Youngtek Electronics Corporation (6261) AI Stock Analysis

Youngtek Electronics Corporation

(TPEx:6261)

Select Model

Rating:59Neutral

Price Target:TWD 65.00▼(-2.69% Downside)

Action:initiatedcoverage

Date:11/09/26

Youngtek scores in the middle of the range. Its fortress balance sheet — minimal debt and equity funding ~80% of assets — provides genuine downside protection, and the shares look inexpensive at a 12.7x P/E with a 4.0% dividend yield. These positives are offset by deteriorating fundamentals: operating margin has compressed from 26.8% to 10.1% since 2021, operating profit fell ~18% year-over-year, earnings quality is weakened by outsized non-operating contributions, and a doubling of capex pushed free cash flow to negative NT$320m. Technicals compound the caution, with the price well below all major moving averages and negative MACD confirming a sustained downtrend, albeit at deeply oversold readings. The investment case rests on whether the current capacity investment restores growth and margin leverage; until evidence emerges, balance sheet strength and valuation are doing the heavy lifting.

Positive Factors

Very Low LeverageThe very low debt-to-equity ratio and stable equity base provide meaningful financial resilience through semiconductor cycles. Conservative leverage preserves borrowing capacity, reduces interest burden, and gives management flexibility to fund operations or investment without excessive balance-sheet risk.

Negative Factors

Negative 2025 Free Cash FlowFree cash flow falling to approximately negative NT$0.32B weakens the quality of earnings and reduces internally generated funds available for expansion or shareholder returns. If investment or working-capital demands persist, cash generation could remain pressured despite positive operating cash flow.

Youngtek Electronics Corporation (6261) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.56B
Dividend Yield: 3.74%
Average Volume (3M): 739.60K
Price to Earnings (P/E): 13.8
Beta (1Y): 0.97
Revenue Growth: 13.87%
EPS Growth: 34.24%
Country: TW
Employees: 1,987
Sector: General
Sector Strength: 55
Industry: Semiconductors

Youngtek Electronics Corporation Business Overview & Revenue Model

Company Description

Youngtek Electronics Corporation, a Taiwan-based enterprise, specializes in delivering comprehensive semiconductor back-end foundry services. The company provides a wide array of critical processes, including wafer testing, grinding, cutting, and die...

Youngtek Electronics Corporation Financial Statement Overview

Summary

A very strong balance sheet (score 85) anchors the profile: debt-to-equity of just 0.045, equity funding ~80% of assets, and steadily reduced borrowings give Youngtek ample cushion through semiconductor cycles. However, the income statement (56) shows meaningful deterioration in quality — revenue recovered ~6.5% to NT$4.19bn but remains ~20% below the 2021 peak, gross margin has fallen from 38.8% to 29.9%, operating margin collapsed from 26.8% (2021) to 10.1% (2025), and net profit now exceeds operating profit, signalling reliance on non-operating items. Cash flow (48) is the weakest link: operating cash flow eased to NT$664m while capex roughly doubled to ~NT$984m, swinging free cash flow to negative NT$320m. ROE of ~8.2% indicates under-utilised capital. Net: financially secure, but core earnings power and cash generation are under pressure.

Income Statement

56Neutral

Balance Sheet

85Very Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.38B	4.19B	3.97B	3.71B	4.60B	5.22B
Gross Profit	1.34B	1.25B	1.19B	1.05B	1.62B	2.03B
EBITDA	1.16B	1.08B	1.16B	1.21B	1.71B	1.94B
Net Income	658.90M	544.09M	522.02M	526.02M	854.18M	1.08B
Balance Sheet
Total Assets	8.71B	8.34B	8.53B	8.31B	8.68B	8.91B
Cash, Cash Equivalents and Short-Term Investments	1.91B	1.46B	2.46B	2.70B	3.29B	2.82B
Total Debt	329.30M	297.57M	316.76M	317.43M	440.57M	436.09M
Total Liabilities	1.72B	1.51B	1.62B	1.39B	1.64B	2.03B
Stockholders Equity	6.84B	6.67B	6.71B	6.70B	6.82B	6.69B
Cash Flow
Free Cash Flow	488.28M	-320.28M	239.83M	172.69M	988.32M	859.31M
Operating Cash Flow	1.03B	664.17M	714.75M	519.25M	1.30B	1.16B
Investing Cash Flow	-563.74M	-1.07B	-475.45M	-131.67M	-211.50M	-211.14M
Financing Cash Flow	-506.68M	-570.57M	-485.89M	-833.11M	-664.86M	-678.72M

Youngtek Electronics Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6261 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4953	68Neutral	TWD 8.45B	10.86	―	4.47%	26.80%	60.84%
TW:6175	64Neutral	TWD 8.97B	19.15	―	2.45%	19.72%	17.77%
TW:6261	59Neutral	TWD 8.52B	13.76	―	3.74%	13.87%	34.24%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2369	38Underperform	TWD 9.68B	70.09	―	1.16%	31.46%	―
TW:5498	38Underperform	TWD 9.03B	95.67	―	0.49%	64.47%	―
TW:6706	38Underperform	TWD 9.54B	-37.35	―	―	-40.08%	16.61%

* General Sector Average

Performance Comparison

TW:6261 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6261	Youngtek Electronics Corporation	66.80	8.72	15.01%
TW:2369	Lingsen Precision Industries, Ltd.	26.30	3.10	13.36%
TW:4953	WITS Corp.	115.00	-6.30	-5.19%
TW:5498	Key Ware Electronics Co., Ltd.	51.30	24.63	92.37%
TW:6175	Liton Technology Corp.	61.10	11.82	23.99%
TW:6706	Fittech Co., Ltd.	124.00	45.20	57.36%

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

Youngtek Electronics Corporation AI Stock Analysis