GrandTech C.G. Systems, Inc. (6123) AI Stock Analysis

GrandTech C.G. Systems, Inc.

(TPEx:6123)

Select Model

Rating:53.5Neutral

Price Target:TWD 41.00▲(0.86% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score is constrained by a significant conflict between fundamentals and market sentiment. The primary weakness is the technical picture, which shows a stock in a strong downtrend with deeply oversold conditions. This is compounded by a deteriorating income statement marked by shrinking margins and revenue. These negative factors are partially offset by the company's robust cash flow generation and an attractive valuation featuring a low P/E and a high dividend yield, which provide a floor of fundamental support.

Positive Factors

Strong Cash GenerationThe sharp improvement in operating and free cash flow strengthens the company’s ability to fund operations, support distributions, and reduce reliance on external financing. Close alignment between free cash flow and net income also indicates that recent reported earnings were largely converted into cash.

Negative Factors

Revenue ContractionThe downward revenue trend indicates weakening demand, volume, or pricing across the company’s business. Continued contraction would limit operating leverage, make fixed costs harder to absorb, and reduce the growth base from which future earnings and cash generation must be developed.

GrandTech C.G. Systems, Inc. (6123) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.46B
Dividend Yield: 8.86%
Average Volume (3M): 33.80K
Price to Earnings (P/E): 12.5
Beta (1Y): 0.27
Revenue Growth: -7.12%
EPS Growth: 11.08%
Country: TW
Employees: 306
Sector: General
Sector Strength: 55
Industry: Technology Distributors

GrandTech C.G. Systems, Inc. Business Overview & Revenue Model

Company Description

GrandTech C.G. Systems Inc. functions as a key distributor specializing in a broad array of professional software, including applications for graphics, imaging, multimedia design, and both 2D and 3D development. The company also provides advanced dig...

GrandTech C.G. Systems, Inc. Financial Statement Overview

Summary

Financial performance is mixed. Cash flow is a major strength, with excellent conversion and a 49% surge in free cash flow. However, the income statement shows a clear downward trend in revenue (-3.4%) and significant margin compression, with net margin nearly halving since 2021. The balance sheet is stable but shows declining returns on equity. The strong cash generation is offset by fundamental profitability concerns.

Income Statement

35Negative

Balance Sheet

55Neutral

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.84B	5.06B	5.54B	5.21B	5.29B	4.94B
Gross Profit	656.63M	703.69M	809.84M	827.39M	878.83M	854.97M
EBITDA	269.75M	305.17M	444.18M	474.20M	530.98M	480.36M
Net Income	201.59M	168.27M	226.43M	245.09M	320.20M	279.94M
Balance Sheet
Total Assets	4.22B	3.88B	3.75B	3.24B	3.21B	2.77B
Cash, Cash Equivalents and Short-Term Investments	2.40B	2.27B	1.74B	1.52B	1.46B	1.35B
Total Debt	1.03B	1.00B	986.47M	772.95M	627.82M	717.78M
Total Liabilities	2.00B	1.66B	1.79B	1.56B	1.43B	1.45B
Stockholders Equity	1.58B	1.59B	1.57B	1.38B	1.44B	1.04B
Cash Flow
Free Cash Flow	536.30M	500.36M	112.16M	325.23M	213.16M	619.69M
Operating Cash Flow	538.86M	503.65M	114.89M	336.62M	222.76M	636.02M
Investing Cash Flow	119.93M	416.00M	-13.76M	-56.09M	-29.41M	-37.05M
Financing Cash Flow	-351.55M	-344.74M	2.06M	-254.87M	-162.27M	-185.29M

GrandTech C.G. Systems, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6123 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2471	80Outperform	TWD 3.36B	14.72	―	4.66%	8.34%	55.01%
TW:3158	77Outperform	TWD 2.56B	10.96	―	7.78%	―	―
TW:3570	73Outperform	TWD 3.50B	13.24	―	4.74%	5.84%	6.04%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6123	54Neutral	TWD 2.47B	12.51	―	8.86%	-7.12%	11.08%
TW:3047	41Neutral	TWD 3.10B	-15.27	―	2.15%	-32.95%	-101.63%
TW:6142	41Neutral	TWD 2.44B	-26.50	―	―	2.09%	-22.45%

* General Sector Average

Performance Comparison

TW:6123 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6123	GrandTech C.G. Systems, Inc.	40.65	-6.49	-13.77%
TW:2471	Ares International Corp.	71.10	25.27	55.13%
TW:3047	Edimax Technology Co., Ltd.	13.90	-3.15	-18.48%
TW:3158	SysJust Co., Ltd.	83.50	-10.43	-11.11%
TW:3570	Otsuka Information Technology Corp.	204.50	46.23	29.21%
TW:6142	Cameo Communications, Inc.	8.03	-2.18	-21.35%

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 10, 2026

GrandTech C.G. Systems, Inc. AI Stock Analysis