O-TA Precision Industry Co., Ltd. (8924) AI Stock Analysis

O-TA Precision Industry Co., Ltd.

(TPEx:8924)

Select Model

Rating:44Neutral

Price Target:TWD 39.00▼(-1.39% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by weak financial performance: sharply falling revenue, a gross margin collapse from the low-30s to around 11%, a slip into a small net loss, and negative free cash flow for a second consecutive period. The main offset is a conservatively financed balance sheet, with low leverage and equity funding roughly two-thirds of assets, which gives the company staying power through the downturn. Technicals reinforce the caution, with the price well below all key moving averages and negative MACD momentum. Valuation offers limited support — earnings are negative, making the P/E unusable, and the headline double-digit dividend yield looks difficult to sustain without a recovery in profits and cash flow. A rebound in volumes and pricing, plus moderating capital spending, would be the key catalysts for an improved score.

Positive Factors

Moderate LeverageModerate leverage and a sizable equity base provide financial flexibility while the company manages a weaker earnings period. This balance-sheet support can help preserve operating continuity, fund necessary investment, and reduce dependence on external financing if conditions remain difficult.

Negative Factors

Revenue and Margin ContractionRevenue contraction combined with sharply thinner operating margins has pushed the company into a small net loss. If this weakness persists, lower operating leverage and reduced earnings capacity could constrain reinvestment, weaken returns, and make recovery more dependent on a demand improvement.

O-TA Precision Industry Co., Ltd. (8924) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.28B
Dividend Yield: 10.87%
Average Volume (3M): 93.85K
Price to Earnings (P/E): -824.0
Beta (1Y): 0.52
Revenue Growth: 1.49%
EPS Growth: -100.78%
Country: TW
Employees: 3,190
Sector: General
Sector Strength: 55
Industry: Leisure

O-TA Precision Industry Co., Ltd. Business Overview & Revenue Model

Company Description

O-TA Precision Industry Co., Ltd., a company based in Pingtung, Taiwan, primarily focuses on the manufacture, contract processing, assembly, and sale of golf club heads and their semi-finished components. Their product catalog features a variety of g...

O-TA Precision Industry Co., Ltd. Financial Statement Overview

Summary

A tale of a strong balance sheet (score 68) offset by deteriorating earnings (29) and weakening cash generation (44). Revenue has nearly halved from the 2021–2022 peak to roughly NT$4.3B TTM, down about 10% year-over-year, while gross margin has collapsed from about 32% to 11% and the company swung from a NT$472M profit to a marginal net loss. Operating cash flow remains positive at about NT$286M, but elevated capital spending has left free cash flow negative at roughly -NT$47M for a second straight period. The offset is financial resilience: equity of about NT$3.86B funds roughly two-thirds of assets and debt-to-equity is a conservative 0.29, though debt has tripled year-over-year and return on equity has fallen to essentially zero.

Income Statement

29Negative

Balance Sheet

68Positive

Cash Flow

44Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.29B	4.63B	4.64B	4.37B	7.70B	7.88B
Gross Profit	471.49M	855.15M	738.63M	724.09M	2.22B	2.49B
EBITDA	152.01M	618.36M	755.26M	722.80M	2.17B	2.13B
Net Income	-3.49M	472.15M	474.28M	406.52M	1.79B	1.69B
Balance Sheet
Total Assets	5.74B	5.81B	5.37B	5.22B	6.33B	5.72B
Cash, Cash Equivalents and Short-Term Investments	2.45B	2.37B	2.76B	2.66B	2.98B	2.07B
Total Debt	1.14B	740.76M	390.75M	550.41M	514.89M	539.83M
Total Liabilities	1.88B	1.64B	1.15B	1.39B	1.81B	2.02B
Stockholders Equity	3.86B	4.17B	4.22B	3.82B	4.52B	3.70B
Cash Flow
Free Cash Flow	-46.64M	-237.44M	433.50M	825.82M	1.93B	984.18M
Operating Cash Flow	286.48M	317.56M	691.02M	1.10B	2.12B	1.22B
Investing Cash Flow	-317.12M	-501.16M	-257.58M	-284.52M	-129.60M	-350.14M
Financing Cash Flow	-228.67M	-72.08M	-527.37M	-1.12B	-1.19B	-557.01M

O-TA Precision Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8924 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2243	47Neutral	TWD 3.80B	41.11	―	―	9.09%	167.63%
TW:8924	44Neutral	TWD 3.28B	-823.96	―	10.87%	1.49%	-100.78%
TW:2061	41Neutral	TWD 3.41B	54.33	―	―	3.28%	―
TW:1598	40Underperform	TWD 3.07B	-16.80	―	2.68%	-17.50%	-68.01%
TW:1595	39Underperform	TWD 3.65B	-42.76	―	0.73%	22.29%	20.09%

* General Sector Average

Performance Comparison

TW:8924 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8924	O-TA Precision Industry Co., Ltd.	39.55	-28.58	-41.95%
TW:1595	Chime Ball Technology Co., Ltd.	64.40	27.33	73.74%
TW:1598	Dyaco International Inc.	18.65	-4.24	-18.53%
TW:2061	Feng Ching Metal Corporation	61.20	42.05	219.58%
TW:2243	Horng Shiue Holding Co., Ltd.	48.10	36.85	327.56%
TW:4570	Jason Co., Ltd. (Taiwan)	70.00	5.58	8.66%

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

O-TA Precision Industry Co., Ltd. AI Stock Analysis