Star Fusion Group Co Ltd (6111) AI Stock Analysis

Star Fusion Group Co Ltd

(TPEx:6111)

Select Model

Rating:37Underperform

Price Target:TWD 28.00▼(-8.20% Downside)

Action:initiatedcoverage

Date:11/10/26

The stock scores at the minimum of the range due to severe fundamental and technical weaknesses. The primary risk is a dangerously leveraged balance sheet combined with deeply negative free cash flow and a return to net losses, which threatens the company's financial stability. This is compounded by persistent bearish technical momentum, with the stock price in a clear downtrend below all key moving averages.

Positive Factors

Revenue GrowthThe 2025 revenue increase shows that the company continued to expand its top line despite its profitability challenges. Sustained sales growth can provide a larger base for operating leverage, product or service investment, and a potential earnings recovery if margins stabilize.

Negative Factors

Margin Compression and LossesThe sharp deterioration in gross and net margins signals weaker profitability and reduced earnings quality. A return to losses limits internally generated capital, while sustained margin pressure could impair reinvestment capacity and make future earnings more volatile and difficult to forecast.

Star Fusion Group Co Ltd Business Overview & Revenue Model

Company Description

Operating both within Taiwan and globally, Star Fusion Group Co., Ltd. and its various subsidiaries are actively engaged in the research, development, design, and distribution of online games, game software, educational programs, and computer periphe...

Star Fusion Group Co Ltd Financial Statement Overview

Summary

Financial health is critically weak. While revenue grew ~20%, gross margins collapsed to 23.6%, leading to a substantial net loss. The balance sheet is dangerously leveraged with a debt-to-equity ratio of 9.68x, and free cash flow is deeply negative at -TWD 1.69 billion, indicating the business is not self-funding.

Income Statement

35Negative

Balance Sheet

15Very Negative

Cash Flow

10Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.09B	7.39B	5.10B	3.26B	2.25B	559.41M
Gross Profit	2.22B	1.74B	1.76B	1.09B	891.33M	393.10M
EBITDA	668.76M	-84.82M	645.73M	-57.97M	724.97M	1.16B
Net Income	-914.07M	-469.94M	77.64M	-335.13M	618.79M	740.65M
Balance Sheet
Total Assets	31.26B	29.01B	7.89B	7.13B	5.32B	3.05B
Cash, Cash Equivalents and Short-Term Investments	6.25B	5.48B	1.46B	1.19B	2.00B	1.91B
Total Debt	15.95B	16.89B	2.13B	2.01B	844.34M	236.14M
Total Liabilities	20.92B	21.04B	3.85B	4.14B	2.05B	883.11M
Stockholders Equity	1.82B	1.74B	2.05B	1.55B	1.98B	1.66B
Cash Flow
Free Cash Flow	-1.51B	-1.69B	-121.41M	-463.83M	-1.08B	362.95M
Operating Cash Flow	248.28M	-66.89M	30.85M	-357.05M	-1.04B	372.80M
Investing Cash Flow	733.44M	106.30M	-149.07M	-811.80M	1.28B	1.20B
Financing Cash Flow	989.54M	1.33B	341.39M	422.58M	-451.88M	-14.53M

Star Fusion Group Co Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6111 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6752	73Outperform	TWD 3.38B	12.64	―	4.86%	8.86%	5.88%
TW:8284	71Outperform	TWD 3.10B	9.84	―	6.10%	9.88%	62.04%
TW:3287	70Outperform	TWD 2.99B	8.63	―	2.18%	20.68%	―
TW:5432	68Neutral	TWD 3.35B	17.62	―	0.95%	16.37%	526.93%
TW:7747	66Neutral	TWD 3.38B	22.13	―	5.23%	8.88%	38.18%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6111	37Underperform	TWD 3.04B	-7.61	―	―	120.72%	-806.89%

* General Sector Average

Performance Comparison

TW:6111 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6111	Star Fusion Group Co Ltd	30.50	-15.75	-34.05%
TW:3287	KWorld Computer Co., Ltd.	68.80	39.81	137.32%
TW:5432	Solomon Data International Corporation	157.50	30.86	24.37%
TW:6752	Galaxy Software Services Corporation	92.50	-18.18	-16.42%
TW:7747	GrandTech Cloud Services Inc.	112.00	-3.43	-2.97%
TW:8284	Mitake Information Corp.	65.60	7.05	12.05%

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

Star Fusion Group Co Ltd AI Stock Analysis