Sunonwealth Electric Machine Industry Co Ltd

Sunonwealth maintains a conservative capital structure with a debt-to-equity ratio of 0.22, significantly below the median for its industry, indicating a low reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.72, suggesting it can cover its short-term obligations but with limited excess capacity. Free cash flow of TWD 319.81 million in the latest period reflects a healthy cash generation capability, though capital expenditures of TWD 284.53 million indicate ongoing investment in operational capacity.

Profitability metrics show Sunonwealth's return on equity at 5.34%, which is in line with the industry median, while its return on assets of 2.58% is slightly below the median for electrical components and equipment firms. Gross profit of TWD 1.04 billion and operating income of TWD 419.78 million suggest a stable margin profile, though the company's net income of TWD 379.14 million is modest relative to its asset base.

The company's revenue is concentrated in a few key markets, with disclosed exposure to Asia and North America. While the input data does not specify exact geographic revenue breakdowns, the firm's operations are sensitive to regional demand cycles in industrial and consumer electronics. No specific segment breakdown is provided in the input data, but the company's product portfolio is diversified across industrial and consumer applications.

Sunonwealth's growth trajectory is modest, with no specific revenue growth rates provided in the input data. Analysts have assigned a mean price target of TWD 181.75, with a median of TWD 181.00, and a mean recommendation of 1.67 (leaning toward "buy"). The company's free cash flow and operating cash flow suggest a stable cash generation profile, but capital expenditures indicate ongoing investment in operational capacity.

The risk assessment highlights a medium liquidity risk, with a current ratio of 1.72 and a net cash position that is negative after subtracting total debt. The dilution risk is assessed as low, with no near-term pressure from share issuance or dilutive events. The company's capital structure is stable, with long-term debt at TWD 1.59 billion and total equity at TWD 7.10 billion.

Recent events include analyst price targets and recommendations, with three "strong buy" ratings and two "buy" ratings. No recent filings or transcripts are provided in the input data, so the narrative is based on the latest financial snapshot and analyst consensus.

Net income surged 45.1% year-over-year to TWD 2.17 billion in FY2026, demonstrating strong earnings momentum.

Analysts project 10.2% upside to a mean price target of TWD 181.75, reflecting positive market sentiment.

Revenue grew at an 8.3% CAGR over four years, showing consistent top-line expansion despite recent volatility.

Cash conversion ratio of 1.88 is well above the 0.89 cohort median, highlighting efficient cash generation.

Medium liquidity and credit risk flags suggest potential vulnerabilities in the company's financial stability profile.

Return on equity of 5.34% remains modest, indicating limited efficiency in generating profits from shareholder equity.

Capex intensity of -7.74% is below the cohort median, potentially limiting future growth capacity relative to peers.

Revenue TWD 5.02B, +20,6% YoY; Operating income +52,9% YoY.

• ▍Revenue TWD 5.02B, +20,6% YoY
• ▍Operating income +52,9% YoY
• ▍Net income +37,5% YoY
• ▍Free cash flow +8,5% YoY
• ▍Net margin 12.9%

Revenue TWD 4.92B, +27,5% YoY; Operating income +76,0% YoY.

• ▍Revenue TWD 4.92B, +27,5% YoY
• ▍Operating income +76,0% YoY
• ▍Net income +42,9% YoY
• ▍Free cash flow −16,8% YoY
• ▍Net margin 12.7%

Revenue TWD 4.93B, +22,4% YoY; Operating income +47,3% YoY.

• ▍Revenue TWD 4.93B, +22,4% YoY
• ▍Operating income +47,3% YoY
• ▍Net income +98,9% YoY
• ▍Free cash flow +84,8% YoY
• ▍Net margin 14.1%

Revenue TWD 4.66B, +26,8% YoY; Operating income +70,3% YoY.

• ▍Revenue TWD 4.66B, +26,8% YoY
• ▍Operating income +70,3% YoY
• ▍Net income −1,3% YoY
• ▍Free cash flow +1,5% YoY
• ▍Net margin 8.0%

Revenue TWD 4.16B; Operating income TWD 515.6M.

• ▍Revenue TWD 4.16B
• ▍Operating income TWD 515.6M
• ▍Net margin 11.3%

Revenue TWD 3.86B; Operating income TWD 460.1M.

• ▍Revenue TWD 3.86B
• ▍Operating income TWD 460.1M
• ▍Net margin 11.3%

Revenue TWD 4.03B; Operating income TWD 521.9M.

• ▍Revenue TWD 4.03B
• ▍Operating income TWD 521.9M
• ▍Net margin 8.7%

Revenue TWD 3.68B; Operating income TWD 419.8M.

• ▍Revenue TWD 3.68B
• ▍Operating income TWD 419.8M
• ▍Net margin 10.3%

Revenue TWD 18.68B, +27,7% YoY; Operating income +67,5% YoY.

• ▍Revenue TWD 18.68B, +27,7% YoY
• ▍Operating income +67,5% YoY
• ▍Net income +45,1% YoY
• ▍Free cash flow +65,8% YoY
• ▍Net margin 11.6%

Revenue TWD 14.62B, +13,2% YoY; Operating income +9,6% YoY.

• ▍Revenue TWD 14.62B, +13,2% YoY
• ▍Operating income +9,6% YoY
• ▍Net income +11,9% YoY
• ▍Free cash flow −48,3% YoY
• ▍Net margin 10.2%

Revenue TWD 12.91B, −8,2% YoY; Operating income +36,4% YoY.

• ▍Revenue TWD 12.91B, −8,2% YoY
• ▍Operating income +36,4% YoY
• ▍Net income +22,5% YoY
• ▍Free cash flow +3,6% YoY
• ▍Net margin 10.3%

Revenue TWD 14.06B, +3,7% YoY; Operating income +139,4% YoY.

• ▍Revenue TWD 14.06B, +3,7% YoY
• ▍Operating income +139,4% YoY
• ▍Net income +153,7% YoY
• ▍Free cash flow +424,6% YoY
• ▍Net margin 7.7%