.1%. Positive EBITDA of NT$62.7M suggests depreciation from the capacity build-out is amplifying losses, leaving a path to recovery, but the expansion is currently debt-funded and cash-consumptive.

Income Statement

32Negative

Balance Sheet

45Neutral

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.88B	1.92B	1.52B	1.12B	1.23B	968.73M
Gross Profit	293.89M	223.97M	268.39M	303.80M	322.37M	157.04M
EBITDA	2.36M	62.66M	95.23M	164.87M	287.96M	66.32M
Net Income	-177.58M	-54.06M	-9.95M	101.08M	210.03M	32.19M
Balance Sheet
Total Assets	6.19B	5.78B	3.41B	2.17B	1.68B	1.08B
Cash, Cash Equivalents and Short-Term Investments	676.37M	1.58B	574.95M	581.25M	325.40M	50.23M
Total Debt	2.00B	1.51B	1.04B	428.12M	295.94M	234.49M
Total Liabilities	2.57B	2.08B	1.45B	712.21M	693.50M	577.28M
Stockholders Equity	1.70B	1.74B	1.88B	1.39B	939.11M	515.46M
Cash Flow
Free Cash Flow	-262.44M	-356.14M	-473.17M	-50.36M	-97.29M	-58.16M
Operating Cash Flow	-123.19M	-202.84M	-96.87M	128.12M	228.72M	-35.98M
Investing Cash Flow	-1.27B	935.85M	-527.75M	-309.87M	-232.98M	-36.65M
Financing Cash Flow	209.08M	166.13M	600.06M	449.55M	282.07M	68.94M

Yao Sheng Electronic Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3207 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3114	57Neutral	TWD 2.30B	10.54	―	2.94%	3.39%	271.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6204	54Neutral	TWD 2.02B	82.83	―	0.57%	2.29%	-22.84%
TW:3230	39Underperform	TWD 2.05B	-11.80	―	1.48%	2.22%	-86.76%
TW:5244	39Underperform	TWD 2.33B	-77.50	―	1.17%	4.95%	-149.34%
TW:3550	38Underperform	TWD 1.98B	1860.00	―	―	13.15%	―
TW:3207	34Underperform	TWD 1.96B	-12.71	―	―	17.17%	-859.04%

* General Sector Average

Performance Comparison

TW:3207 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3207	Yao Sheng Electronic Co., Ltd.	29.50	-34.40	-53.83%
TW:3114	Howteh Technology Co., Ltd.	34.00	10.61	45.36%
TW:3230	Jiin Ming Industry Co., Ltd.	23.85	-20.75	-46.52%
TW:3550	Copartner Technology Corporation	18.45	4.90	36.16%
TW:5244	Brightek Optoelectronic Co., Ltd.	34.10	-4.97	-12.73%
TW:6204	Taiwan Alpha Electronic Co., Ltd.	87.60	13.22	17.78%

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

Yao Sheng Electronic Co., Ltd. AI Stock Analysis