Wha Yu Industrial Co., Ltd. (3419) AI Stock Analysis

Wha Yu Industrial Co., Ltd.

(TWSE:3419)

Select Model

Rating:28Underperform

Price Target:TWD 9.00▼(-10.89% Downside)

Action:initiatedcoverage

Date:11/09/26

Wha Yu Industrial scores poorly, driven primarily by deteriorating fundamentals: despite a 19% revenue rebound, gross margin halved to 9.3%, net losses widened to NT$216 million, and free cash flow burn accelerated to -NT$274 million, leaving the company dependent on its balance sheet and external funding. That balance sheet — about 51% equity-funded with debt-to-equity of 0.44 — is the only meaningful support, but equity is eroding and debt rose 68% in the latest year. Technicals reinforce the caution, with the price below all major moving averages and a negative MACD, though extremely oversold RSI and Stochastic readings hint at possible short-term stabilization. Valuation provides no cushion given negative earnings and no dividend. The investment case rests entirely on management restoring margins toward historic 17-20% levels and turning cash flow positive.

Positive Factors

Moderate LeverageDebt remains below equity and substantial equity relative to assets provides a financial cushion, which can help the company absorb ongoing losses and preserve operating flexibility. Although leverage is rising, the current capital structure is not described as over-levered, supporting resilience over the next several quarters.

Negative Factors

Persistent LossesThree consecutive annual net losses and recurring negative operating profit indicate that the core business is not currently covering its operating cost base. Persistent losses can erode equity, restrict reinvestment, and make a durable recovery dependent on materially better demand, pricing, or cost execution.

Wha Yu Industrial Co., Ltd. (3419) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.20B
Dividend Yield: ―
Average Volume (3M): 155.59K
Price to Earnings (P/E): -6.2
Beta (1Y): 0.49
Revenue Growth: 2.16%
EPS Growth: -0.50%
Country: TW
Employees: 2,782
Sector: General
Sector Strength: 55
Industry: Communication Equipment

Wha Yu Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Wha Yu Industrial Co., Ltd., based in Taiwan, specializes in providing a wide range of antenna solutions for the wireless transmission sector. The company's extensive product portfolio encompasses antennas designed for diverse applications, including...

Wha Yu Industrial Co., Ltd. Financial Statement Overview

Summary

Financials are weak across the board. Revenue rebounded roughly 19% to NT$1.76 billion, but gross margin collapsed to 9.3% from 17.2%, driving a widened operating loss of NT$230 million and a net loss of NT$216 million (-12.3% net margin). Cash generation is the biggest concern: operating cash flow swung to -NT$226 million and free cash flow to -NT$274 million, indicating working-capital strain on top of operating losses. The balance sheet is the only real support — equity of NT$964 million funds about 51% of assets and debt-to-equity of 0.44 remains manageable — but equity has declined every year since 2020, debt jumped 68% in the latest year, and ROE is deeply negative at -22.4%. The buffer is shrinking quickly.

Income Statement

16Very Negative

Balance Sheet

42Neutral

Cash Flow

14Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.77B	1.76B	1.48B	1.40B	1.98B	1.58B
Gross Profit	192.30M	162.66M	254.86M	221.34M	380.21M	276.28M
EBITDA	-91.14M	-144.14M	-62.72M	-31.95M	100.05M	12.24M
Net Income	-173.54M	-216.20M	-145.83M	-120.06M	33.43M	-32.71M
Balance Sheet
Total Assets	1.89B	1.88B	1.88B	2.05B	2.52B	2.43B
Cash, Cash Equivalents and Short-Term Investments	186.33M	224.53M	339.40M	521.76M	272.90M	382.31M
Total Debt	509.30M	422.53M	252.09M	380.57M	436.30M	501.79M
Total Liabilities	995.67M	913.65M	689.88M	720.18M	1.02B	1.01B
Stockholders Equity	892.63M	964.36M	1.19B	1.31B	1.48B	1.42B
Cash Flow
Free Cash Flow	-206.51M	-273.97M	-70.47M	98.68M	-54.78M	-261.63M
Operating Cash Flow	-175.35M	-225.99M	-15.04M	177.02M	18.28M	-96.64M
Investing Cash Flow	-31.47M	-47.40M	-44.55M	163.05M	-69.61M	-135.38M
Financing Cash Flow	67.79M	170.12M	-140.29M	-85.28M	-64.98M	74.27M

Wha Yu Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3419 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6821	60Neutral	TWD 1.25B	20.31	―	3.05%	-11.42%	56.51%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6674	46Neutral	TWD 1.26B	-7.99	―	―	-40.57%	-73.29%
TW:4999	44Neutral	TWD 1.17B	-8.97	―	1.59%	-13.56%	-165.86%
TW:3322	40Underperform	TWD 1.21B	-6.59	―	―	3.84%	-11.85%
TW:3710	30Underperform	TWD 1.35B	-1.57	―	―	-1.88%	-7106.53%
TW:3419	28Underperform	TWD 1.22B	-6.23	―	―	2.16%	-0.50%

* General Sector Average

Performance Comparison

TW:3419 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3419	Wha Yu Industrial Co., Ltd.	10.10	-3.20	-24.06%
TW:3322	Joinsoon Electronics Manufacturing Co., Ltd.	8.81	-4.12	-31.88%
TW:3710	ACON Holding Inc.	7.65	-5.49	-41.77%
TW:4999	Sinher Technology Inc.	15.70	-9.04	-36.53%
TW:6674	Compal Broadband Networks, Inc.	18.40	-2.85	-13.41%
TW:6821	Linkcom Manufacturing Co., Ltd.	35.60	0.75	2.15%

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

Wha Yu Industrial Co., Ltd. AI Stock Analysis