Turn Cloud Technology Service Inc. (6870) AI Stock Analysis

Turn Cloud Technology Service Inc.

(TPEx:6870)

Select Model

Rating:66Neutral

Price Target:TWD 401.00▼(-18.74% Downside)

Action:initiatedcoverage

Date:11/09/26

Turn Cloud Technology Service earns a moderately above-average score. The strongest support comes from a high-quality income statement — rapid revenue compounding, ~70% gross margins and net margin above 20% — reinforced by a powerful price trend, with shares above all major moving averages and positive MACD momentum while RSI remains neutral. The main offsets are financial: operating cash flow turned negative in 2025 and free cash flow swung to roughly negative NT$500m after heavy capital spending, funded by a fivefold rise in debt over two years. Layered on a rich 46x P/E and a slim 0.87% yield, the stock offers compelling growth but carries elevated cash-conversion, leverage and valuation risk.

Positive Factors

Revenue and Profitability GrowthMeaningful multi-year revenue expansion combined with strong 2025 gross, operating, and net profitability indicates a scalable services model with improving earnings power. If sustained, these margins can support reinvestment, strengthen customer delivery capabilities, and improve long-term competitiveness.

Negative Factors

Weak Cash ConversionNegative operating cash flow despite reported profitability indicates earnings are not consistently converting into cash, while deeply negative free cash flow shows substantial funding needs. If persistent, this can constrain reinvestment, increase reliance on financing, and weaken resilience during slower growth.

Turn Cloud Technology Service Inc. (6870) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 14.39B
Dividend Yield: 0.66%
Average Volume (3M): 199.47K
Price to Earnings (P/E): 61.8
Beta (1Y): 0.58
Revenue Growth: 34.69%
EPS Growth: 64.43%
Country: TW
Employees: 108
Sector: General
Sector Strength: 55
Industry: Information Technology Services

Turn Cloud Technology Service Inc. Business Overview & Revenue Model

Company Description

Turn Cloud Technology Service, Inc. is a company that specializes in providing innovative financial technology (FinTech) solutions. The firm offers a diverse portfolio of platforms and tools, including: OLink: A comprehensive, all-in-one system desig...

Turn Cloud Technology Service Inc. Financial Statement Overview

Summary

A split picture. The income statement is excellent (score 86): revenue has compounded ~2.7x since 2020 to NT$804m, gross margin sits near 70%, operating margin expanded to 23.9% and net margin to 20.6%, with net income reaching NT$165m. The balance sheet is adequate but weakening (score 63): equity funds roughly half of assets and ROE improved to 14.1%, yet total debt surged from NT$140m in 2023 to NT$801m in 2025, lifting debt-to-equity to ~0.68. Cash flow is the clear weak link (score 24): despite NT$165m of reported profit, operating cash flow was negative NT$8.6m and free cash flow was roughly negative NT$500m after heavy capex, continuing an inconsistent multi-year record. Strong, profitable growth is offset by poor cash conversion and reliance on external funding.

Income Statement

86Very Positive

Balance Sheet

63Positive

Cash Flow

24Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	961.82M	804.35M	668.46M	538.88M	464.11M	376.01M
Gross Profit	671.63M	564.55M	465.59M	390.73M	319.75M	252.51M
EBITDA	269.43M	223.38M	163.10M	111.13M	89.32M	63.54M
Net Income	206.53M	165.42M	115.45M	81.08M	63.84M	49.01M
Balance Sheet
Total Assets	2.96B	2.29B	2.21B	1.34B	962.66M	555.42M
Cash, Cash Equivalents and Short-Term Investments	715.74M	429.11M	1.07B	674.83M	384.76M	142.30M
Total Debt	1.26B	800.95M	764.48M	139.81M	165.18M	131.01M
Total Liabilities	1.68B	1.09B	1.07B	366.96M	332.24M	237.74M
Stockholders Equity	1.23B	1.18B	1.11B	947.06M	606.43M	305.67M
Cash Flow
Free Cash Flow	-147.12M	-499.79M	-46.56M	31.05M	-32.08M	-46.39M
Operating Cash Flow	-62.91M	-8.61M	9.82M	101.00M	-28.82M	-38.94M
Investing Cash Flow	-318.89M	-583.06M	-194.20M	-138.08M	-11.04M	-11.31M
Financing Cash Flow	462.98M	-81.39M	668.86M	237.31M	282.01M	124.42M

Turn Cloud Technology Service Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6870 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6788	78Outperform	TWD 12.24B	14.34	―	4.97%	20.87%	29.63%
TW:6811	69Neutral	TWD 9.95B	13.97	―	4.36%	30.33%	25.72%
TW:6870	66Neutral	TWD 13.97B	61.77	―	0.66%	34.69%	64.43%
TW:6112	57Neutral	TWD 10.74B	24.54	―	2.84%	16.31%	321.53%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3289	55Neutral	TWD 9.76B	25.00	―	4.22%	-1.90%	-10.19%

* General Sector Average

Performance Comparison

TW:6870 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6870	Turn Cloud Technology Service Inc.	493.50	336.04	213.40%
TW:3289	Integrated Service Technology Inc.	119.00	17.36	17.08%
TW:6112	Metaage Corporation	58.00	9.79	20.32%
TW:6788	Brillian Network & Automation Integrated System Co., Ltd.	302.00	81.56	37.00%
TW:6811	Acer E-Enabling Service Business Inc.	241.00	26.50	12.35%
TW:7765	CHT Security Co., Ltd.	243.50	-20.39	-7.73%

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

Turn Cloud Technology Service Inc. AI Stock Analysis