Hwacom Systems Inc AI Stock Analysis
Hwacom Systems Inc (6163) AI Stock Analysis
Hwacom Systems Inc
(TPEx:6163)
Hwacom Systems scores below average, driven primarily by weak earnings quality: despite record revenue, margins compressed across the board, net income fell ~19%, and return on equity is under 4%, while debt has tripled in two years. A strong rebound in operating and free cash flow and steadily growing equity provide some stability, but cash generation has proven highly cyclical. Technicals add further pressure, with the price trading well below all major moving averages and negative MACD momentum, although oversold RSI and Stochastic readings suggest potential for near-term stabilisation. Valuation is unsupportive, as a 36x P/E sits uncomfortably high for a thin-margin, working-capital-intensive integrator, with a modest 1.76% dividend yield offering limited compensation.
Hwacom Systems Inc (6163) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 5.79B
- Dividend Yield
- 1.50%
- Average Volume (3M)
- 1.47M
- Price to Earnings (P/E)
- 42.6
- Beta (1Y)
- 1.03
- Revenue Growth
- 24.16%
- EPS Growth
- 78.64%
- Country
- TW
- Employees
- 869
- Sector
- General
- Sector Strength
- 55
- Industry
- Software - Application
Hwacom Systems Inc Business Overview & Revenue Model
Company Description
HwaCom Systems Inc. functions as a comprehensive broadband system integrator, furnishing a diverse range of information communication technology (ICT), intelligence, and cybersecurity applications. The company serves clients both in Taiwan and intern...
Hwacom Systems Inc Financial Statement Overview
Summary
Revenue reached a record NT$6.11 billion (+11%), but profitability is thin and deteriorating: gross margin fell to 20.1%, EBIT margin to 2.7%, and net income dropped ~19% to NT$105 million (1.7% net margin), reflecting a hardware/system-integration model rather than a high-margin software business (Income Statement: 47). The balance sheet is adequately capitalized with equity funding ~41% of assets and steady equity growth, but debt tripled in two years to NT$1.30 billion (D/E 0.46) while ROE slipped to just 3.8% (Balance Sheet: 56). Cash flow rebounded sharply, with operating cash flow swinging to +NT$739 million and free cash flow to +NT$682 million on light capex, though the multi-year pattern of lumpy, project-driven swings makes this result difficult to rely on (Cash Flow: 55).
Income Statement
47NeutralBalance Sheet
56NeutralCash Flow
55Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.91B | 6.11B | 5.50B | 5.25B | 6.09B | 6.19B |
| Gross Profit | 1.28B | 1.23B | 1.22B | 1.07B | 1.22B | 1.37B |
| EBITDA | 292.24M | 263.97M | 309.17M | 188.55M | 270.37M | 316.22M |
| Net Income | 132.90M | 105.35M | 130.58M | 57.62M | 138.10M | 171.52M |
Balance Sheet | ||||||
| Total Assets | 7.28B | 6.85B | 6.14B | 5.19B | 5.33B | 5.55B |
| Cash, Cash Equivalents and Short-Term Investments | 1.94B | 1.62B | 1.03B | 1.29B | 771.35M | 993.84M |
| Total Debt | 1.63B | 1.30B | 1.15B | 399.80M | 612.16M | 699.15M |
| Total Liabilities | 4.29B | 4.06B | 3.60B | 2.78B | 3.06B | 3.39B |
| Stockholders Equity | 2.93B | 2.79B | 2.54B | 2.41B | 2.26B | 2.16B |
Cash Flow | ||||||
| Free Cash Flow | -79.13M | 681.51M | -964.98M | 676.56M | -107.09M | 362.94M |
| Operating Cash Flow | 13.26M | 739.44M | -881.65M | 898.90M | 3.10M | 436.05M |
| Investing Cash Flow | -163.37M | -183.60M | 2.20M | -317.18M | -103.51M | -118.30M |
| Financing Cash Flow | 798.19M | 43.64M | 693.91M | -176.07M | -121.73M | 46.23M |
Hwacom Systems Inc Peers Comparison
Overall Rating
TW:246864Neutral
TW:242762Neutral
TW:490359Neutral
TW:152758Neutral- TW:616346Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:2468 | 64Neutral | TWD 4.62B | 50.22 | ― | 1.46% | -1.96% | 18.20% |
| TW:2427 | 62Neutral | TWD 4.28B | 86.30 | ― | 3.53% | 21.74% | -84.64% |
| TW:4903 | 59Neutral | TWD 5.35B | 88.77 | ― | 0.59% | 25.68% | -3.54% |
| TW:1527 | 58Neutral | TWD 4.13B | 14.00 | ― | 5.08% | -14.67% | 47.26% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:6163 | 46Neutral | TWD 5.43B | 42.55 | ― | 1.50% | 24.16% | 78.64% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:6163 | Hwacom Systems Inc | 38.50 | 11.44 | 42.28% | |
| TW:1527 | Basso Industry Corp. Ltd. | 29.55 | -1.79 | -5.72% | |
| TW:2427 | Mercuries Data Systems Ltd. | 19.85 | -5.94 | -23.04% | |
| TW:2468 | Fortune Information System Corp. | 68.30 | 26.67 | 64.08% | |
| TW:4903 | United Fiber Optic Communication Inc. | 50.80 | 19.63 | 63.00% | |
| TW:8045 | Twoway Communications Inc. | 41.95 | -38.66 | -47.96% |
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