V-TAC Technology co., Ltd. (6229) AI Stock Analysis

V-TAC Technology co., Ltd.

(TPEx:6229)

Select Model

Rating:37Underperform

Price Target:TWD 18.00▼(-10.22% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held near the bottom of the range primarily by weak financial quality: despite strong revenue growth, margins have compressed to the point of near-breakeven profitability, return on equity is below 1%, and the company burned roughly NT$115 million of operating cash while debt rose sharply. Technicals reinforce the caution, with the stock trading below all major moving averages and a negative MACD confirming a downtrend, although extremely low RSI and Stochastic readings suggest selling may be stretched. Valuation offers partial offset through a 3.1% dividend yield, but the 18.4x P/E rests on minimal earnings and the payout's durability is uncertain given the cash burn. Evidence of margin stabilization and a reversal of the working-capital drag would be needed before the top-line recovery can be viewed as value-creating.

Positive Factors

Revenue ReboundThe strong two-year revenue rebound indicates renewed demand and improving business activity after prior weakness. If sustained, this top-line expansion can provide greater operating scale and create a foundation for restoring profitability, even though current margins remain pressured.

Negative Factors

Near-Breakeven ProfitabilityProfitability has deteriorated sharply despite the revenue rebound, leaving little margin for execution errors or cost increases. Gross-margin compression and a near-zero net margin weaken internal funding capacity and make sustainable earnings recovery dependent on reversing pricing or cost pressure.

V-TAC Technology co., Ltd. (6229) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 889.95M
Dividend Yield: 2.99%
Average Volume (3M): 59.67K
Price to Earnings (P/E): 19.4
Beta (1Y): 0.98
Revenue Growth: 34.82%
EPS Growth: ―
Country: TW
Employees: 123
Sector: General
Sector Strength: 55
Industry: Semiconductors

V-TAC Technology co., Ltd. Business Overview & Revenue Model

Company Description

V-TAC Technology Co.,Ltd., established in 1992 and headquartered in New Taipei City, Taiwan, functions as both an integrated circuit (IC) application design house and an IC sales agent. The company's operations span Taiwan, Hong Kong, and mainland Ch...

V-TAC Technology co., Ltd. Financial Statement Overview

Summary

Revenue momentum is the only clear strength: sales rose to NT$2.15 billion, nearly double the 2023 trough. However, gross margin has collapsed from ~19% in 2021 to 10.7%, leaving operating margin at 0.2% and net income at just NT$2.0 million (down ~91% year over year). Return on equity is a negligible 0.3%. The balance sheet is adequate but deteriorating — equity fell to NT$699 million while total debt jumped to NT$508 million, lifting debt-to-equity to 0.73 from 0.43 in a single year. Cash flow is the weakest link: operating cash flow of negative NT$115 million and free cash flow of negative NT$117 million indicate growth is being funded with borrowings rather than internally generated cash, and earnings quality is poor.

Income Statement

28Negative

Balance Sheet

50Neutral

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.66B	2.15B	1.80B	1.10B	1.60B	2.11B
Gross Profit	258.95M	229.33M	229.80M	191.67M	274.01M	402.09M
EBITDA	36.82M	11.38M	31.96M	18.55M	126.35M	222.50M
Net Income	43.81M	1.98M	21.70M	1.93M	79.14M	160.00M
Balance Sheet
Total Assets	1.81B	1.68B	1.51B	1.24B	1.31B	1.54B
Cash, Cash Equivalents and Short-Term Investments	466.39M	450.69M	414.76M	301.99M	290.37M	478.93M
Total Debt	557.59M	508.38M	318.87M	248.54M	268.87M	275.75M
Total Liabilities	1.09B	978.22M	759.59M	597.62M	653.71M	835.72M
Stockholders Equity	716.82M	698.59M	748.94M	639.25M	656.61M	702.47M
Cash Flow
Free Cash Flow	-150.46M	-116.73M	-33.24M	57.34M	2.08M	-99.31M
Operating Cash Flow	-149.03M	-115.33M	-32.71M	58.63M	5.17M	-46.34M
Investing Cash Flow	-29.80M	-24.48M	-84.61M	5.37M	12.40M	-82.30M
Financing Cash Flow	131.11M	136.20M	136.67M	-79.05M	-119.21M	148.21M

V-TAC Technology co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6229 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6164	49Neutral	TWD 790.93M	42.56	―	4.55%	-10.87%	115.91%
TW:3128	48Neutral	TWD 900.31M	15.54	―	2.23%	-12.58%	-22.95%
TW:4972	42Neutral	TWD 769.90M	-7.68	―	―	-1.01%	-31.92%
TW:6109	38Underperform	TWD 800.09M	-10.92	―	―	22.42%	60.41%
TW:6229	37Underperform	TWD 809.23M	19.44	―	2.99%	34.82%	―

* General Sector Average

Performance Comparison

TW:6229 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6229	V-TAC Technology co., Ltd.	20.05	-3.26	-13.97%
TW:3128	Hi Sharp Electronics Co., Ltd.	17.95	-8.19	-31.33%
TW:4972	Tons Lightology Inc.	13.90	-4.15	-22.99%
TW:6109	Atech OEM Inc.	9.11	-3.02	-24.88%
TW:6164	Ledtech Electronics Corp.	11.00	0.80	7.84%
TW:6818	Advanced Wireless & Antenna Inc.	33.30	-5.95	-15.15%

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

V-TAC Technology co., Ltd. AI Stock Analysis