Jarllytec Co. Ltd. (3548) AI Stock Analysis

Jarllytec Co. Ltd.

(TPEx:3548)

Select Model

Rating:43Neutral

Price Target:TWD 54.00▼(-10.15% Downside)

Action:initiatedcoverage

Date:11/09/26

Jarllytec scores low primarily because of a sharp deterioration in earnings quality: revenue has stalled while gross, operating and net margins have all compressed, slashing net income by about three-quarters and dropping ROE to 2.4%. Technicals reinforce the caution, with the price trading below all major moving averages and negative MACD momentum. Valuation offers no cushion, as the P/E near 157 reflects depressed earnings and the 1.78% dividend yield is only partly supported by minimal free cash flow. The main offsets are a well-capitalized balance sheet with equity covering over half of assets, moderate leverage, and operating cash flow that comfortably exceeds reported profit — but rising debt and capex absorbing nearly all operating cash temper that support. Stabilization in gross margin would be the key signal for improvement.

Positive Factors

Sound balance sheetA generally sound balance sheet gives Jarllytec financial resilience while it manages weaker profitability. Moderate leverage and a growing equity base provide greater capacity to sustain operations, absorb earnings volatility, and fund priorities without indicating distressed financial conditions.

Negative Factors

Revenue and margin deteriorationThe combination of declining revenue and sharp margin compression indicates materially weaker earnings stability. Lower sales and reduced profitability can limit reinvestment, weaken operating leverage, and make the company more vulnerable to continued cyclical or competitive pressure over the next several quarters.

Jarllytec Co. Ltd. (3548) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.09B
Dividend Yield: 1.66%
Average Volume (3M): 271.43K
Price to Earnings (P/E): 164.5
Beta (1Y): 1.04
Revenue Growth: -20.68%
EPS Growth: -149.30%
Country: TW
Employees: 1,367
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Jarllytec Co. Ltd. Business Overview & Revenue Model

Company Description

Jarllytec Co., Ltd., established in 1992 and headquartered in New Taipei City, Taiwan, specializes in the entire lifecycle of hinges, from research and development to manufacturing and sales across the island. The company provides a diverse range of...

Jarllytec Co. Ltd. Financial Statement Overview

Summary

Weak overall. Revenue has plateaued near NT$9.41 billion after two years of double-digit growth, and margins have collapsed — gross margin down to 12.0% from 16.6%, operating margin to 2.6% and net margin to 1.6%, cutting net income roughly 74% to NT$150.7 million (income statement score 38). The balance sheet is the bright spot (score 60): equity of NT$6.19 billion funds about 53% of assets and debt-to-equity of 0.38 is moderate, though total debt has more than doubled in two years and ROE has slumped to 2.4%. Cash flow (score 49) is mixed: operating cash flow of NT$472.6 million is roughly three times net income, but heavy capex of about NT$437 million left free cash flow at just NT$35.5 million.

Income Statement

38Negative

Balance Sheet

60Neutral

Cash Flow

49Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.14B	9.41B	9.58B	8.22B	7.02B	7.45B
Gross Profit	752.41M	1.12B	1.59B	1.48B	1.40B	1.23B
EBITDA	431.27M	690.14M	1.23B	1.11B	1.07B	578.88M
Net Income	25.16M	150.74M	576.76M	535.28M	473.97M	247.79M
Balance Sheet
Total Assets	12.03B	11.69B	11.53B	10.16B	9.05B	9.05B
Cash, Cash Equivalents and Short-Term Investments	3.97B	4.24B	3.37B	2.98B	2.87B	1.93B
Total Debt	2.47B	2.32B	1.49B	979.24M	1.48B	1.34B
Total Liabilities	5.84B	5.50B	5.64B	4.89B	4.47B	4.92B
Stockholders Equity	6.19B	6.19B	5.88B	5.26B	4.58B	4.13B
Cash Flow
Free Cash Flow	-6.75M	35.48M	-157.19M	606.13M	884.97M	-137.09M
Operating Cash Flow	140.89M	472.56M	448.90M	973.19M	1.15B	386.69M
Investing Cash Flow	-229.33M	-554.76M	-506.20M	-461.22M	-199.36M	-556.99M
Financing Cash Flow	-249.95M	953.12M	254.04M	-321.67M	-119.01M	80.49M

Jarllytec Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3548 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3046	71Outperform	TWD 3.92B	10.16	―	5.96%	31.68%	27.27%
TW:6203	70Outperform	TWD 4.14B	7.47	―	8.06%	3.95%	341.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4935	52Neutral	TWD 3.94B	28.23	―	3.33%	-24.80%	-49.71%
TW:2405	44Neutral	TWD 4.75B	688.12	―	0.72%	9.38%	―
TW:3548	43Neutral	TWD 4.25B	164.47	―	1.66%	-20.68%	-149.30%
TW:2241	38Underperform	TWD 4.01B	-48.78	―	―	42.76%	53.36%

* General Sector Average

Performance Comparison

TW:3548 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3548	Jarllytec Co. Ltd.	60.10	-31.68	-34.51%
TW:2241	Amulaire Thermal Technology, Inc.	36.90	1.45	4.09%
TW:2405	Shuttle Inc.	13.90	-4.04	-22.54%
TW:3046	Aopen Incorporated	50.30	3.55	7.59%
TW:4935	Global Lighting Technologies Inc.	30.00	-11.60	-27.88%
TW:6203	Sea Sonic Electronics Co., Ltd.	49.60	-24.11	-32.71%

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

Jarllytec Co. Ltd. AI Stock Analysis