First Hi-tec Enterprise Co., Ltd. (5439) AI Stock Analysis

First Hi-tec Enterprise Co., Ltd.

(TPEx:5439)

Select Model

Rating:62.8Neutral

Price Target:TWD 173.00▲(2.06% Upside)

Action:initiatedcoverage

Date:11/09/26

First Hi-tec earns a moderate score. The dominant positive is exceptional earnings momentum — revenue more than doubled in 2025 with record margins and 32%+ return on equity — supported by an inexpensive 9.54x P/E and a 4.42% dividend yield. These strengths are tempered by two material risks: cash generation is poor, with operating cash flow covering only about 40% of net income and free cash flow at negative NT$1.0 billion, while debt-to-equity has climbed to 0.86, leaving a thinner cushion if demand softens as it did in 2024. Technicals are the weakest element, with the shares trading far below all major moving averages and MACD confirming a persistent downtrend, though deeply oversold RSI and Stochastic readings suggest the selling may be extended. The balance of strong but debt-funded profitability against a weak price trend supports a middling overall rating.

Positive Factors

Revenue and Margin ExpansionThe latest year combines solid revenue growth with substantial gross- and net-margin expansion, indicating stronger operating leverage and improved profitability. If the enhanced margins persist, the company should have greater capacity to reinvest, absorb costs, and build earnings over the coming quarters.

Negative Factors

Rapidly Rising LeverageThe sharp increase in debt relative to equity has reduced financial flexibility and increased the company’s exposure to financing costs and weaker business conditions. Even with expanded assets, faster leverage growth can constrain future investment and make earnings more sensitive to an operating downturn.

First Hi-tec Enterprise Co., Ltd. (5439) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 15.71B
Dividend Yield: 4.25%
Average Volume (3M): 1.88M
Price to Earnings (P/E): 9.6
Beta (1Y): 1.48
Revenue Growth: 43.45%
EPS Growth: 65.72%
Country: TW
Employees: 717
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

First Hi-tec Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Based in Taoyuan, Taiwan, First Hi-tec Enterprise Co., Ltd. was established in 1988 and operates across Asia. The company specializes in the manufacturing and distribution of a diverse range of printed circuit boards (PCBs). Their product portfolio e...

First Hi-tec Enterprise Co., Ltd. Financial Statement Overview

Summary

An outstanding income statement (score 87) — 2025 revenue more than doubled to roughly NT$9.64 billion, net income nearly quadrupled to NT$1.28 billion, and gross, operating and net margins all hit multi-year highs — is offset by weaker balance sheet (64) and cash flow (36) profiles. Leverage has risen sharply, with debt-to-equity jumping to 0.86 from 0.39 and equity funding only about 36% of assets, while operating cash flow of NT$515 million covered only ~40% of reported earnings and free cash flow swung to negative NT$1.0 billion on heavy capital spending. Return on equity above 32% is impressive, but the growth is debt-financed and not yet converting into cash, and the history of 2022 and 2024 revenue declines highlights cyclicality.

Income Statement

87Very Positive

Balance Sheet

64Positive

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.52B	9.64B	4.18B	4.35B	3.22B	3.37B
Gross Profit	2.65B	2.18B	642.15M	832.41M	579.72M	724.59M
EBITDA	2.43B	1.91B	610.60M	768.28M	635.11M	650.91M
Net Income	1.68B	1.28B	326.77M	471.25M	370.25M	407.00M
Balance Sheet
Total Assets	12.48B	10.88B	5.04B	4.31B	3.82B	3.74B
Cash, Cash Equivalents and Short-Term Investments	2.50B	2.14B	424.68M	551.32M	467.89M	293.37M
Total Debt	3.59B	3.40B	945.53M	508.19M	350.06M	344.43M
Total Liabilities	8.45B	6.93B	2.60B	1.81B	1.46B	1.41B
Stockholders Equity	4.03B	3.95B	2.44B	2.51B	2.36B	2.33B
Cash Flow
Free Cash Flow	551.74M	-999.89M	-156.21M	248.38M	502.63M	-440.37M
Operating Cash Flow	1.67B	515.43M	289.38M	431.37M	660.89M	14.57M
Investing Cash Flow	-1.11B	-1.48B	-445.92M	-198.35M	-157.54M	-459.52M
Financing Cash Flow	1.37B	2.71B	20.13M	-156.35M	-329.09M	253.25M

First Hi-tec Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5439 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3526	68Neutral	TWD 14.60B	11.84	―	7.73%	24.44%	7.01%
TW:3013	67Neutral	TWD 16.21B	13.11	―	0.50%	18.56%	52.98%
TW:5439	63Neutral	TWD 16.97B	9.62	―	4.25%	43.45%	65.72%
TW:8155	60Neutral	TWD 15.78B	21.61	―	1.93%	36.42%	202.75%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2316	48Neutral	TWD 20.86B	7.96	―	1.58%	33.96%	31.36%
TW:2392	45Neutral	TWD 16.68B	4.41	―	2.92%	-10.50%	1834.43%

* General Sector Average

Performance Comparison

TW:5439 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5439	First Hi-tec Enterprise Co., Ltd.	169.50	-142.98	-45.76%
TW:2316	WUS Printed Circuit Co. Ltd.	126.50	27.56	27.86%
TW:2392	Cheng Uei Precision Industry Co., Ltd.	34.30	-10.26	-23.03%
TW:3013	Chenming Electronic Technology Corporation	76.60	-46.46	-37.75%
TW:3526	Alltop Technology Co. Ltd.	218.00	-5.31	-2.38%
TW:8155	Allied Circuit Co., Ltd.	267.00	100.98	60.83%

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

First Hi-tec Enterprise Co., Ltd. AI Stock Analysis