LEATEC Fine Ceramics Co., Ltd. (6127) AI Stock Analysis

LEATEC Fine Ceramics Co., Ltd.

(TPEx:6127)

Select Model

Rating:37Underperform

Price Target:TWD 42.00▼(-16.17% Downside)

Action:initiatedcoverage

Date:11/09/26

LEATEC Fine Ceramics scores at the bottom of the range, driven primarily by severely strained financials: a collapsing gross margin, operating and EBITDA losses, and four consecutive years of negative operating cash flow with free cash flow negative every year for six years. Leverage of roughly 1.77x debt-to-equity on flat equity raises funding and debt-service risk, while the small reported net profit is not backed by cash. Technicals compound the picture, with the price trading below all key moving averages and a negative MACD confirming a sustained downtrend. Valuation offers no cushion, as a negative P/E and the absence of a dividend leave no earnings or income support. A recovery would require a clear rebound in margins, utilisation and cash conversion.

Positive Factors

Specialized Ceramic MaterialsLEATEC operates in a specialized materials niche serving demanding precision and temperature applications across electronics and industrial uses. This technical focus can support customer relevance and create a foundation for durable demand if its products remain qualified in these applications.

Negative Factors

Revenue VolatilityThe sharp 2025 revenue contraction following earlier growth indicates that demand and business momentum remain unstable. Such volatility makes capacity planning and fixed-cost absorption more difficult, while reducing confidence that recent operating performance can be sustained through the next several quarters.

LEATEC Fine Ceramics Co., Ltd. (6127) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.24B
Dividend Yield: ―
Average Volume (3M): 5.99M
Price to Earnings (P/E): -59.2
Beta (1Y): 1.22
Revenue Growth: -6.78%
EPS Growth: -843.88%
Country: TW
Employees: 150
Sector: General
Sector Strength: 55
Industry: Semiconductors

LEATEC Fine Ceramics Co., Ltd. Business Overview & Revenue Model

Company Description

Based in Taiwan, LEATEC Fine Ceramics Co., Ltd. specializes in the manufacturing and distribution of chip alumina fine ceramic substrates. The company's development initiatives encompass specialized substrates tailored for high-voltage, variable, and...

LEATEC Fine Ceramics Co., Ltd. Financial Statement Overview

Summary

All three statements are weak. Revenue has been flat for years (~NT$992M in 2025) while gross margin collapsed from 31.2% in 2021 to 12.7% in 2025, producing a NT$203M operating loss and, for the first time, negative EBITDA of -NT$66M. The reported NT$51M net profit stems from non-operating items, not core operations. Leverage is high and rising (debt/equity ~1.77x) against flat book value, and cash flow is the weakest link: operating cash flow was -NT$148M in 2025, the fourth straight year of burn, with free cash flow negative in all six years (-NT$279M in 2025) amid ongoing capex. The company remains dependent on external financing. Offsetting positives are limited to a stable asset base, intact equity and potential cyclical recovery in semiconductor demand.

Income Statement

24Negative

Balance Sheet

33Negative

Cash Flow

12Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	980.55M	992.14M	1.00B	824.03M	783.51M	1.03B
Gross Profit	62.65M	125.85M	154.81M	123.34M	168.98M	322.16M
EBITDA	-288.77M	-66.09M	108.36M	261.63M	140.76M	245.89M
Net Income	-89.40M	51.00M	-69.30M	61.36M	-33.48M	50.83M
Balance Sheet
Total Assets	3.58B	3.55B	3.51B	3.28B	3.44B	3.20B
Cash, Cash Equivalents and Short-Term Investments	544.66M	593.14M	408.68M	400.21M	525.64M	352.67M
Total Debt	2.12B	2.08B	2.02B	1.71B	1.59B	1.72B
Total Liabilities	2.44B	2.37B	2.38B	2.10B	2.31B	2.05B
Stockholders Equity	1.14B	1.18B	1.13B	1.18B	1.14B	1.15B
Cash Flow
Free Cash Flow	-164.13M	-278.93M	-226.52M	-421.15M	-249.41M	-112.39M
Operating Cash Flow	-67.45M	-148.26M	-52.09M	-262.94M	-28.36M	78.14M
Investing Cash Flow	-61.33M	88.10M	-220.28M	114.23M	214.51M	-207.17M
Financing Cash Flow	48.53M	54.32M	242.03M	139.62M	-133.51M	-31.14M

LEATEC Fine Ceramics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6127 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
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:4939	42Neutral	TWD 5.97B	74.65	―	0.39%	11.17%	―
TW:6124	42Neutral	TWD 4.52B	174.84	―	―	-10.02%	―
TW:6127	37Underperform	TWD 5.14B	-59.17	―	―	-6.78%	-843.88%

* General Sector Average

Performance Comparison

TW:6127 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6127	LEATEC Fine Ceramics Co., Ltd.	50.10	19.50	63.73%
TW:3585	Advance Materials Corporation	48.30	34.70	255.15%
TW:4939	Asia Electronic Material Co., Ltd.	63.40	37.37	143.59%
TW:6124	Yeh-Chiang Technology Corp.	24.60	0.00	0.00%
TW:6155	King Core Electronics Inc.	59.60	25.91	76.92%
TW:6224	Polytronics Technology Corp.	60.30	14.61	31.98%

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

LEATEC Fine Ceramics Co., Ltd. AI Stock Analysis