FineMat Applied Materials Co., Ltd. (6698) AI Stock Analysis

FineMat Applied Materials Co., Ltd.

(TWSE:6698)

Select Model

Rating:38Underperform

Price Target:TWD 27.00▼(-13.60% Downside)

Action:initiatedcoverage

Date:11/09/26

FineMat Applied Materials scores low primarily due to weak financial performance: despite a roughly 30% revenue recovery, margins compressed materially, the company posted a third straight annual net loss of NT$108.8 million, and free cash flow swung deeply negative to -NT$133.5 million amid continued heavy capital spending. A moderately leveraged balance sheet (debt-to-equity 0.63) with falling absolute debt provides some cushion, but four consecutive years of eroding equity limits that support. Technicals add to the caution, with the price below all key moving averages and a negative MACD. Valuation offers little relief given negative earnings, and the 1.68% dividend yield is of uncertain durability while losses persist. The investment case depends on the revenue recovery eventually translating into margin improvement — until then, this remains a high-risk, cyclically depressed name.

Positive Factors

Revenue ReboundThe return to revenue growth in 2025 indicates that customer demand and commercial activity recovered after two weaker years. Although the rebound is modest, renewed top-line expansion can provide a base for operating leverage and improved earnings if growth continues.

Negative Factors

Persistent Losses and Margin CompressionThree consecutive years of net losses and substantial gross-margin erosion indicate that the company has not restored durable earnings power. Lower margin conversion reduces resilience to operating costs and makes the recent EBIT improvement harder to translate into sustained bottom-line profits.

FineMat Applied Materials Co., Ltd. (6698) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.11B
Dividend Yield: 1.57%
Average Volume (3M): 203.34K
Price to Earnings (P/E): -16.7
Beta (1Y): 0.93
Revenue Growth: 10.60%
EPS Growth: -30.07%
Country: TW
Employees: 8,020
Sector: General
Sector Strength: 55
Industry: Semiconductors

FineMat Applied Materials Co., Ltd. Business Overview & Revenue Model

Company Description

FineMat Applied Materials Co., Ltd., together with its subsidiaries, develops, manufactures, and sells high precision metal masks and other metal products in Mainland China, Taiwan, and internationally. The company offers high-precision metal mask st...

FineMat Applied Materials Co., Ltd. Financial Statement Overview

Summary

Financial results are weak overall. Revenue rebounded roughly 30% to NT$1.16 billion, but gross margin compressed sharply to 20.9% from 27.2%, operating profit was barely break-even at NT$3.5 million, and the net loss widened to NT$108.8 million — a third consecutive loss-making year. The balance sheet is the strongest element, with moderate leverage (debt-to-equity 0.63) and total debt steadily reduced from NT$902 million to NT$680 million, though shareholders' equity has eroded for four straight years and ROE is roughly -10%. Cash flow is the weakest link: operating cash flow fell over 60% to NT$31.7 million (about 3% of revenue) and free cash flow swung to -NT$133.5 million on continued heavy capital spending. The business remains EBITDA-positive (NT$129.9 million), confirming large non-cash depreciation, but sustained cash burn alongside shrinking equity raises funding risk.

Income Statement

30Negative

Balance Sheet

47Neutral

Cash Flow

26Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.03B	1.16B	890.71M	1.12B	1.25B	856.08M
Gross Profit	102.77M	241.45M	242.66M	207.19M	321.18M	286.42M
EBITDA	13.85M	129.91M	138.94M	152.70M	203.87M	204.48M
Net Income	-120.49M	-108.79M	-62.97M	-85.57M	22.71M	74.66M
Balance Sheet
Total Assets	2.63B	2.88B	2.89B	3.16B	3.11B	2.65B
Cash, Cash Equivalents and Short-Term Investments	681.81M	671.69M	835.05M	928.44M	576.81M	514.21M
Total Debt	762.49M	679.66M	716.62M	833.26M	901.71M	645.85M
Total Liabilities	950.77M	993.06M	928.21M	1.16B	1.27B	950.65M
Stockholders Equity	981.76M	1.08B	1.18B	1.22B	1.28B	1.21B
Cash Flow
Free Cash Flow	-110.46M	-133.50M	-15.44M	106.45M	-204.31M	-163.97M
Operating Cash Flow	81.58M	31.74M	82.33M	189.55M	-38.10M	95.93M
Investing Cash Flow	-236.51M	-74.94M	132.11M	-367.96M	-96.98M	-405.91M
Financing Cash Flow	68.35M	-34.95M	-206.26M	245.38M	210.26M	143.40M

FineMat Applied Materials Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6698 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6899	70Outperform	TWD 2.07B	12.54	―	5.74%	1.56%	9.82%
TW:8930	70Outperform	TWD 2.33B	11.26	―	7.47%	-6.69%	-0.20%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4561	46Neutral	TWD 2.30B	25.58	―	0.46%	0.82%	64.72%
TW:6698	38Underperform	TWD 2.06B	-16.69	―	1.57%	10.60%	-30.07%
TW:6405	34Underperform	TWD 2.13B	-148.86	―	0.31%	-98.80%	84.08%

* General Sector Average

Performance Comparison

TW:6698 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6698	FineMat Applied Materials Co., Ltd.	31.25	0.36	1.18%
TW:4561	Kenturn Nano Tec Co., Ltd.	43.25	7.35	20.46%
TW:6405	Onano Industrial Corp.	32.50	5.40	19.93%
TW:6899	Apex Material Technology Corp.	48.80	-1.55	-3.09%
TW:7879	Advanced Material Systems Corp	54.30	-94.62	-63.54%
TW:8930	CKM Applied Materials Corp.	29.45	0.62	2.16%

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

FineMat Applied Materials Co., Ltd. AI Stock Analysis