Major Power Technology Co., Ltd. (6720) AI Stock Analysis

Major Power Technology Co., Ltd.

(TPEx:6720)

Select Model

Rating:64Neutral

Price Target:TWD 107.00▲(5.94% Upside)

Action:initiatedcoverage

Date:11/09/26

Major Power Technology scores in the moderate range. Its financial foundation is strong — an almost debt-free balance sheet, high gross and net margins, and consistent double-digit returns on equity — which anchors the score. However, the most recent year saw revenue, earnings, operating cash flow and free cash flow all decline, signalling a cyclical pause that limits upside conviction. Technicals are the main drag: the stock trades below all key moving averages with negative MACD, pointing to a sustained downtrend. A reasonable 19.1x P/E and an unusually generous 7.3% dividend yield provide valuation support and income cushion, though the payout's durability depends on an earnings recovery.

Positive Factors

Strong MarginsThe substantial expansion in gross margin and sustained high net margin indicate stronger profitability than earlier in the cycle. If maintained, this gives the company greater resilience against demand fluctuations and more internal capacity to fund operations, investment, and shareholder returns.

Negative Factors

Recent Revenue ContractionThe latest decline in revenue and operating profit signals weaker near-term business momentum and reduces confidence that the recent profitability level will persist unchanged. Continued contraction could pressure margins, limit operating leverage, and slow the company’s ability to compound earnings over coming quarters.

Major Power Technology Co., Ltd. (6720) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.06B
Dividend Yield: 7.23%
Average Volume (3M): 30.68K
Price to Earnings (P/E): 18.9
Beta (1Y): 0.51
Revenue Growth: -26.19%
EPS Growth: -21.51%
Country: TW
Employees: 46
Sector: General
Sector Strength: 55
Industry: Semiconductors

Major Power Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Major-Power Technology Co., Ltd., an enterprise specializing in the design of analog integrated circuits (ICs), delivers Hall sensor technology and a variety of analog power management components. Operating from its base in Hsinchu City, Taiwan, the...

Major Power Technology Co., Ltd. Financial Statement Overview

Summary

A near debt-free balance sheet is the standout strength: equity funds about 83% of assets, debt-to-equity sits at just 0.07 after sharp deleveraging, and ROE remains double-digit at 12.3%. Profitability quality is high, with gross margin near 56%, operating margin around 28% and net margin close to 27% — a dramatic structural improvement since 2020. Offsetting this, momentum has clearly cooled: revenue fell about 14% to NT$435.9m, net income dropped roughly 22%, operating cash flow declined around 62% and free cash flow fell about 29%, with weaker cash conversion. The company's history (negative operating profit and cash flow in 2022) underscores meaningful cyclicality, so the score reflects strong financial resilience tempered by a broad-based earnings and cash flow pullback.

Income Statement

73Positive

Balance Sheet

86Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	505.69M	435.85M	509.68M	360.92M	242.04M	362.40M
Gross Profit	258.30M	243.25M	288.76M	142.88M	52.35M	120.89M
EBITDA	140.79M	137.81M	197.84M	59.79M	23.16M	56.19M
Net Income	159.73M	116.52M	149.94M	43.33M	12.02M	47.80M
Balance Sheet
Total Assets	1.01B	1.14B	1.11B	500.99M	422.69M	444.90M
Cash, Cash Equivalents and Short-Term Investments	446.60M	694.50M	845.18M	257.48M	134.81M	173.91M
Total Debt	25.07M	62.94M	32.37M	108.28M	98.76M	79.95M
Total Liabilities	143.15M	193.63M	151.72M	171.39M	149.66M	161.81M
Stockholders Equity	863.17M	950.84M	959.81M	329.60M	273.04M	283.09M
Cash Flow
Free Cash Flow	-3.27M	70.79M	234.26M	32.14M	-17.52M	111.75M
Operating Cash Flow	9.47M	92.39M	243.23M	42.49M	-10.07M	122.32M
Investing Cash Flow	-83.96M	-128.20M	-63.59M	67.34M	-17.62M	-89.41M
Financing Cash Flow	-251.46M	-99.87M	370.14M	20.59M	-13.04M	-5.99M

Major Power Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6720 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3332	77Outperform	TWD 2.88B	15.19	―	3.34%	16.93%	34.17%
TW:3484	64Neutral	TWD 3.26B	11.90	―	6.05%	-3.70%	-19.49%
TW:3628	64Neutral	TWD 2.95B	21.21	―	4.96%	4.21%	-24.56%
TW:6720	64Neutral	TWD 3.05B	18.95	―	7.23%	-26.19%	-21.51%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2483	40Underperform	TWD 3.61B	135.97	―	0.90%	8.09%	-67.97%

* General Sector Average

Performance Comparison

TW:6720 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6720	Major Power Technology Co., Ltd.	101.00	-24.90	-19.78%
TW:2483	Excel Cell Electronic Co., Ltd.	33.45	13.73	69.66%
TW:3332	Cincon Electronics Co., Ltd.	59.80	-2.68	-4.29%
TW:3484	Solteam Incorporation	41.35	-5.30	-11.35%
TW:3628	Ablerex Electronics Co., Ltd.	65.50	-11.52	-14.96%
TW:7921	Recharge Power Co., Ltd.	76.20	-70.14	-47.93%

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

Major Power Technology Co., Ltd. AI Stock Analysis