CO-TECH DEVELOPMENT CORP. (8358) AI Stock Analysis

CO-TECH DEVELOPMENT CORP.

(TPEx:8358)

Select Model

Rating:56Neutral

Price Target:TWD 312.00▼(-19.69% Downside)

Action:initiatedcoverage

Date:11/09/26

Co-Tech scores in the mid-range. Its strongest attribute is a very clean balance sheet — debt-to-equity of only 0.13 with about 80% equity funding — supporting a genuine earnings and margin recovery, with revenue, gross margin and net income all improving. Offsetting this is weak cash generation: operating cash flow covered only about a third of net income and free cash flow turned negative on heavy capex, raising questions about earnings quality in a business with a history of sharp cyclical swings. Technicals are the biggest drag, with the stock trading well below all key moving averages and a deeply negative MACD, amplified by a high beta of 2.22. Valuation adds little support, as a P/E near 50 and a 0.66% yield leave limited margin of safety until cash conversion normalises and the price trend stabilises.

Positive Factors

Conservative balance sheetDebt-to-equity around 0.13 in 2025 and expanding equity indicate a conservative capital structure. This gives the company greater flexibility to absorb business volatility, fund operations, and pursue investment without the constraints typically associated with heavy leverage.

Negative Factors

Deteriorating cash-flow conversionThe sharp 2025 decline in operating cash conversion and negative free cash flow weaken the quality of reported earnings. If sustained, this could increase reliance on balance-sheet resources, constrain reinvestment capacity, and make funding growth less flexible.

CO-TECH DEVELOPMENT CORP. (8358) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 99.50B
Dividend Yield: 0.51%
Average Volume (3M): 16.38M
Price to Earnings (P/E): 58.2
Beta (1Y): 2.24
Revenue Growth: 43.76%
EPS Growth: 132.78%
Country: TW
Employees: 312
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

CO-TECH DEVELOPMENT CORP. Business Overview & Revenue Model

Company Description

Co-Tech Development Corporation (CTDC), along with its affiliated companies, specializes in the production and distribution of copper foils throughout Taiwan and mainland China. The company's operations are segmented into its core Copper Foil busines...

CO-TECH DEVELOPMENT CORP. Financial Statement Overview

Summary

A solid, conservatively financed operation in an earnings recovery. Revenue rose to roughly NT$7.88bn from NT$6.82bn with gross margin widening to 21.8% and net margin at 13.5%, the best profit since 2021 (Income Statement 77). The balance sheet is the standout: debt cut to NT$1.00bn, debt-to-equity of just 0.13, equity funding about 80% of assets and ROE of 14.1% (Balance Sheet 83). The clear weakness is cash conversion — operating cash flow fell to NT$362m from NT$912m, covering only about a third of net income, and free cash flow swung negative to -NT$137m on roughly NT$500m of capex, the third negative year in four (Cash Flow 43). Combined with the historically volatile, cycle-driven revenue swings (+48% to -17%), earnings quality looks weaker than the headline numbers.

Income Statement

77Positive

Balance Sheet

83Very Positive

Cash Flow

43Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.49B	7.88B	6.82B	6.17B	7.41B	8.91B
Gross Profit	2.47B	1.71B	1.35B	883.78M	1.36B	2.18B
EBITDA	2.36B	1.54B	1.28B	801.86M	1.36B	2.11B
Net Income	1.70B	1.06B	921.81M	532.91M	967.21M	1.52B
Balance Sheet
Total Assets	12.37B	9.45B	8.78B	7.91B	7.61B	8.37B
Cash, Cash Equivalents and Short-Term Investments	1.22B	744.65M	1.99B	1.56B	1.65B	2.90B
Total Debt	1.27B	1.00B	1.43B	1.06B	573.97M	709.45M
Total Liabilities	3.07B	1.94B	2.25B	1.92B	1.53B	2.20B
Stockholders Equity	9.30B	7.51B	6.53B	5.98B	6.08B	6.17B
Cash Flow
Free Cash Flow	-87.62M	-137.17M	506.97M	-15.40M	-61.70M	879.64M
Operating Cash Flow	514.95M	362.48M	912.47M	681.22M	1.04B	1.68B
Investing Cash Flow	-569.83M	-792.25M	-402.66M	-654.67M	-1.10B	-794.42M
Financing Cash Flow	202.85M	-815.77M	-73.41M	-120.92M	-1.19B	-574.43M

CO-TECH DEVELOPMENT CORP. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8358 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8039	60Neutral	TWD 56.59B	73.94	―	0.88%	2.53%	118.11%
TW:6672	58Neutral	TWD 41.33B	72.55	―	0.64%	54.27%	161.52%
TW:8358	56Neutral	TWD 89.37B	58.18	―	0.51%	43.76%	132.78%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1815	55Neutral	TWD 78.68B	33.37	―	0.36%	48.55%	293.99%
TW:8070	52Neutral	TWD 33.78B	27.18	―	5.65%	25.04%	-9.81%
TW:1717	48Neutral	TWD 74.84B	33.16	―	1.58%	-1.57%	36.18%

* General Sector Average

Performance Comparison

TW:8358 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8358	CO-TECH DEVELOPMENT CORP.	388.50	156.56	67.50%
TW:1717	Eternal Materials Co., Ltd.	63.00	23.49	59.47%
TW:1815	Fulltech Fiber Glass Corp.	140.50	53.98	62.39%
TW:6672	Ventec International Group Co., Ltd.	525.00	434.49	480.07%
TW:8039	TAIFLEX Scientific Co., Ltd.	227.00	159.20	234.80%
TW:8070	Chang Wah Electromaterials, Inc.	48.00	3.55	7.98%

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

CO-TECH DEVELOPMENT CORP. AI Stock Analysis