Cheer Time Enterprise Co., Ltd. (3229) AI Stock Analysis

Cheer Time Enterprise Co., Ltd.

(TWSE:3229)

Select Model

Rating:40Underperform

Price Target:TWD 35.00▼(-12.06% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held down primarily by weak earnings power and unreliable cash generation: despite strong revenue growth, razor-thin ~6.5% gross margins produced an operating loss, a net loss of ~NT$27.8 million and negative free cash flow in the latest year. The conservatively financed balance sheet — low debt-to-equity near 0.23 and equity funding ~70% of assets — is the main offset and limits near-term financial risk. Technicals reinforce caution, with the price below all key moving averages and a sharply negative MACD, though the oversold RSI hints at scope for a short-term bounce. Valuation adds no support, as a 28.5x P/E with no dividend is difficult to justify given current losses. A sustained improvement in margins and cash conversion would be needed to lift the score.

Positive Factors

Revenue RecoveryThe revenue rebound shows the company can recover demand after weaker periods, providing a constructive base for future scale. Continued top-line growth could support earnings capacity and improve operating resilience, provided margins do not remain persistently low.

Negative Factors

Unstable ProfitabilityThe return to a net loss after a modest 2024 profit demonstrates that earnings are not yet dependable. Low and volatile gross margins leave limited protection against cost or pricing pressure, making future results more sensitive to operating conditions.

Cheer Time Enterprise Co., Ltd. (3229) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.28B
Dividend Yield: ―
Average Volume (3M): 2.18M
Price to Earnings (P/E): 30.4
Beta (1Y): 1.13
Revenue Growth: 39.19%
EPS Growth: ―
Country: TW
Employees: 212
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Cheer Time Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Cheer Time Enterprise Co., Ltd, a Taiwanese manufacturer, specializes in the production and distribution of printed circuit boards (PCBs). Their comprehensive product portfolio encompasses a range of advanced PCB solutions, including high-density int...

Cheer Time Enterprise Co., Ltd. Financial Statement Overview

Summary

Cheer Time's financial profile is fragile. Revenue has nearly tripled since 2020 and grew ~13% in the latest year, but gross margin of just ~6.5% leaves no cushion, operating profit turned negative and the company swung to a net loss of ~NT$27.8 million (net margin -2.7%) after a brief profitable year (Income Statement 29). Cash flow is the other weak link, reversing from +NT$63 million free cash flow to -NT$15 million, with positive operating cash flow in only two of the past six years (Cash Flow 31). The clear strength is the balance sheet (63): debt-to-equity of ~0.23, equity funding ~70% of assets and declining leverage provide a safety buffer — though equity is slowly eroding through losses and ROE remains negative at ~-4.6%.

Income Statement

29Negative

Balance Sheet

63Positive

Cash Flow

31Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.32B	1.04B	918.40M	928.14M	819.59M	440.44M
Gross Profit	137.09M	67.29M	65.45M	50.12M	38.55M	43.10M
EBITDA	123.65M	24.31M	42.92M	8.23M	3.30M	-29.26M
Net Income	85.24M	-27.79M	8.73M	-25.14M	-32.97M	-65.06M
Balance Sheet
Total Assets	1.05B	860.40M	840.69M	919.98M	962.83M	533.16M
Cash, Cash Equivalents and Short-Term Investments	133.91M	132.87M	130.25M	157.15M	194.06M	104.36M
Total Debt	156.44M	139.96M	124.01M	221.56M	203.31M	144.53M
Total Liabilities	371.93M	261.16M	213.66M	301.69M	322.96M	248.27M
Stockholders Equity	681.51M	599.24M	627.03M	618.29M	639.72M	289.45M
Cash Flow
Free Cash Flow	-34.41M	-15.10M	62.88M	-33.57M	40.12M	-9.20M
Operating Cash Flow	-24.71M	-11.00M	67.91M	-27.91M	60.72M	-1.49M
Investing Cash Flow	-26.12M	11.26M	-24.54M	-8.48M	-154.36M	5.09M
Financing Cash Flow	45.26M	17.48M	-97.38M	8.70M	191.84M	-22.36M

Cheer Time Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3229 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6606	62Neutral	TWD 2.49B	15.48	―	4.56%	19.80%	80.69%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1586	45Neutral	TWD 2.19B	45.26	―	1.63%	4.79%	―
TW:3178	42Neutral	TWD 2.49B	62.49	―	0.91%	2.22%	6041.77%
TW:4545	40Underperform	TWD 2.68B	44.42	―	0.37%	1.97%	1277.45%
TW:3229	40Underperform	TWD 2.56B	30.38	―	―	39.19%	―
TW:4534	35Underperform	TWD 2.15B	53.16	―	―	15.46%	―

* General Sector Average

Performance Comparison

TW:3229 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3229	Cheer Time Enterprise Co., Ltd.	39.80	24.70	163.58%
TW:1586	China Fineblanking Technology Co., Ltd.	17.80	-9.54	-34.88%
TW:3178	Gongin Precision Industrial Co., Ltd.	55.20	5.00	9.96%
TW:4534	Trinity Precision Technology Co., Ltd.	32.11	13.18	69.66%
TW:4545	Min Aik Precision Industrial Co., Ltd.	34.75	1.88	5.70%
TW:6606	Kent Industrial Co., Ltd.	22.60	-1.45	-6.03%

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

Cheer Time Enterprise Co., Ltd. AI Stock Analysis