Topco Technologies Corp. (3388) AI Stock Analysis

Topco Technologies Corp.

(TPEx:3388)

Select Model

Rating:60Neutral

Price Target:TWD 72.00▲(0.56% Upside)

Action:initiatedcoverage

Date:11/09/26

Topco Technologies scores in the middle of the range. Financially, it is conservative and cash-generative — equity funds nearly 70% of assets, debt-to-equity is just 0.18, and free cash flow rebounded sharply — but revenue continues to erode from its 2021 peak and thin single-digit net margins leave a mid-single-digit return on equity. The main drag is the technical picture: the shares trade well below all key moving averages with negative MACD and deeply depressed momentum readings, pointing to an entrenched downtrend. Supporting the score is an inexpensive valuation at 12.3x earnings with a 4.9% dividend yield that is well covered by free cash flow. The result is a stable, income-oriented holding whose appeal rests on balance sheet strength and yield rather than growth or price momentum.

Positive Factors

Conservative balance sheetLow leverage and a sizable equity base provide financial resilience and preserve flexibility for investment, dividends, or navigating weaker conditions. Although debt rose after 2021, it remains manageable relative to assets and equity, with no obvious balance-sheet stress indicated.

Negative Factors

Margin compressionThe multi-year decline in gross and net margins indicates weaker profit capture than during the earlier peak period. If this persists, lower earnings generated per unit of revenue could constrain reinvestment, reduce financial flexibility, and make future growth less valuable.

Topco Technologies Corp. (3388) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.79B
Dividend Yield: 4.66%
Average Volume (3M): 1.39M
Price to Earnings (P/E): 12.7
Beta (1Y): 0.77
Revenue Growth: 6.26%
EPS Growth: 37.04%
Country: TW
Employees: 246
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Topco Technologies Corp. Business Overview & Revenue Model

Company Description

Topco Technologies Corp. is an international distributor primarily focused on silicone-based products, serving markets in Taiwan and worldwide. The company's extensive range of silicone materials includes silicone oils, various foaming and release ag...

Topco Technologies Corp. Financial Statement Overview

Summary

A blend of the Income Statement (55), Balance Sheet (73) and Cash Flow (60) scores. The balance sheet is the standout: equity funds roughly 69% of total assets and debt-to-equity is a conservative 0.18, giving low financial risk. Earnings quality is sound — free cash flow rebounded to NT$318 million from NT$111 million and operating cash flow covered net income about 1.0x with minimal capex. Offsetting this, revenue fell about 3% to NT$7.36 billion and is roughly 22% below the 2021 peak, margins are structurally thin (gross margin ~16.8%, net margin ~4.2%), return on equity is only about 6.7%, and operating cash flow has been highly volatile across the cycle. The profile is one of stability and cash conversion rather than growth.

Income Statement

55Neutral

Balance Sheet

73Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.05B	7.36B	7.57B	7.00B	8.70B	9.43B
Gross Profit	1.50B	1.24B	1.27B	1.15B	1.55B	1.86B
EBITDA	659.68M	512.47M	534.49M	449.02M	684.23M	862.18M
Net Income	422.25M	307.55M	303.21M	260.80M	466.42M	595.37M
Balance Sheet
Total Assets	7.66B	6.69B	6.80B	6.46B	6.65B	6.36B
Cash, Cash Equivalents and Short-Term Investments	2.71B	2.87B	3.00B	2.98B	2.69B	2.09B
Total Debt	1.07B	843.44M	882.16M	844.11M	843.72M	273.28M
Total Liabilities	2.55B	1.92B	1.95B	1.98B	1.99B	1.90B
Stockholders Equity	4.96B	4.61B	4.69B	4.34B	4.52B	4.31B
Cash Flow
Free Cash Flow	-600.61M	317.62M	111.38M	643.68M	420.88M	374.73M
Operating Cash Flow	-98.11M	318.64M	111.61M	644.56M	421.99M	377.74M
Investing Cash Flow	-524.70M	5.49M	-8.38M	-1.41M	-9.06M	-2.96M
Financing Cash Flow	104.07M	-333.68M	-238.71M	-381.57M	98.59M	-342.36M

Topco Technologies Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3388 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3577	68Neutral	TWD 5.37B	16.44	―	2.38%	32.35%	164.06%
TW:3694	67Neutral	TWD 6.47B	10.10	―	5.69%	15.44%	18.33%
TW:3388	60Neutral	TWD 5.74B	12.71	―	4.66%	6.26%	37.04%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2302	54Neutral	TWD 6.71B	37.34	―	0.87%	14.66%	124.79%
TW:3558	45Neutral	TWD 6.20B	50.48	―	2.90%	-3.32%	-69.25%
TW:3062	43Neutral	TWD 6.39B	-9.39	―	―	-1.21%	-212.49%

* General Sector Average

Performance Comparison

TW:3388 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3388	Topco Technologies Corp.	71.60	11.84	19.82%
TW:2302	Rectron Ltd.	40.05	21.14	111.79%
TW:3062	CyberTAN Technology, Inc.	18.60	-7.60	-29.01%
TW:3558	Senao Networks, Inc.	103.50	-30.83	-22.95%
TW:3577	ICP Das Co., Ltd.	84.00	23.92	39.82%
TW:3694	AzureWave Technologies, Inc.	40.45	-23.47	-36.72%

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

Topco Technologies Corp. AI Stock Analysis