Changing Information Technology, Inc. (8272) AI Stock Analysis

Changing Information Technology, Inc.

(TPEx:8272)

Select Model

Rating:84Outperform

Price Target:TWD 103.00▲(16.38% Upside)

Action:initiatedcoverage

Date:11/09/26

Changing Information Technology scores well on the strength of its financial profile: a debt-free balance sheet, 73% gross margins, double-digit revenue and profit growth, and free cash flow that converts nearly all reported earnings into cash. Technicals reinforce the case, with the share price trading well above all major moving averages on positive MACD momentum. Valuation is supportive rather than exceptional, pairing a moderate 19.2x P/E with a well-covered 5.89% dividend yield. The main restraints on a higher score are slipping gross and operating margins versus 2022 peaks, an inconsistent growth track record, and a return on equity that has roughly halved as cash builds on the balance sheet without being redeployed. Earnings call and corporate event components were excluded due to missing data, with their weight redistributed across the remaining factors.

Positive Factors

Profitable growthStrong software-like margins combined with a material 2025 revenue re-acceleration indicate healthy economics and renewed demand. This profitability gives the company resources to reinvest, absorb operating costs, and compound earnings if growth remains durable over the coming quarters.

Negative Factors

Margin compressionThe decline from earlier gross and operating margin peaks suggests that incremental costs increased as the company scaled. If this pressure persists, it could limit operating leverage, reduce the benefit of future revenue growth, and constrain longer-term earnings expansion.

Changing Information Technology, Inc. (8272) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.85B
Dividend Yield: 5.88%
Average Volume (3M): 76.17K
Price to Earnings (P/E): 18.9
Beta (1Y): 0.30
Revenue Growth: 7.21%
EPS Growth: 1.97%
Country: TW
Employees: 174
Sector: General
Sector Strength: 55
Industry: Software - Infrastructure

Changing Information Technology, Inc. Business Overview & Revenue Model

Company Description

Headquartered in Hsinchu, Taiwan, Changing Information Technology Inc. specializes in delivering robust digital authentication and cybersecurity solutions. The company's diverse offerings include advanced zero-trust authentication systems, specialize...

Changing Information Technology, Inc. Financial Statement Overview

Summary

Financials are high quality across all three statements. Revenue reaccelerated about 16% to NT$478.2 million with net income up roughly 25% to NT$88.5 million, supported by 73% gross and 21% operating margins (Income Statement: 80). The balance sheet is effectively debt-free, with NT$3.4 million of debt against NT$615.9 million of equity and 72% equity funding of assets (Balance Sheet: 87). Cash generation is the standout, with free cash flow of NT$127.6 million equal to roughly 99% of net income on minimal capital spending (Cash Flow: 88). Offsetting these strengths are gradual margin erosion from 2022 peaks, an uneven growth record, and return on equity of 14.4% that remains well below historical 22% levels as capital accumulates.

Income Statement

80Positive

Balance Sheet

87Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	480.57M	478.24M	412.79M	421.77M	420.71M	381.17M
Gross Profit	349.36M	349.77M	313.03M	324.56M	324.62M	279.77M
EBITDA	108.97M	108.52M	96.78M	109.56M	112.65M	93.48M
Net Income	87.06M	88.46M	70.88M	81.40M	82.85M	67.72M
Balance Sheet
Total Assets	853.11M	859.97M	788.53M	626.90M	579.91M	477.15M
Cash, Cash Equivalents and Short-Term Investments	701.41M	709.43M	643.32M	436.17M	428.47M	346.96M
Total Debt	851.00K	3.36M	8.18M	3.27M	8.00M	12.41M
Total Liabilities	262.87M	244.09M	215.53M	216.47M	210.89M	167.26M
Stockholders Equity	590.24M	615.88M	573.00M	410.44M	369.02M	309.89M
Cash Flow
Free Cash Flow	89.38M	127.58M	107.84M	70.26M	114.53M	113.24M
Operating Cash Flow	91.31M	128.76M	111.04M	71.98M	116.81M	115.91M
Investing Cash Flow	-66.59M	-118.22M	-111.97M	-89.62M	-83.40M	-59.06M
Financing Cash Flow	-50.53M	-50.40M	82.09M	-47.46M	-33.26M	-21.13M

Changing Information Technology, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8272 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8272	84Outperform	TWD 1.68B	18.93	―	5.88%	7.21%	1.97%
TW:6697	78Outperform	TWD 1.70B	19.87	―	4.17%	8.27%	-1.22%
TW:7547	76Outperform	TWD 1.69B	15.71	―	3.58%	15.37%	10.25%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6874	54Neutral	TWD 1.65B	15.93	―	4.41%	29.57%	7.51%

* General Sector Average

Performance Comparison

TW:8272 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8272	Changing Information Technology, Inc.	88.50	3.76	4.43%
TW:6697	Information Technology Total Services Co., Ltd.	62.30	15.47	33.03%
TW:6874	M-Power Information Co., Ltd	68.00	4.72	7.46%
TW:6927	Integrated Solutions Technology Inc	57.90	20.40	54.40%
TW:7547	Intumit, Inc.	49.70	-23.43	-32.04%
TW:7813	Yu-Chen System Technology Corp.	99.00	19.23	24.11%

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

Changing Information Technology, Inc. AI Stock Analysis