San Fang Chemical Industry Co., Ltd. (1307) AI Stock Analysis

San Fang Chemical Industry Co., Ltd.

(TWSE:1307)

Select Model

Rating:64Neutral

Price Target:TWD 32.00▲(12.68% Upside)

Action:initiatedcoverage

Date:11/10/26

The stock's attractive valuation and high dividend yield are its primary strengths, offering a margin of safety. However, significant headwinds exist: the technical trend is firmly bearish, and the company's financial performance is marred by deteriorating cash flow despite strong reported profits. The low P/E ratio may be a value trap if cash conversion does not improve.

Positive Factors

Improved ProfitabilityThe substantial improvement in gross margin versus 2022 indicates stronger underlying profitability and better economics in the company’s operations. Although net margin declined year over year, a 10.5% level still provides earnings capacity to support reinvestment and resilience.

Negative Factors

Recent Revenue DeclineThe return to revenue contraction indicates that recent business momentum has weakened, even though the company remains profitable. If the decline persists, lower operating scale could limit margin leverage, reduce reinvestment capacity, and make future earnings growth more difficult to sustain.

San Fang Chemical Industry Co., Ltd. (1307) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 11.40B
Dividend Yield: 7.75%
Average Volume (3M): 560.83K
Price to Earnings (P/E): 9.9
Beta (1Y): 0.49
Revenue Growth: 4.29%
EPS Growth: -2.73%
Country: TW
Employees: 5,309
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

San Fang Chemical Industry Co., Ltd. Business Overview & Revenue Model

Company Description

San Fang Chemical Industry Co., Ltd. manufactures and sells artificial leather, synthetic resin, and other materials in Taiwan, China, Hong Kong, Southeast Asia, and internationally. The company provides polyurethane synthetic leathers; full grain an...

San Fang Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Strong profitability recovery with expanding margins and a healthy balance sheet, offset by declining revenue and weakening cash conversion. The income statement and balance sheet are solid, but the cash flow trend is a significant concern.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.07B	10.81B	10.78B	10.09B	10.76B	8.38B
Gross Profit	3.44B	3.42B	3.30B	2.53B	1.73B	1.47B
EBITDA	2.22B	2.04B	2.51B	1.73B	1.38B	950.26M
Net Income	1.33B	1.13B	1.48B	760.27M	470.11M	115.93M
Balance Sheet
Total Assets	18.69B	17.41B	17.37B	15.63B	15.40B	14.74B
Cash, Cash Equivalents and Short-Term Investments	5.50B	5.61B	6.00B	5.99B	5.26B	4.32B
Total Debt	4.47B	4.31B	3.92B	3.99B	4.40B	4.58B
Total Liabilities	8.73B	7.34B	7.07B	6.69B	6.92B	7.09B
Stockholders Equity	9.96B	10.07B	10.29B	8.94B	8.48B	7.65B
Cash Flow
Free Cash Flow	-6.86M	711.90M	1.39B	1.48B	1.02B	-765.13M
Operating Cash Flow	840.76M	1.53B	2.34B	2.15B	1.58B	-485.11M
Investing Cash Flow	-832.44M	-833.80M	-3.01B	-1.46B	-426.19M	-631.57M
Financing Cash Flow	-533.82M	-682.97M	-671.99M	-738.44M	-389.19M	-316.41M

San Fang Chemical Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1307 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1726	72Outperform	TWD 12.30B	12.43	―	4.89%	1.61%	6.16%
TW:1307	64Neutral	TWD 11.28B	9.86	―	7.75%	4.29%	-2.73%
TW:2108	64Neutral	TWD 13.25B	14.00	―	3.76%	12.61%	105.71%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1304	46Neutral	TWD 12.22B	-6.17	―	1.32%	-9.36%	30.01%
TW:1718	42Neutral	TWD 12.80B	15.88	―	―	-0.61%	―
TW:4722	42Neutral	TWD 14.63B	44.39	―	0.88%	5.35%	71.97%

* General Sector Average

Performance Comparison

TW:1307 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1307	San Fang Chemical Industry Co., Ltd.	28.40	-3.23	-10.21%
TW:1304	USI Corporation	11.35	0.18	1.58%
TW:1718	China Man-Made Fiber Corporation	9.37	2.28	32.16%
TW:1726	Yung Chi Paint & Varnish Mfg Co., Ltd.	75.70	3.97	5.53%
TW:2108	NANTEX INDUSTRY CO LTD	26.60	4.22	18.86%
TW:4722	Qualipoly Chemical Corp.	134.50	-26.38	-16.40%

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

San Fang Chemical Industry Co., Ltd. AI Stock Analysis