Compeq Manufacturing Co Ltd

Compeq's capital structure is characterized by a debt-to-equity ratio of 0.38, indicating a relatively conservative leverage position compared to industry norms. The company maintains a current ratio of 1.7, suggesting it has sufficient short-term assets to cover its liabilities. However, its net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

In terms of profitability, Compeq's return on equity (ROE) is 2.83%, and its return on assets (ROA) is 1.41%. These figures are below the industry median for ROE and ROA, which typically exceed 5% and 3%, respectively. The company's operating margin is 6.99%, and its net profit margin is 6.82%, both of which are in line with the industry median of 7% and 6.5%, respectively.

Geographically, Compeq's revenue is heavily concentrated in the Asia-Pacific region, with over 80% of its sales originating from this area. The company's exposure to this region is a strategic advantage given the high demand for semiconductors in countries like China and South Korea. However, this concentration also exposes the company to regional economic and political risks.

Compeq's growth trajectory is modest, with a projected revenue increase of 2.5% for the current fiscal year and a 3.0% increase for the next fiscal year. This growth is driven by steady demand in the semiconductor market, particularly in the automotive and consumer electronics sectors. The company's capital expenditure is expected to remain stable, with a focus on maintaining and upgrading existing production facilities.

The company faces several risk factors, including liquidity constraints due to its negative net cash position and the potential for dilution if it issues additional shares to fund operations or expansion. The risk assessment indicates a medium liquidity risk and a low dilution risk. The company has not issued any new shares in the past year, and there are no immediate plans for a public offering.

Recent events, including quarterly earnings reports and investor presentations, highlight Compeq's focus on cost optimization and supply chain efficiency. The company has also been investing in research and development to enhance its product portfolio and maintain a competitive edge in the semiconductor market.

Operating income surged 33.0% year-over-year to TWD 8.15 billion, demonstrating strong top-line leverage and profitability expansion.

Net margin of 6.8% significantly exceeds the semiconductor cohort median of 2.5%, indicating superior cost management and pricing power.

Long-term debt decreased to TWD 10.07 billion in FY2026, reflecting a disciplined deleveraging strategy and improved balance sheet health.

Cash conversion ratio of 2.5 ranks in the top quartile of the semiconductor cohort, highlighting exceptional operational efficiency.

The company faces high credit risk, which could constrain future borrowing capacity and increase financing costs for operations.

Revenue growth of 4.9% in FY2026 is modest, suggesting limited top-line expansion momentum in a competitive semiconductor landscape.

Medium liquidity risk may hinder the company's ability to quickly meet short-term obligations without impacting operations.

Revenue TWD 19.55B, +16,9% YoY; Operating income +31,6% YoY.

• ▍Revenue TWD 19.55B, +16,9% YoY
• ▍Operating income +31,6% YoY
• ▍Net income +14,5% YoY
• ▍Free cash flow +43,2% YoY
• ▍Net margin 7.7%

Revenue TWD 21.02B, +6,0% YoY; Operating income +30,2% YoY.

• ▍Revenue TWD 21.02B, +6,0% YoY
• ▍Operating income +30,2% YoY
• ▍Net income +36,8% YoY
• ▍Free cash flow +49 792,9% YoY
• ▍Net margin 10.8%

Revenue TWD 20.05B, −0,7% YoY; Operating income +12,3% YoY.

• ▍Revenue TWD 20.05B, −0,7% YoY
• ▍Operating income +12,3% YoY
• ▍Net income +19,9% YoY
• ▍Free cash flow −40,8% YoY
• ▍Net margin 10.8%

Revenue TWD 18.20B, +7,8% YoY; Operating income +57,5% YoY.

• ▍Revenue TWD 18.20B, +7,8% YoY
• ▍Operating income +57,5% YoY
• ▍Net income −27,8% YoY
• ▍Free cash flow −17,1% YoY
• ▍Net margin 4.6%

Revenue TWD 16.73B; Operating income TWD 1.47B.

• ▍Revenue TWD 16.73B
• ▍Operating income TWD 1.47B
• ▍Net margin 7.9%

Revenue TWD 19.83B; Operating income TWD 1.77B.

• ▍Revenue TWD 19.83B
• ▍Operating income TWD 1.77B
• ▍Net margin 8.4%

Revenue TWD 20.19B; Operating income TWD 2.24B.

• ▍Revenue TWD 20.19B
• ▍Operating income TWD 2.24B
• ▍Net margin 8.9%

Revenue TWD 16.88B; Operating income TWD 1.18B.

• ▍Revenue TWD 16.88B
• ▍Operating income TWD 1.18B
• ▍Net margin 6.8%

Revenue TWD 76.00B, +4,9% YoY; Operating income +33,0% YoY.

• ▍Revenue TWD 76.00B, +4,9% YoY
• ▍Operating income +33,0% YoY
• ▍Net income +17,3% YoY
• ▍Free cash flow −24,3% YoY
• ▍Net margin 8.6%

Revenue TWD 72.46B, +8,0% YoY; Operating income +17,4% YoY.

• ▍Revenue TWD 72.46B, +8,0% YoY
• ▍Operating income +17,4% YoY
• ▍Net income +34,3% YoY
• ▍Free cash flow +1 528,2% YoY
• ▍Net margin 7.7%

Revenue TWD 67.08B, −12,2% YoY; Operating income −48,4% YoY.

• ▍Revenue TWD 67.08B, −12,2% YoY
• ▍Operating income −48,4% YoY
• ▍Net income −47,9% YoY
• ▍Free cash flow −107,5% YoY
• ▍Net margin 6.2%

Revenue TWD 76.42B, +21,2% YoY; Operating income +48,5% YoY.

• ▍Revenue TWD 76.42B, +21,2% YoY
• ▍Operating income +48,5% YoY
• ▍Net income +55,7% YoY
• ▍Free cash flow +449,5% YoY
• ▍Net margin 10.5%