Lotes Co., Ltd (3533) AI Stock Analysis

Lotes Co., Ltd

(TWSE:3533)

Select Model

Rating:65Neutral

Price Target:TWD 1,704.00▼(-2.07% Downside)

Action:initiatedcoverage

Date:11/10/26

The company's exceptional financial health, marked by industry-leading margins and a nearly debt-free balance sheet, is the primary strength supporting the score. However, this is significantly offset by weak technical momentum, with the stock trading below all major moving averages and exhibiting bearish signals. The valuation is fair but does not provide a catalyst. The overall score reflects a fundamentally strong company under near-term market pressure.

Positive Factors

Strong Revenue GrowthStrong revenue expansion across the 2020–2025 cycle indicates broad business growth rather than reliance on a single period. Continued top-line progress can support operating scale, reinforce Lotes’ position in interconnect markets, and provide a durable base for future investment.

Negative Factors

Margin and Net Income DeteriorationThe 2025 decline in operating and net margins shows that revenue growth is not currently translating fully into earnings growth. Lower profitability may persist if pricing, product mix, or costs remain unfavorable, reducing the earnings benefit of continued sales expansion.

Lotes Co., Ltd (3533) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 201.82B
Dividend Yield: 1.92%
Average Volume (3M): 1.54M
Price to Earnings (P/E): 22.2
Beta (1Y): 1.25
Revenue Growth: 12.66%
EPS Growth: 15.78%
Country: TW
Employees: 6,316
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Lotes Co., Ltd Business Overview & Revenue Model

Company Description

Lotes Co., Ltd., a Taiwanese company established in 1975 and based in Keelung, primarily focuses on designing, manufacturing, and distributing connectors and CPU sockets. Operating under its proprietary LOTES brand, the company serves a broad range o...

Lotes Co., Ltd Financial Statement Overview

Summary

Strong profitability with TTM gross margins above 51% and net income margins of 23.3%. The balance sheet is a fortress with a debt-to-equity ratio of just 0.03. Cash flow generation is solid, though free cash flow conversion has weakened to 40.2% TTM due to higher reinvestment, tempering the overall score.

Income Statement

78Positive

Balance Sheet

85Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.58B	33.78B	30.09B	24.48B	27.10B	21.39B
Gross Profit	18.06B	17.33B	15.77B	11.48B	11.94B	8.56B
EBITDA	14.15B	12.95B	14.23B	9.34B	10.51B	6.12B
Net Income	9.30B	7.87B	9.28B	5.59B	6.25B	3.47B
Balance Sheet
Total Assets	58.13B	50.43B	50.21B	37.95B	33.30B	26.42B
Cash, Cash Equivalents and Short-Term Investments	16.20B	13.62B	18.85B	13.19B	7.17B	3.46B
Total Debt	1.52B	1.04B	4.61B	3.14B	2.58B	2.62B
Total Liabilities	15.02B	10.02B	12.25B	8.57B	8.79B	8.36B
Stockholders Equity	40.97B	38.44B	35.97B	27.77B	22.81B	16.86B
Cash Flow
Free Cash Flow	1.65B	3.43B	6.18B	6.47B	4.03B	-1.04B
Operating Cash Flow	7.39B	8.53B	10.06B	9.13B	7.73B	2.69B
Investing Cash Flow	-7.28B	-5.86B	-4.69B	-2.79B	-3.69B	-4.09B
Financing Cash Flow	-4.83B	-8.84B	-321.88M	-295.61M	-494.59M	1.83B

Lotes Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3533 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6442	68Neutral	TWD 89.46B	32.92	―	0.96%	42.66%	126.15%
TW:3665	67Neutral	TWD 305.35B	29.25	―	0.98%	33.39%	60.44%
TW:6515	66Neutral	TWD 135.57B	66.40	―	1.21%	85.60%	84.04%
TW:3533	65Neutral	TWD 198.06B	22.23	―	1.92%	12.66%	15.78%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3491	54Neutral	TWD 89.88B	121.16	―	0.47%	61.31%	111.10%
TW:2466	53Neutral	TWD 62.62B	252.88	―	―	-18.81%	―

* General Sector Average

Performance Comparison

TW:3533 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3533	Lotes Co., Ltd	1740.00	541.26	45.15%
TW:2466	Cosmo Electronics Corporation	436.50	382.80	712.85%
TW:3491	Universal Microwave Technology, Inc.	1455.00	992.43	214.55%
TW:3665	BizLink Holding Inc.	1515.00	8.20	0.54%
TW:6442	EZconn Corp.	1100.00	113.52	11.51%
TW:6515	WinWay Technology Co., Ltd.	3975.00	1796.11	82.43%

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

Lotes Co., Ltd AI Stock Analysis