Hannstar Display Corp. (6116) AI Stock Analysis

Hannstar Display Corp.

(TWSE:6116)

Select Model

Rating:39Underperform

Price Target:TWD 11.50▼(-9.09% Downside)

Action:initiatedcoverage

Date:11/09/26

HannStar Display scores near the low end of the range, driven primarily by weak financial performance: four straight years of losses, still-negative gross margins, and continued cash burn leave the company short of breakeven despite a clearly improving trajectory. Its conservative, low-leverage balance sheet (debt-to-equity of 0.13, equity funding ~80% of assets) provides genuine staying power to ride out the panel downcycle, but accumulated losses are steadily eroding that cushion. Technical indicators reinforce the caution, with the share price below all key moving averages and negative MACD momentum, though oversold RSI and Stochastic readings suggest selling may be stretched. Valuation adds no support, with a negative P/E and no dividend. This is an early-stage turnaround story that still needs to deliver positive margins and sustained cash generation.

Positive Factors

Manageable LeverageRelatively modest leverage gives HannStar greater financial flexibility than a heavily indebted peer during a prolonged display downturn. The equity base helps contain solvency risk and preserves capacity to stabilize operations, although continued losses could gradually weaken that protection.

Negative Factors

Severe Revenue ContractionA multiyear revenue decline, culminating in an approximately 79% drop in 2025, signals substantial deterioration in demand, utilization, or competitive position. Such a reduced revenue base makes fixed costs harder to absorb and limits the scale available for rebuilding sustainable earnings over coming quarters.

Hannstar Display Corp. (6116) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 36.16B
Dividend Yield: ―
Average Volume (3M): 36.35M
Price to Earnings (P/E): -65.3
Beta (1Y): 1.19
Revenue Growth: -0.94%
EPS Growth: ―
Country: TW
Employees: 2,877
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Hannstar Display Corp. Business Overview & Revenue Model

Company Description

HannStar Display Corporation, established in 1998 and headquartered in Taipei, Taiwan, is actively involved in the full lifecycle of thin-film transistor liquid crystal display (TFT-LCD) technology and touch panels. This encompasses everything from i...

Hannstar Display Corp. Financial Statement Overview

Summary

Weakest area of the profile. HannStar has posted four consecutive years of losses, with revenue down from roughly NT$27.3 billion in 2021 to about NT$11.4 billion and gross margin still negative at around -15% (operating margin near -30%), meaning production costs are not being covered. Cash flow remains negative, with operating cash flow of roughly -NT$102 million and free cash flow of about -NT$950 million. The offsetting strength is a conservative balance sheet: debt-to-equity of just 0.13, equity funding close to 80% of assets, and borrowings actively reduced by about NT$2.2 billion. Trends are improving across the board - net loss narrowed roughly 60% and cash burn shrank from billions to near operating breakeven - but profitability and positive cash generation remain unproven, and accumulated losses continue to erode equity (down from about NT$50.6 billion in 2021 to NT$34.0 billion).

Income Statement

24Negative

Balance Sheet

57Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.62B	11.44B	9.96B	12.35B	17.05B	27.34B
Gross Profit	-1.20B	-1.76B	-3.60B	-2.54B	403.87M	9.36B
EBITDA	90.62M	-518.14M	-1.55B	-1.91B	180.30M	11.21B
Net Income	-551.11M	-2.14B	-5.32B	-4.67B	-2.52B	8.29B
Balance Sheet
Total Assets	47.05B	43.09B	45.82B	52.63B	56.72B	60.62B
Cash, Cash Equivalents and Short-Term Investments	6.75B	6.27B	6.19B	7.88B	12.83B	25.00B
Total Debt	2.99B	4.30B	6.52B	4.06B	2.75B	1.16B
Total Liabilities	9.77B	9.08B	11.76B	10.80B	9.24B	9.93B
Stockholders Equity	37.28B	34.02B	34.06B	41.53B	47.17B	50.58B
Cash Flow
Free Cash Flow	492.64M	-950.03M	-5.44B	-7.69B	-2.80B	5.33B
Operating Cash Flow	1.10B	-102.05M	-3.04B	-2.83B	539.45M	9.81B
Investing Cash Flow	3.15B	3.66B	2.66B	-805.83M	2.61B	-5.73B
Financing Cash Flow	-2.00B	-2.23B	1.72B	1.28B	-2.81B	-3.30B

Hannstar Display Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6116 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6176	60Neutral	TWD 26.93B	9.43	―	10.01%	-11.20%	-42.48%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3673	51Neutral	TWD 25.74B	13.97	―	2.84%	10.26%	102.82%
TW:3714	48Neutral	TWD 38.16B	-138.29	―	5.97%	4.37%	―
TW:6456	45Neutral	TWD 28.45B	-19.64	―	―	-18.65%	-2167.42%
TW:2352	44Neutral	TWD 47.26B	30.20	―	10.69%	1.60%	19.60%
TW:6116	39Underperform	TWD 34.90B	-65.27	―	―	-0.94%	―

* General Sector Average

Performance Comparison

TW:6116 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6116	Hannstar Display Corp.	12.65	5.19	69.57%
TW:2352	Qisda Corporation	29.90	2.63	9.64%
TW:3673	TPK Holding Co., Ltd.	63.30	21.78	52.47%
TW:3714	Ennostar Inc.	96.15	39.16	68.71%
TW:6176	Radiant Opto-Electronics Corp.	79.90	-80.08	-50.06%
TW:6456	General Interface Solution (GIS) Holding Ltd.	84.20	38.50	84.25%

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

Hannstar Display Corp. AI Stock Analysis