Shinkong Synthetic Fibers Corporation (1409) AI Stock Analysis

Shinkong Synthetic Fibers Corporation

(TWSE:1409)

Select Model

Rating:37Underperform

Price Target:TWD 19.50▼(-11.36% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is at the lowest possible level, driven primarily by a weak financial foundation and bearish technicals. The most significant risk is the company's poor cash flow generation and high leverage, which undermine its financial stability. This is compounded by strong negative price momentum, with the stock trading below all key moving averages and in oversold territory. The low P/E ratio and high dividend yield offer a potential value appeal, but this is overshadowed by the fundamental risks to the dividend's sustainability.

Positive Factors

Recovered ProfitabilityThe recovery in profitability from the 2023 trough shows that the company retains positive earnings power despite cyclical pressure. Operating and EBITDA margins provide a foundation for continued reinvestment and indicate that the core polyester materials business remains economically viable.

Negative Factors

Revenue Contraction and VolatilityThe recent revenue decline and history of volatility indicate that demand and earnings remain exposed to cyclical conditions. Weaker topline performance can limit operating leverage, reduce capacity to absorb costs, and make sustained profit improvement harder over the next several quarters.

Shinkong Synthetic Fibers Corporation (1409) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 36.00B
Dividend Yield: 4.09%
Average Volume (3M): 14.47M
Price to Earnings (P/E): 10.0
Beta (1Y): 0.88
Revenue Growth: -7.23%
EPS Growth: 195.60%
Country: TW
Employees: 3,831
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Shinkong Synthetic Fibers Corporation Business Overview & Revenue Model

Company Description

Shinkong Synthetic Fibers Corporation, established in 1967 and headquartered in Taipei City, Taiwan, functions as an international manufacturer and supplier of a diverse range of polyester-based materials and associated goods. The company's core oper...

Shinkong Synthetic Fibers Corporation Financial Statement Overview

Summary

Financial health is weak. The income statement shows declining revenue and compressed margins, the balance sheet is highly leveraged with a rising debt-to-equity ratio of 1.57x, and cash flow generation is a critical weakness with a history of negative operating cash flow and poor cash earnings quality.

Income Statement

42Neutral

Balance Sheet

38Negative

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	39.25B	37.51B	44.95B	38.98B	44.63B	43.64B
Gross Profit	10.45B	8.45B	9.96B	7.00B	9.43B	11.59B
EBITDA	7.57B	5.46B	7.41B	5.23B	7.47B	8.21B
Net Income	3.53B	1.92B	1.71B	764.41M	2.82B	3.89B
Balance Sheet
Total Assets	253.99B	225.60B	214.29B	195.04B	181.73B	196.03B
Cash, Cash Equivalents and Short-Term Investments	31.49B	31.48B	25.71B	21.34B	20.86B	24.45B
Total Debt	70.04B	64.81B	63.84B	54.22B	43.66B	43.09B
Total Liabilities	194.57B	172.73B	164.67B	148.20B	135.65B	149.71B
Stockholders Equity	47.73B	41.41B	38.08B	36.35B	35.48B	36.09B
Cash Flow
Free Cash Flow	-8.27B	1.83B	-8.41B	-8.88B	205.22M	-5.44B
Operating Cash Flow	-6.81B	2.92B	-6.55B	-5.35B	2.47B	-2.56B
Investing Cash Flow	-3.76B	-2.28B	-3.13B	-3.57B	2.40B	-2.52B
Financing Cash Flow	12.76B	668.32M	8.84B	8.24B	-4.38B	3.64B

Shinkong Synthetic Fibers Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1409 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4763	73Outperform	TWD 43.03B	10.23	―	7.15%	-36.33%	-49.76%
TW:4772	68Neutral	TWD 32.19B	35.81	―	1.40%	163.69%	66.91%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1434	52Neutral	TWD 29.28B	20.00	―	2.87%	-6.35%	147.91%
TW:1440	45Neutral	TWD 20.88B	145.25	―	2.39%	-12.69%	―
TW:1409	37Underperform	TWD 36.87B	10.04	―	4.09%	-7.23%	195.60%
TW:1314	32Underperform	TWD 28.61B	-9.47	―	―	-33.34%	-25.86%

* General Sector Average

Performance Comparison

TW:1409 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1409	Shinkong Synthetic Fibers Corporation	22.00	7.16	48.23%
TW:1314	China Petrochemical Development Corporation	7.48	-1.43	-16.05%
TW:1434	Formosa Taffeta Co., Ltd.	17.40	1.66	10.57%
TW:1440	Tainan Spinning Co., Ltd.	12.55	-1.38	-9.92%
TW:4763	Jinan Acetate Chemical Co., Ltd.	42.65	-15.14	-26.19%
TW:4772	Taiwan Speciality Chemicals Corporation	214.50	-69.95	-24.59%

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 10, 2026

Shinkong Synthetic Fibers Corporation AI Stock Analysis