Winstek Semiconductor Co. Ltd. (3265) AI Stock Analysis

Winstek Semiconductor Co. Ltd.

(TPEx:3265)

Select Model

Rating:58Neutral

Price Target:TWD 150.00▼(-4.76% Downside)

Action:initiatedcoverage

Date:11/09/26

The score reflects a fundamentally sound but transitioning business weighed down by poor price momentum. Winstek's growing revenue, strong operating cash flow and conservatively capitalized balance sheet are the main supports, but margin compression, a 12% drop in net profit, a sharp step-up in borrowings and negative free cash flow from an aggressive capex cycle cap the fundamental score. Technicals are the biggest drag: the shares sit far below all key moving averages with negative MACD, signaling a sustained downtrend, though extremely depressed RSI and Stochastic readings suggest selling may be stretched. A fair P/E near 20.6 and a 2.85% dividend yield provide some valuation cushion. Re-rating potential depends on new capacity restoring the mid-20% net margins seen in 2022-2023.

Positive Factors

Revenue GrowthMeaningful revenue expansion indicates solid end-market demand and improving scale across the company’s memory-related business. If sustained, this growth can support operating leverage, strengthen market positioning, and provide a durable base for future investment and earnings generation.

Negative Factors

Negative Free Cash FlowThe shift from strongly positive free cash flow in earlier years to a meaningful 2025 deficit reduces financial flexibility and increases execution risk. Elevated investment or working-capital needs will need to produce future growth, otherwise cash absorption could persist.

Winstek Semiconductor Co. Ltd. (3265) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 22.21B
Dividend Yield: 2.60%
Average Volume (3M): 2.74M
Price to Earnings (P/E): 22.6
Beta (1Y): 1.51
Revenue Growth: 15.38%
EPS Growth: 34.04%
Country: TW
Employees: 923
Sector: General
Sector Strength: 55
Industry: Semiconductors

Winstek Semiconductor Co. Ltd. Business Overview & Revenue Model

Company Description

Winstek Semiconductor Co., Ltd., along with its various subsidiaries, offers extensive services in Taiwan, specializing in integrated circuit (IC) testing, wafer bumping, and wafer packaging. Their comprehensive test division provides initial wafer s...

Winstek Semiconductor Co. Ltd. Financial Statement Overview

Summary

Winstek shows solid top-line growth (revenue up ~12% to NT$4.65bn, +78% since 2020) and strong operating cash flow of NT$1.36bn, roughly 1.8x net income, pointing to high earnings quality. The balance sheet remains the strongest pillar, with equity funding about 69% of assets and debt-to-equity still modest at 0.30. Offsetting this, net profit fell ~12% as net margin compressed to 16.1% from 20.4%, EBITDA margin slipped to 35.7%, return on equity eased to 11.7%, debt jumped from NT$0.46bn to NT$1.93bn, and free cash flow turned negative (NT$-358m) on NT$1.7bn of capex. Sound financial condition overall, but earnings and cash conversion need to catch up with the capacity build-out.

Income Statement

64Positive

Balance Sheet

72Positive

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.11B	4.65B	4.17B	3.67B	3.95B	3.09B
Gross Profit	1.34B	1.22B	1.08B	1.10B	1.31B	711.57M
EBITDA	1.73B	1.66B	1.72B	1.67B	1.76B	1.11B
Net Income	972.20M	746.54M	848.54M	839.84M	917.47M	393.93M
Balance Sheet
Total Assets	10.77B	9.19B	7.71B	7.62B	7.45B	6.34B
Cash, Cash Equivalents and Short-Term Investments	2.88B	2.60B	2.55B	3.43B	2.95B	2.40B
Total Debt	2.88B	1.93B	460.16M	800.16M	853.85M	754.08M
Total Liabilities	4.45B	2.83B	1.35B	1.63B	1.60B	1.46B
Stockholders Equity	6.32B	6.36B	6.36B	5.99B	5.85B	4.88B
Cash Flow
Free Cash Flow	-494.00M	-358.04M	18.86M	1.19B	532.94M	-744.82M
Operating Cash Flow	1.64B	1.36B	1.33B	1.54B	1.60B	963.58M
Investing Cash Flow	-1.31B	-687.08M	-532.41M	-1.23B	-1.41B	-559.52M
Financing Cash Flow	981.50M	510.80M	-993.60M	-736.73M	-210.08M	145.84M

Winstek Semiconductor Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3265 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8131	65Neutral	TWD 23.84B	13.29	―	1.86%	37.20%	416.69%
TW:3265	58Neutral	TWD 21.46B	22.56	―	2.60%	15.38%	34.04%
TW:2329	56Neutral	TWD 24.47B	14.80	―	2.68%	10.61%	51.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5425	52Neutral	TWD 19.66B	26.95	―	2.55%	7.28%	85.43%
TW:8110	51Neutral	TWD 18.96B	10.01	―	4.00%	11.36%	213.16%
TW:3707	38Underperform	TWD 24.11B	-51.01	―	―	22.70%	38.31%

* General Sector Average

Performance Comparison

TW:3265 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3265	Winstek Semiconductor Co. Ltd.	157.50	60.56	62.46%
TW:2329	Orient Semiconductor Electronics, Limited	37.30	-14.60	-28.13%
TW:3707	Episil Technologies Inc.	60.20	9.80	19.44%
TW:5425	Taiwan Semiconductor Co., Ltd.	79.20	25.61	47.78%
TW:8110	Walton Advanced Engineering, Inc.	37.35	-3.52	-8.62%
TW:8131	Formosa Advanced Technologies Co., Ltd.	53.90	6.24	13.10%

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

Winstek Semiconductor Co. Ltd. AI Stock Analysis