Hua Jung Components Co., Ltd. (5328) AI Stock Analysis

Hua Jung Components Co., Ltd.

(TPEx:5328)

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Rating:43Neutral

Price Target:TWD 38.00▼(-14.99% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is weighed down primarily by weak financial performance: operating profitability has eroded sharply (operating margin down to ~4.1%), earnings rely on non-operating items, and operating/free cash flow swung to roughly negative NT$156m while debt nearly doubled. A solid equity base and improving gross margins provide some support but are not enough to offset the cash conversion issue. Technicals reinforce the caution, with the price below all key moving averages and a deeply negative MACD, though the oversold RSI hints at potential short-term stabilization. Valuation adds further risk, as a ~58.9 P/E and a modest ~0.89% dividend yield leave little margin for error given the low ~3.6% return on equity.

Positive Factors

Moderate Leverage and Equity CushionModerate leverage and a sizeable equity base provide a financial cushion against operating volatility. Although borrowing increased, the current capital structure is not described as extreme, preserving some capacity to manage obligations and support the business through weaker periods.

Negative Factors

Persistent Revenue DeclineA multi-year decline in revenue points to weakening business demand or reduced commercial momentum rather than a single temporary setback. If this pattern persists, it can limit operating leverage, reduce reinvestment capacity, and make it harder to rebuild sustainable earnings growth.

Hua Jung Components Co., Ltd. (5328) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 7.58B
Dividend Yield: 0.78%
Average Volume (3M): 5.16M
Price to Earnings (P/E): 62.6
Beta (1Y): 1.31
Revenue Growth: 6.55%
EPS Growth: 79.04%
Country: TW
Employees: 465
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Hua Jung Components Co., Ltd. Business Overview & Revenue Model

Company Description

Hua Jung Components Co.,Ltd., a Taiwanese enterprise, specializes in the manufacturing and distribution of film capacitors within Taiwan. Their comprehensive product portfolio encompasses various capacitor types, such as metallized polyester, metalli...

Hua Jung Components Co., Ltd. Financial Statement Overview

Summary

Hua Jung shows a conservatively financed balance sheet (equity funds ~69% of assets, debt-to-equity ~0.34) as its main strength, but operating quality is deteriorating. Revenue stabilized near NT$884m (+2%) and gross margin improved to ~25.8%, yet operating margin collapsed to ~4.1% from 11.2%, and net income of ~NT$67m exceeded operating profit, meaning earnings lean on non-operating items. The biggest concern is cash: operating and free cash flow swung to roughly negative NT$156m, with an erratic multi-year record, while debt nearly doubled and equity slipped. Low ROE of ~3.6% rounds out a weak overall picture.

Income Statement

48Neutral

Balance Sheet

62Positive

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	979.12M	883.72M	866.51M	1.02B	1.06B	1.06B
Gross Profit	245.70M	228.11M	213.66M	261.45M	203.03M	201.46M
EBITDA	88.20M	73.01M	139.85M	152.27M	142.32M	94.66M
Net Income	122.18M	67.07M	67.72M	78.93M	73.70M	34.06M
Balance Sheet
Total Assets	2.92B	2.68B	2.47B	2.27B	2.41B	2.29B
Cash, Cash Equivalents and Short-Term Investments	989.30M	744.30M	685.17M	690.97M	538.77M	707.31M
Total Debt	348.98M	620.92M	319.03M	248.06M	473.89M	235.87M
Total Liabilities	643.89M	832.48M	521.58M	433.29M	700.45M	508.06M
Stockholders Equity	2.27B	1.84B	1.94B	1.83B	1.70B	1.78B
Cash Flow
Free Cash Flow	282.05M	-156.25M	4.92M	495.15M	-386.99M	143.18M
Operating Cash Flow	282.54M	-156.11M	7.55M	506.04M	-371.60M	153.17M
Investing Cash Flow	-126.54M	79.85M	-297.51M	39.14M	85.43M	-60.79M
Financing Cash Flow	-202.63M	196.76M	-7.42M	-328.94M	207.79M	-159.75M

Hua Jung Components Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5328 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3152	66Neutral	TWD 7.57B	19.49	―	7.67%	1.88%	-26.76%
TW:8103	64Neutral	TWD 6.73B	15.64	―	6.63%	14.31%	81.39%
TW:4760	58Neutral	TWD 8.00B	23.56	―	1.68%	40.88%	82.38%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3003	54Neutral	TWD 7.46B	19.54	―	2.06%	11.87%	44.15%
TW:3312	48Neutral	TWD 7.53B	10.42	―	3.10%	17.75%	197.11%
TW:5328	43Neutral	TWD 7.38B	62.60	―	0.78%	6.55%	79.04%

* General Sector Average

Performance Comparison

TW:5328 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5328	Hua Jung Components Co., Ltd.	44.70	23.48	110.63%
TW:3003	K.S. Terminals Inc.	48.50	0.27	0.57%
TW:3152	Advanced Ceramic X Corporation	193.00	-0.07	-0.04%
TW:3312	GMI Technology, Inc.	41.95	1.09	2.66%
TW:4760	AMPLE Electronic Technology Co., Ltd.	262.00	87.16	49.86%
TW:8103	Cvilux Corporation	91.50	-0.04	-0.05%

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

Hua Jung Components Co., Ltd. AI Stock Analysis