Orange Electronic Co Ltd (4554) AI Stock Analysis

Orange Electronic Co Ltd

(TPEx:4554)

Select Model

Rating:63Neutral

Price Target:TWD 26.00▲(4.00% Upside)

Action:initiatedcoverage

Date:11/09/26

Orange Electronic earns a moderate score. Fundamentals are the main support: record net income, expanding gross margins, three straight years of revenue growth, and a conservatively financed balance sheet with low debt-to-equity of 0.26 and steadily rising equity. Offsetting this, cash generation deteriorated sharply, with free cash flow covering only about 57% of net income, and borrowings have been climbing from a low base. The technical picture is the biggest near-term drag, with the stock below all key moving averages, a negative MACD, and momentum indicators at severely depressed levels. A cheap P/E of 8.6 and a 2.07% dividend yield provide valuation support and partially offset the weak price trend.

Positive Factors

Revenue Growth and ProfitabilitySteady revenue expansion alongside healthy gross and net margins indicates sustained demand and operating effectiveness. This profitability gives Orange Electronic resources to support product development, serve OEM and aftermarket customers, and strengthen earnings power over the next several quarters.

Negative Factors

Weak Cash ConversionThe sharp decline in operating and free cash flow raises concerns about the conversion of reported earnings into usable cash. If this persists, Orange Electronic may have less internally generated funding for investment, dividends, or resilience, making earnings quality less dependable.

Orange Electronic Co Ltd (4554) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 749.35M
Dividend Yield: 2.02%
Average Volume (3M): 37.28K
Price to Earnings (P/E): 8.8
Beta (1Y): 0.49
Revenue Growth: 17.49%
EPS Growth: 245.73%
Country: TW
Employees: 144
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Orange Electronic Co Ltd Business Overview & Revenue Model

Company Description

Orange Electronic Co., Ltd. manufactures and sells wireless communication machinery and equipment, telecommunications control radio frequency equipment and enterprises, and locomotives parts and other products. It is involved in the entrepot trade, t...

Orange Electronic Co Ltd Financial Statement Overview

Summary

Blending the Income Statement (72), Balance Sheet (80), and Cash Flow (52) scores yields a solid but uneven profile. Earnings momentum is genuine: revenue has grown three consecutive years to NT$493.1 million, gross margin widened to roughly 44%, and net income of NT$55.9 million (11.3% net margin) is a six-year high, up ~28% year over year. The balance sheet is the strongest pillar, with equity of NT$508.9 million funding about two-thirds of assets, debt-to-equity of just 0.26, and ROE improving to ~11%. The drag is cash conversion: operating cash flow fell to NT$38.0 million from NT$68.9 million and free cash flow dropped to NT$21.6 million from NT$65.9 million, covering only ~57% of net income versus 96% a year earlier, while total debt has more than tripled since 2020 from a low base. EBITDA margin compression to ~14% and the 2022 operating loss also highlight cyclicality.

Income Statement

72Positive

Balance Sheet

80Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	525.46M	493.07M	406.61M	365.79M	355.98M	458.33M
Gross Profit	224.00M	216.02M	182.33M	151.23M	133.09M	190.03M
EBITDA	78.21M	67.58M	73.43M	45.95M	47.47M	75.97M
Net Income	74.07M	55.94M	43.55M	24.68M	26.65M	42.79M
Balance Sheet
Total Assets	880.75M	769.56M	704.53M	615.86M	607.94M	746.87M
Cash, Cash Equivalents and Short-Term Investments	397.66M	363.87M	339.11M	291.20M	254.06M	378.26M
Total Debt	165.12M	131.67M	106.68M	62.02M	49.94M	97.33M
Total Liabilities	364.53M	260.68M	246.52M	176.42M	171.52M	317.93M
Stockholders Equity	516.22M	508.88M	458.01M	439.44M	436.41M	428.95M
Cash Flow
Free Cash Flow	65.40M	21.62M	65.91M	47.02M	-69.00K	51.19M
Operating Cash Flow	93.39M	38.04M	68.87M	52.56M	3.27M	56.87M
Investing Cash Flow	-41.73M	-29.68M	-5.69M	-1.96M	-37.98M	-15.59M
Financing Cash Flow	-15.66M	15.17M	-12.73M	-14.57M	-71.23M	56.97M

Orange Electronic Co Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4554 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4554	63Neutral	TWD 750.86M	8.82	―	2.02%	17.49%	245.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8107	46Neutral	TWD 832.50M	8.83	―	9.01%	-27.02%	294.03%
TW:4558	43Neutral	TWD 847.50M	19.09	―	―	10.33%	―
TW:1512	41Neutral	TWD 597.94M	31.46	―	―	9.19%	―
TW:9912	41Neutral	TWD 650.08M	-20.86	―	―	2.36%	54.38%

* General Sector Average

Performance Comparison

TW:4554 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4554	Orange Electronic Co Ltd	25.00	-1.93	-7.17%
TW:1512	Jui Li Enterprise Co., Ltd.	6.10	-1.98	-24.50%
TW:2245	Nww Manufacturing Co. Ltd.	22.90	-2.44	-9.64%
TW:4558	Alformer Industrial Co Ltd	17.95	-2.50	-12.22%
TW:8107	Tayih Kenmos Auto Parts Co., Ltd.	11.10	-3.35	-23.18%
TW:9912	Associated Industries China, Inc.	13.20	1.20	10.00%

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

Orange Electronic Co Ltd AI Stock Analysis