Darfon Electronics Corp (8163) AI Stock Analysis

Darfon Electronics Corp

(TWSE:8163)

Select Model

Rating:46Neutral

Price Target:TWD 24.00▼(-3.23% Downside)

Action:initiatedcoverage

Date:11/10/26

Weak financial performance with eroding margins, higher leverage, and poor cash generation is the dominant factor weighing on the score. Bearish technical momentum is partially offset by oversold conditions, while fair valuation provides modest support.

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 7.01B
Dividend Yield: 2.02%
Average Volume (3M): 730.41K
Price to Earnings (P/E): 28.5
Beta (1Y): 0.79
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

Declining profitability, compressed margins to 15.9%, negative EBIT, rising debt-to-equity at 1.07, and sharply negative free cash flow growth signal significant operational and liquidity risks.

Income Statement

42Neutral

Balance Sheet

48Neutral

Cash Flow

35Negative

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	16.95	―	4.31%	16.92%	-16.99%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2387	54Neutral	TWD 5.78B	17.77	―	13.40%	-15.69%	-67.38%
TW:8163	46Neutral	TWD 7.03B	28.54	―	2.02%	7.26%	-0.41%
TW:2399	45Neutral	TWD 7.51B	10.82	―	―	-3.72%	―
TW:2457	43Neutral	TWD 7.73B	-12.73	―	―	-12.04%	-42.72%
TW:3032	39Underperform	TWD 7.51B	-21.09	―	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	24.80	-7.38	-22.92%
TW:2387	Sunrex Technology Corporation	29.85	-6.52	-17.92%
TW:2397	DFI Inc.	56.90	-1.31	-2.26%
TW:2399	Biostar Microtech International Corp.	42.95	19.85	85.93%
TW:2457	Phihong Technology Co., Ltd.	17.95	-11.75	-39.56%
TW:3032	Compucase Enterprise Co., Ltd.	66.20	-24.50	-27.01%

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