Wholetech System Hitech Limited (3402) AI Stock Analysis

Wholetech System Hitech Limited

(TPEx:3402)

Select Model

Rating:61Neutral

Price Target:TWD 109.00▼(-2.68% Downside)

Action:initiatedcoverage

Date:11/09/26

Wholetech scores in the middle of the range. The dominant factor is its financial profile: profitable, nearly debt-free, with five consecutive years of margin expansion and a 24% return on equity — but undermined by a swing to negative operating and free cash flow in 2025 alongside a stalled top line, which raises quality-of-earnings concerns. Technicals are the biggest drag, with the share price well below all major moving averages and negative MACD momentum, even though RSI and Stochastic readings indicate deeply oversold conditions. Supporting the score is an attractive valuation — a 15.4x P/E and a 5.83% dividend yield — which offers downside cushion if cash conversion recovers and order growth resumes. No earnings call or corporate event data was available, so those factors were excluded.

Positive Factors

Improving ProfitabilityMargin expansion across gross, EBIT, and net profit indicates improved operating profitability rather than reliance on a single bottom-line measure. If maintained, stronger margins can support earnings resilience and internal funding capacity over the next several quarters, even with slower sales growth.

Negative Factors

Weak Cash ConversionThe sharp divergence between positive accounting profit and negative operating and free cash flow creates a material cash-conversion risk. If this reflects recurring working-capital or project-timing pressure, it could constrain reinvestment, dividends, and balance-sheet flexibility despite reported earnings.

Wholetech System Hitech Limited (3402) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 7.69B
Dividend Yield: 5.36%
Average Volume (3M): 247.61K
Price to Earnings (P/E): 16.0
Beta (1Y): 1.04
Revenue Growth: 17.22%
EPS Growth: 2.00%
Country: TW
Employees: 200
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Wholetech System Hitech Limited Business Overview & Revenue Model

Company Description

Wholetech System Hitech Limited, operating across Taiwan, China, and Singapore, specializes in providing comprehensive turnkey and system integration solutions. Their extensive service portfolio includes the design, installation, and maintenance of d...

Wholetech System Hitech Limited Financial Statement Overview

Summary

Mixed picture. The income statement is strong (score 80): revenue nearly doubled since 2020 to about NT$5.25 billion, with gross margin expanding from 18.5% to 23.4%, operating margin from 10.2% to 13.5%, and net income reaching NT$548 million — though 2025 sales were flat-to-slightly-lower versus 2024, reflecting lumpy project-driven order flow. The balance sheet is solid (score 76): debt-to-equity of just 0.04, equity compounding to NT$2.26 billion, and a 24.2% return on equity, offset by equity funding only ~36% of assets and a modest asset decline. Cash flow is the clear weakness (score 36): despite record profits, 2025 operating cash flow was negative NT$248 million and free cash flow negative NT$672 million, a sharp reversal from 2024's NT$2.07 billion operating inflow, signalling a heavy working-capital build and a quality-of-earnings flag. The debt-free structure provides a cushion, but cash conversion must normalize.

Income Statement

80Positive

Balance Sheet

76Positive

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.67B	5.25B	5.49B	4.44B	4.78B	3.43B
Gross Profit	1.23B	1.23B	1.16B	927.85M	831.27M	676.88M
EBITDA	763.46M	776.00M	750.36M	592.28M	573.72M	415.14M
Net Income	524.15M	547.75M	495.12M	399.03M	385.71M	281.19M
Balance Sheet
Total Assets	6.99B	6.32B	6.52B	6.14B	6.17B	3.85B
Cash, Cash Equivalents and Short-Term Investments	2.47B	2.44B	3.40B	2.26B	2.38B	902.66M
Total Debt	181.86M	89.15M	41.70M	396.26M	290.98M	81.28M
Total Liabilities	4.88B	4.06B	4.46B	4.27B	4.39B	2.24B
Stockholders Equity	2.11B	2.26B	2.06B	1.87B	1.78B	1.61B
Cash Flow
Free Cash Flow	-124.33M	-672.01M	1.79B	123.92M	1.51B	81.08M
Operating Cash Flow	222.24M	-248.38M	2.07B	237.30M	1.73B	115.72M
Investing Cash Flow	-346.00M	-246.33M	-261.18M	-263.54M	-220.15M	-69.07M
Financing Cash Flow	-323.39M	-324.31M	-676.20M	-211.69M	-31.25M	-112.67M

Wholetech System Hitech Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3402 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6894	67Neutral	TWD 8.26B	22.51	―	2.45%	57.88%	81.74%
TW:8473	64Neutral	TWD 6.98B	9.97	―	2.26%	31.21%	125.14%
TW:3402	61Neutral	TWD 8.01B	16.02	―	5.36%	17.22%	2.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2030	49Neutral	TWD 7.28B	13.31	―	1.93%	9.86%	784.76%
TW:4566	47Neutral	TWD 8.39B	30.31	―	0.90%	18.15%	370.19%
TW:6654	40Underperform	TWD 7.13B	76.39	―	―	115.72%	―

* General Sector Average

Performance Comparison

TW:3402 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3402	Wholetech System Hitech Limited	112.00	-3.48	-3.01%
TW:2030	Froch Enterprise Co., Ltd.	25.95	12.37	91.15%
TW:4566	GLOBAL TEK FABRICATION CO., Ltd.	76.20	25.01	48.85%
TW:6654	Tian Zheng International Precision Machinery Co., Ltd.	174.00	89.00	104.71%
TW:6894	Waste Recovery Technology Inc	347.00	134.93	63.62%
TW:8473	Forest Water Environmental Engineering Co., Ltd.	34.60	1.85	5.66%

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

Wholetech System Hitech Limited AI Stock Analysis