Gallant Micro Machining Co. Ltd. (6640) AI Stock Analysis

Gallant Micro Machining Co. Ltd.

(TPEx:6640)

Select Model

Rating:58Neutral

Price Target:TWD 734.00▼(-7.67% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 58 reflects a strong conflict between healthy fundamentals and extremely weak market sentiment. The company's robust financial recovery and clean balance sheet are significant strengths. However, these are heavily offset by a deeply bearish technical picture, with the stock in a pronounced downtrend and showing oversold momentum. The elevated P/E ratio adds risk given the current price weakness. The primary concern is the market's negative perception despite improving business performance.

Positive Factors

Specialized precision manufacturingGallant operates in precision micro-machining, where tight tolerances and specialized processing support advanced manufacturing applications. This technical focus can help preserve customer relevance and create a durable position in electronics and other high-specification industrial markets.

Negative Factors

Revenue and margin slowdownThe latest results show weakening operating momentum, with revenue declining about 6.1% and EBIT margin falling materially from 22% to 15%. If sustained, this combination would reduce earnings resilience and limit the funds available for reinvestment in specialized manufacturing capacity.

Gallant Micro Machining Co. Ltd. (6640) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 20.98B
Dividend Yield: 1.89%
Average Volume (3M): 424.55K
Price to Earnings (P/E): 35.7
Beta (1Y): 1.31
Revenue Growth: 38.95%
EPS Growth: 50.60%
Country: TW
Employees: 611
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Gallant Micro Machining Co. Ltd. Business Overview & Revenue Model

Company Description

Gallant Micro. Machining Co., LTD. engages in the production and sale of machinery and equipment, precision molds, and other parts and components in Taiwan, China, and internationally. The company offers its products in chip sorter, die bonder, laser...

Gallant Micro Machining Co. Ltd. Financial Statement Overview

Summary

Financial performance is solid, driven by a strong income statement (78) reflecting robust revenue growth and margin expansion. The balance sheet (72) shows significant deleveraging and improved financial flexibility. However, the cash flow score (65) is a drag, as inconsistent historical cash generation and low cash conversion of net income remain key risks.

Income Statement

78Positive

Balance Sheet

72Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.98B	2.69B	2.44B	1.19B	1.48B	1.48B
Gross Profit	1.65B	1.05B	923.51M	411.41M	596.37M	503.76M
EBITDA	789.95M	453.78M	574.80M	167.17M	340.15M	270.75M
Net Income	633.11M	357.90M	412.77M	100.86M	229.72M	157.51M
Balance Sheet
Total Assets	9.26B	5.16B	3.86B	3.36B	2.62B	2.48B
Cash, Cash Equivalents and Short-Term Investments	859.35M	870.39M	902.41M	1.12B	753.51M	797.78M
Total Debt	1.90B	1.55B	1.07B	1.11B	799.27M	709.84M
Total Liabilities	4.18B	2.71B	2.14B	2.06B	1.42B	1.47B
Stockholders Equity	5.09B	2.45B	1.68B	1.26B	1.16B	990.70M
Cash Flow
Free Cash Flow	309.04M	-11.25M	359.19M	349.85M	-117.40M	64.59M
Operating Cash Flow	495.50M	150.07M	410.79M	366.90M	-100.23M	71.16M
Investing Cash Flow	-428.92M	-129.36M	-256.91M	-94.19M	17.37M	30.97M
Financing Cash Flow	-45.85M	69.02M	-431.33M	121.00M	68.06M	55.59M

Gallant Micro Machining Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6640 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6584	63Neutral	TWD 23.06B	27.77	―	0.80%	44.48%	204.25%
TW:6640	58Neutral	TWD 22.61B	35.67	―	1.89%	38.95%	50.60%
TW:4576	56Neutral	TWD 23.30B	65.29	―	0.37%	49.41%	213.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3376	48Neutral	TWD 22.71B	75.52	―	3.65%	-16.10%	-72.03%

* General Sector Average

Performance Comparison

TW:6640 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6640	Gallant Micro Machining Co. Ltd.	795.00	208.00	35.44%
TW:3376	Shin Zu Shing Co., Ltd.	109.50	-76.39	-41.09%
TW:4573	GMT Global Inc.	489.50	424.67	655.06%
TW:4576	HIWIN Mikrosystem Corp.	213.50	109.87	106.03%
TW:6584	NAN JUEN INTERNATIONAL CO., LTD.	303.50	-11.25	-3.58%
TW:6831	Taiwan Microloops Corp.	312.50	154.67	98.00%

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

Gallant Micro Machining Co. Ltd. AI Stock Analysis