Etrend Hightech Corp

Etrend Hightech Corp maintains a strong liquidity position, with a current ratio of 4.3 and cash and equivalents of 139.53 million TWD, representing 19.4% of total assets. The company has no long-term debt, and its debt-to-equity ratio is 0.0, indicating a conservative capital structure with no leverage risk. Free cash flow of 30.4 million TWD supports operational flexibility and potential reinvestment.

Profitability metrics show a return on equity (ROE) of 2.22% and a return on assets (ROA) of 2.0%, both below the industry median for Semiconductor Equipment & Testing. Gross margin is 31.9%, and operating margin is 16.6%, which are in line with the sector average. Net income of 14.35 million TWD reflects a 19.0% margin, suggesting efficient cost control despite competitive pressures.

The company operates as a single business segment, with all revenue derived from semiconductor testing equipment. Geographic exposure is not disclosed in the latest financials, but the company is headquartered in Taiwan, a key hub for semiconductor manufacturing. Revenue concentration in a single product line and geographic proximity to manufacturing centers may increase exposure to regional supply chain disruptions.

Outlook for the current fiscal year shows a 12.3% year-over-year revenue increase, with a projected 8.1% growth in the next fiscal year. This growth is supported by rising demand for semiconductor testing solutions in the AI and automotive sectors. Historical revenue growth has averaged 9.4% annually over the past three years, indicating a stable but moderate expansion trajectory.

Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company has no long-term debt and a current ratio of 4.3, which provides a strong buffer against short-term obligations. Dilution risk is also low, as shares outstanding have remained unchanged at 33.95 million for both basic and diluted shares.

Recent events include a 10-K filing that disclosed no material changes in business operations or financial condition. The company has not issued new shares in the past 12 months, and no shelf registration or ATM programs are currently active. Analyst estimates for revenue align closely with reported figures, suggesting a stable and predictable earnings pattern.

Net income grew at a 12.7% CAGR over four years, outpacing the 6.2% revenue growth rate.

Cash conversion ratio of 3.34 is best-in-class, far exceeding the 0.96 cohort median.

The company maintains a zero debt-to-equity ratio, providing a pristine balance sheet with no leverage risk.

Free cash flow turned negative in 2019, dropping to -3.7 million TWD from positive levels previously.

Revenue declined to 281 million TWD in 2019, down from 314.5 million TWD in the prior fiscal year.

Return on assets of 2% is low, suggesting limited ability to generate profit from total assets.

Revenue TWD 76.1M, −0,3% YoY; Operating income −7,9% YoY.

• ▍Revenue TWD 76.1M, −0,3% YoY
• ▍Operating income −7,9% YoY
• ▍Net income −10,2% YoY
• ▍Free cash flow −26,3% YoY
• ▍Net margin 16.6%

Revenue TWD 74.2M, −5,8% YoY; Operating income −37,1% YoY.

• ▍Revenue TWD 74.2M, −5,8% YoY
• ▍Operating income −37,1% YoY
• ▍Net income −30,2% YoY
• ▍Free cash flow −3,2% YoY
• ▍Net margin 14.4%

Revenue TWD 63.5M, −24,2% YoY; Operating income −68,0% YoY.

• ▍Revenue TWD 63.5M, −24,2% YoY
• ▍Operating income −68,0% YoY
• ▍Net income −77,5% YoY
• ▍Free cash flow −123,8% YoY
• ▍Net margin 7.0%

Revenue TWD 67.2M, −11,0% YoY; Operating income −24,2% YoY.

• ▍Revenue TWD 67.2M, −11,0% YoY
• ▍Operating income −24,2% YoY
• ▍Net income −41,4% YoY
• ▍Free cash flow −24,4% YoY
• ▍Net margin 12.5%

Revenue TWD 76.3M; Operating income TWD 15.3M.

• ▍Revenue TWD 76.3M
• ▍Operating income TWD 15.3M
• ▍Net margin 18.5%

Revenue TWD 281.1M, −10,6% YoY; Operating income −38,2% YoY.

• ▍Revenue TWD 281.1M, −10,6% YoY
• ▍Operating income −38,2% YoY
• ▍Net income −42,9% YoY
• ▍Free cash flow −115,0% YoY
• ▍Net margin 12.9%

Revenue TWD 314.5M, −21,3% YoY; Operating income −44,5% YoY.

• ▍Revenue TWD 314.5M, −21,3% YoY
• ▍Operating income −44,5% YoY
• ▍Net income −37,9% YoY
• ▍Free cash flow −74,2% YoY
• ▍Net margin 20.1%