An analyst report issued on September 9, 2026, rated Trio-Tech International as a Sell. The report cites an expensive valuation and significant risks regarding customer concentration.
A single client, Customer A, now accounts for 41.1% of the company's total revenue. This customer is responsible for 86% of Trio-Tech’s recent growth.
Gross margins fell to 16% despite recent sales growth. Management does not expect these margins to recover in the near term.
Trio-Tech recently expanded its production capacity in Malaysia. Analysts suggest this expansion may deepen reliance on a single customer or unproven demand.