Patec Precision Industry Co Ltd

Patec Precision Industry Co Ltd has a price-to-book ratio of 5.43 and a price-to-tangible-book ratio of 5.43, indicating that the market is valuing the company's equity at a premium relative to its book value. The company's liquidity position is characterized by a current ratio of 3.42, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's free cash flow is negative at -6,124,000 TWD, and its operating cash flow is only 7,420,000 TWD, indicating that it is not generating enough cash from operations to fund its capital expenditures.

The company's profitability is weak, with a return on equity of -0.59% and a return on assets of -0.37%, both of which are below the industry median for the auto, truck, and motorcycle parts sector. The operating income is negative at -22,034,000 TWD, and the net income is also negative at -9,562,000 TWD, indicating that the company is currently unprofitable. The gross profit margin is 25.94%, which is a key metric for the industry, but the company's operating margin is negative at -5.24%, which is a concern.

Patec Precision Industry Co Ltd's revenue is concentrated in a single business segment, as it operates in the auto, truck, and motorcycle parts industry. The company's geographic exposure is primarily in Taiwan, and there is no indication of significant international operations. The company's revenue is not diversified across multiple product lines or geographic regions, which could increase its vulnerability to market fluctuations.

The company's growth trajectory is uncertain, as the current fiscal year's revenue is 420,314,000 TWD, and the mean revenue estimate for the next fiscal year is 12,715,000,000 TWD. This represents a significant increase in revenue expectations, but the company's historical performance shows a decline in revenue from 9,323,367,000 TWD to 420,314,000 TWD, indicating a potential issue with its business model or market conditions.

The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag is that the company's net cash is negative after subtracting total debt, which could affect its ability to meet short-term obligations. The company's debt-to-equity ratio is 0.29, which is relatively low, but the negative operating income and net income suggest that the company may need to rely on external financing to sustain its operations.

Recent events and filings indicate that the company has not issued any new shares recently, and there is no indication of a pending stock offering. The company's capital expenditure is -9,974,000 TWD, which suggests that it is not investing in new projects or expanding its operations. The company's free cash flow is negative, which could limit its ability to fund future growth initiatives.

Revenue surged 28% year-over-year to TWD 9.3 billion in fiscal 2026, demonstrating significant top-line growth momentum.

Long-term debt decreased to TWD 2.8 billion in fiscal 2026, indicating a reduction in leverage obligations.

The debt-to-equity ratio of 0.29 is below the cohort median of 0.41, suggesting a conservative capital structure.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity erosion.

Gross profit reached TWD 996 million in fiscal 2026, showing the core production remains profitable despite operating losses.

The company reported a net loss of TWD 380 million in fiscal 2026, resulting in a negative net margin.

Operating income turned negative at TWD -23 million in fiscal 2026, signaling deteriorating core operational profitability.

Free cash flow swung to a negative TWD 287 million in fiscal 2026, indicating significant cash burn.

Return on equity of -0.59% places the company in the bottom quartile of its auto parts cohort.

Credit risk is flagged as high, suggesting potential difficulties in meeting financial obligations or securing financing.

Revenue TWD 2.33B, +331,7% YoY; Operating income −122,0% YoY.

• ▍Revenue TWD 2.33B, +331,7% YoY
• ▍Operating income −122,0% YoY
• ▍Net income −153,2% YoY
• ▍Free cash flow −168,3% YoY
• ▍Net margin -10.2%

Revenue TWD 2.41B, +473,1% YoY; Operating income +113,0% YoY.

• ▍Revenue TWD 2.41B, +473,1% YoY
• ▍Operating income +113,0% YoY
• ▍Net income −224,6% YoY
• ▍Free cash flow −174,7% YoY
• ▍Net margin -7.5%

Revenue TWD 2.28B, +442,8% YoY; Operating income −71,6% YoY.

• ▍Revenue TWD 2.28B, +442,8% YoY
• ▍Operating income −71,6% YoY
• ▍Net income −56,4% YoY
• ▍Free cash flow +498,8% YoY
• ▍Net margin -0.7%

Revenue TWD 2.30B; Operating income TWD 106.6M.

• ▍Revenue TWD 2.30B
• ▍Operating income TWD 106.6M
• ▍Net margin 2.3%

Revenue TWD 539.8M; Operating income TWD 438.0M.

• ▍Revenue TWD 539.8M
• ▍Operating income TWD 438.0M
• ▍Net margin 82.5%

Revenue TWD 420.7M; Operating income -TWD 38.4M.

• ▍Revenue TWD 420.7M
• ▍Operating income -TWD 38.4M
• ▍Net margin -13.3%

Revenue TWD 420.3M; Operating income -TWD 22.0M.

• ▍Revenue TWD 420.3M
• ▍Operating income -TWD 22.0M
• ▍Net margin -2.3%

Revenue TWD 9.32B, +423,1% YoY; Operating income −106,0% YoY.

• ▍Revenue TWD 9.32B, +423,1% YoY
• ▍Operating income −106,0% YoY
• ▍Net income −196,6% YoY
• ▍Free cash flow −185,2% YoY
• ▍Net margin -4.1%

Revenue TWD 1.78B, −1,9% YoY; Operating income +106,9% YoY.

• ▍Revenue TWD 1.78B, −1,9% YoY
• ▍Operating income +106,9% YoY
• ▍Net income +182,3% YoY
• ▍Free cash flow +102,4% YoY
• ▍Net margin 22.1%