HUA YANG Precision Machinery Co., Ltd. (6983) AI Stock Analysis

HUA YANG Precision Machinery Co., Ltd.

(TPEx:6983)

Select Model

Rating:63Neutral

Price Target:TWD 256.00▲(6.22% Upside)

Action:initiatedcoverage

Date:11/09/26

Hua Yang Precision Machinery's fundamentals are the main support for the score: expanding revenue, high gross and operating margins, sharply reduced leverage, and a decisive swing to strongly positive free cash flow after a multi-year investment phase. These strengths are tempered by a weak technical picture, with the price trading far below all key moving averages and a deeply negative MACD, alongside an elevated P/E of 54.5 that prices in growth the company's lumpy, order-driven sales history has not consistently delivered. A 2.08% dividend yield and oversold momentum readings offer modest counterbalance, leaving the stock as a financially sound but richly valued name currently out of favour with the market.

Positive Factors

High and resilient profitabilitySustained high gross margins and strong operating profitability indicate that the company has retained meaningful earnings power across multiple years. These margins can support internal investment, strengthen resilience during softer demand, and provide a durable foundation for future cash generation.

Negative Factors

Revenue contraction and volatilityThe 2025 revenue decline following a strong prior-year increase shows that demand has been uneven rather than consistently expanding. Such top-line volatility can make capacity planning, operating leverage, and earnings forecasting less predictable, limiting the durability of near-term growth.

HUA YANG Precision Machinery Co., Ltd. (6983) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.41B
Dividend Yield: 2.07%
Average Volume (3M): 64.93K
Price to Earnings (P/E): 56.9
Beta (1Y): 1.07
Revenue Growth: ―
EPS Growth: ―
Country: TW
Employees: 73
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

HUA YANG Precision Machinery Co., Ltd. Business Overview & Revenue Model

Company Description

UA YANG Precision Machinery Co., Ltd. specializes in the comprehensive development, production, and distribution of high-precision optical instruments. Their product portfolio encompasses automated optical inspection (AOI) systems, precision optical...

HUA YANG Precision Machinery Co., Ltd. Financial Statement Overview

Summary

Solid across all three statements. Revenue grew about 24% to NT$312.3m with a strong 63.7% gross margin and 29.3% operating margin, while net income rose to NT$71.0m. The balance sheet has improved markedly, with equity funding roughly 60% of assets and debt-to-equity down to 0.48 from 1.42 in 2020. Cash flow is the standout: operating cash flow of NT$128.9m (about 1.8x net income) and free cash flow more than doubling to NT$126.8m as the heavy capex cycle ended. Offsetting these strengths are the company's small scale, a lumpy order-driven revenue history that swung sharply between 2021 and 2023, a slight dip in net margin, and still-meaningful borrowings.

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

76Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	331.71M	312.26M	250.98M	178.24M	157.86M	224.83M
Gross Profit	204.35M	198.90M	151.44M	94.09M	101.29M	123.03M
EBITDA	97.89M	101.48M	84.92M	44.35M	55.70M	86.14M
Net Income	73.21M	70.97M	61.80M	29.63M	38.52M	65.66M
Balance Sheet
Total Assets	1.04B	748.57M	691.16M	644.84M	544.67M	289.78M
Cash, Cash Equivalents and Short-Term Investments	531.67M	309.57M	232.30M	196.84M	187.12M	98.25M
Total Debt	44.19M	212.78M	228.76M	224.08M	185.99M	101.80M
Total Liabilities	137.31M	301.73M	283.85M	277.92M	250.25M	167.00M
Stockholders Equity	900.81M	446.83M	407.30M	366.91M	294.42M	122.78M
Cash Flow
Free Cash Flow	80.57M	126.84M	52.27M	-76.26M	-116.71M	-24.37M
Operating Cash Flow	82.03M	128.86M	100.14M	44.23M	-9.80M	41.07M
Investing Cash Flow	-6.83M	-3.84M	-48.27M	-124.76M	-117.10M	-38.01M
Financing Cash Flow	222.78M	-48.78M	-17.45M	77.28M	215.76M	11.16M

HUA YANG Precision Machinery Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6983 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4572	63Neutral	TWD 4.64B	20.38	―	4.24%	3.72%	57.19%
TW:6983	63Neutral	TWD 4.34B	56.94	―	2.07%	―	―
TW:6859	61Neutral	TWD 4.28B	52.29	―	1.89%	-30.46%	-30.77%
TW:4949	59Neutral	TWD 4.88B	17.80	―	2.10%	45.18%	122.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4569	54Neutral	TWD 4.24B	16.13	―	2.27%	12.32%	150.98%
TW:1528	44Neutral	TWD 4.70B	-82.94	―	0.39%	2.48%	45.58%

* General Sector Average

Performance Comparison

TW:6983 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6983	HUA YANG Precision Machinery Co., Ltd.	241.00	113.78	89.43%
TW:1528	Anderson Industrial Corp.	28.20	13.55	92.49%
TW:4569	Sixxon Tech Co Ltd	143.00	-3.59	-2.45%
TW:4572	Drewloong Precision, Inc.	118.00	-22.75	-16.16%
TW:4949	Win Win Precision Technology Co., Ltd	66.60	28.40	74.34%
TW:6859	Best Precision Industrial Co.,Ltd.	106.00	8.09	8.26%

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

HUA YANG Precision Machinery Co., Ltd. AI Stock Analysis