Taisun Enterprise Co., Ltd. (1218) AI Stock Analysis

Taisun Enterprise Co., Ltd.

(TWSE:1218)

Select Model

Rating:49Neutral

Price Target:TWD 12.50▼(-2.34% Downside)

Action:initiatedcoverage

Date:11/09/26

Taisun scores below average overall. The dominant drag is cash generation: operating and free cash flow turned negative again in the latest year and have been negative in four of the past six, while declining revenue, a sharp fall in operating margin and reliance on non-operating gains point to low earnings quality. Technicals reinforce the caution, with the price below all major moving averages and a negative MACD, though the extremely low RSI and Stochastic readings suggest selling has become stretched. Supporting the score are an essentially debt-free balance sheet with equity funding ~89% of assets, improved gross margins off the 2023 trough, and a ~10.4% dividend yield — attractive, but its durability is questionable given the negative P/E and weak cash conversion. A rebound in sales and a return to positive operating cash flow would be the key catalysts for a higher score.

Positive Factors

Very Low LeverageExtremely low leverage gives Taisun substantial financial flexibility and resilience through weaker operating periods. A predominantly equity-funded balance sheet can reduce financing pressure, preserve capacity for investment, and help the company withstand earnings volatility without excessive debt-servicing demands.

Negative Factors

Sustained Revenue DeclineThe accelerating revenue contraction is a fundamental headwind because it can reduce operating scale, weaken bargaining leverage, and make fixed costs harder to absorb. Unless sales stabilize, continued top-line erosion could pressure margins and limit the resources available for product and channel investment.

Taisun Enterprise Co., Ltd. (1218) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.30B
Dividend Yield: 10.31%
Average Volume (3M): 1.02M
Price to Earnings (P/E): -18.6
Beta (1Y): 0.24
Revenue Growth: -11.07%
EPS Growth: -237.67%
Country: TW
Employees: 1,790
Sector: General
Sector Strength: 55
Industry: Packaged Foods

Taisun Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Taisun Enterprise Co., Ltd., a company founded in 1950 and based in Taipei City, Taiwan, is a significant entity within the food and beverage sector. The company offers a comprehensive range of edible oils and soy-based ingredients, including various...

Taisun Enterprise Co., Ltd. Financial Statement Overview

Summary

A fortress balance sheet (score 85) is offset by weak cash generation (score 27) and a soft income statement (score 54). Debt-to-equity near 1.2% and equity funding ~89% of assets give Taisun exceptional financial flexibility, but revenue has fallen for two straight years to roughly NT$10.1bn, operating margin dropped to ~4.2% from 7.8%, and reported net profit of ~NT$773m exceeds operating profit, indicating earnings are heavily reliant on non-operating items. Operating cash flow swung back to roughly -NT$51m with free cash flow near -NT$156m, negative in four of the last six years, underscoring poor profit-to-cash conversion. Gross margin recovery to ~17.1% and an ROE of only ~6% leave the overall profile safe but operationally challenged.

Income Statement

54Neutral

Balance Sheet

85Very Positive

Cash Flow

27Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	10.22B	10.11B	10.68B	11.23B	11.07B	9.94B
Gross Profit	1.67B	1.73B	1.89B	1.55B	1.45B	1.54B
EBITDA	491.92M	579.66M	979.71M	288.03M	6.34B	407.66M
Net Income	-330.79M	772.86M	742.41M	-80.87M	5.92B	591.83M
Balance Sheet
Total Assets	14.34B	14.52B	14.64B	13.68B	16.65B	10.64B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.22B	3.20B	1.93B	8.61B	1.77B
Total Debt	155.13M	161.92M	240.11M	7.51M	1.71B	2.09B
Total Liabilities	2.81B	1.55B	1.83B	1.60B	4.09B	3.65B
Stockholders Equity	11.52B	12.97B	12.81B	12.08B	12.56B	6.99B
Cash Flow
Free Cash Flow	297.91M	-156.49M	1.15B	-1.04B	-576.80M	-522.57M
Operating Cash Flow	375.32M	-51.27M	1.22B	-929.92M	-430.90M	-273.55M
Investing Cash Flow	72.29M	-1.30B	-314.69M	-3.76B	8.13B	530.35M
Financing Cash Flow	-678.27M	-697.24M	12.98M	-2.00B	-866.03M	635.93M

Taisun Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1218 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4205	73Outperform	TWD 6.27B	15.44	―	5.43%	0.29%	-7.81%
TW:1737	67Neutral	TWD 5.98B	15.74	―	4.71%	-2.24%	12.99%
TW:1256	63Neutral	TWD 5.90B	8.98	―	3.93%	38.21%	95.98%
TW:1225	58Neutral	TWD 6.06B	126.50	―	0.50%	-4.19%	-84.08%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1201	50Neutral	TWD 6.22B	26.90	―	1.72%	-4.41%	-18.82%
TW:1218	49Neutral	TWD 6.15B	-18.55	―	10.31%	-11.07%	-237.67%

* General Sector Average

Performance Comparison

TW:1218 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1218	Taisun Enterprise Co., Ltd.	12.80	-4.38	-25.50%
TW:1201	Wei Chuan Foods Corp.	12.20	-2.60	-17.57%
TW:1225	Formosa Oilseed Processing Co., Ltd.	25.30	-5.75	-18.52%
TW:1256	Sunjuice Holdings Co., Ltd.	168.00	24.90	17.40%
TW:1737	Taiyen Biotech Co. Ltd.	29.75	-0.73	-2.39%
TW:4205	Chung Hwa Food Industrial Co., Ltd.	64.50	-16.90	-20.76%

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

Taisun Enterprise Co., Ltd. AI Stock Analysis