Liton Technology Corp. (6175) AI Stock Analysis

Liton Technology Corp.

(TPEx:6175)

Select Model

Rating:64Neutral

Price Target:TWD 57.00▼(-6.71% Downside)

Action:initiatedcoverage

Date:11/09/26

Liton Technology earns a moderate score. The primary strength is financial resilience: a conservatively financed balance sheet with 0.19x debt-to-equity, nearly doubled equity since 2020, and strong current-year cash generation (NT$586 million free cash flow) that comfortably covers the dividend. Offsetting this is a lack of growth — revenue has been flat for five years and declined 3.6% last year, with net income down ~15% and ROE compressing to 9.9%. The biggest drag is technical: the stock trades well below all key moving averages with sharply negative MACD momentum, placing it in a firm downtrend despite deeply oversold readings. Valuation at 18.1x earnings with a 2.80% yield is fair rather than compelling, leaving the shares attractive for stability-focused investors but lacking clear growth or momentum catalysts.

Positive Factors

Solid Operating ProfitabilityHealthy gross and operating margins indicate that Liton retains meaningful profitability in its core operations. This provides a foundation for reinvestment and resilience over the next several quarters, although maintaining those margins will remain important as the company addresses softer growth.

Negative Factors

Recent Revenue ContractionThe 2025 revenue decline indicates that recent demand or business momentum was not fully sustained after the prior year’s growth. Continued top-line softness could limit operating leverage, reduce reinvestment capacity, and make future earnings progress more dependent on cost control.

Liton Technology Corp. (6175) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.93B
Dividend Yield: 2.45%
Average Volume (3M): 1.04M
Price to Earnings (P/E): 19.1
Beta (1Y): 1.21
Revenue Growth: 19.72%
EPS Growth: 17.77%
Country: TW
Employees: 57,006
Sector: General
Sector Strength: 55
Industry: Aluminum

Liton Technology Corp. Business Overview & Revenue Model

Company Description

Liton Technology Corp. engages in the manufacture and sale of etched and formed aluminum foils. The company offers low, medium, and high voltage formed aluminum foils for anode specification; low voltage aluminum etched foils; and TAB foils. Its prod...

Liton Technology Corp. Financial Statement Overview

Summary

Solid fundamentals led by a very strong balance sheet (score 82): equity has nearly doubled since 2020 to NT$4.04 billion, funding ~63% of assets, while total debt was cut to NT$781 million for a conservative 0.19x debt-to-equity. Cash flow (76) improved sharply, with operating cash flow up ~41% to NT$854 million — well above net income of NT$401 million — and free cash flow of NT$586 million, though historical free cash flow has been lumpy with capex cycles. The income statement (68) is the weaker link: revenue fell 3.6% to NT$4.17 billion and has been flat for five years, and net income dropped ~15% with net margin slipping to 9.6%. Operating margin near 17% and EBITDA margin above 22% show the core business remains structurally profitable, but declining ROE (9.9% vs 16-17% in 2021-2022) signals capital is not yet being redeployed at historical earning power.

Income Statement

68Positive

Balance Sheet

82Very Positive

Cash Flow

76Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.52B	4.17B	4.23B	3.68B	3.84B	4.19B
Gross Profit	1.01B	976.52M	1.01B	748.79M	964.04M	1.02B
EBITDA	985.88M	943.88M	999.19M	693.03M	944.01M	921.00M
Net Income	470.51M	400.54M	469.25M	294.87M	503.34M	486.68M
Balance Sheet
Total Assets	7.07B	6.39B	6.37B	5.84B	6.09B	5.55B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.10B	1.11B	900.14M	835.42M	700.83M
Total Debt	656.40M	780.50M	1.17B	1.51B	1.61B	1.70B
Total Liabilities	1.76B	1.39B	1.73B	2.05B	2.31B	2.15B
Stockholders Equity	4.24B	4.04B	3.83B	3.11B	3.12B	2.82B
Cash Flow
Free Cash Flow	300.45M	585.70M	398.84M	416.36M	871.14M	-145.00M
Operating Cash Flow	780.74M	853.84M	605.42M	553.12M	968.08M	369.18M
Investing Cash Flow	-472.53M	-259.91M	-165.71M	-130.26M	-461.07M	-512.02M
Financing Cash Flow	-330.29M	-635.19M	-253.44M	-316.31M	-382.27M	173.66M

Liton Technology Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6175 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3152	66Neutral	TWD 7.57B	19.49	―	7.67%	1.88%	-26.76%
TW:6175	64Neutral	TWD 8.97B	19.15	―	2.45%	19.72%	17.77%
TW:5013	62Neutral	TWD 8.83B	30.92	―	1.02%	0.25%	51.97%
TW:1614	60Neutral	TWD 8.13B	24.96	―	3.08%	-5.65%	18.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6284	54Neutral	TWD 9.52B	22.94	―	2.95%	-4.53%	-44.11%
TW:6834	44Neutral	TWD 9.54B	35.12	―	0.37%	47.04%	875.06%

* General Sector Average

Performance Comparison

TW:6175 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6175	Liton Technology Corp.	61.10	11.82	23.99%
TW:1614	Taiwan Sanyo Electric Co., Ltd.	31.45	-1.58	-4.79%
TW:3152	Advanced Ceramic X Corporation	193.00	-0.07	-0.04%
TW:5013	New Best Wire Industrial Co., Ltd.	68.60	40.67	145.63%
TW:6284	INPAQ Technology Co., Ltd	64.00	-18.90	-22.80%
TW:6834	Ever Ohms Technology Co. Ltd.	104.50	77.18	282.53%

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

Liton Technology Corp. AI Stock Analysis