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Tong Hsing Electronic Industries ,Ltd. (6271) AI Stock Analysis

TW:6271

Tong Hsing Electronic Industries ,Ltd.

(TWSE:6271)

Select Model
Rating:63Neutral
Price Target:TWD 179.00â–¼(-19.00% Downside)
Action:initiatedcoverage
Date:11/10/26

The overall score of 63 reflects a strong fundamental company under significant technical pressure. The company's financial health is a major strength, with a pristine balance sheet, expanding margins, and a powerful free cash flow recovery. However, the stock is in a pronounced downtrend, trading far below key moving averages with deeply oversold momentum indicators, which heavily weighs on the near-term outlook. The reasonable valuation provides some support but is not enough to offset the bearish technical signals. The primary risk is that the negative price momentum reflects market concerns about future cyclical weakness not yet evident in the trailing financials.

Positive Factors
Conservative Balance SheetLow and improving leverage, alongside steadily growing equity, gives Tong Hsing financial resilience and flexibility. This supports continued investment in specialized semiconductor products, reduces dependence on external financing, and improves the company’s ability to withstand cyclical demand weakness.
Negative Factors
Profitability Below Prior PeakAlthough profitability has rebounded, earnings and margins have not regained their 2022 levels. This suggests that prior-cycle earnings power is not yet fully restored, limiting confidence that current improvements represent a complete and durable recovery.

Tong Hsing Electronic Industries ,Ltd. (6271) vs. SPDR S&P 500 ETF (SPY)

-25%0%25%50%75%100%125%150%TW:6271+85.73%SPY+14.55%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 46.20B
Dividend Yield
1.36%
Average Volume (3M)
4.14M
Price to Earnings (P/E)
21.6
Beta (1Y)
1.48
Revenue Growth
4.90%
EPS Growth
41.69%
Country
TW
Employees
4,821
Sector
General
Sector Strength
55
Industry
Semiconductors

Tong Hsing Electronic Industries ,Ltd. Business Overview & Revenue Model

Company Description

Tong Hsing Electronic Industries, Ltd. engages in the development and production of thick film substrates and customized semiconductor micro-module packaging. It offers ceramic metalized substrate, such as direct plated copper, direct bonded copper,...

Tong Hsing Electronic Industries ,Ltd. Financial Statement Overview

Summary

Tong Hsing's financials show a strong recovery with expanding margins and robust cash flow. TTM gross margin of 29.8% and net margin of 17.4% exceed prior peaks, while free cash flow has swung to a very healthy level. The fortress balance sheet with a 0.15 debt-to-equity ratio provides stability. The main detractor is the historical revenue volatility, highlighted by the 17.7% drop in 2023, which tempers the score.

Income Statement

72Positive

Balance Sheet

85Very Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue12.28B11.54B12.09B11.58B14.07B13.86B
Gross Profit3.66B3.19B3.33B2.79B5.01B4.61B
EBITDA3.17B2.98B3.77B2.84B5.36B4.98B
Net Income2.14B1.60B1.71B1.15B3.14B2.76B
Balance Sheet
Total Assets36.32B34.36B34.62B33.66B34.26B27.54B
Cash, Cash Equivalents and Short-Term Investments8.24B7.24B7.04B5.17B7.76B4.66B
Total Debt4.22B4.14B5.19B5.38B5.33B208.91M
Total Liabilities8.42B7.62B8.78B9.22B9.74B4.55B
Stockholders Equity27.84B26.68B25.79B24.44B24.52B22.98B
Cash Flow
Free Cash Flow2.38B1.51B-750.84M-364.43M1.15B2.21B
Operating Cash Flow3.06B2.96B572.55M2.43B4.56B4.61B
Investing Cash Flow-1.36B-755.26M-1.57B-3.90B-5.06B-2.73B
Financing Cash Flow-962.05M-1.69B-823.93M-1.27B3.49B-1.26B

Tong Hsing Electronic Industries ,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:6271 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:8131TW:813165NeutralTWD 23.92B13.29―1.85%37.20%416.69%
TW:6271TW:627163NeutralTWD 46.13B21.62―1.36%4.90%41.69%
TW:8028TW:802857NeutralTWD 37.35B35.21―1.33%26.30%48.94%
TW:2329TW:232956NeutralTWD 24.44B14.78―2.68%10.61%51.02%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:4991TW:499154NeutralTWD 43.70B80.53――52.19%―
TW:3016TW:301644NeutralTWD 35.78B61.93―0.41%29.78%22824.42%

* General Sector Average

Performance Comparison

0%100%200%300%400%TW:6271TW:2329TW:3016TW:4991TW:8028TW:8131Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:6271 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:6271Tong Hsing Electronic Industries ,Ltd.221.0099.0481.21%
TW:2329Orient Semiconductor Electronics, Limited37.25-14.16-27.54%
TW:3016Episil-Precision, Inc.122.0071.28140.53%
TW:4991GCS Holdings, Inc.364.00199.65121.48%
TW:8028Phoenix Silicon International Corp.203.5048.8931.62%
TW:8131Formosa Advanced Technologies Co., Ltd.54.108.5218.68%
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