LIANYOU METALS CO.,LTD. (7610) AI Stock Analysis

LIANYOU METALS CO.,LTD.

(TWSE:7610)

Select Model

Rating:54Neutral

Price Target:TWD 1,173.00▼(-5.78% Downside)

Action:initiatedcoverage

Date:11/09/26

Lianyou Metals combines strong reported growth and a sharp margin recovery with a serious cash conversion problem: record 2025 profits coincided with negative NT$361m operating cash flow and negative free cash flow for the sixth consecutive year, keeping the company dependent on debt and equity funding. Technicals compound the caution, with the share price far below its 20-, 50- and 100-day moving averages and a deeply negative MACD signalling a persistent downtrend amplified by high beta. Valuation at nearly 36x earnings looks full against a likely cyclical profit peak, though the 3.6% dividend yield and improved leverage (0.71x debt-to-equity) offer partial offsets. The result is a below-average score reflecting attractive growth momentum tempered by cash flow, valuation and price-trend risks.

Positive Factors

2025 profitability reboundThe sharp 2025 profitability recovery improves the company’s earnings base and provides more internal capacity to support operations. If margins remain stronger, this could reinforce resilience and improve returns, although the prior volatility means durability still depends on sustaining the recovery.

Negative Factors

Persistently negative cash flowWeak cash conversion is a material structural concern because reported earnings are not translating into internally generated funds. Persistent free-cash-flow deficits can increase reliance on external financing, constrain investment choices, and heighten liquidity pressure if operating needs remain elevated.

LIANYOU METALS CO.,LTD. (7610) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 77.25B
Dividend Yield: 0.03%
Average Volume (3M): 708.90K
Price to Earnings (P/E): 39.6
Beta (1Y): 1.48
Revenue Growth: ―
EPS Growth: ―
Country: TW
Employees: 75
Sector: General
Sector Strength: 55
Industry: Industrial Materials

LIANYOU METALS CO.,LTD. Business Overview & Revenue Model

Company Description

Lianyou Metals Co., Ltd. focuses on the smelting, fabrication, and global distribution of advanced powder metallurgy products and bulk industrial hardware components. The company also conducts international trading operations across Taiwan, Japan, Ch...

LIANYOU METALS CO.,LTD. Financial Statement Overview

Summary

Earnings power is impressive: revenue has compounded from ~NT$372m in 2020 to NT$1.41bn in 2025 (+28% in the latest year), gross margin rebounded from a 8.9% trough in 2023 to 30.8%, and net income quadrupled to NT$241m with a healthy 15.1% ROE (Income Statement: 80). The balance sheet has strengthened, with equity doubling to NT$1.60bn and debt-to-equity improving to 0.71x, though absolute borrowings keep rising to fund rapid asset growth (Balance Sheet: 66). The decisive drag is cash generation (Cash Flow: 22): operating cash flow swung to negative NT$361m despite record profits, and free cash flow has been negative every year since 2020, leaving the company reliant on external financing and exposed to margin cyclicality.

Income Statement

80Positive

Balance Sheet

66Positive

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Mar 2025	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.81B	1.41B	1.10B	916.37M	598.86M	400.61M
Gross Profit	2.41B	432.57M	131.53M	81.82M	168.05M	120.14M
EBITDA	2.24B	409.39M	132.97M	64.07M	136.17M	102.22M
Net Income	1.69B	241.24M	58.70M	4.01M	78.46M	62.47M
Balance Sheet
Total Assets	6.58B	3.02B	1.89B	1.55B	1.19B	694.36M
Cash, Cash Equivalents and Short-Term Investments	869.23M	310.07M	179.60M	62.60M	12.28M	109.14M
Total Debt	2.24B	1.13B	938.80M	620.50M	555.66M	216.38M
Total Liabilities	3.45B	1.41B	1.10B	817.24M	747.20M	329.80M
Stockholders Equity	3.12B	1.60B	794.44M	736.98M	447.25M	364.56M
Cash Flow
Free Cash Flow	-888.32M	-583.42M	-201.07M	-299.30M	-133.35M	-69.65M
Operating Cash Flow	-70.93M	-360.68M	152.26M	-157.13M	4.94M	-19.02M
Investing Cash Flow	-725.09M	-185.94M	-742.38M	-147.58M	-143.96M	-53.72M
Financing Cash Flow	1.56B	723.04M	626.72M	340.57M	42.17M	138.47M

LIANYOU METALS CO.,LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:7610 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2211	73Outperform	TWD 31.31B	10.26	―	8.60%	8.72%	-2.18%
TW:8415	71Outperform	TWD 38.32B	9.26	―	4.04%	10.70%	70.00%
TW:2015	69Neutral	TWD 36.12B	14.71	―	5.31%	-11.85%	4.31%
TW:6670	66Neutral	TWD 36.24B	10.59	―	6.15%	1.20%	-8.30%
TW:1560	61Neutral	TWD 113.47B	63.23	―	0.65%	23.55%	77.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:7610	54Neutral	TWD 72.59B	39.61	―	0.03%	―	―

* General Sector Average

Performance Comparison

TW:7610 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:7610	LIANYOU METALS CO.,LTD.	1245.00	1158.77	1343.83%
TW:1560	Kinik Co.	755.00	449.05	146.77%
TW:2015	Feng Hsin Steel Co. Ltd.	62.10	1.30	2.13%
TW:2211	Evergreen Steel Corporation	75.60	-29.14	-27.82%
TW:6670	Fusheng Precision Co. Ltd.	260.00	21.10	8.83%
TW:8415	Brighton-Best International (Taiwan), Inc.	37.15	4.84	14.96%

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

LIANYOU METALS CO.,LTD. AI Stock Analysis