Taiwan Styrene Monomer Corporation (1310) AI Stock Analysis

Taiwan Styrene Monomer Corporation

(TWSE:1310)

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Rating:39Underperform

Price Target:TWD 7.50▼(-8.87% Downside)

Action:initiatedcoverage

Date:11/09/26

Taiwan Styrene Monomer scores poorly, driven primarily by deteriorating financial performance: four straight years of negative gross margins, a near-doubling of the net loss to -NT$725M, shrinking revenue, and a sixth consecutive year of negative free cash flow. Technicals compound the concern, with the share price below all major moving averages and negative MACD momentum, although deeply oversold RSI and stochastic readings hint at potential for a short-term bounce. Valuation provides no cushion given negative earnings and the absence of a dividend. The key mitigating factor is a conservatively financed balance sheet - debt-to-equity of just 0.20 and NT$7.4B of intact equity - which buys time for a recovery in petrochemical spreads, alongside a meaningful narrowing of cash burn. Until gross margins turn positive, however, the risk profile remains elevated.

Positive Factors

Low financial leverageThe company’s modest leverage provides financial flexibility through petrochemical downturns and reduces pressure from debt servicing. A conservative capital structure can help preserve operating capacity, support continued investment, and give management more time to restore profitability without relying heavily on new borrowing.

Negative Factors

Persistent unprofitabilitySeveral consecutive years of negative gross, operating, and net profit show that current pricing and cost conditions are not covering the company’s operating base. Persistent losses weaken retained capital, reduce earnings resilience, and make a near-term recovery in shareholder returns dependent on a meaningful improvement in the business cycle.

Taiwan Styrene Monomer Corporation (1310) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.28B
Dividend Yield: ―
Average Volume (3M): 3.69M
Price to Earnings (P/E): -4.6
Beta (1Y): 0.40
Revenue Growth: -22.92%
EPS Growth: -31.12%
Country: TW
Employees: 2,291
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Taiwan Styrene Monomer Corporation Business Overview & Revenue Model

Company Description

Taiwan Styrene Monomer Corporation, through its various subsidiaries, is a key player in the global manufacturing and supply of essential chemical substances. The company's product portfolio encompasses styrene monomer, para-diethyl benzene, toluene,...

Taiwan Styrene Monomer Corporation Financial Statement Overview

Summary

Financials are weak overall. The income statement is the core problem: revenue fell to NT$8.67B from NT$11.42B, gross profit has been negative for four consecutive years (-NT$553M, roughly -6.4% margin), and the net loss nearly doubled to -NT$725M, indicating product is being sold below cost. Cash flow remains negative for a sixth straight year (operating -NT$37.8M, free cash flow -NT$53.4M), though the burn narrowed sharply from the prior year and capex has been cut to a minimal NT$16M, which raises asset-renewal questions. The balance sheet is the clear offset and the reason the company can absorb losses: equity of NT$7.40B funds roughly three-quarters of the NT$9.96B asset base, and debt-to-equity is a conservative 0.20. However, debt has grown eightfold since 2020 to NT$1.51B to fund operating shortfalls, and ROE has worsened to about -9.8%.

Income Statement

14Very Negative

Balance Sheet

65Positive

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.10B	8.67B	11.42B	9.54B	12.85B	11.71B
Gross Profit	-171.69M	-553.02M	-348.82M	-411.36M	-326.87M	132.91M
EBITDA	-61.62M	-452.93M	-183.89M	-271.17M	-92.76M	206.84M
Net Income	-951.21M	-724.62M	-380.85M	-462.18M	-373.90M	104.60M
Balance Sheet
Total Assets	8.03B	9.96B	10.02B	9.76B	8.91B	9.30B
Cash, Cash Equivalents and Short-Term Investments	1.65B	885.14M	795.37M	924.60M	1.03B	730.52M
Total Debt	356.55M	1.51B	1.36B	1.19B	895.92M	440.09M
Total Liabilities	1.63B	2.43B	2.50B	2.58B	2.19B	1.93B
Stockholders Equity	6.27B	7.40B	7.39B	6.93B	6.47B	7.16B
Cash Flow
Free Cash Flow	84.91M	-53.41M	-299.15M	-374.65M	-90.51M	-555.21M
Operating Cash Flow	96.03M	-37.82M	-275.32M	-274.13M	-8.88M	-365.10M
Investing Cash Flow	1.89B	-9.78M	52.48M	-68.57M	170.36M	-165.48M
Financing Cash Flow	-1.06B	156.15M	93.17M	182.38M	359.73M	-11.00M

Taiwan Styrene Monomer Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1310 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3303	58Neutral	TWD 4.62B	10.30	―	5.89%	14.20%	11.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8240	53Neutral	TWD 4.33B	22.56	―	2.85%	-11.48%	21.46%
TW:1309	46Neutral	TWD 4.53B	-6.08	―	1.27%	-21.95%	-118.18%
TW:3663	40Underperform	TWD 5.27B	142.13	―	0.82%	36.60%	147.36%
TW:1310	39Underperform	TWD 4.36B	-4.57	―	―	-22.92%	-31.12%

* General Sector Average

Performance Comparison

TW:1310 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1310	Taiwan Styrene Monomer Corporation	8.23	-0.92	-10.05%
TW:1309	Taita Chemical Co., Ltd.	11.80	0.52	4.57%
TW:3303	Univacco Technology Inc.	50.90	6.19	13.84%
TW:3633	Epoch Chemtronics Corp	126.50	51.36	68.35%
TW:3663	ThinTech Materials Technology Co., Ltd.	50.00	4.50	9.89%
TW:8240	Wah Hong Industrial Corp.	45.60	12.58	38.09%

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

Taiwan Styrene Monomer Corporation AI Stock Analysis