Biostar Microtech International Corp

Biostar Microtech maintains a strong liquidity position, with a current ratio of 6.19 and cash and equivalents amounting to TWD 266.98 million, which is significantly higher than the industry median. The company has no long-term debt, and its debt-to-equity ratio is 0.0, indicating a conservative capital structure. However, operating cash flow is negative at TWD -129.33 million, which may signal short-term operational inefficiencies.

Profitability metrics show mixed results. Return on equity (ROE) is 0.4%, and return on assets (ROA) is 0.34%, both below the industry median for computer hardware firms. The company reported a net income of TWD 8.79 million despite a revenue of TWD 527.50 million, indicating a narrow margin. Gross profit of TWD 26.62 million suggests a gross margin of approximately 5.05%, which is below the industry average.

Geographically, Biostar Microtech's revenue is concentrated in the Asia-Pacific region, with a significant portion derived from China and Southeast Asia. The company has no disclosed revenue by segment, but its product portfolio is primarily focused on motherboards and graphics cards. This concentration may expose the company to regional economic and regulatory risks.

The company's growth trajectory is modest. Revenue for the latest period was TWD 527.50 million, and while the company has a free cash flow of TWD 9.37 million, capital expenditures are minimal at TWD -2.07 million. Analysts reported a last actual revenue of TWD 2,279.73 million, suggesting a potential discrepancy or seasonal fluctuation in the data.

Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company has not issued new shares recently, and there is no indication of near-term dilution pressure. However, the negative operating cash flow and low profitability metrics suggest potential operational and financial risks.

Recent events include the latest financial filing, which shows a net income of TWD 8.79 million despite a negative operating income of TWD -43.96 million. This suggests that non-operating income or one-time gains may have contributed to the net profit. No recent earnings call transcripts or major announcements were identified in the available data.

The company eliminated long-term debt in 2020, resulting in a zero debt-to-equity ratio that significantly reduces financial leverage risk.

Free cash flow improved by 44.7% year-over-year, demonstrating enhanced ability to generate cash from operations despite revenue declines.

Net income turned positive in 2020, reaching 26.16 million TWD, marking a recovery from previous operating losses.

Capital expenditure relative to revenue is in the top quartile of the cohort, indicating efficient capital management.

Dilution and liquidity risks are assessed as low, suggesting stable shareholder equity and adequate short-term solvency.

Revenue declined to 1.73 billion TWD in 2020, reflecting a contraction in top-line growth compared to prior periods.

The company faces high credit risk, which may increase borrowing costs or limit access to external financing.

Cash conversion is in the bottom quartile of the cohort, suggesting difficulties in turning operating income into actual cash.

Revenue TWD 434.6M, −12,8% YoY.

• ▍Revenue TWD 434.6M, −12,8% YoY

Revenue TWD 318.5M, −14,3% YoY; Operating income −7,8% YoY.

• ▍Revenue TWD 318.5M, −14,3% YoY
• ▍Operating income −7,8% YoY
• ▍Net income +555,5% YoY
• ▍Free cash flow +493,7% YoY
• ▍Net margin 14.1%

Revenue TWD 464.8M, −5,4% YoY; Operating income −125,3% YoY.

• ▍Revenue TWD 464.8M, −5,4% YoY
• ▍Operating income −125,3% YoY
• ▍Net income +219,5% YoY
• ▍Free cash flow +225,1% YoY
• ▍Net margin 6.5%

Revenue TWD 452.4M, −14,2% YoY; Operating income −15,2% YoY.

• ▍Revenue TWD 452.4M, −14,2% YoY
• ▍Operating income −15,2% YoY
• ▍Net income −788,6% YoY
• ▍Free cash flow −737,7% YoY
• ▍Net margin -13.4%

Revenue TWD 498.4M; Operating income -TWD 27.5M.

• ▍Revenue TWD 498.4M
• ▍Operating income -TWD 27.5M
• ▍Net margin 2.3%

Revenue TWD 371.7M; Operating income -TWD 37.4M.

• ▍Revenue TWD 371.7M
• ▍Operating income -TWD 37.4M
• ▍Net margin -2.7%

Revenue TWD 1.73B, −14,1% YoY; Operating income −42,2% YoY.

• ▍Revenue TWD 1.73B, −14,1% YoY
• ▍Operating income −42,2% YoY
• ▍Net income +295,2% YoY
• ▍Free cash flow +377,9% YoY
• ▍Net margin 1.5%

Revenue TWD 2.02B, −13,9% YoY; Operating income +17,6% YoY.

• ▍Revenue TWD 2.02B, −13,9% YoY
• ▍Operating income +17,6% YoY
• ▍Net income +105,8% YoY
• ▍Free cash flow +105,4% YoY
• ▍Net margin 0.3%