Donpon Precision Inc. (3290) AI Stock Analysis

Donpon Precision Inc.

(TPEx:3290)

Select Model

Rating:54Neutral

Price Target:TWD 44.00▼(-3.19% Downside)

Action:initiatedcoverage

Date:11/09/26

Donpon Precision scores in the below-average range, driven primarily by deteriorating financial quality: despite record revenue, margins compressed across the board, profits fell, operating cash flow dropped nearly 71%, and free cash flow stayed negative while leverage climbed to a six-year high. Technicals add further pressure, with the stock trading below all major moving averages and a negative MACD, though oversold RSI and Stochastic readings hint at scope for a near-term bounce. The main offset is valuation — a 9.6x P/E and 3.5% dividend yield provide a reasonable cushion if the current capacity-expansion cycle begins delivering higher-return revenue. Investors should watch for margin stabilization and a recovery in cash conversion as the key catalysts for a better rating.

Positive Factors

Sustained Revenue GrowthSteady multi-year revenue growth indicates continued business expansion and customer demand rather than reliance on a single reporting period. This larger revenue base can support operating scale, strengthen market positioning, and provide a foundation for rebuilding earnings growth over the next several quarters.

Negative Factors

Weak Cash GenerationThe sharp deterioration in operating cash flow and deeply negative free cash flow show that reported profits are not currently converting efficiently into cash. Persistent weak conversion could increase funding needs, restrict investment flexibility, and make future growth more dependent on external financing.

Donpon Precision Inc. (3290) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.10B
Dividend Yield: 3.30%
Average Volume (3M): 806.59K
Price to Earnings (P/E): 9.7
Beta (1Y): 0.86
Revenue Growth: 68.19%
EPS Growth: 116.27%
Country: TW
Employees: 1,209
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Donpon Precision Inc. Business Overview & Revenue Model

Company Description

Donpon Precision Inc. is an enterprise dedicated to the research, development, production, and distribution of electronic components for the automotive sector and high-precision plastic parts. Its operations span both Taiwan and Mainland China. The c...

Donpon Precision Inc. Financial Statement Overview

Summary

Donpon posted record revenue of NT$2.33 billion in 2025 (+18%), but the quality of that growth deteriorated. Gross margin fell to 26.8% from 33.0% and net income declined about 12% despite higher sales (Income Statement: 61). The balance sheet weakened as debt rose to NT$1.82 billion and equity shrank, lifting debt-to-equity to a six-year high of 0.82, though equity still covers roughly 46% of assets and ROE held near 10% (Balance Sheet: 55). Cash flow is the clear weak spot: operating cash flow collapsed to NT$108 million from NT$375 million and heavy capex of NT$406 million drove free cash flow to -NT$298 million for a second straight year (Cash Flow: 34). The company is not distressed and EBITDA remains solid at NT$497 million, but elevated execution risk around margin recovery and cash conversion caps the score.

Income Statement

61Positive

Balance Sheet

55Neutral

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.17B	2.33B	1.97B	1.86B	1.79B	1.72B
Gross Profit	804.22M	623.83M	649.32M	509.41M	390.92M	342.67M
EBITDA	479.03M	497.06M	473.12M	394.29M	353.23M	255.62M
Net Income	418.11M	220.86M	251.08M	121.36M	116.56M	76.73M
Balance Sheet
Total Assets	6.36B	4.77B	4.18B	3.50B	3.11B	3.09B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.14B	1.25B	1.34B	832.73M	670.55M
Total Debt	2.29B	1.82B	1.17B	867.70M	1.04B	1.08B
Total Liabilities	3.86B	2.56B	1.81B	1.45B	1.55B	1.65B
Stockholders Equity	2.50B	2.21B	2.37B	2.05B	1.56B	1.43B
Cash Flow
Free Cash Flow	-263.99M	-297.75M	-113.59M	368.93M	278.00M	-17.61M
Operating Cash Flow	96.73M	107.75M	375.45M	439.79M	325.09M	135.43M
Investing Cash Flow	-657.81M	-409.20M	-521.31M	-44.15M	-201.33M	-147.11M
Financing Cash Flow	173.24M	235.26M	18.49M	215.87M	-67.72M	-67.69M

Donpon Precision Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3290 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6859	61Neutral	TWD 4.28B	52.29	―	1.89%	-30.46%	-30.77%
TW:4942	59Neutral	TWD 4.27B	10.09	―	6.73%	2.44%	13.09%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3290	54Neutral	TWD 4.14B	9.68	―	3.30%	68.19%	116.27%
TW:3311	51Neutral	TWD 3.70B	23.97	―	1.47%	46.08%	7.08%
TW:1584	45Neutral	TWD 3.75B	26.53	―	1.61%	-9.63%	439.46%
TW:6743	42Neutral	TWD 4.13B	27.34	―	9.93%	-11.91%	-10.04%

* General Sector Average

Performance Comparison

TW:3290 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3290	Donpon Precision Inc.	45.45	1.75	4.01%
TW:1584	S-Tech Corp	16.00	-5.96	-27.13%
TW:3311	Silitech Technology Corporation	40.70	7.63	23.07%
TW:4942	Chia Chang Co., Ltd	29.70	-8.50	-22.24%
TW:6743	Ampacs Corporation	30.20	3.26	12.11%
TW:6859	Best Precision Industrial Co.,Ltd.	106.00	8.09	8.26%

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

Donpon Precision Inc. AI Stock Analysis