Wellysun Inc. (6988) AI Stock Analysis

Wellysun Inc.

(TWSE:6988)

Select Model

Rating:40Underperform

Price Target:TWD 11.00▼(-4.76% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 40 reflects a stock under significant pressure. The most impactful factor is the severe deterioration in financial performance, marked by a swing to net losses and negative margins, which is only partially offset by positive free cash flow. This is compounded by a bearish technical trend with the price below all major moving averages and weak momentum indicators. The negative P/E ratio and lack of dividend yield further detract from the stock's investment case.

Positive Factors

Moderate LeverageModerate leverage provides financial flexibility for a hardware company and limits balance-sheet strain relative to a highly indebted peer. A debt-to-equity ratio around 0.39 should make it easier to absorb operating volatility, preserve borrowing capacity, and fund essential investment if earnings recover.

Negative Factors

2025 Profitability CollapseThe 2025 deterioration is a material threat to near-term fundamental performance because lower revenue, weaker gross margin, and negative operating results occurred together. A return to losses reduces internal funding capacity and creates uncertainty about how durable the prior earnings base remains.

Wellysun Inc. (6988) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 522.10M
Dividend Yield: ―
Average Volume (3M): 56.31K
Price to Earnings (P/E): -11.0
Beta (1Y): 0.41
Revenue Growth: ―
EPS Growth: ―
Country: TW
Employees: 243
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Wellysun Inc. Business Overview & Revenue Model

Company Description

Wellysun Inc. engages in the research, development, manufacture, and sale of automotive electronics, lighting fixtures, and customized electronic control modules. The company has built core technologies for various software and hardware modules and d...

Wellysun Inc. Financial Statement Overview

Summary

Financial performance is severely strained. The Income Statement score of 18 reflects a collapse in profitability with a swing to a net loss and deeply negative margins. While the Cash Flow score of 55 is a relative bright spot due to positive free cash flow, and the Balance Sheet score of 45 indicates manageable leverage, the overall financial health is critically undermined by the core earnings deterioration.

Income Statement

18Very Negative

Balance Sheet

45Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	739.16M	791.99M	884.72M	813.21M	757.74M
Gross Profit	195.90M	209.53M	262.38M	226.72M	220.26M
EBITDA	-5.66M	-4.02M	63.29M	28.28M	43.46M
Net Income	-53.18M	-54.08M	23.65M	371.00K	22.39M
Balance Sheet
Total Assets	1.26B	1.19B	1.36B	1.19B	1.01B
Cash, Cash Equivalents and Short-Term Investments	286.98M	385.17M	394.31M	239.09M	298.50M
Total Debt	360.92M	282.11M	338.43M	242.95M	62.01M
Total Liabilities	568.50M	461.83M	524.96M	436.26M	244.61M
Stockholders Equity	694.96M	728.82M	839.88M	750.15M	763.06M
Cash Flow
Free Cash Flow	-81.19M	94.41M	68.19M	-229.53M	-172.61M
Operating Cash Flow	92.68M	115.62M	139.72M	33.11M	-91.54M
Investing Cash Flow	-167.99M	-23.94M	-76.80M	-274.05M	67.91M
Financing Cash Flow	17.82M	-106.76M	86.94M	170.48M	20.49M

Wellysun Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6988 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6988	40Underperform	TWD 552.16M	-10.95	―	―	―	―
TW:1516	39Underperform	TWD 562.65M	3480.77	―	―	54.84%	94.58%
TW:3018	29Underperform	TWD 689.71M	-2.58	―	―	-56.49%	-244.54%

* General Sector Average

Performance Comparison

TW:6988 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6988	Wellysun Inc.	11.55	-2.85	-19.79%
TW:1516	Falcon Power Co., Ltd.	18.30	-4.77	-20.66%
TW:3018	Lung Ming Green Energy Technology Engineering Co Ltd.	9.25	-2.95	-24.18%
TW:6793	Tien Li Offshore Wind Technology Co., Ltd.	5.28	0.24	4.76%
TW:7758	Keelgoal Energy Co Ltd	32.30	-8.58	-20.99%
TW:7862	AceGreen Eco-Material Technology Co Ltd	16.90	-33.21	-66.28%

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

Wellysun Inc. AI Stock Analysis