Eastern Union Interactive Corp. (7738) AI Stock Analysis

Eastern Union Interactive Corp.

(TPEx:7738)

Select Model

Rating:77Outperform

Price Target:TWD 177.00▲(10.97% Upside)

Action:initiatedcoverage

Date:11/09/26

Eastern Union Interactive scores well primarily on its financial strength: a multi-year turnaround has lifted revenue fourfold, delivered NT$371 million of net income and NT$345 million of free cash flow, all supported by a virtually debt-free balance sheet with NT$2.02 billion of equity. Valuation reinforces the case, with a modest 12.3 P/E and a high 6.4% dividend yield. The main offsets are technical and earnings-quality related: the shares trade below all key moving averages with negative MACD momentum, and reported profit relies heavily on non-core gains given the large gap between net and operating margins, raising questions about earnings durability through a weaker market cycle. No earnings call or corporate event data was available, so the score rests on fundamentals, technicals and valuation.

Positive Factors

Revenue and ProfitabilityMeaningful revenue expansion alongside a shift from losses in 2020–2021 to very strong 2025 profitability indicates improved business scale and operating leverage. If this performance persists, the larger earnings base can support reinvestment and strengthen the company’s competitive position over the next several quarters.

Negative Factors

Earnings VolatilityLarge year-to-year changes in operating margins make it harder to determine how much of the current profit level is structurally repeatable. This uncertainty can complicate planning and weaken confidence in forward earnings power if future results normalize below the latest headline performance.

Eastern Union Interactive Corp. (7738) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.39B
Dividend Yield: 6.27%
Average Volume (3M): 52.40K
Price to Earnings (P/E): 12.3
Beta (1Y): 0.36
Revenue Growth: ―
EPS Growth: ―
Country: TW
Employees: 70
Sector: General
Sector Strength: 55
Industry: Financial - Capital Markets

Eastern Union Interactive Corp. Business Overview & Revenue Model

Company Description

Eastern Union Interactive Corp. (EUI) operates as a FinTech firm, specializing in the delivery of financial services across several Southeast Asian markets, including Taiwan, Indonesia, the Philippines, Vietnam, and Thailand. These offerings are prim...

Eastern Union Interactive Corp. Financial Statement Overview

Summary

Fundamentals are strong across all three statements. Revenue has quadrupled since 2020 to NT$565 million with roughly 30% growth in the latest year, and the company has swung from losses to NT$371 million in net income with gross margin expanding from about 25% to 54%. The balance sheet is exceptionally clean: NT$2.02 billion of equity against just NT$14 million of debt (debt-to-equity of 0.01) and an 18% return on equity. Cash flow is equally supportive, with operating cash flow up about 60% to NT$346 million and free cash flow of NT$345 million converting at roughly 100% of net income. The key caveat is earnings durability — net margin (66%) far exceeds operating margin (26%), and operating margin collapsed from 74% to 26%, indicating a meaningful reliance on non-core or investment gains typical of a market-sensitive capital markets business with only a short track record of positive cash generation.

Income Statement

83Very Positive

Balance Sheet

90Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Mar 2025	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	604.69M	565.11M	434.19M	340.69M	163.77M	155.44M
Gross Profit	335.90M	307.25M	212.69M	145.29M	48.34M	39.08M
EBITDA	342.20M	152.31M	324.22M	108.45M	36.24M	-45.83M
Net Income	350.15M	371.07M	233.63M	60.44M	20.16M	-45.14M
Balance Sheet
Total Assets	2.52B	2.19B	1.55B	833.44M	576.76M	538.12M
Cash, Cash Equivalents and Short-Term Investments	1.89B	1.60B	1.05B	452.72M	352.43M	400.17M
Total Debt	224.32M	14.40M	160.36M	168.79M	164.03M	140.79M
Total Liabilities	629.70M	176.54M	280.21M	223.94M	192.51M	162.94M
Stockholders Equity	1.89B	2.02B	1.27B	609.50M	384.25M	375.17M
Cash Flow
Free Cash Flow	359.45M	345.19M	214.16M	69.60M	-52.34M	-48.47M
Operating Cash Flow	359.95M	345.80M	215.53M	69.60M	-52.23M	-48.47M
Investing Cash Flow	809.00K	-2.27M	-7.06M	-9.27M	-16.96M	-48.13M
Financing Cash Flow	567.05M	214.19M	383.44M	39.66M	22.30M	216.46M

Eastern Union Interactive Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:7738 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:7738	77Outperform	TWD 4.36B	12.34	―	6.27%	―	―
TW:6486	67Neutral	TWD 4.17B	9.34	―	7.24%	71.13%	74.02%
TW:3546	66Neutral	TWD 4.51B	15.44	―	2.72%	29.99%	67.81%
TW:5203	66Neutral	TWD 3.85B	17.32	―	7.26%	-1.72%	-18.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6902	54Neutral	TWD 4.55B	27.07	―	―	25.77%	―

* General Sector Average

Performance Comparison

TW:7738 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:7738	Eastern Union Interactive Corp.	159.50	-27.19	-14.56%
TW:3546	Userjoy Technology Co., Ltd.	73.50	2.30	3.22%
TW:5203	Cyberlink Corp.	50.90	-44.90	-46.87%
TW:6486	Interactive Digital Technologies Inc	82.90	13.76	19.90%
TW:6902	Gogolook Co., Ltd.	133.00	62.60	88.92%
TW:6950	KKCompany Technologies Inc	21.30	-6.85	-24.33%

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

Eastern Union Interactive Corp. AI Stock Analysis