Dynamic Holding Co Ltd (3715) AI Stock Analysis

Dynamic Holding Co Ltd

(TWSE:3715)

Select Model

Rating:40Underperform

Price Target:TWD 94.00▼(-27.97% Downside)

Action:initiatedcoverage

Date:11/09/26

Dynamic Holding scores poorly overall, driven primarily by weak financial fundamentals: margins and returns are compressing despite solid revenue growth, debt has risen roughly fivefold since 2020 to NT$16.03 billion, and free cash flow is deeply negative at about NT$-5.42 billion as the company funds an aggressive capacity-expansion cycle with borrowings. Technicals reinforce the caution, with the share price trading far below all major moving averages and momentum indicators signalling continued downside pressure. Valuation offers little support, as the negative P/E reflects current unprofitability and the 1.09% dividend yield is modest relative to the balance sheet and cash flow risks. The key swing factor is whether heavy capital investment translates into higher-margin revenue and positive cash generation; until then, a cautious stance is warranted.

Positive Factors

Sustained Revenue GrowthRevenue increased from 2020 through 2025, with 2025 sales still rising about 4.2% year over year. Continued top-line expansion provides a base for operating scale and customer demand, although the latest pace is modest and must translate into better margins to strengthen earnings quality.

Negative Factors

Deeply Negative Free Cash FlowDeeply negative free cash flow indicates that reported profitability is not converting into cash, with capital spending and/or working-capital outflows consuming resources. Persistent cash burn can restrict reinvestment flexibility, increase financing needs, and weaken the durability of earnings.

Dynamic Holding Co Ltd (3715) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 37.01B
Dividend Yield: 0.83%
Average Volume (3M): 6.37M
Price to Earnings (P/E): -123.7
Beta (1Y): 1.18
Revenue Growth: 42.69%
EPS Growth: -138.02%
Country: TW
Employees: 4,809
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Dynamic Holding Co Ltd Business Overview & Revenue Model

Company Description

Founded in 1988 and headquartered in Taoyuan City, Taiwan, Dynamic Holding Co., Ltd. is a global enterprise that, together with its affiliated companies, specializes in the design, development, and manufacturing of multi-layer printed circuit boards...

Dynamic Holding Co Ltd Financial Statement Overview

Summary

Revenue growth remains the main bright spot, rising roughly 9% to about NT$19.45 billion and more than 50% since 2020, with EBITDA still positive at NT$2.84 billion. However, profitability is deteriorating: gross margin fell to 19.3% from 23.1%, operating margin nearly halved to 6.0%, and net income dropped about 26% to NT$781 million. The balance sheet has become notably riskier, with total debt up roughly fivefold since 2020 to NT$16.03 billion and debt-to-equity near 1.48x, while return on equity halved to 7.2%. Cash flow is the weakest element: operating cash flow fell about 65% to NT$592 million and free cash flow was deeply negative at roughly NT$-5.42 billion on heavy capital spending, leaving expansion dependent on external debt funding.

Income Statement

52Neutral

Balance Sheet

42Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.77B	19.45B	17.79B	15.71B	15.30B	15.75B
Gross Profit	3.71B	3.76B	4.11B	3.79B	2.66B	2.58B
EBITDA	2.64B	2.84B	3.30B	3.26B	1.89B	1.50B
Net Income	-214.27M	781.29M	1.05B	1.00B	547.24M	470.45M
Balance Sheet
Total Assets	48.89B	38.64B	30.90B	22.44B	20.01B	17.64B
Cash, Cash Equivalents and Short-Term Investments	7.30B	5.57B	2.85B	3.40B	1.84B	2.73B
Total Debt	24.53B	16.03B	11.70B	8.26B	6.72B	6.12B
Total Liabilities	36.71B	25.34B	22.82B	15.53B	13.86B	12.12B
Stockholders Equity	10.46B	10.81B	7.89B	6.75B	6.02B	5.52B
Cash Flow
Free Cash Flow	-10.94B	-5.42B	-3.55B	-24.64M	-1.58B	-1.44B
Operating Cash Flow	-2.36B	592.41M	1.70B	3.06B	1.49B	151.65M
Investing Cash Flow	-5.11B	-2.51B	-5.15B	-2.82B	-3.00B	-1.33B
Financing Cash Flow	10.46B	4.58B	2.72B	1.43B	425.00M	2.92B

Dynamic Holding Co Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3715 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6191	63Neutral	TWD 41.64B	14.97	―	3.10%	38.15%	-5.47%
TW:2328	61Neutral	TWD 24.34B	1.23	―	1.90%	-13.85%	-78.67%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5469	54Neutral	TWD 35.64B	14.80	―	3.30%	31.04%	-20.68%
TW:2367	44Neutral	TWD 26.41B	-51.36	―	0.51%	96.36%	-186.89%
TW:3715	40Underperform	TWD 33.75B	-123.68	―	0.83%	42.69%	-138.02%
TW:6269	38Underperform	TWD 24.68B	-12.09	―	―	0.61%	3.25%

* General Sector Average

Performance Comparison

TW:3715 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3715	Dynamic Holding Co Ltd	130.50	1.04	0.80%
TW:2328	Pan-International Industrial Corp.	47.40	-2.56	-5.12%
TW:2367	Unitech Printed Circuit Board Corp.	39.55	13.69	52.96%
TW:5469	HannStar Board Corp.	76.50	-16.41	-17.66%
TW:6191	Global Brands Manufacture Limited	84.00	-35.48	-29.70%
TW:6269	Flexium Interconnect, Inc.	79.50	25.80	48.04%

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

Dynamic Holding Co Ltd AI Stock Analysis