Arizon RFID Technology (Cayman) Co Ltd (6863) AI Stock Analysis

Arizon RFID Technology (Cayman) Co Ltd

(TWSE:6863)

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Rating:51Neutral

Price Target:TWD 88.00▼(-7.76% Downside)

Action:initiatedcoverage

Date:11/09/26

Arizon RFID scores in the below-average range, driven primarily by a sharp deterioration in FY2025 profitability — revenue down 7.7%, margins roughly halved and net income down about 73% — alongside rising leverage as debt climbed from near zero to NT$2.44bn in three years to fund expansion. Supporting factors include a still equity-heavy balance sheet, materially stronger operating cash flow and a return to positive free cash flow. Technicals add pressure, with the price below all key moving averages and negative MACD, though deeply oversold readings suggest the selling may be extended. Valuation at nearly 32x earnings leaves limited margin for error, only partly offset by a 1.7% dividend yield. The investment case rests on whether newly added capacity can revive growth and rebuild margins toward historical levels.

Positive Factors

RFID Market ApplicationsThe company operates across several RFID and automatic identification applications rather than relying on a single end market. Exposure to retail, logistics, manufacturing, and supply-chain workflows provides multiple avenues for recurring demand as customers seek better item tracking and asset management.

Negative Factors

Revenue and Margin DeclineThe simultaneous decline in revenue and sharp margin compression signals a material deterioration in operating performance. Lower sales reduce scale benefits, while weaker profitability limits funds available for product investment, customer expansion, and internal recovery over the next several quarters.

Arizon RFID Technology (Cayman) Co Ltd (6863) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 7.06B
Dividend Yield: 1.57%
Average Volume (3M): 101.38K
Price to Earnings (P/E): 33.4
Beta (1Y): 0.68
Revenue Growth: 24.97%
EPS Growth: -23.12%
Country: TW
Employees: 892
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Arizon RFID Technology (Cayman) Co Ltd Business Overview & Revenue Model

Company Description

Arizon RFID Technology (Cayman) Co., Ltd., along with its various subsidiaries, specializes in providing comprehensive solutions for radio-frequency identification (RFID) systems. Their operations encompass the entire lifecycle, from designing and de...

Arizon RFID Technology (Cayman) Co Ltd Financial Statement Overview

Summary

FY2025 was a clear step backward: revenue fell about 7.7% to NT$3.95bn and margins compressed severely (gross 32.2%→22.3%, net 18.4%→5.7%), cutting net income roughly 73% to NT$225m and pushing ROE down to 3.8%. The balance sheet remains the strongest pillar, with equity funding about 64% of assets, though debt has grown from near zero in 2022 to NT$2.44bn to fund capacity expansion, lifting debt-to-equity to 0.41. Cash flow improved meaningfully, with operating cash flow nearly tripling to NT$813m and free cash flow turning positive at NT$121m, but FCF remains thin and historically erratic. Overall, a financially sound but currently underperforming business whose recovery depends on new capacity restoring growth and margins.

Income Statement

47Neutral

Balance Sheet

66Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	4.57B	3.95B	4.61B	2.69B	2.10B	2.03B
Gross Profit	870.07M	881.74M	1.48B	793.25M	675.47M	595.00M
EBITDA	625.54M	694.80M	1.26B	564.49M	518.36M	488.97M
Net Income	213.22M	225.00M	846.81M	447.93M	338.64M	232.52M
Balance Sheet
Total Assets	10.42B	9.25B	9.13B	6.24B	4.53B	4.21B
Cash, Cash Equivalents and Short-Term Investments	2.79B	2.74B	4.00B	1.89B	829.26M	1.83B
Total Debt	2.72B	2.44B	1.78B	350.04M	5.13M	16.06M
Total Liabilities	4.19B	3.30B	2.84B	1.03B	525.50M	678.96M
Stockholders Equity	6.23B	5.95B	6.29B	5.21B	4.01B	3.53B
Cash Flow
Free Cash Flow	-205.70M	121.05M	-847.95M	-23.90M	1.75B	92.24M
Operating Cash Flow	602.10M	813.01M	273.74M	137.45M	1.79B	463.40M
Investing Cash Flow	-797.50M	-735.87M	-755.72M	-417.48M	-1.62B	-387.33M
Financing Cash Flow	532.46M	169.51M	1.40B	1.11B	-157.00M	-1.70M

Arizon RFID Technology (Cayman) Co Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6863 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:7556	69Neutral	TWD 7.11B	24.72	―	1.65%	19.56%	49.15%
TW:3694	67Neutral	TWD 6.47B	10.10	―	5.69%	15.44%	18.33%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6732	52Neutral	TWD 5.92B	16.97	―	4.60%	-12.16%	10.27%
TW:6863	51Neutral	TWD 6.72B	33.41	―	1.57%	24.97%	-23.12%
TW:3062	43Neutral	TWD 6.39B	-9.39	―	―	-1.21%	-212.49%

* General Sector Average

Performance Comparison

TW:6863 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6863	Arizon RFID Technology (Cayman) Co Ltd	95.40	-15.06	-13.64%
TW:3062	CyberTAN Technology, Inc.	18.60	-7.60	-29.01%
TW:3694	AzureWave Technologies, Inc.	40.45	-23.47	-36.72%
TW:6732	Sensortek Technology Corp.	119.50	-61.88	-34.12%
TW:7556	Yeedex Electronic Corp.	245.00	94.23	62.50%
TW:7689	Climax Technology Co., Ltd.	100.00	-67.24	-40.20%

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

Arizon RFID Technology (Cayman) Co Ltd AI Stock Analysis