Zhong Yang Technology Co., Ltd. (6668) AI Stock Analysis

Zhong Yang Technology Co., Ltd.

(TWSE:6668)

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Rating:38Underperform

Price Target:TWD 41.00▼(-14.05% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is dominated by weak financial performance: Zhong Yang Technology has recorded five consecutive loss-making years, barely positive operating cash flow and a sixth straight year of negative free cash flow, leaving it reliant on its balance sheet to fund operations. Genuine improvements — first revenue growth in five years, a quadrupling of gross margin from the 2023 low, positive EBITDA, and debt nearly halved since 2022 (debt-to-equity of 0.44) — temper the downside and give management room to execute. Technicals are mixed-to-soft, with the price holding above its 100- and 200-day averages but breaking below the 20- and 50-day lines on a negative MACD and weak RSI. Valuation adds no cushion, as the negative P/E reflects ongoing losses and there is no dividend. Overall, this is a high-risk, improving-but-unprofitable profile where the recovery is visible yet far from proven.

Positive Factors

Revenue rebound and margin improvementThe 2025 revenue rebound and improved gross margin indicate that demand and unit economics recovered from weaker prior years. If maintained, this combination can provide a stronger base for operating leverage and help the company move toward sustainable profitability.

Negative Factors

Persistent operating lossesRepeated EBIT and net-income losses show that the company has not yet converted its revenue base into durable earnings. A roughly negative 17% net margin in 2025 leaves limited tolerance for execution setbacks and delays the prospect of internally funded growth.

Zhong Yang Technology Co., Ltd. (6668) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.07B
Dividend Yield: ―
Average Volume (3M): 4.95M
Price to Earnings (P/E): -25.1
Beta (1Y): 0.99
Revenue Growth: 18.95%
EPS Growth: -10.69%
Country: TW
Employees: 6,942
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Zhong Yang Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Zhong Yang Technology Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, and sale of optical lens molds in Taiwan, China, Korea, and internationally. The company provides glass lenses, plastic lenses, mold f...

Zhong Yang Technology Co., Ltd. Financial Statement Overview

Summary

Financials point to an early-stage, unproven turnaround. Revenue grew in 2025 for the first time in five years (to about NT$1.15bn) and gross margin recovered to 14.0% from a 3.5% trough, with EBITDA back in positive territory. However, the company posted a fifth consecutive annual loss (operating loss of roughly NT$202m, net loss of NT$199m, -17.3% net margin), and cash generation remains the weak link: operating cash flow of only about NT$12m and free cash flow of roughly -NT$315m mark a sixth straight year of cash burn. The balance sheet is the clear bright spot, with debt cut to about NT$946m from NT$1.98bn in 2022, debt-to-equity down to 0.44, and equity funding 59% of assets — but negative returns on equity (around -9%) mean that cushion erodes if losses persist.

Income Statement

27Negative

Balance Sheet

56Neutral

Cash Flow

24Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.22B	1.15B	921.85M	945.02M	1.20B	1.27B
Gross Profit	84.91M	160.38M	124.34M	33.52M	67.52M	228.58M
EBITDA	-3.64M	43.98M	33.82M	-3.43M	-14.08M	13.87M
Net Income	-232.93M	-198.69M	-173.63M	-259.72M	-354.62M	-290.51M
Balance Sheet
Total Assets	3.75B	3.64B	3.53B	3.69B	4.19B	4.55B
Cash, Cash Equivalents and Short-Term Investments	319.81M	435.90M	558.64M	990.78M	1.23B	1.44B
Total Debt	916.84M	945.77M	1.16B	1.39B	1.98B	1.44B
Total Liabilities	1.50B	1.48B	1.54B	1.78B	2.37B	2.41B
Stockholders Equity	2.23B	2.15B	1.99B	1.86B	1.75B	2.08B
Cash Flow
Free Cash Flow	-414.82M	-315.05M	-442.88M	-110.61M	-195.70M	-441.42M
Operating Cash Flow	-161.99M	12.22M	-79.53M	58.32M	223.95M	167.01M
Investing Cash Flow	-132.66M	-307.04M	-332.80M	-79.14M	-480.25M	-547.55M
Financing Cash Flow	-104.99M	109.95M	-54.25M	-200.03M	32.13M	1.28B

Zhong Yang Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6668 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4974	64Neutral	TWD 4.55B	12.88	―	6.25%	-18.51%	-25.78%
TW:8249	63Neutral	TWD 4.42B	-125.74	―	6.16%	-0.40%	-105.99%
TW:5312	62Neutral	TWD 5.29B	12.29	―	7.22%	12.13%	2.35%
TW:4949	59Neutral	TWD 4.88B	17.80	―	2.10%	45.18%	122.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3630	45Neutral	TWD 4.73B	-16.28	―	―	14.51%	-252.10%
TW:6668	38Underperform	TWD 5.06B	-25.08	―	―	18.95%	-10.69%

* General Sector Average

Performance Comparison

TW:6668 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6668	Zhong Yang Technology Co., Ltd.	47.70	9.20	23.90%
TW:3630	Newmax Technology Co., Ltd.	22.80	-6.20	-21.38%
TW:4949	Win Win Precision Technology Co., Ltd	66.60	28.40	74.34%
TW:4974	Asia Tech Image Inc.	62.40	-5.64	-8.29%
TW:5312	Formosa Optical Technology Co., Ltd.	90.00	-1.50	-1.64%
TW:8249	Creative Sensor Inc.	33.75	-17.01	-33.51%

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

Zhong Yang Technology Co., Ltd. AI Stock Analysis