Sun Max Tech Limited (6591) AI Stock Analysis

Sun Max Tech Limited

(TWSE:6591)

Select Model

Rating:63Neutral

Price Target:TWD 38.00▲(9.51% Upside)

Action:initiatedcoverage

Date:11/09/26

Sun Max Tech scores in the moderate range. The strongest support comes from solid fundamentals and cheap valuation: 2025 delivered a 39% revenue rebound, multi-year-high margins, a 75% profit increase, and a conservatively financed balance sheet, all available at a P/E of about 11 with an 11% dividend yield. Offsetting this are two meaningful risks. First, the technical picture is firmly bearish, with the price well below every major moving average and negative MACD, though oversold RSI and Stochastic readings suggest the selling may be stretched. Second, cash generation is thin, with free cash flow covering only about 11% of net income after heavy capital spending, which raises questions about the sustainability of the large dividend. The result is a fundamentally sound, attractively priced company whose share price momentum and cash conversion both need to improve before the recovery can be considered firmly established.

Positive Factors

Healthy ProfitabilityStrong 2025 gross, operating, and net margins indicate that Sun Max Tech retains meaningful profitability across its operations. This provides internal funding capacity and a buffer against moderate cost or demand pressure, although maintaining these levels will depend on stabilizing the company’s historically inconsistent performance.

Negative Factors

Weak Cash ConversionOperating cash flow converting less than half of net income signals that accounting profitability is not consistently translating into usable cash. Persistently weak conversion could constrain dividends, investment, and debt reduction, while making earnings more vulnerable to working-capital movements or other cash requirements.

Sun Max Tech Limited (6591) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.43B
Dividend Yield: 11.53%
Average Volume (3M): 116.78K
Price to Earnings (P/E): 10.5
Beta (1Y): 0.89
Revenue Growth: -11.78%
EPS Growth: -30.58%
Country: TW
Employees: 1,534
Sector: General
Sector Strength: 55
Industry: Computer Hardware

Sun Max Tech Limited Business Overview & Revenue Model

Company Description

Sun Max Tech Limited, an investment holding enterprise, primarily focuses on the production, wholesale distribution, and retail sales of cooling fans. Its commercial operations extend across China, Taiwan, and various international markets. The compa...

Sun Max Tech Limited Financial Statement Overview

Summary

Fiscal 2025 was a clear turnaround: revenue rose about 39% to NT$1.75 billion after three down years, gross margin expanded to 33.7% from 26.5%, and net income jumped roughly 75% to NT$209.8 million (Income Statement 74). The balance sheet is conservative, with equity funding about 64% of assets and debt-to-equity of just 0.30, though borrowings have nearly doubled since 2023 and ROE of 9.3% remains below prior-cycle levels (Balance Sheet 73). Cash flow is the weak link (52): operating cash flow fell to NT$242 million despite higher profits, and heavy capital spending left free cash flow at only NT$26.6 million, with three of the last six years showing cash burn. Overall, a lightly levered, improving business whose cash conversion and revenue consistency still need to prove out.

Income Statement

74Positive

Balance Sheet

73Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.37B	1.75B	1.26B	1.38B	1.66B	1.84B
Gross Profit	371.92M	590.37M	334.44M	390.97M	515.51M	569.49M
EBITDA	253.53M	413.43M	259.58M	270.31M	425.15M	398.69M
Net Income	131.80M	209.78M	119.54M	118.52M	226.01M	218.75M
Balance Sheet
Total Assets	3.39B	3.52B	3.00B	2.62B	2.94B	2.52B
Cash, Cash Equivalents and Short-Term Investments	1.01B	1.09B	748.07M	628.42M	916.88M	366.69M
Total Debt	653.37M	679.97M	553.66M	365.78M	630.88M	248.31M
Total Liabilities	1.23B	1.27B	1.06B	865.42M	1.21B	994.23M
Stockholders Equity	2.16B	2.24B	1.93B	1.75B	1.73B	1.51B
Cash Flow
Free Cash Flow	-27.68M	26.61M	-90.59M	37.72M	166.30M	-88.86M
Operating Cash Flow	348.07M	242.02M	286.26M	112.18M	547.24M	1.45M
Investing Cash Flow	-333.49M	-136.29M	-333.32M	-43.13M	-346.99M	-80.48M
Financing Cash Flow	251.53M	229.79M	128.23M	-345.82M	331.92M	-61.79M

Sun Max Tech Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6591 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6591	63Neutral	TWD 1.45B	10.54	―	11.53%	-11.78%	-30.58%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6570	47Neutral	TWD 1.60B	17.13	―	2.56%	14.53%	96.60%
TW:3540	45Neutral	TWD 1.74B	48.02	―	1.23%	-1.69%	280.47%
TW:1587	39Underperform	TWD 1.60B	-180.45	―	2.51%	13.58%	-152.92%
TW:8093	38Underperform	TWD 1.46B	-9.35	―	―	10.42%	13.92%

* General Sector Average

Performance Comparison

TW:6591 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6591	Sun Max Tech Limited	34.70	-40.49	-53.85%
TW:1587	Cryomax Cooling System Corp.	19.85	-22.40	-53.02%
TW:3540	Thermaltake Technology Co., Ltd.	21.00	-9.23	-30.53%
TW:6570	Aplex Technology Inc.	43.00	4.19	10.78%
TW:7801	Asustor, Inc.	80.20	-22.87	-22.19%
TW:8093	Enermax Technology Corporation	25.50	-3.50	-12.07%

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

Sun Max Tech Limited AI Stock Analysis