Jiu Han System Technology Co Ltd (6903) AI Stock Analysis

Jiu Han System Technology Co Ltd

(TPEx:6903)

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Rating:66Neutral

Price Target:TWD 265.00▼(-3.64% Downside)

Action:initiatedcoverage

Date:11/09/26

Jiu Han System Technology scores moderately above average. The main support comes from healthy financials: strong revenue and profit growth, above-average margins, a low-leverage balance sheet with a 64% equity cushion, and a sharp recovery in free cash flow with near-perfect earnings-to-cash conversion. Valuation reinforces the case, with a modest 12x P/E and a 3.47% dividend yield. The key drag is technical: the stock trades far below all major moving averages with negative MACD, signalling a persistent downtrend, even though deeply oversold RSI and Stochastic readings suggest the selling may be stretched. Investors should also watch the three-year slide in gross and net margins and the lumpy, project-driven nature of revenue and cash flow.

Positive Factors

Revenue ReboundThe strong 2025 revenue rebound indicates renewed business activity after a difficult prior year. If maintained, this higher scale can support operating leverage, improve resource utilization, and provide a stronger base for sustaining earnings over the next several quarters.

Negative Factors

Margin CompressionThe substantial gross-margin decline suggests that revenue growth has become less profitable than in earlier periods, potentially reflecting an unfavorable mix, pricing pressure, or higher costs. Persistent compression would limit operating leverage and weaken the durability of future earnings growth.

Jiu Han System Technology Co Ltd (6903) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 18.44B
Dividend Yield: 3.09%
Average Volume (3M): 315.93K
Price to Earnings (P/E): 12.4
Beta (1Y): 1.31
Revenue Growth: 196.19%
EPS Growth: 262.75%
Country: TW
Employees: 136
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Jiu Han System Technology Co Ltd Business Overview & Revenue Model

Company Description

Jiu Han System Technology Co., Ltd. provides engineering services in Taiwan. The company offers central system air conditioning engineering; sanitary water supply and drainage gas engineering; fire engineering; clean room engineering; air conditionin...

Jiu Han System Technology Co Ltd Financial Statement Overview

Summary

Solid fundamentals across all three statements. Revenue grew about 42% to NT$3.60 billion with net profit up roughly 19% to NT$705.5 million, and margins (27.5% gross, 23.7% operating, 19.6% net) remain well above typical engineering & construction norms. The balance sheet is conservatively funded, with equity covering about 64% of assets, debt-to-equity near 0.27, and ROE of roughly 21.6%. Cash flow swung back strongly to NT$780 million operating and NT$777 million free cash flow, with essentially 100% conversion of net income and minimal capex. Offsetting these strengths are three straight years of margin compression (gross margin down from 40.6% to 27.5%), lumpy project-driven revenue, a step up in borrowings from a near debt-free position, and volatile working capital that can produce negative operating cash flow in some years.

Income Statement

76Positive

Balance Sheet

80Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.54B	3.60B	2.89B	2.87B	4.72B	2.65B
Gross Profit	1.99B	991.02M	874.29M	1.16B	1.82B	916.53M
EBITDA	1.80B	860.12M	767.76M	1.05B	1.64B	752.98M
Net Income	1.45B	705.52M	594.31M	820.48M	1.30B	597.30M
Balance Sheet
Total Assets	6.53B	5.09B	3.80B	3.01B	3.17B	2.49B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.20B	2.12B	2.28B	1.80B	1.67B
Total Debt	0	884.97M	770.00K	409.82M	428.69M	10.49M
Total Liabilities	2.89B	1.82B	595.15M	829.84M	1.17B	1.35B
Stockholders Equity	3.64B	3.27B	3.21B	2.18B	2.00B	1.14B
Cash Flow
Free Cash Flow	857.03M	777.24M	-551.41M	1.12B	551.50M	1.04B
Operating Cash Flow	1.03B	780.14M	-529.79M	1.13B	565.70M	1.04B
Investing Cash Flow	-721.25M	-327.29M	341.10M	-331.42M	398.92M	-382.74M
Financing Cash Flow	-643.02M	-643.90M	404.04M	-644.40M	-447.89M	-276.59M

Jiu Han System Technology Co Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6903 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2480	70Outperform	TWD 18.08B	18.38	―	4.59%	14.18%	17.00%
TW:6613	70Outperform	TWD 17.16B	12.49	―	4.54%	44.63%	11.52%
TW:6903	66Neutral	TWD 18.34B	12.44	―	3.09%	196.19%	262.75%
TW:3022	62Neutral	TWD 12.93B	9.75	―	4.78%	26.50%	43.52%
TW:6166	56Neutral	TWD 19.80B	17.67	―	1.32%	31.89%	141.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2359	53Neutral	TWD 17.00B	14.80	―	1.01%	2.64%	―

* General Sector Average

Performance Comparison

TW:6903 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6903	Jiu Han System Technology Co Ltd	275.00	110.66	67.33%
TW:2359	Solomon Technology Corp.	99.20	-25.40	-20.38%
TW:2480	Stark Technology, Inc.	170.00	26.05	18.10%
TW:3022	IEI Integration Corporation	73.20	6.51	9.76%
TW:6166	Adlink Technology Inc.	90.90	33.32	57.85%
TW:6613	Nova Technology Corp	220.50	48.28	28.03%

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

Jiu Han System Technology Co Ltd AI Stock Analysis