Top Union Electronics Corp. (6266) AI Stock Analysis

Top Union Electronics Corp.

(TPEx:6266)

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Rating:63Neutral

Price Target:TWD 23.00▲(7.23% Upside)

Action:initiatedcoverage

Date:11/09/26

Top Union Electronics scores in the moderate range. Its greatest strength is a near debt-free balance sheet with equity funding roughly 70% of assets, paired with uninterrupted profitability — a meaningful buffer in a cyclical industry. That is offset by a clear deceleration: flat revenue, gross margin down to 16.2%, operating margin nearly a third lower than 2024, and operating cash flow contracting for three consecutive years. Technicals are the biggest drag, with the share price below all major moving averages and negative MACD momentum, though the oversold RSI hints at potential short-term stabilization. A very attractive valuation — 11.5x earnings and an 8.3% dividend yield — provides material downside support and lifts the overall score, with the key risk being whether cash generation can sustain that payout. Margin stabilization and a rebound in industry demand would be the main catalysts for improvement.

Positive Factors

Conservative balance sheetVery low leverage gives Top Union meaningful resilience if the semiconductor cycle remains weak. Limited debt reduces refinancing and interest burdens, preserves financial flexibility, and leaves more capacity to sustain operations or invest when demand eventually improves.

Negative Factors

Severe revenue contractionThe sharp revenue decline is the most significant fundamental pressure because it indicates materially weaker demand and reduces operating scale. If sustained, lower sales can limit fixed-cost absorption, weaken earnings power, and delay a durable recovery in profitability.

Top Union Electronics Corp. (6266) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.31B
Dividend Yield: 8.30%
Average Volume (3M): 264.21K
Price to Earnings (P/E): 11.2
Beta (1Y): 0.40
Revenue Growth: -2.31%
EPS Growth: -10.04%
Country: TW
Employees: 780
Sector: General
Sector Strength: 55
Industry: Semiconductors

Top Union Electronics Corp. Business Overview & Revenue Model

Company Description

Established in Hsinchu City, Taiwan, in 1990, Top Union Electronics Corp. specializes in the design, manufacturing, and technical support of electronic products and communication equipment. Its operational footprint extends across Taiwan, the United...

Top Union Electronics Corp. Financial Statement Overview

Summary

A mixed picture anchored by an exceptionally strong balance sheet (score 85): debt-to-equity of just 0.04, equity funding ~70% of the NT$3.60bn asset base, and steady equity growth to NT$2.53bn make solvency risk negligible. The income statement (62) shows consistent profitability — NT$295m net income TTM and ~14.5% EBITDA margin — but revenue growth has stalled (-10.7% in 2024, +4% in 2025) and margins have compressed sharply, with operating margin falling from 14.8% to 10.1% and net margin to 8.9%. Cash flow (58) is the weakest leg, with operating cash flow declining three straight years from NT$628m (2024) to NT$222m TTM and free cash flow conversion dropping to ~70% of net income. Net result: financially resilient but clearly decelerating.

Income Statement

62Positive

Balance Sheet

85Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.30B	3.40B	3.27B	3.66B	3.29B	2.55B
Gross Profit	536.27M	560.25M	617.68M	549.99M	589.29M	364.93M
EBITDA	479.26M	493.25M	610.07M	520.13M	553.00M	316.45M
Net Income	295.50M	307.49M	380.58M	296.74M	329.43M	162.54M
Balance Sheet
Total Assets	3.60B	3.57B	3.57B	3.33B	3.19B	2.97B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.38B	1.61B	1.18B	787.92M	386.65M
Total Debt	92.89M	64.28M	66.89M	143.70M	95.41M	412.31M
Total Liabilities	1.07B	1.01B	1.07B	1.03B	1.03B	1.34B
Stockholders Equity	2.53B	2.56B	2.50B	2.30B	2.16B	1.63B
Cash Flow
Free Cash Flow	154.87M	218.83M	573.14M	522.19M	624.38M	-278.87M
Operating Cash Flow	221.76M	328.85M	627.87M	680.13M	729.23M	-152.06M
Investing Cash Flow	187.41M	-413.84M	-691.07M	-292.09M	-170.98M	-113.83M
Financing Cash Flow	-300.85M	-251.98M	-304.37M	-80.06M	-157.43M	120.10M

Top Union Electronics Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6266 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3484	64Neutral	TWD 3.26B	11.97	―	6.05%	-3.70%	-19.49%
TW:3556	64Neutral	TWD 3.65B	14.40	―	3.15%	27.26%	133.00%
TW:6266	63Neutral	TWD 3.32B	11.17	―	8.30%	-2.31%	-10.04%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3311	51Neutral	TWD 3.70B	23.97	―	1.47%	46.08%	7.08%
TW:6126	44Neutral	TWD 3.40B	37.25	―	2.34%	43.73%	-23.83%
TW:6220	44Neutral	TWD 3.54B	19.14	―	2.91%	14.67%	64.02%

* General Sector Average

Performance Comparison

TW:6266 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6266	Top Union Electronics Corp.	21.45	-5.95	-21.70%
TW:3311	Silitech Technology Corporation	40.70	7.63	23.07%
TW:3484	Solteam Incorporation	41.30	-5.35	-11.46%
TW:3556	eGalax_eMPIA Technology Inc.	61.90	23.95	63.09%
TW:6126	Singatron Enterprise Co. Ltd.	25.60	-5.47	-17.61%
TW:6220	YFC-BonEagle Electric Co., Ltd.	24.05	1.03	4.45%

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

Top Union Electronics Corp. AI Stock Analysis