Taiwan Union Technology Corporation (6274) AI Stock Analysis

Taiwan Union Technology Corporation

(TPEx:6274)

Select Model

Rating:54Neutral

Price Target:TWD 924.00▼(-5.91% Downside)

Action:initiatedcoverage

Date:11/09/26

Taiwan Union Technology scores in the mid-range. The dominant positive is a powerful earnings upcycle — revenue up ~31%, margin expansion and 18.3% ROE — but this is materially offset by a weak cash profile: minimal operating cash flow relative to profit, a second consecutive year of negative free cash flow, and leverage rising quickly to fund capacity expansion. Technicals are the biggest near-term drag, with the price far below all key moving averages, negative MACD and deeply oversold momentum amid high volatility (beta 2.33). Valuation is neutral-to-slightly-negative, with a 32x P/E and a modest 0.83% yield leaving little margin for error if the cycle turns. Earnings call and corporate event data were unavailable and excluded, with their weight redistributed to the remaining components.

Positive Factors

Profitability ExpansionMeaningful expansion in net profit and operating margins indicates stronger earnings power and improved operating efficiency. If maintained, the higher profitability base can support reinvestment, strengthen resilience through the cycle, and provide greater capacity to absorb cost or demand pressure.

Negative Factors

Weak Operating Cash ConversionOperating cash flow converting only a small fraction of reported earnings raises concerns about earnings quality and working-capital absorption. Persistent weak conversion could restrict internally funded investment, increase reliance on financing, and make reported profitability less dependable during weaker conditions.

Taiwan Union Technology Corporation (6274) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 317.43B
Dividend Yield: 0.76%
Average Volume (3M): 9.21M
Price to Earnings (P/E): 35.0
Beta (1Y): 2.33
Revenue Growth: 86.84%
EPS Growth: 165.06%
Country: TW
Employees: 1,031
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Taiwan Union Technology Corporation Business Overview & Revenue Model

Company Description

Taiwan Union Technology Corporation is a global enterprise active within the electronics industry. The firm specializes in the production of core materials like copper-clad laminates, prepreg, and mass laminates, in addition to supplying printed circ...

Taiwan Union Technology Corporation Financial Statement Overview

Summary

Strong income statement momentum (score 84) with revenue up ~31% to NT$30.3bn, EBIT margin expanding to 14.3% and net income reaching NT$3.41bn. The balance sheet is sound but increasingly stretched (score 71): equity funds ~47% of assets and ROE is 18.3%, yet borrowings nearly doubled to NT$8.4bn, lifting debt-to-equity to 0.45 — the highest in six years. Cash flow is the clear weakness (score 30): operating cash flow slipped to NT$596m against NT$3.41bn of reported profit (~0.17x conversion), and free cash flow was negative NT$1.39bn for a second straight year on ~NT$2.0bn of capex and heavy working-capital absorption. Overall, excellent profit growth is offset by poor earnings-to-cash conversion, rising leverage, and the cyclical nature of the business.

Income Statement

84Very Positive

Balance Sheet

71Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.54B	30.34B	23.07B	16.00B	18.47B	21.13B
Gross Profit	10.71B	6.90B	5.34B	3.16B	3.41B	4.43B
EBITDA	8.26B	4.80B	3.88B	2.04B	2.11B	2.88B
Net Income	5.69B	3.41B	2.60B	823.43M	1.26B	1.88B
Balance Sheet
Total Assets	46.94B	39.74B	25.88B	19.42B	19.76B	21.95B
Cash, Cash Equivalents and Short-Term Investments	6.75B	10.60B	7.04B	5.66B	6.81B	6.58B
Total Debt	6.55B	8.44B	4.41B	2.71B	3.38B	3.97B
Total Liabilities	22.79B	21.13B	11.54B	7.84B	7.90B	10.21B
Stockholders Equity	24.15B	18.61B	14.34B	11.58B	11.86B	11.74B
Cash Flow
Free Cash Flow	-5.82B	-1.39B	-522.51M	485.23M	1.94B	1.07B
Operating Cash Flow	-2.79B	595.78M	653.18M	1.12B	2.33B	1.51B
Investing Cash Flow	-3.16B	-6.50B	-1.11B	-244.47M	676.58M	1.27B
Financing Cash Flow	6.08B	4.89B	1.38B	-1.64B	-1.94B	-1.18B

Taiwan Union Technology Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6274 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3044	74Outperform	TWD 248.87B	22.28	―	2.68%	33.62%	56.13%
TW:2313	60Neutral	TWD 225.17B	29.43	―	1.53%	11.13%	24.42%
TW:2368	58Neutral	TWD 515.95B	34.52	―	1.00%	67.57%	111.31%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6274	54Neutral	TWD 294.07B	34.97	―	0.76%	86.84%	165.06%
TW:3189	53Neutral	TWD 392.55B	76.61	―	0.20%	33.81%	547.63%
TW:6213	51Neutral	TWD 191.98B	85.29	―	0.57%	41.96%	290.01%

* General Sector Average

Performance Comparison

TW:6274 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6274	Taiwan Union Technology Corporation	982.00	578.23	143.21%
TW:2313	Compeq Manufacturing Co., Ltd.	182.50	99.91	120.98%
TW:2368	Gold Circuit Electronics Ltd	983.00	438.85	80.65%
TW:3044	Tripod Technology Corporation	473.50	165.03	53.50%
TW:3189	Kinsus Interconnect Technology Corp.	745.00	618.09	487.02%
TW:6213	ITEQ Corporation	528.00	418.42	381.84%

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

Taiwan Union Technology Corporation AI Stock Analysis