Para Light Electronics Co., Ltd. (6226) AI Stock Analysis

Para Light Electronics Co., Ltd.

(TWSE:6226)

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Rating:39Underperform

Price Target:TWD 29.00▼(-13.56% Downside)

Action:initiatedcoverage

Date:11/09/26

Para Light Electronics scores poorly, driven primarily by a deteriorating financial profile: four straight years of revenue decline, continued operating losses, and operating cash flow that has fallen to effectively zero with free cash flow negative for a second year. A conservative balance sheet (debt/equity ~0.58, stable equity, reduced borrowings) buys management time, and margin improvement plus a narrower net loss are encouraging, but these have not yet translated into cash generation. Valuation offers no support, with negative earnings and no dividend. Technically, the longer-term uptrend above the 100- and 200-day averages is the one relative positive, though the stock has broken below its short-term averages with negative MACD and a deeply oversold stochastic reading. Investors should look for evidence of revenue stabilisation and a return to positive operating cash flow before the outlook can improve durably.

Positive Factors

Moderate LeverageModerate and improving leverage gives Para Light some balance-sheet flexibility while it works through operating weakness. A sizable equity base can help absorb losses and preserve room for strategic investment, provided profitability and cash generation do not deteriorate further.

Negative Factors

Multi-Year Revenue ContractionA multi-year revenue decline signals persistent pressure on demand, market position, or product economics rather than a single-quarter setback. Continued contraction can reduce operating leverage, limit reinvestment capacity, and make a return to sustainable profitability more difficult.

Para Light Electronics Co., Ltd. (6226) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.82B
Dividend Yield: ―
Average Volume (3M): 18.09M
Price to Earnings (P/E): -1138.3
Beta (1Y): 0.87
Revenue Growth: 0.08%
EPS Growth: 86.72%
Country: TW
Employees: 1,187
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Para Light Electronics Co., Ltd. Business Overview & Revenue Model

Company Description

Para Light Electronics Co., Ltd. specializes in supplying a diverse range of lighting solutions and opto-electronic components to clients across the globe. Its comprehensive product portfolio includes various types of LEDs, such as visible, ultraviol...

Para Light Electronics Co., Ltd. Financial Statement Overview

Summary

Weak overall, with only the balance sheet offering support. Revenue has fallen for four consecutive years (NT$938m in 2022 to NT$609m in 2025) and the company remains loss-making at the operating level (-NT$50m, roughly -8% of sales), with EBITDA back in negative territory. Cash generation is the weakest link: operating cash flow collapsed to NT$0.5m from NT$25.7m, and free cash flow was negative for a second straight year at -NT$11.5m. Offsetting positives include an improved gross margin (28.5% vs 23.7%), a narrower net loss (-NT$32m vs -NT$51m), conservative leverage (debt/equity ~0.58, down from 0.76 in 2020) and stable equity near NT$1.1–1.2bn. However, a shrinking asset base (NT$2.76bn in 2021 to NT$1.98bn in 2025) suggests the business is being downsized rather than grown.

Income Statement

27Negative

Balance Sheet

56Neutral

Cash Flow

23Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	623.85M	609.17M	655.37M	759.47M	938.30M	935.50M
Gross Profit	181.97M	173.87M	155.31M	183.15M	246.21M	292.39M
EBITDA	-29.73M	-12.20M	12.95M	-4.25M	78.16M	56.20M
Net Income	-2.60M	-32.16M	-51.14M	-74.82M	3.68M	-7.67M
Balance Sheet
Total Assets	2.04B	1.98B	2.34B	2.34B	2.58B	2.76B
Cash, Cash Equivalents and Short-Term Investments	289.67M	445.35M	395.69M	358.30M	387.76M	489.43M
Total Debt	627.14M	652.18M	646.06M	680.09M	705.07M	814.16M
Total Liabilities	790.67M	853.72M	1.10B	1.12B	1.28B	1.46B
Stockholders Equity	1.25B	1.12B	1.13B	1.11B	1.19B	1.19B
Cash Flow
Free Cash Flow	-92.40M	-11.47M	-6.54M	13.43M	34.93M	47.35M
Operating Cash Flow	-110.06M	543.00K	25.69M	53.50M	117.64M	84.02M
Investing Cash Flow	-29.54M	-89.99M	10.03M	-11.50M	-85.45M	-8.52M
Financing Cash Flow	-33.05M	22.32M	-31.49M	-23.91M	-126.73M	-20.44M

Para Light Electronics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6226 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4933	70Outperform	TWD 3.63B	6.06	―	6.58%	-7.35%	59.06%
TW:3530	62Neutral	TWD 3.67B	16.81	―	1.71%	34.89%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3666	42Neutral	TWD 3.51B	-11.10	―	―	-12.73%	40.04%
TW:2461	39Underperform	TWD 3.07B	35.22	―	6.27%	0.99%	―
TW:6226	39Underperform	TWD 3.70B	-1138.33	―	―	0.08%	86.72%

* General Sector Average

Performance Comparison

TW:6226 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6226	Para Light Electronics Co., Ltd.	33.55	27.12	421.77%
TW:2256	oToBrite Electronic,Inc.	72.50	46.09	174.52%
TW:2461	K LASER Technology, Inc.	15.85	0.15	0.96%
TW:3530	Silicon Optronics, Inc.	46.75	-14.28	-23.40%
TW:3666	Optivision Technology Inc.	26.25	-3.10	-10.56%
TW:4933	Ubright Optronics Corporation	43.90	-12.84	-22.63%

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

Para Light Electronics Co., Ltd. AI Stock Analysis