Albatron Technology Co., Ltd (5386) AI Stock Analysis

Albatron Technology Co., Ltd

(TPEx:5386)

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Rating:52Neutral

Price Target:TWD 191.00▲(1.33% Upside)

Action:initiatedcoverage

Date:11/09/26

Albatron scores below average overall. The decisive negatives are cash flow and leverage: despite record profits, the company burned roughly NT$965m of operating and free cash flow while debt surged to NT$2.11bn against under NT$1bn of equity (D/E 2.28x), meaning growth is credit-financed and earnings quality is weak. Technicals compound the caution, with the price far below all major moving averages, a deeply negative MACD and oversold momentum readings. Offsetting these risks are genuinely strong income-statement trends — 22% revenue growth, nearly doubled gross margin and tripled net income — and a strikingly low 3.0x P/E with a small dividend, which provide valuation support if working capital normalizes and profits begin converting into cash.

Positive Factors

Revenue GrowthThe sharp 2025 revenue acceleration indicates improved demand and greater scale across the company’s hardware activities. If maintained, stronger sales can support operating leverage, broaden customer engagement, and provide a larger base for rebuilding sustainable earnings over coming quarters.

Negative Factors

Negative Cash GenerationPersistent negative operating and free cash flow means reported profits are not currently converting into financial resources. This can increase reliance on financing and reduce the company’s ability to fund product development, absorb operating setbacks, or strengthen the balance sheet internally.

Albatron Technology Co., Ltd (5386) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.20B
Dividend Yield: 0.80%
Average Volume (3M): 1.12M
Price to Earnings (P/E): 2.9
Beta (1Y): 1.41
Revenue Growth: 223.02%
EPS Growth: 1417.06%
Country: TW
Employees: 42
Sector: General
Sector Strength: 55
Industry: Computer Hardware

Albatron Technology Co., Ltd Business Overview & Revenue Model

Company Description

Based in New Taipei City, Taiwan, Albatron Technology Co., Ltd. has been a prominent provider of technology solutions since its establishment in 1984. The company specializes in delivering IT solutions and hardware tailored for industrial and special...

Albatron Technology Co., Ltd Financial Statement Overview

Summary

A mixed picture dominated by poor cash quality. The income statement is strong (score 76): revenue up ~22% to NT$5.88bn, gross margin widening to 10.2% from 5.8%, and net income tripling to NT$310m for a 5.3% net margin. However, the balance sheet (44) has deteriorated sharply, with debt ballooning to NT$2.11bn versus NT$928m of equity (D/E 2.28x) and equity funding only about a quarter of assets. Cash flow (18) is the key weakness: operating and free cash flow were both roughly negative NT$965m, following a NT$1.26bn burn the prior year, meaning record profits are not converting into cash and growth is being funded externally. Thin absolute margins and a volatile revenue history (sales fell over a third in 2023) add cyclical risk.

Income Statement

76Positive

Balance Sheet

44Neutral

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.54B	5.88B	4.44B	1.97B	3.12B	2.92B
Gross Profit	4.01B	601.88M	256.17M	166.13M	178.63M	137.70M
EBITDA	3.30B	416.07M	162.02M	83.51M	90.09M	74.53M
Net Income	2.55B	309.63M	103.34M	65.20M	50.85M	58.53M
Balance Sheet
Total Assets	9.16B	3.67B	2.12B	972.85M	809.51M	1.46B
Cash, Cash Equivalents and Short-Term Investments	445.37M	181.30M	71.97M	347.29M	240.47M	146.70M
Total Debt	4.17B	2.11B	985.85M	60.00M	20.00M	602.04M
Total Liabilities	5.96B	2.74B	1.51B	457.55M	353.06M	1.04B
Stockholders Equity	3.20B	927.51M	610.34M	515.30M	456.45M	415.54M
Cash Flow
Free Cash Flow	-3.62B	-964.91M	-1.26B	109.82M	798.07M	-416.20M
Operating Cash Flow	-3.62B	-964.61M	-1.26B	111.89M	798.27M	-415.39M
Investing Cash Flow	442.86M	-6.55M	6.24M	-35.45M	5.68M	26.56M
Financing Cash Flow	3.79B	1.07B	980.01M	31.97M	-702.64M	397.95M

Albatron Technology Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5386 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3088	67Neutral	TWD 12.32B	12.47	―	2.69%	35.40%	73.91%
TW:2465	58Neutral	TWD 12.78B	50.75	―	―	61.25%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5386	52Neutral	TWD 10.20B	2.94	―	0.80%	223.02%	1417.06%
TW:2331	51Neutral	TWD 8.70B	15.45	―	1.35%	9.67%	-52.16%
TW:8050	51Neutral	TWD 9.99B	12.43	―	4.21%	17.15%	103.91%
TW:3701	50Neutral	TWD 13.61B	-23.38	―	0.35%	-27.54%	-440.84%

* General Sector Average

Performance Comparison

TW:5386 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5386	Albatron Technology Co., Ltd	188.50	139.36	283.62%
TW:2331	Elitegroup Computer Systems Co., Ltd.	15.60	-5.55	-26.24%
TW:2465	Leadtek Research Inc.	136.00	75.30	124.05%
TW:3088	Axiomtek Co Ltd	109.00	33.43	44.24%
TW:3701	FIC Global, Inc.	57.50	24.30	73.19%
TW:8050	iBASE Technology Inc.	51.00	5.46	11.98%

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

Albatron Technology Co., Ltd AI Stock Analysis