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ADDCN Technology Co., Ltd. (5287) AI Stock Analysis

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TW:5287

ADDCN Technology Co., Ltd.

(TPEx:5287)

Select Model
Rating:76Outperform
Price Target:TWD 141.00â–²(11.90% Upside)
Action:initiatedcoverage
Date:11/09/26

ADDCN scores well overall on the strength of its financial quality and valuation. The business converts revenue into cash at an exceptional rate (FCF of NT$880m on NT$2.32bn revenue), earns ~33% ROE consistently, and carries minimal leverage, while trading at just 8.2x earnings with a well-covered 8.77% dividend yield. The key offsets are weak price action — the stock sits below all major moving averages with negative MACD and deeply depressed momentum readings — and slowing revenue growth of ~2.5%, down from prior double-digit gains, which caps earnings momentum. The result is a fundamentally sound, cash-rich and cheaply valued business currently facing a clear downtrend in its share price.

Positive Factors
High and durable profitabilityConsistently high operating and net margins indicate strong earnings power and provide resilience when revenue conditions weaken. The increase to roughly 36% net margin in 2025 suggests profitability remains a meaningful competitive and financial strength over the next several quarters.
Negative Factors
Revenue contractionThe shift from expansion to a 10.1% revenue decline in 2025 is a material deterioration in demand momentum. If this contraction persists, it could reduce operating leverage, limit reinvestment opportunities, and make the company’s strong margins harder to sustain.

ADDCN Technology Co., Ltd. (5287) vs. SPDR S&P 500 ETF (SPY)

-15%-10%-5%0%5%10%15%20%TW:5287-10.65%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 7.60B
Dividend Yield
8.70%
Average Volume (3M)
86.97K
Price to Earnings (P/E)
8.2
Beta (1Y)
0.14
Revenue Growth
-0.74%
EPS Growth
12.02%
Country
TW
Employees
296
Sector
General
Sector Strength
55
Industry
Internet Content & Information

ADDCN Technology Co., Ltd. Business Overview & Revenue Model

Company Description

ADDCN Technology Co., Ltd. operates a diverse array of online marketplaces, facilitating transactions and services across Taiwan and globally through its subsidiaries. Its extensive digital ecosystem encompasses platforms like 591.com.tw for real est...

ADDCN Technology Co., Ltd. Financial Statement Overview

Summary

ADDCN delivers a high-quality, asset-light financial profile. Income statement (87): revenue compounded from NT$1.54bn in 2020 to NT$2.32bn with ~69% gross margin, operating margin improving to 44.8% and net margin to 36.1%, lifting net income ~10% to NT$836m — though top-line growth has cooled to ~2.5%. Balance sheet (85): conservative structure with 58% equity funding, debt-to-equity of just 0.17, and consistently excellent ROE near 33%, offset slightly by borrowings rising from nil in 2020 to NT$442m. Cash flow (90): operating cash flow of NT$894m (~39% of revenue) and free cash flow of NT$880m with minimal capex, with FCF covering net income nearly one-for-one — confirming earnings quality. The main limitation is decelerating growth rather than any solvency or profitability concern.

Income Statement

87Very Positive

Balance Sheet

85Very Positive

Cash Flow

90Very Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Mar 2023Dec 2021
Income Statement
Total Revenue2.30B2.32B2.26B2.15B1.96B1.68B
Gross Profit1.58B1.61B1.58B1.50B1.38B1.23B
EBITDA971.94M1.09B972.83M962.91M876.93M817.62M
Net Income921.23M836.14M759.69M710.78M664.55M612.43M
Balance Sheet
Total Assets4.62B4.41B4.10B3.60B3.25B3.28B
Cash, Cash Equivalents and Short-Term Investments1.85B1.99B1.78B1.60B1.45B1.51B
Total Debt492.21M441.81M417.91M185.36M120.06M129.13M
Total Liabilities1.82B1.84B1.77B1.54B1.37B1.29B
Stockholders Equity2.78B2.55B2.31B2.04B1.87B1.98B
Cash Flow
Free Cash Flow792.62M880.29M791.58M754.29M724.70M665.98M
Operating Cash Flow805.50M894.49M809.89M793.71M748.69M767.42M
Investing Cash Flow-239.16M-94.99M-312.80M-197.59M-19.43M-255.69M
Financing Cash Flow-557.83M-597.78M-304.92M-457.62M-829.13M-379.81M

ADDCN Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:5287 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:5287TW:528776OutperformTWD 8.19B8.20―8.70%-0.74%12.02%
TW:5278TW:527872OutperformTWD 7.27B21.00―5.48%16.37%66.96%
TW:6811TW:681169NeutralTWD 9.95B13.97―4.36%30.33%25.72%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:3289TW:328955NeutralTWD 9.76B25.00―4.22%-1.90%-10.19%
TW:6180TW:618043NeutralTWD 7.19B-48.93―2.50%-2.36%-11.76%

* General Sector Average

Performance Comparison

-50%0%50%100%TW:5287TW:3289TW:5278TW:6180TW:6811TW:7735Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:5287 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:5287ADDCN Technology Co., Ltd.126.00-15.84-11.17%
TW:3289Integrated Service Technology Inc.119.0017.3617.08%
TW:5278Sunfun Info Co., Ltd.24.15-6.22-20.49%
TW:6180Gamania Digital Entertainment Co. Ltd.41.00-11.97-22.59%
TW:6811Acer E-Enabling Service Business Inc.241.0026.5012.35%
TW:7735Taiwan AI Cloud Corporation179.00-171.00-48.86%
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