TPK Holding Co., Ltd. (3673) AI Stock Analysis

TPK Holding Co., Ltd.

(TWSE:3673)

Select Model

Rating:51Neutral

Price Target:TWD 57.00▼(-8.21% Downside)

Action:initiatedcoverage

Date:11/09/26

TPK scores modestly, held back primarily by a deteriorating income statement — six consecutive years of revenue decline and net margins below 2% leave earnings highly exposed to small shifts in volume or costs, even though the latest year brought a welcome margin recovery and a doubling of net income. Technicals are a second drag, with the share price trading well below every major moving average and a negative MACD confirming a sustained downtrend, though oversold RSI and Stochastic readings hint at stretched downside. Offsetting these risks are the company's genuine strengths: consistently positive free cash flow of about NT$4.14 billion, operating cash flow that comfortably exceeds reported profits, steady debt reduction, and an inexpensive 12.6x P/E paired with a 3.16% dividend yield. The investment case hinges on whether the recent margin improvement proves durable; until revenue stabilizes, the profile remains stable but low-return.

Positive Factors

Free Cash Flow GenerationConsistently positive operating cash flow and solid 2025 free cash flow indicate that the company is converting operations into funding more effectively. This supports internal investment, debt servicing, and shareholder returns while reducing reliance on external financing over the next several quarters.

Negative Factors

Multi-Year Revenue DeclineThe substantial multi-year contraction in revenue points to persistent pressure on demand or business volumes rather than a temporary quarterly fluctuation. A smaller revenue base can reduce operating scale, weaken bargaining power, and make future earnings recovery more difficult to sustain.

TPK Holding Co., Ltd. (3673) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 24.26B
Dividend Yield: 2.90%
Average Volume (3M): 8.42M
Price to Earnings (P/E): 14.8
Beta (1Y): 1.21
Revenue Growth: 10.26%
EPS Growth: 102.82%
Country: TW
Employees: 22,902
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

TPK Holding Co., Ltd. Business Overview & Revenue Model

Company Description

TPK Holding Co., Ltd., along with its affiliated entities, operates both within Taiwan and on an international scale, focusing on the innovation, development, and distribution of advanced touch solutions. The company's offerings include a variety of...

TPK Holding Co., Ltd. Financial Statement Overview

Summary

A mixed profile dominated by a weak income statement (score 38): revenue has declined for six straight years, from roughly NT$114.6 billion to about NT$62.8 billion, with razor-thin gross margins (3.7%–6.3%) and net margins under 2%. The latest year did show genuine improvement — gross margin widened to 6.3%, operating profit turned positive at about NT$729 million, and net income more than doubled to roughly NT$1.11 billion. The balance sheet (56) is adequately capitalized, with equity funding about 46% of assets and debt reduced to approximately NT$27.8 billion from NT$33.6 billion, lowering debt-to-equity to 0.71, though return on equity of just 2.8% signals very low capital productivity. Cash flow (66) is the standout: operating cash flow of about NT$5.07 billion exceeded net income, and free cash flow of roughly NT$4.14 billion has stayed positive in each of the past six years, supporting continued deleveraging despite high capital intensity.

Income Statement

38Negative

Balance Sheet

56Neutral

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	67.64B	62.84B	68.87B	69.86B	97.18B	103.09B
Gross Profit	4.88B	3.95B	2.90B	3.23B	4.11B	3.77B
EBITDA	3.35B	3.50B	5.93B	6.12B	6.23B	6.99B
Net Income	1.87B	1.11B	473.06M	208.39M	543.74M	1.07B
Balance Sheet
Total Assets	105.57B	84.88B	89.18B	87.82B	83.60B	77.79B
Cash, Cash Equivalents and Short-Term Investments	45.70B	44.07B	48.77B	47.37B	35.18B	25.65B
Total Debt	27.27B	27.85B	29.37B	33.61B	27.79B	20.63B
Total Liabilities	50.68B	45.32B	48.82B	50.88B	46.23B	42.40B
Stockholders Equity	40.49B	39.36B	40.12B	36.65B	37.05B	35.23B
Cash Flow
Free Cash Flow	3.01B	4.14B	4.06B	9.89B	3.49B	535.28M
Operating Cash Flow	3.99B	5.07B	5.05B	10.96B	4.56B	1.52B
Investing Cash Flow	-5.34B	-14.85B	9.41B	-3.88B	-6.69B	162.73M
Financing Cash Flow	-5.91B	-1.23B	-6.67B	4.38B	3.08B	-2.82B

TPK Holding Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3673 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4915	64Neutral	TWD 23.90B	11.71	―	8.99%	13.42%	-25.09%
TW:6176	60Neutral	TWD 26.93B	9.50	―	9.91%	-11.20%	-42.48%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3673	51Neutral	TWD 25.74B	14.81	―	2.90%	10.26%	102.82%
TW:2392	45Neutral	TWD 16.68B	4.41	―	2.92%	-10.50%	1834.43%
TW:6456	45Neutral	TWD 28.45B	-20.96	―	―	-18.65%	-2167.42%
TW:3362	40Underperform	TWD 18.28B	-74.38	―	0.80%	-2.57%	-1044.10%

* General Sector Average

Performance Comparison

TW:3673 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3673	TPK Holding Co., Ltd.	62.10	20.58	49.58%
TW:2392	Cheng Uei Precision Industry Co., Ltd.	34.30	-10.26	-23.03%
TW:3362	Ability Opto-Electronics Technology Co., Ltd.	128.00	28.80	29.04%
TW:4915	Primax Electronics Ltd.	50.80	-32.01	-38.65%
TW:6176	Radiant Opto-Electronics Corp.	80.70	-79.28	-49.56%
TW:6456	General Interface Solution (GIS) Holding Ltd.	92.60	46.90	102.63%

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

TPK Holding Co., Ltd. AI Stock Analysis