De Poan Pneumatic Corp. (1570) AI Stock Analysis

De Poan Pneumatic Corp.

(TPEx:1570)

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Rating:49Neutral

Price Target:TWD 31.00▲(0.32% Upside)

Action:initiatedcoverage

Date:11/09/26

De Poan Pneumatic scores in the below-average range. The dominant factor is a sharp cyclical downturn — revenue down roughly a third, operating margin more than halved, net income down nearly 75%, and free cash flow down 63% with weaker cash conversion — which has pushed return on equity to just 3%. This is meaningfully offset by a fortress balance sheet: near-zero debt and equity funding over 90% of assets, meaning the risk is earnings volatility rather than solvency. Technicals reinforce caution, with the price below all key moving averages and negative MACD, although deeply oversold RSI and Stochastic readings suggest downside may be approaching exhaustion. Valuation is mixed: a 44.9x P/E on depressed earnings leaves little cushion, while a 3.2% dividend yield backed by a strong balance sheet provides some support. A rebound in volumes, as seen in 2024, could restore profitability quickly, but visibility remains low.

Positive Factors

Conservative Balance SheetExtremely low leverage gives De Poan a substantial financial buffer and limits the burden of interest or refinancing obligations. Stable equity and assets of about 1.12B also preserve flexibility to withstand operating weakness and support future investment.

Negative Factors

Revenue and Margin ContractionThe latest annual results show simultaneous contraction in sales and operating profitability, reducing current earnings power. Lower margins leave less room to absorb further revenue pressure and make a return to prior profitability levels important for sustained financial improvement.

De Poan Pneumatic Corp. (1570) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.55B
Dividend Yield: 3.24%
Average Volume (3M): 31.71K
Price to Earnings (P/E): 57.4
Beta (1Y): 0.91
Revenue Growth: -19.79%
EPS Growth: -53.42%
Country: TW
Employees: 51
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

De Poan Pneumatic Corp. Business Overview & Revenue Model

Company Description

De Poan Pneumatic Corp. operates as an international producer and distributor of specialized air-powered tools. The company's comprehensive product lineup features an array of nail guns, including industrial, framing coil, cordless, framing, roofing,...

De Poan Pneumatic Corp. Financial Statement Overview

Summary

A tale of two halves. The balance sheet is exceptionally strong (score 81): total debt of only NT$10 million versus NT$1.02 billion of equity (~1% debt-to-equity), with equity funding roughly 91% of assets — effectively a debt-free structure that can absorb a downturn without financial stress. Offsetting this, the income statement (43) and cash flow (45) show a steep cyclical contraction: revenue fell 32% to NT$493 million, operating margin halved to 8.0% from 19.1%, net income dropped to NT$30 million from NT$116 million, and free cash flow fell 63% to NT$7 million, covering only ~56% of net income. Return on equity slid to 3.0% from 11.3%. The company remains profitable and cash-generative through the trough, and has rebounded sharply before (2024 revenue +86%), but earnings visibility is poor given swings between double-digit growth and decline every year since 2020.

Income Statement

43Neutral

Balance Sheet

81Very Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	500.50M	493.37M	730.10M	393.66M	641.01M	691.13M
Gross Profit	102.41M	122.81M	201.32M	91.21M	178.28M	184.77M
EBITDA	49.01M	52.29M	152.45M	39.92M	153.88M	188.16M
Net Income	35.77M	30.27M	115.63M	18.65M	108.12M	134.53M
Balance Sheet
Total Assets	1.19B	1.12B	1.21B	1.01B	1.05B	1.06B
Cash, Cash Equivalents and Short-Term Investments	549.39M	499.54M	509.65M	404.99M	367.68M	433.17M
Total Debt	8.10M	10.36M	11.59M	11.13M	10.15M	30.61M
Total Liabilities	157.76M	102.29M	182.76M	112.25M	136.06M	195.47M
Stockholders Equity	1.04B	1.02B	1.02B	899.00M	912.19M	866.22M
Cash Flow
Free Cash Flow	98.47M	6.75M	109.92M	91.67M	62.84M	26.68M
Operating Cash Flow	101.52M	12.12M	112.10M	94.22M	72.32M	29.44M
Investing Cash Flow	331.26M	324.20M	-29.65M	-94.31M	5.11M	40.93M
Financing Cash Flow	-74.18M	-72.70M	-55.45M	-55.59M	-54.98M	-44.86M

De Poan Pneumatic Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1570 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4568	74Outperform	TWD 1.57B	25.43	―	4.07%	11.82%	-2.07%
TW:4503	71Outperform	TWD 1.41B	4.93	―	―	-12.40%	1140.31%
TW:1541	64Neutral	TWD 1.52B	11.19	―	2.59%	-30.14%	21.52%
TW:1540	59Neutral	TWD 1.50B	14.26	―	5.75%	-11.52%	60.68%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1570	49Neutral	TWD 1.57B	57.42	―	3.24%	-19.79%	-53.42%
TW:1599	39Underperform	TWD 1.55B	-143.67	―	2.29%	-18.88%	-116.38%

* General Sector Average

Performance Comparison

TW:1570 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1570	De Poan Pneumatic Corp.	30.90	1.55	5.28%
TW:1540	Roundtop Machinery Industries Co., Ltd	17.40	-4.16	-19.29%
TW:1541	Chang Type Industrial Co., Ltd.	19.70	-4.85	-19.76%
TW:1599	Aeontek Co Ltd	21.80	-4.53	-17.19%
TW:4503	Gold Rain Enterprises Corp.	18.70	-30.80	-62.22%
TW:4568	Koge Micro Tech Co., Ltd.	48.65	8.14	20.10%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

De Poan Pneumatic Corp. AI Stock Analysis