Newmax Technology Co., Ltd. (3630) AI Stock Analysis

Newmax Technology Co., Ltd.

(TPEx:3630)

Select Model

Rating:45Neutral

Price Target:TWD 21.50▼(-5.70% Downside)

Action:initiatedcoverage

Date:11/09/26

Newmax Technology scores in the lower range, weighed down primarily by weak cash generation and loss-making core operations: operating cash flow was barely positive, free cash flow was around -NT$895m for a sixth straight negative year, and EBIT remains negative despite a reported net profit driven by non-operating items. The main offset is a dramatically de-risked balance sheet, with debt-to-equity down to 0.10 and equity funding roughly 73% of assets, alongside 19% revenue growth and a third consecutive year of gross margin expansion. Technicals add pressure, with the price well below all key moving averages and negative MACD, although deeply oversold RSI and stochastic readings leave room for a short-term rebound. Valuation offers little support given negative earnings and no dividend. Sustained gross margin gains and improved cash conversion are needed before the turnaround justifies a higher score.

Positive Factors

DeleveragingThe sharp reduction in debt materially improves financial flexibility and lowers balance-sheet risk compared with the prior year. Lower leverage can reduce financing pressure, preserve capacity for operations or investment, and provide a stronger foundation if the business experiences volatility.

Negative Factors

Weak Earnings-to-Cash ConversionOperating cash flow capturing only a small fraction of reported profit raises concern about earnings quality and the timing of cash realization. Persistently weak conversion could limit the company’s ability to fund operations internally, even while accounting profitability remains positive.

Newmax Technology Co., Ltd. (3630) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.82B
Dividend Yield: ―
Average Volume (3M): 957.14K
Price to Earnings (P/E): -16.3
Beta (1Y): 0.91
Revenue Growth: 14.51%
EPS Growth: -252.10%
Country: TW
Employees: 1,252
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Newmax Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Newmax Technology Co., Ltd. specializes in the design, production, and distribution of photographic and optical gear, electronic components, and electrical machinery and related supplies. The company's market reach extends across China, Taiwan, Japan...

Newmax Technology Co., Ltd. Financial Statement Overview

Summary

Newmax Technology is an early-stage turnaround with mixed quality. Income statement (49): revenue grew ~19% to NT$2.27bn and the company posted its first profit in six years at NT$376m, with gross margin expanding for a third straight year to 8.2% — but EBIT remains deeply negative at about -NT$493m, meaning the profit stems from non-operating or one-time items. Balance sheet (73) is the standout: total debt fell from NT$2.23bn to NT$316m, debt-to-equity dropped from 0.99 to 0.10, equity rose to NT$3.06bn and ROE swung to 12.3%, though shrinking total assets suggest deleveraging came partly via disposals. Cash flow (24) is the weak link: operating cash flow of just NT$20m (about 5% of net income) and free cash flow of roughly -NT$895m mark a sixth consecutive year of negative FCF driven by heavy capex.

Income Statement

49Neutral

Balance Sheet

73Positive

Cash Flow

24Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.39B	2.27B	1.90B	1.54B	1.60B	2.42B
Gross Profit	181.17M	186.26M	84.86M	31.44M	23.57M	104.73M
EBITDA	-17.95M	750.07M	124.84M	81.98M	173.24M	65.14M
Net Income	-291.08M	375.73M	-465.00M	-616.56M	-456.87M	-631.56M
Balance Sheet
Total Assets	4.27B	4.20B	5.06B	5.95B	6.88B	7.38B
Cash, Cash Equivalents and Short-Term Investments	1.30B	1.23B	196.13M	753.01M	1.35B	1.20B
Total Debt	680.61M	315.97M	2.23B	2.66B	3.04B	2.72B
Total Liabilities	1.33B	1.14B	2.80B	3.24B	3.56B	3.60B
Stockholders Equity	2.93B	3.06B	2.26B	2.70B	3.32B	3.78B
Cash Flow
Free Cash Flow	-566.37M	-894.69M	-131.11M	-150.97M	-358.53M	-2.01B
Operating Cash Flow	-227.38M	19.63M	-52.98M	58.41M	95.84M	-14.85M
Investing Cash Flow	-371.88M	2.13B	-780.00K	-191.49M	-251.01M	-1.67B
Financing Cash Flow	318.41M	-1.09B	-462.01M	-482.91M	272.35M	764.43M

Newmax Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3630 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3031	67Neutral	TWD 4.72B	33.80	―	3.23%	19.33%	4.14%
TW:4974	64Neutral	TWD 4.55B	12.88	―	6.25%	-18.51%	-25.78%
TW:3356	58Neutral	TWD 4.41B	4.77	―	8.95%	-1.81%	529.31%
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:3630	45Neutral	TWD 4.73B	-16.28	―	―	14.51%	-252.10%

* General Sector Average

Performance Comparison

TW:3630 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3630	Newmax Technology Co., Ltd.	22.80	-6.20	-21.38%
TW:3031	Bright Led Electronics Corp	31.00	11.81	61.56%
TW:3356	GeoVision, Inc.	65.50	15.47	30.93%
TW:4935	Global Lighting Technologies Inc.	30.00	-11.60	-27.88%
TW:4974	Asia Tech Image Inc.	62.40	-5.64	-8.29%
TW:6695	iCatch Technology, Inc.	49.90	3.75	8.13%

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

Newmax Technology Co., Ltd. AI Stock Analysis