Drewloong Precision, Inc. (4572) AI Stock Analysis

Drewloong Precision, Inc.

(TWSE:4572)

Select Model

Rating:43Neutral

Price Target:TWD 108.00▼(-8.47% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is very low, reflecting a company under significant fundamental and technical pressure. The most impactful factor is the severe deterioration in financial performance, marked by collapsing margins and a near-total depletion of free cash flow. This is compounded by a strongly bearish technical trend, with the stock in a clear downtrend across all major moving averages. The high dividend yield offers some valuation support but is not enough to offset the dominant operational and market headwinds.

Positive Factors

Positive ProfitabilityThe company remains materially profitable, with healthy gross and net margins supporting internal funding for operations and investment. Although profitability has weakened from 2024, the existing margin base indicates an established precision-manufacturing business with meaningful economic value in its products and services.

Negative Factors

Revenue and Margin ContractionThe latest period shows a significant deterioration in earnings power, combining lower revenue with sharply compressed net margins. If this pattern persists, reduced operating profitability could weaken reinvestment capacity, lower returns on capital, and make recovery dependent on renewed demand or improved pricing and mix.

Drewloong Precision, Inc. (4572) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.76B
Dividend Yield: 4.24%
Average Volume (3M): 26.13K
Price to Earnings (P/E): 20.4
Beta (1Y): 0.33
Revenue Growth: 3.72%
EPS Growth: 57.19%
Country: TW
Employees: 245
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

Drewloong Precision, Inc. Business Overview & Revenue Model

Company Description

Drewloong Precision, Inc., established in 1990 and operating from its headquarters in Kaohsiung City, Taiwan, focuses on manufacturing and supplying various aerospace components. These include airframe and engine parts, landing gear elements, and spe...

Drewloong Precision, Inc. Financial Statement Overview

Summary

Financial performance is weak, driven by a sharp cyclical downturn. Revenue contracted 5.6%, gross margin fell from 49.1% to 34.5%, and net margin nearly halved. Free cash flow has nearly evaporated, and debt has tripled, severely constraining financial flexibility.

Income Statement

42Neutral

Balance Sheet

55Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	699.05M	670.87M	871.45M	832.66M	636.81M	403.92M
Gross Profit	232.14M	231.73M	427.84M	397.63M	285.93M	140.67M
EBITDA	240.38M	223.56M	430.95M	384.26M	305.60M	129.61M
Net Income	147.17M	120.06M	284.24M	242.03M	183.57M	53.74M
Balance Sheet
Total Assets	3.16B	2.96B	3.11B	2.37B	2.14B	1.98B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.13B	1.28B	936.28M	779.70M	928.97M
Total Debt	653.95M	676.59M	665.21M	200.85M	206.47M	115.79M
Total Liabilities	1.26B	940.34M	1.02B	475.39M	420.70M	258.76M
Stockholders Equity	1.90B	2.02B	2.09B	1.89B	1.72B	1.72B
Cash Flow
Free Cash Flow	21.03M	35.13M	-71.52M	245.60M	161.04M	14.00M
Operating Cash Flow	254.71M	275.31M	216.37M	286.86M	194.74M	44.32M
Investing Cash Flow	-387.52M	-236.53M	-394.19M	-227.04M	168.86M	78.53M
Financing Cash Flow	-194.17M	-192.16M	380.23M	-82.94M	-267.32M	-181.84M

Drewloong Precision, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4572 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6983	63Neutral	TWD 4.34B	56.94	―	2.07%	―	―
TW:3310	62Neutral	TWD 4.74B	17.31	―	5.39%	19.95%	5.00%
TW:6859	61Neutral	TWD 4.28B	52.29	―	1.89%	-30.46%	-30.77%
TW:4949	59Neutral	TWD 4.88B	17.80	―	2.10%	45.18%	122.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4533	44Neutral	TWD 5.25B	51.00	―	0.58%	-0.25%	42.76%
TW:4572	43Neutral	TWD 4.64B	20.38	―	4.24%	3.72%	57.19%

* General Sector Average

Performance Comparison

TW:4572 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4572	Drewloong Precision, Inc.	118.00	-22.26	-15.87%
TW:3310	Chialin Precision Industrial Co., Ltd.	64.90	4.67	7.75%
TW:4533	Shieh Yih Machinery Industry Co., Ltd.	30.80	10.40	50.96%
TW:4949	Win Win Precision Technology Co., Ltd	66.60	29.72	80.57%
TW:6859	Best Precision Industrial Co.,Ltd.	106.00	14.98	16.46%
TW:6983	HUA YANG Precision Machinery Co., Ltd.	241.00	109.32	83.02%

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 10, 2026

Drewloong Precision, Inc. AI Stock Analysis