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Arlitech Electronic Corp (6432) AI Stock Analysis

TW:6432

Arlitech Electronic Corp

(TPEx:6432)

Select Model
Rating:45Neutral
Price Target:TWD 42.00â–¼(-10.64% Downside)
Action:initiatedcoverage
Date:11/09/26

The score is held down by sharply deteriorating profitability and cash generation: margin compression cut net income by roughly 70%, return on equity fell below 2%, and free cash flow turned negative after capital spending. Technicals reinforce the caution, with the price far below all key moving averages and a deeply negative MACD signalling a persistent downtrend. The main supports are a conservatively financed balance sheet with low leverage (debt-to-equity 0.29) and a solid equity base, plus a 2.34% dividend yield and a moderate 18.1 P/E. Until gross margins recover and cash conversion stabilises, the profile remains financially safe but operationally underperforming.

Positive Factors
2025 Revenue ReboundThe 2025 revenue rebound indicates that demand can recover after periods of contraction, restoring the company’s top-line base. If this improvement persists, it can support operating leverage and provide a foundation for rebuilding earnings, although consistency across future periods remains important.
Negative Factors
Negative Free Cash FlowNegative free cash flow while reporting positive earnings signals weak cash conversion and may reflect working-capital drag or elevated investment spending. Until cash generation recovers, Arlitech has less internally generated funding for growth, dividends, debt reduction, and protection against operating volatility.

Arlitech Electronic Corp (6432) vs. SPDR S&P 500 ETF (SPY)

-25%0%25%50%75%100%125%150%TW:6432+27.96%SPY+12.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 1.78B
Dividend Yield
2.13%
Average Volume (3M)
730.39K
Price to Earnings (P/E)
18.5
Beta (1Y)
1.26
Revenue Growth
6.40%
EPS Growth
271.08%
Country
TW
Employees
120
Sector
General
Sector Strength
55
Industry
Hardware, Equipment & Parts

Arlitech Electronic Corp Business Overview & Revenue Model

Company Description

Arlitech Electronic Corp., founded in 2001 and situated in New Taipei City, Taiwan, primarily provides a range of inductors to Taiwan's LCD panel manufacturing sector. Their product line includes various inductor types such as surface-mount device (S...

Arlitech Electronic Corp Financial Statement Overview

Summary

Financials are mixed but lean negative. Revenue rebounded roughly 10% to about NT$1.12 billion, yet gross margin fell to 22.2% from 26.0% and net income collapsed about 70% to NT$15.5 million, leaving a net margin of just 1.4% and return on equity under 2%. Cash generation was the weakest element: operating cash flow dropped to NT$26 million from NT$233 million and free cash flow swung to negative NT$43 million. The offsetting strength is a conservative balance sheet, with equity of about NT$884 million funding two-thirds of assets and debt-to-equity improving to 0.29, providing a cushion through the current earnings trough.

Income Statement

40Negative

Balance Sheet

64Positive

Cash Flow

32Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.18B1.12B1.02B1.08B1.11B1.36B
Gross Profit257.45M249.84M264.99M258.81M259.94M394.53M
EBITDA77.01M79.93M125.23M90.48M53.78M162.26M
Net Income83.29M15.50M52.72M36.39M45.88M88.03M
Balance Sheet
Total Assets1.47B1.34B1.38B1.28B1.24B1.34B
Cash, Cash Equivalents and Short-Term Investments561.18M463.84M570.31M459.60M534.65M444.43M
Total Debt103.47M253.21M288.78M298.83M240.86M264.66M
Total Liabilities396.21M457.37M497.05M502.77M440.76M552.02M
Stockholders Equity1.07B883.73M882.16M776.66M794.91M790.09M
Cash Flow
Free Cash Flow30.93M-43.16M218.90M-112.63M276.06M-79.14M
Operating Cash Flow91.47M26.03M232.63M-87.94M298.74M-521.00K
Investing Cash Flow-80.64M-93.74M-62.34M18.57M-106.01M-69.63M
Financing Cash Flow-61.06M-97.14M35.11M-28.68M-87.66M122.59M

Arlitech Electronic Corp Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:6432 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:6185TW:618561NeutralTWD 1.72B-73.80―3.43%32.52%-171.96%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:6432TW:643245NeutralTWD 1.82B18.46―2.13%6.40%271.08%
TW:6134TW:613443NeutralTWD 1.74B26.75―0.94%37.45%―
TW:2440TW:244037UnderperformTWD 1.93B103.19――2.38%―

* General Sector Average

Performance Comparison

-50%0%50%100%TW:6432TW:2249TW:2440TW:6134TW:6185TW:6272Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:6432 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:6432Arlitech Electronic Corp47.0012.0534.46%
TW:2249Young Shine Electric Co., Ltd.62.50-10.19-14.02%
TW:2440Space Shuttle Hi-Tech Co. Ltd.13.901.3010.32%
TW:6134Wanshih Electronic Co., Ltd21.25-1.52-6.70%
TW:6185Plastron Presicion Co., Ltd.11.45-3.72-24.51%
TW:6272Wieson Technologies Co., Ltd.19.55-37.77-65.90%
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