PARPRO Corporation (4916) AI Stock Analysis

PARPRO Corporation

(TWSE:4916)

Select Model

Rating:61Neutral

Price Target:TWD 88.00▼(-14.98% Downside)

Action:initiatedcoverage

Date:11/09/26

PARPRO scores moderately. The key strength is a materially de-risked balance sheet (debt-to-equity down to 0.36, equity up to NT$3.05 billion) paired with a sharp margin-driven profit recovery that lifted net income to NT$200.7 million. However, earnings quality is unproven — free cash flow nearly vanished at NT$16 million and operating cash covered only about 58% of profit — while revenue growth has flattened to roughly 1% and ROE remains a modest 6.6%. Technicals are the biggest drag, with the price below all major moving averages and negative MACD signalling a sustained downtrend, though oversold RSI and Stochastic readings suggest selling may be extended. An undemanding 13.7x P/E provides some valuation support, but the minimal 0.60% dividend yield offers little cushion. Investors should watch whether the new margin levels hold and whether profits begin converting into cash.

Positive Factors

Profitability and Revenue RecoveryThe 2025 rebound in revenue, earnings, and margins indicates improved operating execution after the prior-year weakness. If sustained, stronger profitability can support reinvestment, improve resilience, and create a more durable earnings base over the next several quarters.

Negative Factors

Weak and Volatile Cash ConversionThe sharp gap between reported net income and free cash flow raises concerns about the quality and repeatability of earnings. Weak conversion limits internally generated funding for investment, debt reduction, and shareholder returns, while also making financial performance more sensitive to working-capital demands.

PARPRO Corporation (4916) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 13.09B
Dividend Yield: 0.48%
Average Volume (3M): 3.02M
Price to Earnings (P/E): 15.9
Beta (1Y): 1.33
Revenue Growth: 32.18%
EPS Growth: 315.06%
Country: TW
Employees: 424
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

PARPRO Corporation Business Overview & Revenue Model

Company Description

Parpro Corporation, founded in 2001 and previously known as Pilot Electronics Corporation, is a Taiwan-based enterprise headquartered in Taipei. The company specializes in providing extensive design and manufacturing capabilities for processor-driven...

PARPRO Corporation Financial Statement Overview

Summary

A solid but uneven financial picture. Profitability staged a genuine turnaround — gross margin expanded to 20.0% from 14.1%, operating margin tripled to 8.1%, and net income surged from NT$1.5 million to NT$200.7 million on revenue of NT$3.61 billion. The balance sheet is the standout strength, with equity rising to NT$3.05 billion and debt-to-equity falling to a conservative 0.36 from 1.30 in 2020, funding roughly 61% of assets. Offsetting this, cash flow is weak: operating cash flow dropped to NT$116 million from NT$427 million and free cash flow collapsed to NT$16 million, covering only about 58% of net income — a sign profits are tied up in working capital. Revenue growth has also stalled to roughly 1% after double-digit gains in 2022-2023, return on equity remains a modest 6.6%, and earnings have been historically volatile, including a NT$181 million loss in 2020.

Income Statement

72Positive

Balance Sheet

76Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.40B	3.61B	3.57B	3.41B	2.78B	2.10B
Gross Profit	859.86M	721.51M	505.56M	478.82M	458.13M	317.72M
EBITDA	527.86M	393.43M	178.69M	279.47M	254.51M	217.78M
Net Income	808.45M	200.66M	1.51M	80.32M	99.51M	106.31M
Balance Sheet
Total Assets	5.36B	4.99B	3.50B	3.64B	3.53B	3.00B
Cash, Cash Equivalents and Short-Term Investments	837.57M	1.12B	496.86M	195.56M	143.83M	314.52M
Total Debt	882.32M	1.10B	1.04B	1.13B	1.48B	1.52B
Total Liabilities	1.75B	1.92B	1.37B	1.63B	2.06B	1.79B
Stockholders Equity	3.61B	3.05B	2.10B	2.00B	1.47B	1.21B
Cash Flow
Free Cash Flow	-347.27M	15.64M	405.24M	90.71M	-158.04M	-111.62M
Operating Cash Flow	-198.25M	116.33M	427.21M	110.47M	-155.74M	-73.80M
Investing Cash Flow	-86.03M	-134.76M	4.40M	-51.28M	-15.52M	-31.07M
Financing Cash Flow	197.62M	656.52M	-144.75M	-7.04M	-23.29M	-69.87M

PARPRO Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4916 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3088	67Neutral	TWD 12.32B	12.87	―	2.63%	35.40%	73.91%
TW:6245	64Neutral	TWD 12.61B	17.60	―	4.29%	11.74%	8.17%
TW:4916	61Neutral	TWD 11.98B	15.88	―	0.48%	32.18%	315.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5386	52Neutral	TWD 10.20B	3.06	―	0.79%	223.02%	1417.06%
TW:8050	51Neutral	TWD 9.99B	12.97	―	4.15%	17.15%	104.20%

* General Sector Average

Performance Comparison

TW:4916 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4916	PARPRO Corporation	103.50	54.67	111.97%
TW:3088	Axiomtek Co Ltd	111.50	35.93	47.55%
TW:5386	Albatron Technology Co., Ltd	189.50	140.36	285.66%
TW:6245	Lanner Electronics Inc.	88.50	18.32	26.10%
TW:7710	ASRock Industrial Computer Corporation	122.00	-170.01	-58.22%
TW:8050	iBASE Technology Inc.	51.80	6.26	13.74%

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

PARPRO Corporation AI Stock Analysis