Depo Auto Parts Industrial Co. Ltd. (6605) AI Stock Analysis

Depo Auto Parts Industrial Co. Ltd.

(TWSE:6605)

Select Model

Rating:70Outperform

Price Target:TWD 141.00▲(9.30% Upside)

Action:initiatedcoverage

Date:11/09/26

Depo Auto Parts scores 70, anchored by a strong, deleveraged balance sheet and genuinely cash-backed earnings, paired with an attractive 7.9x P/E and a 5.1% dividend yield. Offsetting these strengths are two clear concerns: fundamentals have cooled, with 2025 marking the first revenue decline in four years, broad margin compression, a 26% drop in net income and a second consecutive year of falling free cash flow; and the technical setup is negative, with the price below all major moving averages and a bearish MACD. The result is a financially low-risk, value-priced stock whose near-term direction hinges on stabilising margins and reversing the current downtrend.

Positive Factors

Improving Balance SheetThe substantial reduction in debt relative to equity has strengthened Depo Auto Parts’ capital structure and increased financial flexibility. Lower leverage should reduce balance-sheet pressure, improve resilience through the cycle, and preserve capacity to support operations or investment over the next several quarters.

Negative Factors

Profitability SlowdownThe latest results show that growth and profitability have cooled materially from 2024 levels. Revenue contraction combined with lower operating and net margins could reduce earnings momentum, limit internal funding for expansion, and make sustained profit growth less dependable over the next several quarters.

Depo Auto Parts Industrial Co. Ltd. (6605) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 22.14B
Dividend Yield: 5.04%
Average Volume (3M): 317.07K
Price to Earnings (P/E): 8.3
Beta (1Y): 0.47
Revenue Growth: 0.52%
EPS Growth: 23.32%
Country: TW
Employees: 3,397
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Depo Auto Parts Industrial Co. Ltd. Business Overview & Revenue Model

Company Description

Depo Auto Parts Industrial Co., Ltd. is a global supplier and producer of automotive illumination components. Established in 1977 and headquartered in Taipei, Taiwan, the company initially operated under the name Ming Yang Corp. It officially adopted...

Depo Auto Parts Industrial Co. Ltd. Financial Statement Overview

Summary

Depo Auto Parts rests on a defensive financial foundation. The balance sheet is the standout (score 81): debt cut from NT$13.6bn in 2022 to NT$6.0bn in 2025, debt-to-equity down to a conservative 0.30, and equity funding roughly 61% of a NT$32.8bn asset base. Cash flow remains solid (score 72) with positive free cash flow every year and operating cash flow covering net income about 1.8 times, signalling high-quality earnings. The income statement is the weak link (score 70): 2025 brought the first revenue decline in four years to NT$19.4bn, gross margin compression to 30.3%, operating margin down to 16.7%, and net income falling roughly 26% to NT$2.32bn. Free cash flow has now fallen for two straight years and ROE eased to 11.7% from 16.5%. Low financial risk, but cooling growth and profitability momentum.

Income Statement

70Positive

Balance Sheet

81Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.09B	19.41B	20.16B	18.55B	17.17B	16.13B
Gross Profit	5.56B	5.89B	6.87B	5.89B	5.09B	4.43B
EBITDA	5.35B	5.41B	6.82B	6.15B	5.29B	4.37B
Net Income	2.69B	2.32B	3.15B	2.37B	1.80B	1.14B
Balance Sheet
Total Assets	33.82B	32.84B	32.98B	31.89B	34.78B	31.41B
Cash, Cash Equivalents and Short-Term Investments	4.20B	3.94B	4.21B	4.02B	6.11B	3.06B
Total Debt	5.18B	6.01B	7.31B	8.71B	13.56B	12.34B
Total Liabilities	13.21B	12.43B	13.38B	14.40B	18.82B	16.79B
Stockholders Equity	20.09B	19.90B	19.08B	17.01B	15.46B	14.14B
Cash Flow
Free Cash Flow	2.37B	2.53B	3.10B	3.43B	2.04B	1.72B
Operating Cash Flow	4.30B	4.28B	4.99B	5.00B	4.22B	3.59B
Investing Cash Flow	-2.59B	-1.90B	-1.95B	-736.97M	-1.94B	-1.75B
Financing Cash Flow	-1.82B	-2.63B	-3.04B	-6.95B	449.88M	-768.98M

Depo Auto Parts Industrial Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6605 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5007	73Outperform	TWD 16.46B	15.69	―	5.38%	0.29%	31.68%
TW:6605	70Outperform	TWD 21.39B	8.33	―	5.04%	0.52%	23.32%
TW:2247	59Neutral	TWD 17.31B	15.46	―	6.76%	-17.17%	-31.53%
TW:3703	56Neutral	TWD 19.72B	12.12	―	4.38%	17.98%	267.52%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2101	50Neutral	TWD 20.27B	4.93	―	4.70%	10.34%	107.24%
TW:2392	45Neutral	TWD 16.68B	4.42	―	2.91%	-10.50%	1834.43%

* General Sector Average

Performance Comparison

TW:6605 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6605	Depo Auto Parts Industrial Co. Ltd.	129.00	-4.68	-3.50%
TW:2101	Nankang Rubber Tire Corp., Ltd.	27.65	-6.89	-19.96%
TW:2247	Pan German Universal Motors Ltd.	214.50	-55.65	-20.60%
TW:2392	Cheng Uei Precision Industry Co., Ltd.	34.40	-10.16	-22.80%
TW:3703	Continental Holdings Corp.	23.95	2.93	13.95%
TW:5007	San Shing Fastech Corp.	55.80	7.24	14.91%

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

Depo Auto Parts Industrial Co. Ltd. AI Stock Analysis