Nextronics Engineering Corp. (8147) AI Stock Analysis

Nextronics Engineering Corp.

(TPEx:8147)

Select Model

Rating:61Neutral

Price Target:TWD 101.00▼(-8.18% Downside)

Action:initiatedcoverage

Date:11/09/26

Nextronics scores moderately. The strongest support comes from fundamentals: ~30% revenue growth, margin expansion, a 65% jump in net income, a conservatively financed balance sheet (debt-to-equity 0.20), and operating cash flow that more than doubled reported earnings. These positives are tempered by persistently negative free cash flow from an aggressive capex program and a modest 8.5% ROE. The score is pulled down materially by technicals: the price trades well below all key moving averages with a deeply negative MACD, signalling a sustained downtrend, though oversold RSI and Stochastic readings hint at possible short-term stabilisation. Valuation is a further constraint, with a high 39.2x P/E only partly offset by a 3.13% dividend yield. Re-rating hinges on converting the recent capacity build-out into positive free cash flow and higher returns.

Positive Factors

Revenue ExpansionThe more than doubling of revenue over five years indicates meaningful business expansion and sustained customer demand for Nextronics’ engineering and manufacturing services. Continued growth provides a broader operating base, supports investment capacity, and can strengthen the company’s position in outsourced electronics production.

Negative Factors

Negative Free Cash FlowPersistent negative free cash flow means reported earnings are not currently translating into surplus cash for Nextronics. Although operating cash flow improved sharply in 2025, ongoing cash outflows reduce financial flexibility, limit internally funded investment, and make cash conversion an important continuing business risk.

Nextronics Engineering Corp. (8147) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.39B
Dividend Yield: 2.73%
Average Volume (3M): 296.79K
Price to Earnings (P/E): 41.7
Beta (1Y): 1.17
Revenue Growth: 18.29%
EPS Growth: -5.05%
Country: TW
Employees: 11
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Nextronics Engineering Corp. Business Overview & Revenue Model

Company Description

Nextronics Engineering Corp., founded in 1986 and headquartered in New Taipei City, Taiwan, is a specialized supplier of electronic components. The company provides a comprehensive range of connectors, thermal management products, backplanes, and sub...

Nextronics Engineering Corp. Financial Statement Overview

Summary

Solid fundamentals overall. The income statement (74) shows revenue up ~30% to NT$1.63bn, gross margin expanding to 39.4%, operating margin to 10.4%, and net income up ~65% to NT$125m. The balance sheet (76) is conservatively financed, with debt-to-equity falling to 0.20, debt at ~1.2x EBITDA and equity funding ~63% of assets, though ROE of 8.5% still trails the 13.9% peak of 2022. Cash flow (56) is the weak link: operating cash flow rebounded strongly to NT$286m, more than double net income, but heavy capex of ~NT$369m left free cash flow negative at ~-NT$83m, the fourth negative year out of six. The company is financially sound but in an investment-heavy phase, with earnings volatility typical of the connector/hardware components cycle.

Income Statement

74Positive

Balance Sheet

76Positive

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.77B	1.63B	1.26B	1.04B	1.16B	982.81M
Gross Profit	685.60M	642.98M	478.47M	404.25M	434.19M	339.48M
EBITDA	248.97M	248.59M	168.56M	157.27M	159.71M	123.00M
Net Income	106.87M	125.41M	75.91M	84.10M	121.70M	39.54M
Balance Sheet
Total Assets	2.74B	2.36B	2.13B	1.56B	1.56B	1.18B
Cash, Cash Equivalents and Short-Term Investments	537.07M	466.39M	674.81M	602.71M	646.83M	315.82M
Total Debt	462.58M	299.84M	384.88M	253.27M	287.88M	197.02M
Total Liabilities	1.26B	866.83M	788.43M	631.54M	687.75M	509.48M
Stockholders Equity	1.47B	1.48B	1.33B	927.99M	873.35M	673.43M
Cash Flow
Free Cash Flow	-83.77M	-83.11M	-359.39M	52.97M	175.59M	-59.72M
Operating Cash Flow	177.35M	285.68M	66.77M	133.63M	233.39M	89.04M
Investing Cash Flow	-259.78M	-343.32M	-392.53M	6.41M	-151.67M	-160.73M
Financing Cash Flow	146.93M	-123.08M	405.05M	-73.00M	144.74M	58.26M

Nextronics Engineering Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8147 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8147	61Neutral	TWD 4.41B	41.70	―	2.73%	18.29%	-5.05%
TW:3501	59Neutral	TWD 4.09B	20.14	―	5.74%	-5.37%	-59.67%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5457	49Neutral	TWD 3.81B	-283.38	―	7.73%	-8.17%	-103.95%
TW:6108	45Neutral	TWD 5.02B	198.38	―	2.80%	22.89%	―
TW:6743	42Neutral	TWD 4.13B	27.34	―	9.93%	-11.91%	-10.04%
TW:2460	39Underperform	TWD 4.59B	-17.19	―	―	29.04%	22.27%

* General Sector Average

Performance Comparison

TW:8147 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8147	Nextronics Engineering Corp.	110.00	11.46	11.63%
TW:2460	Gem Terminal Industries Co., Ltd.	27.85	12.25	78.53%
TW:3501	Well Shin Technology Co., Ltd.	34.85	-11.55	-24.90%
TW:5457	Speed Tech Corp.	19.40	-20.41	-51.27%
TW:6108	APCB Inc.	35.75	22.64	172.65%
TW:6743	Ampacs Corporation	30.20	3.26	12.11%

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

Nextronics Engineering Corp. AI Stock Analysis