Donpon Precision Inc. (3290) AI Stock Analysis

Donpon Precision Inc.

(TPEx:3290)

Select Model

Rating:54Neutral

Price Target:TWD 44.00▼(-2.65% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 54 reflects a company with significant financial risks that overshadow its attractive valuation. The primary concern is the severe deterioration in cash flow, with deeply negative free cash flow and weak operating cash generation, which questions the sustainability of its growth. This is compounded by rising leverage on the balance sheet. While the low P/E ratio and solid dividend yield are positive, the bearish technical trend confirms market skepticism. The strong revenue growth noted in the income statement is a secondary positive, but it is not translating into financial stability.

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

Financial performance is mixed. The Income Statement shows strong revenue recovery and net income growth (Score 72), but the Balance Sheet reflects rising leverage with debt-to-equity increasing to 0.82 (Score 58). Critically, the Cash Flow Score is very weak at 35 due to sharply deteriorating operating cash flow and deeply negative free cash flow, indicating poor cash conversion and potential earnings quality issues.

Income Statement

72Positive

Balance Sheet

58Neutral

Cash Flow

35Negative

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.	45.20	1.26	2.86%
TW:1584	S-Tech Corp	16.00	-5.51	-25.63%
TW:3311	Silitech Technology Corporation	39.15	6.38	19.45%
TW:4942	Chia Chang Co., Ltd	28.80	-8.36	-22.49%
TW:6743	Ampacs Corporation	29.60	3.56	13.68%
TW:6859	Best Precision Industrial Co.,Ltd.	106.00	14.98	16.46%

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