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Leadtrend Technology Corporation (3588) AI Stock Analysis

TW:3588

Leadtrend Technology Corporation

(TWSE:3588)

Select Model
Rating:50Neutral
Price Target:TWD 42.00â–¼(-6.67% Downside)
Action:initiatedcoverage
Date:11/10/26

The overall score is constrained by a sharp conflict between a very strong balance sheet and weak operational momentum. The primary drag is the extremely bearish technical picture, with the stock in a clear downtrend and deeply oversold, coupled with a high P/E ratio that is difficult to justify given the severe earnings contraction. The company's fortress-like, debt-free balance sheet is the key mitigating factor, providing a floor of financial stability, but it is not enough to offset the current negative price momentum and profitability challenges.

Positive Factors
Very Low LeverageThe exceptionally low debt burden gives Leadtrend substantial financial flexibility and reduces solvency pressure. A largely equity-funded balance sheet can help the company withstand cyclical semiconductor demand, preserve investment capacity, and avoid diverting excessive cash toward interest or refinancing needs.
Negative Factors
Severely Compressed ProfitabilityThe steep decline in profitability shows that Leadtrend is currently converting substantially less revenue into earnings than it did earlier in the period. Thin operating margins leave less protection against cost or pricing pressure and can constrain reinvestment, returns on capital, and earnings durability.

Leadtrend Technology Corporation (3588) vs. SPDR S&P 500 ETF (SPY)

-10%0%10%20%30%40%50%60%70%TW:3588-2.30%SPY+14.55%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 2.77B
Dividend Yield
1.11%
Average Volume (3M)
216.25K
Price to Earnings (P/E)
25.6
Beta (1Y)
0.94
Revenue Growth
20.36%
EPS Growth
223.74%
Country
TW
Employees
80
Sector
General
Sector Strength
55
Industry
Semiconductors

Leadtrend Technology Corporation Business Overview & Revenue Model

Company Description

Leadtrend Technology Corporation, a fabless semiconductor firm based predominantly in Taiwan, specializes in AC-DC power management integrated circuits tailored for both medium and high-power applications. Its extensive portfolio of mid-power control...

Leadtrend Technology Corporation Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a fortress with virtually no debt (D/E 0.012), providing high safety. Cash flow has rebounded strongly with an 80% FCF conversion rate. However, these strengths are offset by severe income statement weakness: an 11.3% revenue decline and net margin compression to just 2.3%, indicating significant operational headwinds.

Income Statement

28Negative

Balance Sheet

85Very Positive

Cash Flow

65Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.49B1.35B1.45B1.14B1.63B2.13B
Gross Profit481.60M458.38M552.43M429.53M663.15M881.96M
EBITDA140.42M111.41M193.41M122.93M293.06M463.57M
Net Income73.91M30.59M111.89M28.86M152.36M328.98M
Balance Sheet
Total Assets2.18B1.99B2.07B1.88B1.89B2.17B
Cash, Cash Equivalents and Short-Term Investments652.91M628.14M597.41M541.57M306.31M839.52M
Total Debt14.38M21.22M69.64M21.31M19.98M28.41M
Total Liabilities362.45M233.48M302.58M235.13M239.45M524.74M
Stockholders Equity1.81B1.75B1.77B1.64B1.65B1.65B
Cash Flow
Free Cash Flow27.54M145.79M22.01M275.70M-340.94M276.40M
Operating Cash Flow61.13M181.48M65.52M317.90M-198.71M399.56M
Investing Cash Flow-47.34M-39.86M-53.66M-44.64M-95.86M-186.97M
Financing Cash Flow-83.31M-118.93M10.35M-63.99M-188.01M-41.77M

Leadtrend Technology Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:3588 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:7704TW:770476OutperformTWD 2.72B21.21―2.24%5.79%118.14%
TW:4951TW:495173OutperformTWD 2.52B12.29―5.74%1.85%35.39%
TW:6799TW:679968NeutralTWD 2.91B14.35―3.54%5.45%64.05%
TW:6233TW:623356NeutralTWD 2.66B66.65―2.14%2.62%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:3588TW:358850NeutralTWD 2.67B25.57―1.11%20.36%223.74%
TW:3041TW:304131UnderperformTWD 2.81B-7.18――3.96%-48.99%

* General Sector Average

Performance Comparison

0%50%100%TW:3588TW:3041TW:4951TW:6233TW:6799TW:7704Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:3588 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:3588Leadtrend Technology Corporation45.00-3.05-6.34%
TW:3041ALi Corporation21.60-4.70-17.87%
TW:4951Feature Integration Technology Inc.78.4014.4122.51%
TW:6233Prolific Technology Inc.35.0016.3287.40%
TW:6799M3 Technology Inc70.60-4.21-5.62%
TW:7704Finesse Technology Co. Ltd.80.4035.7880.17%
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