Orange Electronic Co Ltd

Orange Electronic Co Ltd maintains a capital structure with a debt-to-equity ratio of 0.28, indicating a relatively conservative leverage position compared to industry norms. The company's liquidity is assessed as medium, with a current ratio of 3.25, suggesting it can cover short-term obligations but may face constraints in highly volatile conditions. The price-to-book ratio of 1.79 and price-to-tangible-book ratio of 1.79 imply that the market values the company's equity at a moderate premium to its book value.

Profitability metrics show a return on equity (ROE) of 3.52% and a return on assets (ROA) of 2.32%, both below the industry median for automotive parts manufacturers. The company's operating margin is 8.1%, and net margin is 16.44%, which are in line with the sector average but suggest limited room for margin expansion without operational improvements.

The company's revenue is concentrated in the automobile segment, with no disclosed geographic diversification. This concentration increases exposure to sector-specific risks, such as supply chain disruptions or shifts in automotive demand. No material geographic diversification is reported, which could limit resilience in the event of regional economic downturns.

Growth trajectory is modest, with no disclosed revenue growth in the most recent fiscal year. The company's capital expenditure of -1.04 million TWD indicates a reduction in investment, which may signal a focus on cost control rather than expansion. The outlook for the next fiscal year remains neutral, with no significant changes in revenue or margin expectations.

Risk factors include a liquidity risk due to negative net cash after subtracting total debt, which could constrain operational flexibility. The dilution risk is assessed as low, with no near-term pressure from share issuance. However, the company's reliance on a single business segment and limited geographic exposure increases vulnerability to sector-specific shocks.

Recent events include a 10-K filing disclosing supply chain risks and a transcript from a recent earnings call where management emphasized cost optimization. No material new product launches or strategic acquisitions were announced in the latest reporting period.

Net income surged 126.6% year-over-year to TWD 55.9 million, demonstrating strong recent profitability recovery.

Operating income jumped 175.2% year-over-year, indicating a significant improvement in core operational efficiency and margins.

Free cash flow increased 299.4% year-over-year, highlighting robust cash generation capabilities relative to recent periods.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or debt servicing.

Return on invested capital is low at 1.35%, suggesting inefficient use of capital to generate profits.

Cash conversion ratio of 1.04 is below the cohort median of 1.37, indicating weaker cash generation efficiency.

Medium liquidity risk suggests potential challenges in meeting short-term financial obligations or operational needs.

Revenue CAGR of only 1.8% over four years indicates stagnant long-term top-line growth trajectory.

Revenue TWD 118.9M; Operating income TWD 13.8M.

• ▍Revenue TWD 118.9M
• ▍Operating income TWD 13.8M
• ▍Net margin 7.2%

Revenue TWD 94.1M; Operating income TWD 2.3M.

• ▍Revenue TWD 94.1M
• ▍Operating income TWD 2.3M
• ▍Net margin 7.2%

Revenue TWD 406.6M, +11,2% YoY; Operating income +86,1% YoY.

• ▍Revenue TWD 406.6M, +11,2% YoY
• ▍Operating income +86,1% YoY
• ▍Net income +76,4% YoY
• ▍Free cash flow +130,9% YoY
• ▍Net margin 10.7%

Revenue TWD 356.0M, −22,3% YoY; Operating income −99,8% YoY.

• ▍Revenue TWD 356.0M, −22,3% YoY
• ▍Operating income −99,8% YoY
• ▍Net income −37,7% YoY
• ▍Free cash flow −64,8% YoY
• ▍Net margin 7.5%

Revenue TWD 458.3M; Operating income TWD 58.1M.

• ▍Revenue TWD 458.3M
• ▍Operating income TWD 58.1M
• ▍Net margin 9.3%