Gudeng Precision Industrial Co., Ltd. (3680) AI Stock Analysis

Gudeng Precision Industrial Co., Ltd.

(TPEx:3680)

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Rating:50Neutral

Price Target:TWD 384.00▼(-8.79% Downside)

Action:initiatedcoverage

Date:11/09/26

Gudeng Precision scores in the lower-middle range. The dominant drag is a financial profile that is becoming stretched: despite rapid revenue growth, margins compressed for a third consecutive year, net income declined, debt-to-equity pushed past 1.0x, ROE halved versus 2022, and free cash flow has been negative for six straight years as heavy capacity investment consumes all operating cash. Technicals add further pressure, with the price far below every major moving average and a strongly negative MACD, though the depressed RSI suggests selling is stretched and a near-term stabilisation is possible. Valuation is the most balanced element — a 28x P/E against falling earnings is not cheap, but a 3.1% dividend yield offers some cushion. The investment case ultimately rests on today's capacity spending converting into future earnings; until margins and free cash flow turn, risk remains elevated.

Positive Factors

Semiconductor Precision PositioningGudeng serves demanding semiconductor and advanced-electronics manufacturing processes with specialized precision products. This positioning links the business to customers’ accuracy, yield, and throughput requirements, which can support differentiated know-how and durable relevance as production complexity increases.

Negative Factors

Persistent Negative Free Cash FlowPersistently negative free cash flow means accounting profits are not yet translating into surplus cash generation. Although operating cash flow improved, continued cash absorption can limit internally funded growth, increase reliance on financing, and reduce flexibility if investment or working-capital needs remain elevated.

Gudeng Precision Industrial Co., Ltd. (3680) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 41.61B
Dividend Yield: 2.83%
Average Volume (3M): 1.41M
Price to Earnings (P/E): 28.8
Beta (1Y): 1.22
Revenue Growth: 19.47%
EPS Growth: 52.93%
Country: TW
Employees: 379
Sector: General
Sector Strength: 55
Industry: Semiconductors

Gudeng Precision Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Gudeng Precision Industrial Co., Ltd. delivers technology services globally. The company's core offerings encompass a comprehensive range of wafer handling solutions, such as shipping boxes, cassette boxes, wafer cassettes, front opening wafer transf...

Gudeng Precision Industrial Co., Ltd. Financial Statement Overview

Summary

Gudeng Precision combines strong growth with a deteriorating quality profile. Revenue has nearly tripled since 2020 (≈24% CAGR) and reached NT$7.35 billion in 2025, but growth slowed to 12.1% and profitability compressed sharply — gross margin fell to 41.9% from 48.7% in 2022, operating margin halved to 14.9%, and net income dropped about 22% to NT$905 million despite higher sales (Income Statement: 63). The balance sheet is the weakest link: total debt climbed to NT$9.91 billion, pushing debt-to-equity above 1.0x while equity edged lower and ROE slipped to 9.3% from 19.1% in 2022 (Balance Sheet: 48). Cash flow is mixed — operating cash flow improved to NT$1.40 billion and covers net income roughly 1.5x, signalling good earnings quality, but free cash flow has been negative for six straight years (NT$-669 million in 2025) as ~NT$2.1 billion of capex absorbs all internal cash (Cash Flow: 52). Net result: a real growth franchise with rising leverage, falling returns and limited margin for error.

Income Statement

63Positive

Balance Sheet

48Neutral

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.11B	7.35B	6.54B	5.08B	4.49B	3.12B
Gross Profit	3.29B	3.08B	2.89B	2.44B	2.19B	1.24B
EBITDA	2.05B	1.73B	2.17B	1.62B	1.53B	682.44M
Net Income	1.43B	905.29M	1.17B	905.01M	933.07M	336.66M
Balance Sheet
Total Assets	27.76B	23.77B	21.37B	16.30B	12.23B	9.50B
Cash, Cash Equivalents and Short-Term Investments	6.97B	6.11B	5.78B	4.72B	2.74B	1.77B
Total Debt	10.01B	9.91B	7.09B	4.65B	4.38B	3.27B
Total Liabilities	13.06B	12.36B	9.84B	7.39B	6.88B	4.98B
Stockholders Equity	12.99B	9.74B	10.01B	8.12B	4.88B	4.42B
Cash Flow
Free Cash Flow	-983.80M	-668.53M	-1.25B	-272.57M	-188.50M	-1.68B
Operating Cash Flow	1.60B	1.40B	967.03M	1.21B	852.89M	442.74M
Investing Cash Flow	-1.48B	-2.35B	-3.31B	-1.96B	-1.22B	-2.53B
Financing Cash Flow	1.16B	1.80B	2.61B	2.49B	930.39M	2.24B

Gudeng Precision Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3680 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:7751	67Neutral	TWD 30.52B	42.13	―	1.59%	―	―
TW:3131	66Neutral	TWD 49.68B	28.86	―	2.70%	37.72%	73.19%
TW:3413	63Neutral	TWD 28.73B	12.62	―	4.24%	16.87%	-12.76%
TW:3583	59Neutral	TWD 40.40B	28.85	―	2.41%	7.90%	44.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3680	50Neutral	TWD 40.32B	28.76	―	2.83%	19.47%	52.93%
TW:2464	44Neutral	TWD 35.47B	47.13	―	0.30%	19.16%	―

* General Sector Average

Performance Comparison

TW:3680 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3680	Gudeng Precision Industrial Co., Ltd.	421.00	79.84	23.40%
TW:2464	Mirle Automation Corp.	156.00	93.34	148.97%
TW:3131	Grand Process Technology Corporation	1705.00	325.39	23.59%
TW:3413	Foxsemicon Integrated Technology Inc.	259.00	-43.10	-14.27%
TW:3583	Scientech Corporation	486.50	164.99	51.32%
TW:7751	Horng Terng Automation Co Ltd	1135.00	675.58	147.05%

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

Gudeng Precision Industrial Co., Ltd. AI Stock Analysis