This is research, not a buy or sell recommendation. Robo-advice in Taiwan requires an FSC licence; FEAF analyses, explains and monitors, and the investor makes the decision. Judgement thresholds are working rules pending review by the team's finance members.
Plain-language summary of valuation, growth, profitability, balance sheet, and recent MOPS filings.
Several watch-outs (4) and no clear strengths in the data reviewed.
Points to watch for a moderate profile: see the items marked above.
In plain words
For stock code 2406, the P/E ratio of 161.39 is well above the Optoelectronics median of 27.25, while profitability remains weak with a 1.7% return on equity and a 0.6% net margin. Although revenue fell by -7.8% in 2025, Q2 2026 revenue grew by 105.3% year on year alongside a negative free cash flow of -1,200 NT$ million in 2025. With liabilities at 49.6% of total assets in Q2 2026, the data indicates several watch-outs and no clear strengths. Ultimately, all investment decisions rest entirely with the investor.
Written by gemini-3.6-flash from the facts above; every number was checked against them.
Strengths
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Watch-outs
!P/E 161.39 is well above the Optoelectronics median of 27.25 (46 listed peers): priced richer than peers. source (Key Stats) →
!Revenue fell -7.8% in 2025; latest quarter Q2 2026: 105.3% year on year. source (Financials) →
!Return on equity 1.7% with a 0.6% net margin: weak profitability. source (Key Stats) →
!Free cash flow was negative in 2025: -1,200 NT$ million, so spending exceeded operating cash. source (Financials) →
What to check before deciding
?Why is it priced above its peers, and is that premium justified?
?Is the revenue decline temporary or structural?
?What would lift profitability, and how soon?
?What is the spending for, and when does it start paying back?
What the analysis found
!Valuation vs peersP/E 161.39 is well above the Optoelectronics median of 27.25 (46 listed peers): priced richer than peers. source →
!GrowthRevenue fell -7.8% in 2025; latest quarter Q2 2026: 105.3% year on year. source →
!ProfitabilityReturn on equity 1.7% with a 0.6% net margin: weak profitability. source →
·DebtLiabilities are 49.6% of total assets (Q2 2026). source →
!Cash flowFree cash flow was negative in 2025: -1,200 NT$ million, so spending exceeded operating cash. source →
·Filings1 verified alert(s); latest on 2026-11-13: 公告本公司董事會決議通過115年度第三季合併財務報告 source →