Simplo Technology Co. Ltd. (6121) AI Stock Analysis

Simplo Technology Co. Ltd.

(TPEx:6121)

Select Model

Rating:66Neutral

Price Target:TWD 367.00▲(16.51% Upside)

Action:initiatedcoverage

Date:11/09/26

Simplo scores moderately well, anchored by a very strong balance sheet with effectively no leverage, steadily expanding gross margins and a mid-teens return on equity. Valuation adds further support, with a modest 10.4x P/E and a 6.4% dividend yield. Offsetting these strengths are two concerns: free cash flow fell more than a third on higher capital spending, pushing cash conversion to a six-year low, and the share price is in a clear downtrend, trading below all major moving averages with negative MACD. Deeply oversold momentum readings suggest the selling may be stretched, but confirmation of renewed revenue and cash flow growth is needed before the fundamental and valuation appeal translates into price recovery.

Positive Factors

Very Low LeverageThe exceptionally low debt burden gives Simplo substantial financial resilience and reduces interest and refinancing pressure. A conservatively financed balance sheet should preserve flexibility to invest, maintain operations through weaker demand, and withstand cyclical volatility over the next several quarters.

Negative Factors

Weakening Free Cash FlowThe sharp decline in free cash flow reduces the cash available for investment, dividends, or balance-sheet strengthening even though operations remain cash-generative. If this deterioration persists, it could constrain capital allocation and make reported profitability less supportive of shareholder returns.

Simplo Technology Co. Ltd. (6121) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 57.53B
Dividend Yield: 6.92%
Average Volume (3M): 615.34K
Price to Earnings (P/E): 9.4
Beta (1Y): 0.75
Revenue Growth: 2.55%
EPS Growth: 12.47%
Country: TW
Employees: 411
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Simplo Technology Co. Ltd. Business Overview & Revenue Model

Company Description

Simplo Technology Co., Ltd. is a global manufacturer and distributor of an extensive range of battery pack solutions. Its comprehensive product portfolio includes power modules designed for light electric vehicles (LEVs), various handheld tools, and...

Simplo Technology Co. Ltd. Financial Statement Overview

Summary

A conservatively financed business with improving profitability. The balance sheet is the standout (score 85): interest-bearing debt of just NT$1.06bn against NT$38.4bn of equity (D/E 0.03), equity funding ~46% of assets, and a stable 14.7% ROE. The income statement (70) shows a return to growth with revenue up 2.9% to NT$82.1bn and net income up ~6% to NT$5.66bn, supported by six straight years of gross margin expansion (11.7% to 15.4%), though revenue and profit remain below the 2022 peak and net margins near 7% are thin. Cash flow is the weak link (62): operating cash flow of NT$5.93bn still covers net income at 1.05x, but free cash flow fell ~36% to NT$2.22bn on heavier capex, with free cash conversion of only ~37% — the weakest in six years.

Income Statement

70Positive

Balance Sheet

85Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	83.53B	82.15B	80.03B	84.81B	95.62B	95.57B
Gross Profit	13.96B	12.69B	11.34B	11.67B	15.33B	13.62B
EBITDA	12.27B	11.84B	10.71B	10.87B	14.20B	12.12B
Net Income	6.12B	5.66B	5.34B	5.67B	7.24B	6.38B
Balance Sheet
Total Assets	83.86B	83.50B	78.34B	76.47B	74.97B	74.94B
Cash, Cash Equivalents and Short-Term Investments	36.46B	34.86B	34.00B	31.20B	31.01B	26.00B
Total Debt	537.62M	1.06B	590.19M	1.95B	2.80B	1.08B
Total Liabilities	36.14B	37.50B	34.91B	36.48B	36.04B	37.17B
Stockholders Equity	39.70B	38.39B	36.76B	34.14B	33.17B	33.09B
Cash Flow
Free Cash Flow	1.33B	2.22B	4.02B	5.99B	9.95B	3.51B
Operating Cash Flow	3.96B	5.93B	6.34B	9.56B	12.37B	5.48B
Investing Cash Flow	-600.44M	-4.26B	4.64B	-10.50B	3.17B	-6.77B
Financing Cash Flow	-3.50B	-3.47B	-5.90B	-6.75B	-3.74B	886.98M

Simplo Technology Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6121 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6781	71Outperform	TWD 66.71B	18.56	―	2.45%	38.27%	23.92%
TW:6409	67Neutral	TWD 69.16B	30.71	―	4.67%	-12.61%	-50.11%
TW:6121	66Neutral	TWD 58.27B	9.37	―	6.92%	2.55%	12.47%
TW:2385	64Neutral	TWD 63.95B	9.80	―	8.20%	-8.44%	-23.86%
TW:3211	61Neutral	TWD 40.49B	31.09	―	4.40%	19.05%	10.35%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2352	44Neutral	TWD 47.26B	30.20	―	10.69%	1.60%	19.60%

* General Sector Average

Performance Comparison

TW:6121 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6121	Simplo Technology Co. Ltd.	315.00	-18.20	-5.46%
TW:2352	Qisda Corporation	29.90	2.00	7.17%
TW:2385	Chicony Electronics Co. Ltd.	87.80	-31.77	-26.57%
TW:3211	Dynapack International Technology Corporation	260.50	-11.63	-4.27%
TW:6409	Voltronic Power Technology Corp.	787.00	-330.26	-29.56%
TW:6781	Advanced Energy Solution Holding Co., Ltd.	781.00	-546.87	-41.18%

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

Simplo Technology Co. Ltd. AI Stock Analysis