Abico Avy Co., Ltd. (5392) AI Stock Analysis

Abico Avy Co., Ltd.

(TPEx:5392)

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Rating:41Neutral

Price Target:TWD 29.00▼(-9.09% Downside)

Action:initiatedcoverage

Date:11/09/26

Abico Avy scores poorly, driven primarily by deteriorating financial performance: a multi-year revenue decline of about 27% since 2021, a swing to operating and net losses, razor-thin gross margins near 15%, and debt of NT$4.28bn that sits at roughly eight times shrinking EBITDA. Technicals compound the concern, with the share price below all major moving averages and a deeply negative MACD confirming a sustained downtrend, albeit at oversold levels that could permit a short-term bounce. Valuation offers no cushion, with a 47x P/E against loss-making operations and a modest 0.65% dividend yield. The main offsets are genuine strengths — six consecutive years of positive free cash flow (NT$348m this year despite the loss) and steady deleveraging with debt-to-equity down to 0.75 — but a revenue stabilization and a return to positive operating profit are needed before the outlook materially improves.

Positive Factors

Manageable leverageLeverage remains manageable for an industrial manufacturer and has improved from prior years, while sizable equity relative to assets supports resilience. This gives the company more flexibility to withstand operating volatility and fund essential activities over the coming quarters.

Negative Factors

Profitability deteriorationThe shift from modest profits in 2023–2024 to a net loss and negative EBIT in 2025 signals weakened earnings power. If this persists, it can reduce internally generated capital, constrain investment capacity, and make the business more vulnerable to further demand or cost pressure.

Abico Avy Co., Ltd. (5392) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.82B
Dividend Yield: 0.63%
Average Volume (3M): 1.19M
Price to Earnings (P/E): 47.4
Beta (1Y): 0.91
Revenue Growth: -2.04%
EPS Growth: ―
Country: TW
Employees: 14,036
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Abico Avy Co., Ltd. Business Overview & Revenue Model

Company Description

Abico AVY Co., Ltd. designs, produces, and sells camera parts in Taiwan. It offers metal parts for cameras and mobile phones; inner structure parts, including LCD frames and laser welding assemblies; and nameplate and appearance parts, such as decora...

Abico Avy Co., Ltd. Financial Statement Overview

Summary

Weak fundamentals dominate. Revenue has contracted roughly 27% since 2021 to NT$8.70bn, and the latest year swung to an operating loss of NT$30m and a net loss of NT$46m, with gross margin stuck near 15% and negative return on equity of -0.8% (Income Statement score 24). The balance sheet is adequate but levered: debt of NT$4.28bn against NT$5.69bn equity (D/E 0.75, improving from 1.00 in 2020) equates to about eight times EBITDA of NT$528m, leaving thin debt-service cushion while equity erodes from losses (Balance Sheet score 46). The clear bright spot is cash generation — NT$493m operating cash flow and NT$348m free cash flow despite the loss, marking a sixth straight positive FCF year, though operating cash flow fell about 63% year over year and FCF covers only ~8% of total debt (Cash Flow score 55).

Income Statement

24Negative

Balance Sheet

46Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.87B	8.70B	9.43B	9.42B	10.52B	11.85B
Gross Profit	1.29B	1.32B	1.51B	1.53B	1.60B	1.83B
EBITDA	678.38M	528.44M	1.01B	1.05B	1.01B	1.22B
Net Income	119.86M	-45.88M	29.69M	55.95M	26.46M	227.64M
Balance Sheet
Total Assets	15.60B	15.02B	15.78B	15.34B	15.36B	15.92B
Cash, Cash Equivalents and Short-Term Investments	4.54B	4.68B	5.48B	5.27B	5.02B	5.28B
Total Debt	4.85B	4.28B	5.09B	5.06B	5.22B	5.11B
Total Liabilities	7.44B	6.90B	7.72B	7.86B	7.91B	8.52B
Stockholders Equity	5.79B	5.69B	5.86B	5.57B	5.39B	5.18B
Cash Flow
Free Cash Flow	51.28M	348.42M	872.38M	637.04M	893.45M	1.26M
Operating Cash Flow	461.98M	493.15M	1.33B	782.80M	1.21B	285.39M
Investing Cash Flow	-980.43M	-726.63M	-1.09B	-161.19M	-681.88M	466.29M
Financing Cash Flow	178.75M	-612.47M	135.22M	-540.20M	-396.08M	99.89M

Abico Avy Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5392 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8103	64Neutral	TWD 6.73B	15.64	―	6.63%	14.31%	81.39%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6913	55Neutral	TWD 5.82B	20.20	―	1.91%	25.98%	54.12%
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:5392	41Neutral	TWD 5.71B	47.39	―	0.63%	-2.04%	―
TW:8121	40Underperform	TWD 5.09B	-274.63	―	―	19.70%	83.81%

* General Sector Average

Performance Comparison

TW:5392 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5392	Abico Avy Co., Ltd.	31.90	-14.62	-31.43%
TW:6155	King Core Electronics Inc.	59.60	25.91	76.92%
TW:6224	Polytronics Technology Corp.	60.30	14.61	31.98%
TW:6913	VSO Electronics Co., Ltd.	131.00	18.11	16.05%
TW:8103	Cvilux Corporation	91.50	-0.04	-0.05%
TW:8121	ACME Electronics Corporation	24.15	-5.00	-17.15%

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

Abico Avy Co., Ltd. AI Stock Analysis