SynPower Co., Ltd. (6658) AI Stock Analysis

SynPower Co., Ltd.

(TWSE:6658)

Select Model

Rating:42Neutral

Price Target:TWD 139.00▼(-20.80% Downside)

Action:initiatedcoverage

Date:11/09/26

SynPower scores in the lower range primarily because of weak cash generation — operating cash flow nearly vanished this year and free cash flow has been negative in five of six years while debt has doubled since 2022. Revenue growth and a tripling of operating profit are encouraging, but net margins near 2% and a 3.8% return on equity leave little cushion. Technicals compound the caution, with the price trading far below its 20-, 50- and 100-day averages and a negative MACD signaling a firm downtrend, although deeply oversold RSI and stochastic readings hint at potential short-term stabilization. Valuation offers no support either, as a 35.8x P/E and a slim 0.83% dividend yield are difficult to justify until margins and free cash flow improve.

Positive Factors

Stable Gross MarginA relatively stable gross margin indicates the company has preserved underlying economics despite revenue volatility and weaker overall profitability. This provides a degree of resilience for future growth, although operating and net margins will need to recover for that stability to translate into stronger returns.

Negative Factors

Persistent Negative Free Cash FlowMulti-year negative free cash flow shows that the company has not consistently self-funded its investment needs. Large recent deficits can increase reliance on financing, constrain strategic flexibility, and make the business more vulnerable if operating cash generation does not improve over the next several quarters.

SynPower Co., Ltd. (6658) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.48B
Dividend Yield: 0.68%
Average Volume (3M): 513.06K
Price to Earnings (P/E): 42.5
Beta (1Y): 1.36
Revenue Growth: 16.57%
EPS Growth: 334.70%
Country: TW
Employees: 117
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

SynPower Co., Ltd. Business Overview & Revenue Model

Company Description

SynPower Co., Ltd. is a Taiwanese enterprise specializing in the development and distribution of machinery and critical materials for the printed circuit board (PCB), photonics, and semiconductor sectors. Its comprehensive product portfolio encompass...

SynPower Co., Ltd. Financial Statement Overview

Summary

Revenue has scaled meaningfully (NT$1.25bn in 2020 to roughly NT$2.08bn), and operating profit nearly tripled year over year, but profitability remains thin with a 22.5% gross margin, 4.5% operating margin and just 2.4% net margin — well below the 7.4% net margin of 2022. The balance sheet is adequately capitalized with equity growing to about NT$1.31bn (42% of assets), yet debt has doubled since 2022 to roughly NT$918m, lifting debt-to-equity to 0.70, while return on equity is only 3.8%. Cash flow is the weakest link: operating cash flow collapsed to about NT$8m from NT$152m, and free cash flow was negative at roughly NT$131m — negative in five of the last six years — indicating profits are being absorbed by working capital and heavy capex, forcing reliance on external funding.

Income Statement

51Neutral

Balance Sheet

55Neutral

Cash Flow

24Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	2.20B	2.08B	1.59B	1.28B	1.60B	1.37B
Gross Profit	505.59M	468.57M	364.49M	306.93M	405.04M	319.30M
EBITDA	203.58M	122.14M	70.67M	83.94M	216.42M	85.22M
Net Income	149.95M	49.63M	35.97M	30.09M	119.22M	21.67M
Balance Sheet
Total Assets	3.53B	3.16B	2.85B	2.15B	2.13B	2.04B
Cash, Cash Equivalents and Short-Term Investments	879.13M	767.84M	699.13M	600.91M	655.51M	772.40M
Total Debt	1.04B	918.37M	847.00M	463.56M	449.74M	455.06M
Total Liabilities	2.06B	1.76B	1.57B	1.02B	1.09B	1.06B
Stockholders Equity	1.43B	1.31B	1.18B	1.04B	946.13M	897.02M
Cash Flow
Free Cash Flow	-116.83M	-131.28M	-185.39M	-106.40M	-262.07M	-46.87M
Operating Cash Flow	64.07M	8.39M	151.74M	2.37M	15.32M	214.78M
Investing Cash Flow	-251.64M	-133.88M	-361.95M	-95.10M	-64.50M	-202.87M
Financing Cash Flow	156.53M	222.31M	325.56M	23.77M	-57.41M	15.37M

SynPower Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6658 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5209	76Outperform	TWD 5.67B	11.38	―	5.94%	4.58%	32.53%
TW:3577	68Neutral	TWD 5.37B	16.44	―	2.38%	32.35%	164.06%
TW:6953	64Neutral	TWD 6.27B	19.42	―	2.87%	23.38%	39.41%
TW:6862	58Neutral	TWD 5.85B	17.95	―	4.20%	-21.21%	-20.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6215	51Neutral	TWD 6.49B	20.70	―	1.26%	48.31%	106.93%
TW:6658	42Neutral	TWD 6.68B	42.49	―	0.68%	16.57%	334.70%

* General Sector Average

Performance Comparison

TW:6658 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6658	SynPower Co., Ltd.	175.50	124.43	243.64%
TW:3577	ICP Das Co., Ltd.	84.00	23.92	39.82%
TW:5209	CTCI Advanced Systems Inc.	218.00	59.87	37.86%
TW:6215	Aurotek Corporation	79.40	-30.05	-27.45%
TW:6862	Trio Technology International Group Co., Ltd.	119.00	-52.97	-30.80%
TW:6953	Gudeng Equipment Co., Ltd.	209.00	27.42	15.10%

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

SynPower Co., Ltd. AI Stock Analysis