Asia Electronic Material Co., Ltd. (4939) AI Stock Analysis

Asia Electronic Material Co., Ltd.

(TPEx:4939)

Select Model

Rating:42Neutral

Price Target:TWD 52.00▼(-17.98% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is weighed down primarily by deteriorating profitability, negative free cash flow, and unfavorable valuation. Weak technical momentum also detracts, although oversold momentum indicators and a moderately solid balance sheet provide limited support.

Positive Factors

Positive Operating Cash FlowContinued positive operating cash flow shows that the core business still converts activity into cash despite recent earnings weakness. This provides some internal funding capacity and resilience, although the benefit is reduced because free cash flow has remained negative.

Negative Factors

Multi-Year Revenue DeclineA sustained revenue downtrend signals weakening demand, reduced business scale, or lost momentum across the company’s electronic-materials activities. Persistent top-line contraction can limit operating leverage, reduce reinvestment capacity, and make a durable earnings recovery harder.

Asia Electronic Material Co., Ltd. (4939) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.84B
Dividend Yield: 0.39%
Average Volume (3M): 11.96M
Price to Earnings (P/E): 74.7
Beta (1Y): 1.12
Revenue Growth: 11.17%
EPS Growth: ―
Country: TW
Employees: 262
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Asia Electronic Material Co., Ltd. Business Overview & Revenue Model

Company Description

Asia Electronic Material Co., Ltd. (AEM) is a Taiwanese enterprise primarily focused on the research, creation, production, and distribution of critical components for flexible electronics. Their product range encompasses both adhesive and non-adhesi...

Asia Electronic Material Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak overall: profitability deteriorated, operating profit and net income turned negative, and free cash flow remained negative. The balance sheet is moderately solid but leverage has increased.

Income Statement

25Negative

Balance Sheet

65Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.48B	1.42B	1.54B	1.55B	1.65B	1.96B
Gross Profit	365.98M	293.63M	325.70M	338.99M	360.54M	543.81M
EBITDA	152.63M	50.34M	126.12M	143.80M	134.40M	330.58M
Net Income	84.88M	-42.34M	19.08M	36.32M	34.41M	173.09M
Balance Sheet
Total Assets	3.03B	2.66B	2.78B	2.64B	2.87B	3.04B
Cash, Cash Equivalents and Short-Term Investments	410.59M	535.89M	602.63M	449.00M	736.05M	704.02M
Total Debt	863.07M	869.63M	832.02M	666.19M	859.83M	870.38M
Total Liabilities	1.51B	1.27B	1.23B	1.13B	1.33B	1.38B
Stockholders Equity	1.52B	1.35B	1.55B	1.52B	1.54B	1.61B
Cash Flow
Free Cash Flow	-164.31M	-25.59M	-1.40M	-26.23M	139.29M	132.31M
Operating Cash Flow	-54.35M	77.41M	49.47M	30.38M	282.16M	253.90M
Investing Cash Flow	-71.15M	-121.89M	-54.47M	-42.44M	-155.26M	-114.25M
Financing Cash Flow	-61.25M	-6.08M	124.16M	-266.30M	-113.49M	3.12M

Asia Electronic Material Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4939 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6155	50Neutral	TWD 5.11B	41.31	―	1.34%	21.25%	186.54%
TW:6224	45Neutral	TWD 5.15B	50.58	―	2.07%	-8.16%	-47.96%
TW:4939	42Neutral	TWD 5.97B	74.65	―	0.39%	11.17%	―
TW:3663	40Underperform	TWD 5.27B	142.13	―	0.82%	36.60%	147.36%

* General Sector Average

Performance Comparison

TW:4939 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4939	Asia Electronic Material Co., Ltd.	63.40	37.37	143.59%
TW:3585	Advance Materials Corporation	48.30	34.70	255.15%
TW:3663	ThinTech Materials Technology Co., Ltd.	50.00	4.50	9.89%
TW:6155	King Core Electronics Inc.	59.60	25.91	76.92%
TW:6224	Polytronics Technology Corp.	60.30	14.61	31.98%
TW:7742	Uranus Chemicals Co. Ltd.	76.70	37.40	95.17%

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

Asia Electronic Material Co., Ltd. AI Stock Analysis