Tai-Saw Technology Co., Ltd. (3221) AI Stock Analysis

Tai-Saw Technology Co., Ltd.

(TPEx:3221)

Select Model

Rating:40Underperform

Price Target:TWD 35.00▼(-15.25% Downside)

Action:initiatedcoverage

Date:11/09/26

Tai-Saw Technology scores low primarily because of a prolonged operating downturn: margins have compressed for three consecutive years, net profit is effectively break-even, and both operating and free cash flow turned negative for the first time in years while capital spending continued — forcing debt higher. A conservative, low-leverage balance sheet provides stability and time to recover, but it is currently generating almost no return for shareholders. Technicals reinforce the caution, with the stock trading far below all major moving averages and negative MACD momentum, though oversold RSI and Stochastic readings leave room for a short-term bounce. Valuation adds little support, as a near-30x P/E on depressed earnings and a sub-1% dividend yield offer limited cushion. An upside case depends on a demand recovery restoring the high-margin, cash-generative profile seen in 2021–2022.

Positive Factors

Manageable LeverageControlled leverage gives Tai-Saw greater financial flexibility than a highly indebted peer and reduces balance-sheet strain during weaker operating periods. This supports continued investment and lowers the risk that interest or refinancing needs will restrict strategic choices over the next several quarters.

Negative Factors

Severe Margin CompressionThe sharp decline in both net and operating margins materially weakens earnings quality and leaves little cushion against further business pressure. Unless profitability recovers, revenue growth will translate inefficiently into shareholder returns and constrain the company’s ability to fund expansion internally.

Tai-Saw Technology Co., Ltd. (3221) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.26B
Dividend Yield: 0.67%
Average Volume (3M): 2.41M
Price to Earnings (P/E): 31.6
Beta (1Y): 1.30
Revenue Growth: 14.36%
EPS Growth: 6591.41%
Country: TW
Employees: 97
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Tai-Saw Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Tai-Saw Technology Co.,Ltd. manufactures and sells electronic components in Taiwan, the rest of Asia, the United States, Europe, and internationally. The company engages in the research and development, design, manufacturing, sales, integrated circui...

Tai-Saw Technology Co., Ltd. Financial Statement Overview

Summary

Earnings power has deteriorated badly (Income Statement score 30): revenue remains stuck near NT$2.2 billion versus the NT$3.36 billion 2022 peak, gross margin has slid for three straight years to 19.7%, operating margin has collapsed to roughly 1.2%, and net income of NT$8.3 million represents a 0.4% net margin. Cash flow is the biggest red flag (score 28), with operating cash flow swinging to an outflow of NT$1.5 million and free cash flow to negative NT$98 million as thin profits failed to cover roughly NT$97 million of capex. The balance sheet is the clear offset (score 64): equity funds about two-thirds of assets and debt-to-equity is a conservative 0.25, giving the company room to absorb a weak cycle — though debt rose 41% year-over-year and return on equity is just 0.4%.

Income Statement

30Negative

Balance Sheet

64Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.33B	2.23B	2.18B	2.13B	3.36B	2.93B
Gross Profit	526.71M	438.95M	472.77M	529.41M	928.23M	724.01M
EBITDA	170.76M	149.57M	257.63M	151.00M	642.32M	853.06M
Net Income	101.89M	8.28M	101.17M	-13.60M	324.92M	537.80M
Balance Sheet
Total Assets	3.18B	3.04B	2.99B	3.08B	3.64B	3.70B
Cash, Cash Equivalents and Short-Term Investments	699.48M	741.15M	809.51M	845.33M	1.24B	774.69M
Total Debt	454.14M	503.67M	357.99M	420.22M	532.13M	614.73M
Total Liabilities	964.22M	934.10M	808.20M	902.53M	1.22B	1.31B
Stockholders Equity	2.16B	2.04B	2.15B	2.14B	2.35B	2.34B
Cash Flow
Free Cash Flow	-84.81M	-98.01M	66.87M	71.39M	616.41M	87.27M
Operating Cash Flow	65.49M	-1.50M	192.12M	200.46M	689.76M	291.27M
Investing Cash Flow	-152.19M	-97.79M	-65.29M	-74.70M	-191.83M	-42.15M
Financing Cash Flow	-9.78M	52.00M	-111.82M	-391.00M	-276.11M	-134.52M

Tai-Saw Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3221 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4933	70Outperform	TWD 3.63B	6.06	―	6.58%	-7.35%	59.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5457	49Neutral	TWD 3.81B	-283.38	―	7.73%	-8.17%	-103.95%
TW:3236	45Neutral	TWD 4.25B	56.93	―	1.21%	21.97%	203.91%
TW:3221	40Underperform	TWD 4.21B	31.63	―	0.67%	14.36%	6591.41%

* General Sector Average

Performance Comparison

TW:3221 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3221	Tai-Saw Technology Co., Ltd.	41.30	18.66	82.43%
TW:3236	ABC Taiwan Electronics Corp.	41.35	15.55	60.26%
TW:4933	Ubright Optronics Corporation	43.90	-12.84	-22.63%
TW:5457	Speed Tech Corp.	19.40	-20.41	-51.27%
TW:6980	Rapidtek Technologies Inc.	107.00	54.40	103.42%
TW:8045	Twoway Communications Inc.	41.95	-38.66	-47.96%

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

Tai-Saw Technology Co., Ltd. AI Stock Analysis