Etrend Hightech Corp. (3567) AI Stock Analysis

Etrend Hightech Corp.

(TPEx:3567)

Select Model

Rating:57Neutral

Price Target:TWD 24.00▼(-1.03% Downside)

Action:initiatedcoverage

Date:11/09/26

Etrend Hightech scores in the middle of the range, anchored by a fortress balance sheet that is essentially debt-free and solid cash conversion, but held back by a multi-year revenue and margin decline that has cut net income by roughly 65% since 2023 and pushed return on equity to the mid-single digits. Technicals reinforce the caution: the stock trades below all key moving averages with a negative MACD, though the deeply oversold RSI suggests selling pressure may be nearing exhaustion. Valuation is a trade-off between a full 21.8x P/E on depressed earnings and an appealing, well-covered 4.3% dividend yield. The result is a low-financial-risk, income-oriented holding that needs revenue and margin stabilisation before the rating can improve.

Positive Factors

Extremely low leverageExtremely low leverage materially reduces solvency and refinancing risk, preserving financial flexibility through the operating downturn. The strong equity base gives Etrend more capacity to sustain operations, fund investment, or absorb weaker earnings without relying heavily on debt.

Negative Factors

Persistent revenue contractionTwo consecutive years of revenue decline indicate a sustained operating downcycle rather than a single-quarter fluctuation. Continued contraction can reduce scale benefits, weaken earnings capacity, and make it harder for the company to maintain investment and competitive momentum over the next several quarters.

Etrend Hightech Corp. (3567) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 825.08M
Dividend Yield: 4.12%
Average Volume (3M): 46.37K
Price to Earnings (P/E): 22.2
Beta (1Y): 0.61
Revenue Growth: -0.78%
EPS Growth: -10.78%
Country: TW
Employees: 135
Sector: General
Sector Strength: 55
Industry: Semiconductors

Etrend Hightech Corp. Business Overview & Revenue Model

Company Description

ETREND Hightech Corp., headquartered in Hsinchu, Taiwan, is a leading provider of analog and mixed-signal integrated circuit (IC) testing services. Their comprehensive service offerings encompass crucial stages of semiconductor manufacturing, includi...

Etrend Hightech Corp. Financial Statement Overview

Summary

A tale of two halves: the balance sheet is exceptionally strong (score 83) with essentially no debt — NT$1.7 million against NT$576 million of equity — and equity funding roughly 93% of assets, providing significant downside protection in a cyclical downturn. Cash flow remains healthy (score 64), with operating cash flow of NT$84 million more than double net income, though free cash flow more than halved to NT$49 million as capital intensity rose. The weak link is the income statement (score 52): revenue has fallen two years running to NT$281 million, gross margin compressed from 44% to 31%, operating margin halved to 15%, and net income is down roughly 65% since 2023, pulling return on equity to just 6%. Low financial risk, but clearly deteriorating operating momentum.

Income Statement

52Neutral

Balance Sheet

83Very Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	283.65M	281.06M	314.52M	399.51M	368.37M	438.04M
Gross Profit	86.19M	86.52M	116.48M	175.26M	138.51M	179.00M
EBITDA	95.35M	98.40M	141.69M	198.09M	171.96M	207.93M
Net Income	37.64M	36.15M	63.35M	102.05M	80.14M	104.78M
Balance Sheet
Total Assets	629.84M	618.13M	648.58M	706.25M	697.59M	792.02M
Cash, Cash Equivalents and Short-Term Investments	164.22M	155.15M	168.07M	147.57M	112.64M	75.59M
Total Debt	1.11M	1.72M	1.88M	2.20M	42.03M	99.14M
Total Liabilities	73.48M	42.15M	45.15M	75.57M	100.69M	202.02M
Stockholders Equity	556.36M	575.98M	603.43M	630.67M	596.90M	590.01M
Cash Flow
Free Cash Flow	49.30M	49.07M	108.08M	145.75M	148.41M	-62.75M
Operating Cash Flow	89.37M	83.77M	117.61M	151.34M	182.34M	190.40M
Investing Cash Flow	-39.73M	-34.37M	-4.28M	-5.94M	2.71M	-239.91M
Financing Cash Flow	-62.33M	-62.32M	-92.84M	-111.14M	-147.99M	28.04M

Etrend Hightech Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3567 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3567	57Neutral	TWD 810.74M	22.18	―	4.12%	-0.78%	-10.78%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6164	49Neutral	TWD 790.93M	43.14	―	4.55%	-10.87%	115.91%
TW:3128	48Neutral	TWD 900.31M	16.15	―	2.23%	-12.58%	-22.95%
TW:4972	42Neutral	TWD 769.90M	-7.71	―	―	-1.01%	-31.92%
TW:3373	40Underperform	TWD 788.09M	-22.47	―	0.60%	-2.28%	36.05%
TW:3523	40Underperform	TWD 761.46M	-9.01	―	―	7.16%	43.29%

* General Sector Average

Performance Comparison

TW:3567 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3567	Etrend Hightech Corp.	24.25	-1.65	-6.37%
TW:3128	Hi Sharp Electronics Co., Ltd.	17.90	-8.24	-31.52%
TW:3373	Radiant Innovation Inc.	16.60	-1.44	-7.98%
TW:3523	EFUN Technology Co., Ltd.	11.75	-6.25	-34.72%
TW:4972	Tons Lightology Inc.	13.95	-4.10	-22.71%
TW:6164	Ledtech Electronics Corp.	10.90	0.70	6.86%

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

Etrend Hightech Corp. AI Stock Analysis