LFA Co Ltd (3226) AI Stock Analysis

LFA Co Ltd

(TPEx:3226)

Select Model

Rating:44Neutral

Price Target:TWD 45.00▼(-14.61% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by substantially weakened financial performance, especially declining profitability and negative free cash flow. Weak technical momentum and an extremely high P/E ratio provide additional downside pressure, while the strong balance sheet offers only partial support.

Positive Factors

Conservative Balance SheetLow leverage and a substantial equity base provide financial resilience for an auto-parts company. Contained debt obligations can preserve flexibility to manage weaker trading conditions, fund operations, and pursue investment without the balance-sheet strain associated with heavier borrowing.

Negative Factors

Sharp Profitability DeteriorationThe latest annual results show a major reduction in earnings power, combining lower revenue with severe margin compression and a steep net-income decline. If this reset persists, it could weaken reinvestment capacity, reduce resilience, and make future results more volatile.

LFA Co Ltd (3226) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.40B
Dividend Yield: 1.02%
Average Volume (3M): 28.37K
Price to Earnings (P/E): 374.6
Beta (1Y): 0.39
Revenue Growth: -32.93%
EPS Growth: -88.49%
Country: TW
Employees: 184
Sector: General
Sector Strength: 55
Industry: Auto - Parts

LFA Co Ltd Business Overview & Revenue Model

Company Description

LFA Co., Ltd. specializes in the creation, refinement, and commercial distribution of components for the automotive and electronics industries. The firm also provides advanced, environmentally conscious power supply units. Ching Lin Chou founded this...

LFA Co Ltd Financial Statement Overview

Summary

Weak revenue, margin, net income, and operating cash-flow trends, together with negative free cash flow, outweigh the strong equity base and low leverage.

Income Statement

25Negative

Balance Sheet

82Very Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.27B	1.61B	2.13B	2.16B	2.24B	2.92B
Gross Profit	75.23M	231.27M	531.98M	540.09M	510.64M	691.04M
EBITDA	269.06M	262.01M	651.59M	529.16M	522.26M	428.50M
Net Income	11.77M	15.78M	358.20M	260.23M	318.76M	230.50M
Balance Sheet
Total Assets	2.47B	2.48B	2.60B	2.37B	2.23B	2.19B
Cash, Cash Equivalents and Short-Term Investments	602.58M	634.70M	784.35M	608.79M	635.26M	574.89M
Total Debt	306.92M	311.98M	206.83M	271.59M	313.94M	183.54M
Total Liabilities	610.40M	598.33M	700.94M	797.44M	759.86M	879.26M
Stockholders Equity	1.86B	1.88B	1.90B	1.57B	1.47B	1.31B
Cash Flow
Free Cash Flow	-67.23M	-111.98M	236.68M	180.97M	35.17M	5.29M
Operating Cash Flow	198.06M	253.69M	545.34M	458.64M	296.63M	284.10M
Investing Cash Flow	-281.60M	-408.92M	-192.91M	-305.54M	-322.89M	-90.60M
Financing Cash Flow	-72.41M	27.80M	-96.97M	-205.51M	-30.64M	-255.97M

LFA Co Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3226 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2364	74Outperform	TWD 2.89B	9.13	―	3.83%	17.40%	60.67%
TW:3287	70Outperform	TWD 3.48B	9.15	―	1.99%	20.68%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3226	44Neutral	TWD 3.17B	374.56	―	1.02%	-32.93%	-88.49%
TW:3564	43Neutral	TWD 3.11B	84.03	―	0.47%	22.54%	-10.60%
TW:3047	41Neutral	TWD 2.99B	-15.27	―	2.23%	-32.95%	-101.63%

* General Sector Average

Performance Comparison

TW:3226 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3226	LFA Co Ltd	52.70	3.75	7.66%
TW:2364	Twinhead International Corp.	52.20	-15.00	-22.32%
TW:3047	Edimax Technology Co., Ltd.	13.90	-4.60	-24.86%
TW:3287	KWorld Computer Co., Ltd.	75.20	44.53	145.17%
TW:3564	AEWIN Technologies Co., Ltd.	57.80	11.78	25.60%
TW:7939	GIGAIPC Co Ltd	154.00	-146.50	-48.75%

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

LFA Co Ltd AI Stock Analysis