GLOBAL TEK FABRICATION CO., Ltd. (4566) AI Stock Analysis

GLOBAL TEK FABRICATION CO., Ltd.

(TWSE:4566)

Select Model

Rating:47Neutral

Price Target:TWD 70.00▼(-8.14% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by deteriorating financial performance: despite record revenue and stable gross margins, operating and net margins have roughly halved from 2022 peaks, return on equity has fallen to 3.0%, and an aggressive capital expenditure cycle has pushed free cash flow negative while lifting debt to NT$3.81 billion and leverage to 0.77x equity. Valuation compounds the concern, with a P/E near 29 and a sub-1% dividend yield offering little support against shrinking earnings. Technicals are mixed and provide only partial offset — the stock still trades above its 100- and 200-day averages with a positive MACD, but has slipped below shorter-term averages with weak RSI and Stochastic readings. Operating cash flow of nearly three times net income remains the key strength; a recovery in margins and returns from the recent capacity investment would be needed to improve the outlook.

Positive Factors

Revenue GrowthStrong revenue growth across the last two annual periods indicates improving demand and expanding scale in the company’s fabricated metal business. If sustained, this top-line momentum can broaden customer reach, improve operating leverage, and provide a stronger base for rebuilding profitability over the next several quarters.

Negative Factors

Profitability DeclineThe sharp reduction in net, EBIT, and EBITDA margins shows that strong sales growth is not currently translating proportionately into earnings. Persistently weaker profitability could limit internal funding, reduce resilience to operating pressures, and make future growth less valuable unless cost and mix trends improve.

GLOBAL TEK FABRICATION CO., Ltd. (4566) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.35B
Dividend Yield: 0.90%
Average Volume (3M): 3.18M
Price to Earnings (P/E): 30.3
Beta (1Y): 1.10
Revenue Growth: 18.15%
EPS Growth: 370.19%
Country: TW
Employees: 924
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

GLOBAL TEK FABRICATION CO., Ltd. Business Overview & Revenue Model

Company Description

GLOBAL TEK FABRICATION Co. Ltd. is a manufacturer and seller of high-precision parts and subassemblies, with its primary manufacturing operations located in China. The company's diverse product portfolio caters to several key industries: Automotive S...

GLOBAL TEK FABRICATION CO., Ltd. Financial Statement Overview

Summary

Revenue reached a record NT$4.98 billion with impressively stable gross margins near 22%, and operating cash flow of NT$441 million was almost triple net income, signalling good earnings quality. However, profitability has deteriorated sharply: operating margin fell to 4.4% from 7.8% (11.6% in 2022), net income dropped roughly 42% to NT$149 million, and return on equity slid to just 3.0%. Heavy capital spending of about NT$606 million pushed free cash flow to negative NT$165 million, while total debt rose to NT$3.81 billion and leverage climbed to 0.77x equity, with the asset expansion funded by borrowing rather than earnings. The balance sheet remains adequately capitalised (equity funds 47% of assets), but weakening returns and recurring negative free cash flow keep the overall financial profile below average.

Income Statement

44Neutral

Balance Sheet

55Neutral

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.31B	4.98B	4.80B	4.21B	4.99B	4.31B
Gross Profit	1.15B	1.10B	1.04B	930.62M	1.13B	884.78M
EBITDA	679.22M	572.32M	652.87M	559.42M	779.28M	409.72M
Net Income	291.61M	148.98M	256.36M	262.25M	422.85M	166.77M
Balance Sheet
Total Assets	11.25B	10.57B	10.24B	8.33B	8.03B	6.82B
Cash, Cash Equivalents and Short-Term Investments	2.07B	2.13B	2.07B	1.97B	1.13B	1.48B
Total Debt	4.11B	3.81B	3.46B	2.78B	2.62B	1.76B
Total Liabilities	6.08B	5.51B	5.20B	4.39B	4.68B	4.33B
Stockholders Equity	5.06B	4.95B	4.96B	3.93B	3.35B	2.48B
Cash Flow
Free Cash Flow	-583.99M	-165.26M	472.16M	355.68M	-842.81M	-246.99M
Operating Cash Flow	418.54M	440.69M	547.31M	666.67M	161.09M	202.41M
Investing Cash Flow	-1.04B	-493.81M	-468.13M	-329.95M	-905.20M	-1.36B
Financing Cash Flow	423.84M	167.14M	-148.91M	622.06M	500.26M	1.04B

GLOBAL TEK FABRICATION CO., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4566 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4571	71Outperform	TWD 7.65B	16.28	―	3.60%	-0.89%	-0.66%
TW:2233	57Neutral	TWD 6.87B	19.42	―	3.51%	-2.23%	-20.63%
TW:3004	56Neutral	TWD 7.89B	15.33	―	2.08%	37.56%	28.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4566	47Neutral	TWD 8.39B	30.31	―	0.90%	18.15%	370.19%
TW:6654	40Underperform	TWD 7.13B	76.39	―	―	115.72%	―

* General Sector Average

Performance Comparison

TW:4566 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4566	GLOBAL TEK FABRICATION CO., Ltd.	76.20	25.01	48.85%
TW:2233	Turvo International Co., Ltd.	114.00	-95.87	-45.68%
TW:3004	National Aerospace Fasteners Corporation	122.50	18.07	17.31%
TW:4571	Khgears International Ltd.	146.50	-12.67	-7.96%
TW:6654	Tian Zheng International Precision Machinery Co., Ltd.	174.00	89.00	104.71%
TW:7907	Laienparts Technology Co., Ltd.	221.00	-181.41	-45.08%

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

GLOBAL TEK FABRICATION CO., Ltd. AI Stock Analysis