Hwacom Systems Inc (6163) AI Stock Analysis

Hwacom Systems Inc

(TPEx:6163)

Select Model

Rating:45Neutral

Price Target:TWD 32.00▼(-16.88% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is driven mainly by weak financial performance from thin margins and cash flow volatility, along with bearish technical signals from price action below moving averages.

Positive Factors

Improving RevenueThe return to revenue growth in 2025 indicates improving commercial traction after a weaker multiyear period. Although growth remains modest, renewed expansion can support operating scale, strengthen market relevance, and provide a foundation for improving earnings if momentum persists.

Negative Factors

Thin, Declining MarginsVery thin and declining net margins leave limited room for execution mistakes, cost inflation, or weaker demand to be absorbed. The compression also shows that revenue growth is not yet translating efficiently into earnings, which may constrain internally funded expansion and returns.

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 grew 4.5% recently with some recovery, but thin 1.7% net margins, low 3.8% ROE, and highly volatile cash flows highlight ongoing profitability and cash generation challenges.

Income Statement

45Neutral

Balance Sheet

58Neutral

Cash Flow

38Negative

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6163 against its peers
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	45Neutral	TWD 5.43B	42.55	―	1.50%	24.16%	78.64%

* General Sector Average

Performance Comparison

TW:6163 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6163	Hwacom Systems Inc	38.50	10.41	37.04%
TW:1527	Basso Industry Corp. Ltd.	29.55	-2.13	-6.71%
TW:2427	Mercuries Data Systems Ltd.	19.85	-5.75	-22.45%
TW:2468	Fortune Information System Corp.	68.30	26.14	62.00%
TW:4903	United Fiber Optic Communication Inc.	50.80	21.12	71.19%
TW:8045	Twoway Communications Inc.	41.95	-36.69	-46.65%

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

Hwacom Systems Inc AI Stock Analysis