Onano Industrial Corp. (6405) AI Stock Analysis

Onano Industrial Corp.

(TWSE:6405)

Select Model

Rating:34Underperform

Price Target:TWD 28.00▼(-13.45% Downside)

Action:initiatedcoverage

Date:11/09/26

Onano Industrial scores poorly overall, driven primarily by a severe deterioration in operating performance: revenue has effectively evaporated, gross margins are negative, losses have persisted for three years, and both operating and free cash flow have turned negative. Technicals reinforce the caution, with the stock trading far below all major moving averages and negative MACD momentum, though deeply oversold RSI and Stochastic readings suggest potential for a short-lived bounce. Valuation provides no support, as earnings are negative and the dividend yield is minimal. The key offsetting strength is a debt-free balance sheet with roughly NT$2.67 billion of equity funding nearly all assets, which eliminates near-term solvency risk and gives management runway to restructure. Investors should watch for stabilization in sales and a return to positive gross margins as the first credible signs of a turnaround.

Positive Factors

Debt-free balance sheetThe absence of debt reduces interest and refinancing burdens while preserving financial flexibility. A substantial equity base provides a buffer against volatility and gives the company more time to address operational problems without immediate pressure from lenders or mandatory debt repayments.

Negative Factors

Revenue collapseA near-total revenue contraction materially weakens the company’s operating base and makes fixed costs harder to absorb. Unless sales recover, the reduced scale can prolong losses, limit investment capacity, and undermine the sustainability of any future margin improvement.

Onano Industrial Corp. (6405) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.13B
Dividend Yield: 0.31%
Average Volume (3M): 662.00K
Price to Earnings (P/E): -149.8
Beta (1Y): 1.59
Revenue Growth: -98.80%
EPS Growth: 84.08%
Country: TW
Employees: 621
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Onano Industrial Corp. Business Overview & Revenue Model

Company Description

Onano Industrial Corp., a company based in Taoyuan City, Taiwan, specializes in providing precision-slimmed opto-electronic glass and various alloy materials. They offer advanced processing services such as thinning, polishing, and applying film coat...

Onano Industrial Corp. Financial Statement Overview

Summary

Fundamentals are dominated by a collapsing earnings engine. Revenue has fallen more than 95% in the latest year to a nominal level, gross margins are negative, and the company has posted operating and net losses for three consecutive years (latest net loss around NT$83 million). Cash flow has also turned negative, with operating cash flow of about -NT$20 million and free cash flow near -NT$49 million after capex. The one major offset is an exceptionally strong balance sheet: no debt at all and roughly NT$2.67 billion of equity funding nearly the entire asset base, which removes near-term solvency risk and buys time to restructure. Still, that cushion is being slowly eroded by losses with no visible revenue recovery, keeping the overall financial score low.

Income Statement

8Very Negative

Balance Sheet

74Positive

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	596.00K	795.00K	131.81M	209.02M	374.96M	540.41M
Gross Profit	-40.09M	-56.06M	-6.41M	-4.41M	46.77M	143.41M
EBITDA	-53.23M	-71.82M	19.42M	-17.62M	123.44M	186.98M
Net Income	-14.87M	-82.71M	-49.48M	-86.00M	4.45M	99.59M
Balance Sheet
Total Assets	3.33B	2.68B	2.46B	2.55B	2.77B	3.21B
Cash, Cash Equivalents and Short-Term Investments	324.91M	570.13M	623.91M	1.53B	1.68B	2.00B
Total Debt	985.00K	0	0	0	100.89M	130.60M
Total Liabilities	17.37M	13.49M	24.77M	79.20M	208.99M	418.05M
Stockholders Equity	3.31B	2.67B	2.43B	2.48B	2.56B	2.79B
Cash Flow
Free Cash Flow	-107.85M	-49.16M	12.39M	-18.02M	-204.88M	16.80M
Operating Cash Flow	-34.41M	-20.45M	30.07M	5.24M	49.09M	83.20M
Investing Cash Flow	-286.97M	-55.01M	-544.69M	-448.35M	-215.01M	1.51B
Financing Cash Flow	-6.78M	-6.58M	-6.58M	-108.41M	-160.36M	-66.57M

Onano Industrial Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6405 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4560	76Outperform	TWD 2.02B	9.32	―	6.75%	13.63%	11.46%
TW:6904	62Neutral	TWD 2.28B	16.75	―	4.07%	3.45%	4.85%
TW:4535	58Neutral	TWD 1.96B	22.41	―	3.09%	-11.46%	-28.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1586	45Neutral	TWD 2.19B	45.26	―	1.63%	4.79%	―
TW:6405	34Underperform	TWD 2.13B	-149.77	―	0.31%	-98.80%	84.08%
TW:4513	26Underperform	TWD 2.16B	-19.14	―	―	89.10%	―

* General Sector Average

Performance Comparison

TW:6405 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6405	Onano Industrial Corp.	32.35	5.20	19.15%
TW:1586	China Fineblanking Technology Co., Ltd.	17.80	-9.44	-34.65%
TW:4513	Falcon Machine Tools Co., Ltd.	15.00	-2.55	-14.53%
TW:4535	Fine Blanking & Tool Co., Ltd.	25.85	-1.52	-5.56%
TW:4560	Strong H Machinery Technology (Cayman), Inc.	29.65	-0.32	-1.05%
TW:6904	Proxene Tools Co., Ltd.	123.00	1.00	0.82%

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

Onano Industrial Corp. AI Stock Analysis