Taiwan Alpha Electronic Co., Ltd. (6204) AI Stock Analysis

Taiwan Alpha Electronic Co., Ltd.

(TPEx:6204)

Select Model

Rating:54Neutral

Price Target:TWD 86.00▼(-1.49% Downside)

Action:initiatedcoverage

Date:11/09/26

The score reflects a financially safe but slow-growing business trading at a rich valuation amid a falling share price. The balance sheet is the key strength — minimal debt, a rising equity base and consistent free cash flow make the risk of financial distress low. Offsetting this, revenue has flat-lined well below its 2021 peak, operating and net profits declined, and return on equity has slipped to about 7.6%. Technically, the stock sits below all major moving averages with a negative MACD, and an elevated P/E of roughly 82.6 paired with a thin 0.59% dividend yield leaves little valuation cushion. Improvement would likely require converting the stronger ~34% gross margin into real top-line growth and higher returns on capital.

Positive Factors

Conservative Balance SheetThe declining debt-to-equity ratio indicates conservative financing and a substantial equity cushion. This strengthens resilience through cyclical hardware demand, preserves borrowing capacity for future needs, and reduces the financial strain that could otherwise amplify operating volatility.

Negative Factors

Weak Revenue MomentumFlat-to-declining revenue indicates limited recent expansion in the company’s customer demand or addressable business. Persistent top-line stagnation can restrict operating leverage, reduce reinvestment capacity, and make future earnings more dependent on cost control.

Taiwan Alpha Electronic Co., Ltd. (6204) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.00B
Dividend Yield: 0.57%
Average Volume (3M): 385.33K
Price to Earnings (P/E): 83.0
Beta (1Y): 1.23
Revenue Growth: 2.29%
EPS Growth: -22.84%
Country: TW
Employees: 302
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Taiwan Alpha Electronic Co., Ltd. Business Overview & Revenue Model

Company Description

Taiwan Alpha Electronic Co., Ltd. engages in the manufacture and distribution of electronic components and customizable sensor solutions. Its products include Potentiometers, Switches, Encoders, and Jacks. The company was founded on February 14, 1970...

Taiwan Alpha Electronic Co., Ltd. Financial Statement Overview

Summary

A blend of a strong balance sheet (80), solid cash flow (70) and weak income statement trends (57). Taiwan Alpha Electronic carries almost no debt (debt-to-equity of 0.08), funds roughly 71% of assets with equity, and has grown equity for three straight years. Operating cash flow of about NT$47 million exceeds net income of NT$27 million, leaving roughly NT$35 million of free cash flow. However, revenue has stagnated near NT$387 million and remains far below the 2021 peak, operating margin slipped to about 10%, net income fell roughly 20%, and ROE declined to about 7.6%. The multi-year gross margin expansion to around 34% is encouraging but has not yet reached the bottom line.

Income Statement

57Neutral

Balance Sheet

80Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	391.38M	387.41M	386.01M	378.39M	391.93M	623.04M
Gross Profit	133.92M	133.45M	131.75M	125.91M	105.58M	173.44M
EBITDA	58.01M	57.88M	64.97M	482.03M	55.98M	355.70M
Net Income	27.64M	27.29M	34.17M	413.64M	21.18M	286.62M
Balance Sheet
Total Assets	522.01M	508.50M	500.93M	485.56M	441.16M	675.48M
Cash, Cash Equivalents and Short-Term Investments	199.92M	193.53M	208.92M	191.29M	148.33M	288.46M
Total Debt	26.19M	28.85M	34.88M	41.78M	12.16M	14.27M
Total Liabilities	162.48M	148.85M	158.78M	164.77M	118.64M	214.32M
Stockholders Equity	359.53M	359.64M	342.15M	320.79M	322.52M	461.16M
Cash Flow
Free Cash Flow	39.67M	35.24M	42.73M	25.41M	8.28M	57.68M
Operating Cash Flow	46.47M	46.90M	52.50M	36.31M	16.35M	61.13M
Investing Cash Flow	-9.10M	-67.30M	-8.89M	430.31M	17.19M	425.66M
Financing Cash Flow	-12.65M	-13.94M	-27.52M	-423.11M	-175.90M	-588.37M

Taiwan Alpha Electronic Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6204 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5353	63Neutral	TWD 2.03B	15.57	―	3.77%	8.57%	23.03%
TW:3206	56Neutral	TWD 1.85B	15.48	―	4.80%	-0.47%	1.25%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6204	54Neutral	TWD 2.02B	83.02	―	0.57%	2.29%	-22.84%
TW:3092	40Underperform	TWD 1.92B	-4.22	―	―	-6.23%	12.14%
TW:3207	34Underperform	TWD 1.96B	-13.53	―	―	17.17%	-859.04%
TW:8085	32Underperform	TWD 1.73B	-10.08	―	―	0.80%	-102.86%

* General Sector Average

Performance Comparison

TW:6204 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6204	Taiwan Alpha Electronic Co., Ltd.	87.30	13.92	18.96%
TW:3092	Hotron Precision Electronic Industrial Co. Ltd.	16.90	0.85	5.30%
TW:3206	Kingstate Electronics Corp.	31.25	-0.69	-2.15%
TW:3207	Yao Sheng Electronic Co., Ltd.	28.95	-37.05	-56.14%
TW:5353	Tailyn Technologies, Inc.	26.50	2.53	10.55%
TW:8085	Forward Electronics Co., Ltd.	12.35	-6.15	-33.24%

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

Taiwan Alpha Electronic Co., Ltd. AI Stock Analysis