Lai Yih Footwear Co., Ltd. (6890) AI Stock Analysis

Lai Yih Footwear Co., Ltd.

(TWSE:6890)

Select Model

Rating:66Neutral

Price Target:TWD 159.00▲(16.06% Upside)

Action:initiatedcoverage

Date:11/09/26

Lai Yih Footwear earns a moderately above-average score. The strongest supports are an attractive valuation — a 13.9 P/E paired with a 6.1% dividend yield and low 0.45 beta — and a conservative balance sheet with debt-to-equity under 0.3 alongside a sharp rebound in operating and free cash flow. These are tempered by clear profitability pressure: margins compressed across every line in 2025 and net profit fell about 15% despite record revenue, while debt rose 85% to fund expansion and free cash flow has been inconsistent historically. Technicals are the weakest element, with the price below all major moving averages and negative MACD momentum indicating the market has yet to reward the cheap valuation. The investment case hinges on whether management can restore margins and sustain cash generation through the current capital spending cycle.

Positive Factors

Solid ProfitabilityLai Yih remains meaningfully profitable despite a weaker year, with healthy net and operating margins providing an earnings base for the next several quarters. This profitability can support ongoing operations and investment while management works through softer revenue and margin conditions.

Negative Factors

Revenue ContractionThe sharp 2025 revenue decline weakens near-term operating scale and raises concern about the durability of demand from brand customers. Continued contraction would reduce the base over which fixed costs are absorbed and could make recovery in earnings more dependent on a market rebound.

Lai Yih Footwear Co., Ltd. (6890) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 34.42B
Dividend Yield: 6.55%
Average Volume (3M): 267.37K
Price to Earnings (P/E): 13.2
Beta (1Y): 0.45
Revenue Growth: -6.82%
EPS Growth: -24.71%
Country: TW
Employees: 46,895
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

Lai Yih Footwear Co., Ltd. Business Overview & Revenue Model

Company Description

Lai Yih Footwear Co., Ltd. is a company based in Taichung City, Taiwan, that was established in 1987. The firm is a dedicated manufacturer and supplier of various footwear categories, encompassing vulcanized shoes, athletic footwear, cold-pressed des...

Lai Yih Footwear Co., Ltd. Financial Statement Overview

Summary

Lai Yih combines record revenue of about NT$39.6 billion (up roughly 5% year on year and nearly double 2021 levels) with a conservatively capitalized balance sheet, where equity funds two-thirds of assets and debt-to-equity sits at just 0.29. Cash flow rebounded strongly, with operating cash flow swinging to NT$3.82 billion from a small outflow and free cash flow turning positive at NT$2.26 billion. The offsets are meaningful: gross margin compressed to 16.0% from 19.8% and operating margin to 9.5% from 14.4%, pushing net profit down about 15% despite higher sales; total debt rose 85% to fund capacity expansion; and free cash flow has been negative in three of the past six years. The result is a sound but cyclical financial profile where margin recovery is the key swing factor.

Income Statement

66Positive

Balance Sheet

74Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.49B	39.59B	37.69B	28.02B	31.34B	19.96B
Gross Profit	5.54B	6.35B	7.46B	3.77B	5.69B	2.59B
EBITDA	4.07B	5.09B	6.82B	3.54B	5.10B	1.89B
Net Income	2.64B	3.25B	3.82B	1.38B	2.51B	220.84M
Balance Sheet
Total Assets	35.35B	36.09B	34.10B	26.56B	25.52B	23.26B
Cash, Cash Equivalents and Short-Term Investments	6.36B	8.01B	3.97B	4.42B	4.66B	6.02B
Total Debt	4.92B	6.93B	3.76B	4.19B	3.95B	4.82B
Total Liabilities	11.04B	10.93B	8.77B	7.83B	6.95B	7.38B
Stockholders Equity	23.32B	24.17B	24.40B	17.75B	17.56B	15.04B
Cash Flow
Free Cash Flow	-3.57M	2.26B	-2.63B	-253.15M	489.21M	2.34B
Operating Cash Flow	1.51B	3.82B	-79.27M	2.28B	1.95B	3.19B
Investing Cash Flow	-1.64B	-1.49B	-3.06B	-2.17B	-1.72B	-847.38M
Financing Cash Flow	578.37M	1.52B	1.55B	-690.22M	-2.09B	629.91M

Lai Yih Footwear Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6890 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4766	72Outperform	TWD 41.72B	14.59	―	5.29%	2.93%	9.20%
TW:1773	70Outperform	TWD 44.70B	17.46	―	2.66%	19.58%	31.55%
TW:6890	66Neutral	TWD 35.04B	13.18	―	6.55%	-6.82%	-24.71%
TW:6191	63Neutral	TWD 41.64B	14.97	―	3.10%	38.15%	-5.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1434	52Neutral	TWD 29.61B	20.00	―	2.87%	-6.35%	147.91%

* General Sector Average

Performance Comparison

TW:6890 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6890	Lai Yih Footwear Co., Ltd.	137.00	-97.81	-41.66%
TW:1434	Formosa Taffeta Co., Ltd.	17.40	1.32	8.22%
TW:1773	Shiny Chemical Industrial Co., Ltd.	150.50	10.72	7.67%
TW:4766	Nan Pao Resins Chemical Co. Ltd.	340.00	13.12	4.01%
TW:6191	Global Brands Manufacture Limited	84.00	-35.48	-29.70%
TW:7909	Ye Siang Enterprise Co., Ltd.	499.50	-421.43	-45.76%

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

Lai Yih Footwear Co., Ltd. AI Stock Analysis