ThinTech Materials Technology Co., Ltd. (3663) AI Stock Analysis

ThinTech Materials Technology Co., Ltd.

(TPEx:3663)

Select Model

Rating:40Underperform

Price Target:TWD 42.00▼(-16.00% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held down primarily by weak financial quality: despite rapid revenue growth, gross margins have halved, net margin is just 0.5%, and the company burned NT$499M in operating cash and NT$629M in free cash flow over the trailing twelve months, making it dependent on outside funding. A sizeable equity raise has meaningfully strengthened the capital structure and halved leverage, which provides near-term flexibility, but returns on the enlarged asset base remain very low. Technicals reinforce the caution, with the share price well below all major moving averages and negative MACD momentum, though deeply oversold RSI and Stochastic readings suggest scope for a short-term rebound. Valuation adds little support, as a P/E of 134 against minimal earnings and a sub-1% dividend yield leave limited downside protection. A sustained improvement in margins and a return to positive cash generation would be needed to materially improve this score.

Positive Factors

Revenue GrowthContinued revenue expansion indicates that the company is still generating demand and maintaining top-line momentum. Although the growth rate is modest, a growing revenue base can support operating scale and provide a foundation for improved profitability if margins and cash conversion recover.

Negative Factors

Negative Cash GenerationDeeply negative operating and free cash flow show that reported earnings are not currently converting into cash. Persistent weak conversion could increase reliance on financing or working-capital normalization, limiting the company’s ability to fund operations and investment independently.

ThinTech Materials Technology Co., Ltd. (3663) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.39B
Dividend Yield: 0.82%
Average Volume (3M): 689.76K
Price to Earnings (P/E): 142.1
Beta (1Y): 1.69
Revenue Growth: 36.60%
EPS Growth: 147.36%
Country: TW
Employees: 257
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

ThinTech Materials Technology Co., Ltd. Business Overview & Revenue Model

Company Description

ThinTech Materials Technology Co., Ltd., founded in 1989 and headquartered in Kaohsiung, Taiwan, operates globally as a developer, manufacturer, and seller of sophisticated alloys and optoelectronic materials. The company offers a diverse range of hi...

ThinTech Materials Technology Co., Ltd. Financial Statement Overview

Summary

Revenue has more than tripled since 2023 to NT$7.32B on a trailing-twelve-month basis, but profitability has deteriorated sharply: gross margin fell from 8.8% (2022) to roughly 4.1%, operating margin is under 1%, and net income of NT$38.6M equates to a 0.5% net margin after a loss in 2025 (Income Statement score 38). The balance sheet is the relative bright spot — a large equity injection lifted shareholders' equity to NT$3.19B and cut debt-to-equity from 0.82 to 0.45, with total debt modestly lower at NT$1.43B; however, debt is still about nine times EBITDA and return on equity is a weak 1.5% (Balance Sheet score 56). Cash flow is the key weakness, with NT$499M of operating cash burn and NT$629M of negative free cash flow in the latest period, leaving the business reliant on external funding (Cash Flow score 25). Growth is currently consuming rather than generating cash.

Income Statement

38Negative

Balance Sheet

56Neutral

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.32B	5.71B	5.27B	2.41B	2.53B	3.00B
Gross Profit	298.49M	222.16M	370.72M	197.97M	222.47M	227.50M
EBITDA	158.40M	79.36M	240.63M	85.77M	127.01M	136.48M
Net Income	38.60M	-649.00K	49.78M	39.57M	82.00M	70.31M
Balance Sheet
Total Assets	5.97B	4.40B	4.28B	1.82B	1.83B	1.68B
Cash, Cash Equivalents and Short-Term Investments	1.43B	574.15M	578.06M	249.09M	224.07M	154.15M
Total Debt	1.43B	1.55B	1.36B	429.61M	264.55M	183.03M
Total Liabilities	2.26B	2.01B	1.92B	627.79M	637.57M	509.31M
Stockholders Equity	3.19B	1.88B	1.84B	1.20B	1.19B	1.17B
Cash Flow
Free Cash Flow	-628.74M	-110.36M	303.87M	-29.40M	66.14M	-46.34M
Operating Cash Flow	-499.18M	-40.71M	362.37M	761.10M	108.16M	-37.76M
Investing Cash Flow	410.92M	-170.65M	-733.27M	-170.62M	-22.76M	98.78M
Financing Cash Flow	120.63M	58.14M	105.15M	105.02M	-1.40M	-90.52M

ThinTech Materials Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3663 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3303	58Neutral	TWD 4.62B	10.30	―	5.89%	14.20%	11.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8240	53Neutral	TWD 4.33B	22.56	―	2.85%	-11.48%	21.46%
TW:4939	42Neutral	TWD 5.97B	74.65	―	0.39%	11.17%	―
TW:3663	40Underperform	TWD 5.27B	142.13	―	0.82%	36.60%	147.36%

* General Sector Average

Performance Comparison

TW:3663 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3663	ThinTech Materials Technology Co., Ltd.	50.00	4.50	9.89%
TW:3303	Univacco Technology Inc.	50.90	6.19	13.84%
TW:3585	Advance Materials Corporation	48.30	34.70	255.15%
TW:4939	Asia Electronic Material Co., Ltd.	63.40	37.37	143.59%
TW:7896	Sil-More Industrial Ltd.	173.00	-181.90	-51.25%
TW:8240	Wah Hong Industrial Corp.	45.60	12.58	38.09%

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

ThinTech Materials Technology Co., Ltd. AI Stock Analysis