Sun Yad Construction Co., Ltd. (1316) AI Stock Analysis

Sun Yad Construction Co., Ltd.

(TWSE:1316)

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Rating:37Underperform

Price Target:TWD 8.50▼(-7.51% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is weighed down primarily by weak financial fundamentals: despite a strong revenue rebound and multi-year-high gross margins in 2025, Sun Yad remains loss-making, highly leveraged at about 1.9x debt-to-equity with equity at only ~17% of assets, and has never produced positive operating cash flow in the periods shown. Technicals reinforce the caution, with the share price below all major moving averages and negative MACD, though deeply oversold RSI and Stochastic readings hint at potential for a near-term relief bounce. Valuation provides no support, with a negative P/E driven by losses and no dividend. The low beta is a modest mitigating factor. Overall, this is a higher-risk, cyclical property developer in an externally funded expansion phase where improving operating momentum has yet to translate into profits or self-sustaining cash flow.

Positive Factors

Revenue RecoveryThe strong 2025 revenue rebound indicates renewed project activity and improved demand conversion after several uneven years. If sustained, higher volume can support better utilization of the company’s construction platform and provide a stronger base for future earnings improvement.

Negative Factors

Persistent Net LossesContinued net losses show that the recent revenue, margin, and EBIT improvements have not yet produced sustainable bottom-line profitability. Ongoing losses weaken retained earnings and reduce the company’s ability to fund expansion, absorb project volatility, or return capital to shareholders.

Sun Yad Construction Co., Ltd. (1316) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.34B
Dividend Yield: ―
Average Volume (3M): 2.56M
Price to Earnings (P/E): -29.6
Beta (1Y): 0.32
Revenue Growth: 156.96%
EPS Growth: 75.28%
Country: TW
Employees: 662
Sector: General
Sector Strength: 55
Industry: Real Estate - Services

Sun Yad Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Sun Yad Construction Co., Ltd. operates as a diversified enterprise with its core business revolving around the production and sale of polyurethane (PU) synthetic leather. These materials are primarily supplied to the footwear industry for men's and...

Sun Yad Construction Co., Ltd. Financial Statement Overview

Summary

Sun Yad shows genuine operational recovery — 2025 revenue nearly tripled to NT$4.40B, gross margin expanded to roughly 39%, and the company swung from an operating loss to NT$323M operating profit. However, this did not reach the bottom line: a net loss of NT$171M marks losses in five of the past six years. The balance sheet is aggressively leveraged, with debt near 1.9x equity and equity representing only about 17% of a rapidly expanding NT$24.8B asset base, leaving a thin cushion against a property downturn. Cash flow is the weakest element — operating cash flow has been negative every year, and although the burn narrowed sharply to -NT$453M in 2025, free cash flow remains negative, meaning growth is still funded by external debt and equity rather than internal cash generation.

Income Statement

40Negative

Balance Sheet

36Negative

Cash Flow

23Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.68B	4.40B	1.49B	845.94M	2.33B	1.04B
Gross Profit	2.20B	1.72B	480.95M	145.82M	587.43M	199.83M
EBITDA	944.20M	1.40B	114.10M	23.73M	194.23M	78.88M
Net Income	-108.40M	-170.64M	-214.39M	-144.75M	56.09M	-28.26M
Balance Sheet
Total Assets	28.37B	24.82B	17.20B	12.58B	11.81B	10.60B
Cash, Cash Equivalents and Short-Term Investments	3.58B	4.58B	2.26B	1.69B	1.57B	1.59B
Total Debt	9.85B	7.98B	7.13B	5.05B	4.95B	4.13B
Total Liabilities	13.45B	11.35B	9.11B	6.78B	6.48B	5.20B
Stockholders Equity	4.36B	4.15B	3.29B	2.90B	2.58B	2.37B
Cash Flow
Free Cash Flow	-1.17B	-525.76M	-2.52B	-847.25M	-699.22M	-456.34M
Operating Cash Flow	-921.61M	-453.24M	-2.46B	-786.69M	-577.56M	-447.09M
Investing Cash Flow	-826.26M	-1.70B	-499.89M	26.52M	-160.59M	261.02M
Financing Cash Flow	2.93B	3.43B	3.90B	686.11M	680.54M	755.09M

Sun Yad Construction Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1316 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2516	68Neutral	TWD 3.71B	9.59	―	―	-17.80%	82.70%
TW:6212	62Neutral	TWD 3.62B	17.10	―	9.87%	-60.85%	-70.77%
TW:2596	59Neutral	TWD 3.19B	7.10	―	4.63%	21.22%	121.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5514	40Underperform	TWD 3.02B	53.63	―	―	-1.23%	-28.46%
TW:1316	37Underperform	TWD 3.39B	-29.64	―	―	156.96%	75.28%

* General Sector Average

Performance Comparison

TW:1316 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1316	Sun Yad Construction Co., Ltd.	9.19	-5.71	-38.32%
TW:2516	New Asia Construction & Development Corp.	16.50	1.65	11.11%
TW:2596	Realy Development & Construction Corp.	32.40	3.86	13.51%
TW:5514	Sunfon Construction Co., Ltd.	13.30	-3.70	-21.76%
TW:6212	Li Ming Development Construction Co., Ltd.	35.40	-4.95	-12.27%
TW:7949	Yao Kuan Construction Co., Ltd.	56.20	29.15	107.76%

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

Sun Yad Construction Co., Ltd. AI Stock Analysis