Darfon Electronics Corp (8163) AI Stock Analysis

Darfon Electronics Corp

(TWSE:8163)

Select Model

Rating:41Neutral

Price Target:TWD 23.50▼(-6.37% Downside)

Action:initiatedcoverage

Date:11/09/26

Darfon scores poorly overall, driven primarily by deteriorating fundamentals: despite a revenue rebound to roughly NT$25.1 billion, margins compressed sharply, the company slipped into an operating loss, and net income fell to a token NT$142 million with return on equity of just 1.4%. Rising leverage (debt-to-equity above 1.0) alongside a shrinking equity base and free cash flow of only NT$111 million leaves minimal financial flexibility. Technicals reinforce the caution, with the price below all major moving averages and negative MACD confirming a sustained downtrend, though deeply oversold RSI and Stochastic readings hint at potential for a short-term bounce. Valuation offers little support, as a 28.7 P/E on depressed, non-operating-driven earnings is demanding, with a 2.05% dividend yield providing only partial offset. A durable recovery in operating margins and cash generation would be needed to improve this score.

Positive Factors

Revenue ReboundThe 58% 2025 revenue rebound indicates demand and customer activity recovered strongly across the company’s electronics businesses. If sustained, this scale can support utilization, customer relationships, and reinvestment, creating a stronger base for rebuilding profitability over the next several quarters.

Negative Factors

Profitability CompressionSharp deterioration in gross, operating, and net margins shows that the revenue rebound is not yet converting efficiently into earnings. Negative EBIT and a net margin near breakeven leave limited tolerance for further cost pressure, while margin volatility makes durable earnings recovery less certain.

Darfon Electronics Corp (8163) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.87B
Dividend Yield: 1.99%
Average Volume (3M): 735.45K
Price to Earnings (P/E): 28.5
Beta (1Y): 0.77
Revenue Growth: 7.26%
EPS Growth: -0.41%
Country: TW
Employees: 1,067
Sector: General
Sector Strength: 55
Industry: Computer Hardware

Darfon Electronics Corp Business Overview & Revenue Model

Company Description

Darfon Electronics Corporation specializes in environmentally conscious technologies, primarily focusing on IT accessories, electronic components, and sustainable energy solutions. Their extensive product portfolio encompasses a wide array of human-c...

Darfon Electronics Corp Financial Statement Overview

Summary

Financial health is fragile. Revenue rebounded to roughly NT$25.1 billion, but gross margin compressed to 15.9% and the company swung to an operating loss of about NT$70 million, with net income collapsing to a nominal NT$142 million (0.6% net margin) that appears driven by non-operating items. The balance sheet has weakened, with debt-to-equity rising above 1.0 as equity fell to NT$10.1 billion and return on equity dropping to just 1.4%. Cash flow is the relative bright spot — operating cash flow of about NT$1.09 billion comfortably exceeded reported earnings — but it fell 58% year over year and heavy capex left free cash flow at only NT$111 million, leaving little buffer for dividends or debt reduction.

Income Statement

31Negative

Balance Sheet

42Neutral

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.23B	25.07B	21.70B	25.79B	29.54B	28.05B
Gross Profit	4.12B	3.98B	3.99B	4.60B	5.01B	4.67B
EBITDA	1.23B	1.23B	2.30B	4.45B	3.25B	2.82B
Net Income	164.63M	141.77M	618.57M	1.65B	1.16B	1.15B
Balance Sheet
Total Assets	34.99B	33.09B	34.23B	34.88B	33.64B	33.20B
Cash, Cash Equivalents and Short-Term Investments	7.18B	7.04B	6.83B	7.61B	4.33B	3.78B
Total Debt	11.63B	10.82B	9.53B	9.88B	10.86B	8.98B
Total Liabilities	21.68B	20.36B	19.77B	19.11B	19.73B	20.47B
Stockholders Equity	10.76B	10.10B	11.42B	12.20B	10.51B	9.84B
Cash Flow
Free Cash Flow	-128.34M	110.59M	1.66B	2.51B	-424.67M	-2.93B
Operating Cash Flow	933.58M	1.09B	2.59B	4.53B	1.23B	-1.11B
Investing Cash Flow	-1.21B	-826.23M	-734.54M	-372.13M	-1.42B	-2.29B
Financing Cash Flow	615.40M	534.45M	-2.16B	-2.13B	945.51M	3.90B

Darfon Electronics Corp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8163 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2397	56Neutral	TWD 6.35B	16.57	―	4.41%	16.92%	-16.99%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2387	54Neutral	TWD 5.78B	17.92	―	13.29%	-15.69%	-67.38%
TW:2399	45Neutral	TWD 7.51B	10.62	―	―	-3.72%	―
TW:2457	43Neutral	TWD 7.73B	-17.50	―	―	-12.04%	-42.72%
TW:8163	41Neutral	TWD 7.03B	28.48	―	1.99%	7.26%	-0.41%
TW:3032	39Underperform	TWD 7.51B	-21.21	―	4.11%	41.24%	-89.74%

* General Sector Average

Performance Comparison

TW:8163 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8163	Darfon Electronics Corp	25.10	-8.11	-24.43%
TW:2387	Sunrex Technology Corporation	30.10	-6.95	-18.76%
TW:2397	DFI Inc.	55.60	-4.62	-7.68%
TW:2399	Biostar Microtech International Corp.	42.15	19.00	82.07%
TW:2457	Phihong Technology Co., Ltd.	18.20	-12.20	-40.13%
TW:3032	Compucase Enterprise Co., Ltd.	66.30	-27.90	-29.62%

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

Darfon Electronics Corp AI Stock Analysis