UDE Corp. (3689) AI Stock Analysis

UDE Corp.

(TPEx:3689)

Select Model

Rating:71Outperform

Price Target:TWD 100.00▼(-0.50% Downside)

Action:initiatedcoverage

Date:11/10/26

Strong financial performance from expanding margins and low-debt balance sheet is the primary driver, supported by attractive valuation; weak technical momentum from bearish signals weighs on the overall score.

Positive Factors

Improving ProfitabilityThe substantial expansion in net and gross margins indicates that UDE has strengthened its earnings economics over time. If maintained, better profitability can support internal reinvestment, improve resilience during weaker demand, and create a more durable earnings base over the next several quarters.

Negative Factors

Uneven Revenue TrendThe recent rebound is encouraging, but consecutive annual declines before 2025 show that demand and top-line execution have not been consistently dependable. Uneven revenue makes it harder to plan investments, sustain operating leverage, and establish a predictable medium-term earnings trajectory.

UDE Corp. (3689) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.89B
Dividend Yield: 3.63%
Average Volume (3M): 947.83K
Price to Earnings (P/E): 10.9
Beta (1Y): 1.28
Revenue Growth: 38.71%
EPS Growth: 21.86%
Country: TW
Employees: 2,590
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

UDE Corp. Business Overview & Revenue Model

Company Description

U.D. Electronic Corp., established in Taoyuan City, Taiwan in 2005, specializes in the development, production, and distribution of a wide array of electronic components, materials, and connection solutions. The company's operations extend across Tai...

UDE Corp. Financial Statement Overview

Summary

Strong margin expansion with gross profit at 28.8% and net profit at 10.5%, plus a healthy low-leverage balance sheet (debt-to-equity 0.13) support solid performance, though cash flow shows some variability.

Income Statement

82Very Positive

Balance Sheet

89Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.32B	6.21B	5.15B	6.12B	6.32B	6.16B
Gross Profit	2.18B	1.79B	1.40B	1.32B	1.21B	1.16B
EBITDA	1.18B	1.09B	968.69M	897.99M	839.94M	751.10M
Net Income	727.19M	652.16M	511.21M	384.71M	327.37M	240.19M
Balance Sheet
Total Assets	8.88B	7.67B	5.77B	5.18B	5.22B	5.76B
Cash, Cash Equivalents and Short-Term Investments	1.99B	1.42B	1.40B	1.42B	398.06M	381.83M
Total Debt	881.61M	628.13M	310.16M	791.78M	903.02M	1.40B
Total Liabilities	3.77B	2.73B	1.59B	1.77B	2.05B	2.80B
Stockholders Equity	4.98B	4.81B	4.15B	3.38B	3.14B	2.92B
Cash Flow
Free Cash Flow	364.48M	432.84M	185.51M	1.32B	543.79M	-200.54M
Operating Cash Flow	858.06M	1.03B	721.19M	1.53B	817.30M	73.35M
Investing Cash Flow	-1.39B	-1.24B	-512.49M	-217.12M	-244.93M	-149.02M
Financing Cash Flow	463.04M	377.10M	-391.93M	-250.25M	-624.55M	-250.88M

UDE Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3689 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3689	71Outperform	TWD 8.73B	10.92	―	3.63%	38.71%	21.86%
TW:6261	59Neutral	TWD 8.52B	13.76	―	3.74%	13.87%	34.24%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3289	55Neutral	TWD 9.76B	25.00	―	4.22%	-1.90%	-10.19%
TW:2369	38Underperform	TWD 9.68B	70.09	―	1.16%	31.46%	―
TW:6706	38Underperform	TWD 9.54B	-37.35	―	―	-40.08%	16.61%

* General Sector Average

Performance Comparison

TW:3689 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3689	UDE Corp.	100.50	3.97	4.12%
TW:2369	Lingsen Precision Industries, Ltd.	26.30	4.25	19.27%
TW:3289	Integrated Service Technology Inc.	119.00	19.29	19.34%
TW:4925	JMicron Technology Corporation	101.50	67.42	197.83%
TW:6261	Youngtek Electronics Corporation	66.80	9.11	15.78%
TW:6706	Fittech Co., Ltd.	124.00	45.00	56.96%

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

UDE Corp. AI Stock Analysis