Favite, Inc. (3535) AI Stock Analysis

Favite, Inc.

(TWSE:3535)

Select Model

Rating:43Neutral

Price Target:TWD 62.00▼(-17.55% Downside)

Action:initiatedcoverage

Date:11/09/26

Favite scores poorly overall, driven primarily by a sharply deteriorating income statement: revenue down ~31% year over year to roughly a third of its 2022 peak, with both operating and net losses and compressing gross margins. Cash flow remains positive but fell more than 90%, leaving only a thin buffer. The main offset is a conservative balance sheet — equity funds ~63% of assets and debt-to-equity is just 0.28 — giving management time to ride out the downcycle. Technicals compound the caution, with the price well below all key moving averages and a deeply negative MACD, though oversold RSI and Stochastic readings suggest scope for a short-term bounce. Valuation adds little support, as a 39.7x P/E against loss-making results and a sub-1% dividend yield leaves limited margin of safety. A recovery in volumes that restores operating leverage on still-healthy gross margins would be the key catalyst.

Positive Factors

Moderate leverage and asset baseDebt remains moderate relative to equity, while the stable asset base indicates that Favite has retained substantial operating resources despite earnings volatility. This provides financial flexibility to support customers, maintain equipment capabilities, and absorb weaker periods without excessive leverage pressure.

Negative Factors

Sharp profitability deteriorationThe simultaneous revenue contraction and move to a sizable net loss indicate a material weakening in demand conversion and earnings power. Until sales recover and costs realign, profitability may remain fragile, reducing internal funding capacity and weakening resilience across the next several quarters.

Favite, Inc. (3535) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.94B
Dividend Yield: 0.67%
Average Volume (3M): 1.14M
Price to Earnings (P/E): 34.1
Beta (1Y): 1.30
Revenue Growth: 247.10%
EPS Growth: ―
Country: TW
Employees: 236
Sector: General
Sector Strength: 55
Industry: Computer Hardware

Favite, Inc. Business Overview & Revenue Model

Company Description

Favite, Inc. specializes in the development, manufacturing, and distribution of diverse general and high-precision instrumentation, alongside telecommunication frequency control equipment. A core part of its portfolio includes advanced inspection sol...

Favite, Inc. Financial Statement Overview

Summary

Financials are mixed and currently deteriorating. Revenue fell ~31% to NT$459.9 million and sits at less than a third of the 2022 peak, with the company swinging back into an operating loss of NT$90.0 million and a net loss of NT$84.3 million (-18.3% net margin). Gross margin remains decent at 38.1% but has compressed from 47.5%, and the shrunken revenue base no longer covers fixed costs. The balance sheet is the anchor: equity of NT$1.03 billion funds ~63% of assets and debt-to-equity is a conservative 0.28, though debt rose and equity fell on losses, with ROE turning negative at -8.1%. Cash flow stayed positive (NT$23.4 million operating, NT$10.3 million free cash flow) but collapsed more than 90% year over year and has been historically erratic.

Income Statement

29Negative

Balance Sheet

65Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	884.64M	459.86M	667.59M	445.68M	1.48B	1.41B
Gross Profit	371.14M	175.21M	317.40M	202.95M	593.73M	392.79M
EBITDA	116.75M	-74.74M	74.50M	11.15M	353.90M	121.53M
Net Income	137.09M	-84.30M	54.49M	-33.00M	282.98M	96.81M
Balance Sheet
Total Assets	1.63B	1.65B	1.64B	1.66B	2.08B	2.20B
Cash, Cash Equivalents and Short-Term Investments	763.24M	709.68M	652.93M	609.79M	772.16M	852.46M
Total Debt	284.83M	291.95M	203.79M	259.82M	450.43M	464.23M
Total Liabilities	508.18M	616.49M	479.62M	560.95M	863.10M	1.23B
Stockholders Equity	1.12B	1.03B	1.16B	1.10B	1.22B	971.19M
Cash Flow
Free Cash Flow	114.03M	10.34M	111.64M	96.14M	-69.81M	423.24M
Operating Cash Flow	132.02M	23.35M	126.56M	100.36M	-45.17M	430.61M
Investing Cash Flow	-203.11M	-114.66M	-461.68M	6.81M	-11.63M	15.60M
Financing Cash Flow	45.39M	45.43M	-74.08M	-257.19M	-54.23M	-265.81M

Favite, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3535 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5209	76Outperform	TWD 5.67B	11.38	―	5.94%	4.58%	32.53%
TW:6577	73Outperform	TWD 4.70B	10.75	―	6.44%	3.66%	36.60%
TW:3577	68Neutral	TWD 5.37B	16.44	―	2.38%	32.35%	164.06%
TW:6922	58Neutral	TWD 5.00B	15.74	―	2.62%	34.63%	57.37%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6877	45Neutral	TWD 5.45B	2000.00	―	0.50%	-19.39%	-95.38%
TW:3535	43Neutral	TWD 5.93B	34.05	―	0.67%	247.10%	―

* General Sector Average

Performance Comparison

TW:3535 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3535	Favite, Inc.	75.20	3.40	4.74%
TW:3577	ICP Das Co., Ltd.	84.00	23.92	39.82%
TW:5209	CTCI Advanced Systems Inc.	218.00	59.87	37.86%
TW:6577	Promate Solutions Corp.	77.70	12.21	18.64%
TW:6877	HYE Technology Co., Ltd.	120.00	35.74	42.41%
TW:6922	Neousys Technology, Inc.	184.00	-7.40	-3.86%

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

Favite, Inc. AI Stock Analysis