Shinkong Textile Co., Ltd. (1419) AI Stock Analysis

Shinkong Textile Co., Ltd.

(TWSE:1419)

Select Model

Rating:62Neutral

Price Target:TWD 67.00▲(10.38% Upside)

Action:initiatedcoverage

Date:11/09/26

Shinkong Textile scores in the moderate range. Its greatest strengths are a conservative, equity-funded balance sheet and a strikingly cheap valuation at 4.5x earnings with a 2.84% dividend yield. Offsetting these are meaningful earnings-quality concerns — operating margins collapsed to single digits and most reported profit stems from non-core gains — alongside historically volatile cash flow and a modest ~7% return on equity. Technicals are the weakest element, with the share price below all key moving averages and negative MACD momentum, though the near-oversold stochastic reading suggests selling pressure may be easing. The result is a low-risk, deeply discounted asset play that still needs to demonstrate its core operations can sustainably generate profit and cash.

Positive Factors

Steady Revenue GrowthSteady revenue growth, with acceleration into 2025, indicates continuing demand for the company’s textile products across its customer base. Sustained top-line expansion can support operating leverage, strengthen market participation, and provide a durable foundation for future earnings over the next several quarters.

Negative Factors

Inconsistent Free Cash FlowRepeated periods of negative free cash flow show that reported profitability has not consistently translated into cash available after investment. This can constrain internally funded growth, make distributions less dependable, and leave results more exposed to working-capital or timing swings.

Shinkong Textile Co., Ltd. (1419) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 18.22B
Dividend Yield: 2.97%
Average Volume (3M): 77.13K
Price to Earnings (P/E): 4.4
Beta (1Y): 0.14
Revenue Growth: 20.12%
EPS Growth: 201.04%
Country: TW
Employees: 562
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Shinkong Textile Co., Ltd. Business Overview & Revenue Model

Company Description

Shinkong Textile Co., Ltd. specializes in the manufacturing and global distribution of diverse cotton and CVC yarns, synthetic fibers, and completed fabrics. Its business activities are channeled through three main divisions: Marketing, Retail, and R...

Shinkong Textile Co., Ltd. Financial Statement Overview

Summary

A conservative, asset-rich profile with improving headline results. The balance sheet is the standout (score 76): equity funds roughly 70% of the NT$25.2bn asset base and debt-to-equity sits near 0.30, leaving ample financial flexibility. The income statement (62) shows strong top-line momentum — revenue up ~12% to NT$4.7bn and more than doubled in five years, with net income up ~42% to NT$1.23bn — but earnings quality is weak: EBIT actually declined and operating margin compressed to ~9% from ~24%, meaning most reported profit came from non-operating items. Cash flow (60) rebounded sharply to NT$1.26bn operating and NT$1.1bn free cash flow, closely matching earnings, but history is erratic with negative free cash flow in three of the past four years. Return on equity remains modest at ~7%.

Income Statement

62Positive

Balance Sheet

76Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.29B	4.73B	4.21B	3.38B	3.35B	2.75B
Gross Profit	1.32B	1.26B	1.23B	993.27M	918.04M	728.89M
EBITDA	365.35M	612.59M	1.18B	977.92M	2.45B	642.31M
Net Income	4.16B	1.23B	869.01M	648.95M	2.07B	450.89M
Balance Sheet
Total Assets	27.74B	25.17B	21.53B	18.54B	16.70B	16.14B
Cash, Cash Equivalents and Short-Term Investments	4.34B	3.11B	2.51B	3.12B	3.58B	3.35B
Total Debt	2.73B	5.33B	4.37B	3.91B	3.67B	3.81B
Total Liabilities	4.96B	7.65B	6.03B	5.40B	4.96B	6.12B
Stockholders Equity	22.79B	17.52B	15.50B	13.15B	11.74B	10.01B
Cash Flow
Free Cash Flow	200.50M	1.10B	-135.11M	184.88M	-15.47M	-201.29M
Operating Cash Flow	280.88M	1.26B	33.94M	249.97M	282.24M	-62.11M
Investing Cash Flow	3.80B	-1.22B	-898.10M	548.38M	-4.01M	705.42M
Financing Cash Flow	-3.30B	522.84M	115.59M	-77.31M	-798.20M	171.57M

Shinkong Textile Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1419 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1419	62Neutral	TWD 17.74B	4.37	―	2.97%	20.12%	201.04%
TW:1714	60Neutral	TWD 15.46B	13.73	―	1.11%	48.25%	238.60%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1440	45Neutral	TWD 20.96B	145.83	―	2.38%	-12.69%	―
TW:1711	44Neutral	TWD 21.66B	270.82	―	0.80%	-2.22%	33.13%
TW:1313	40Underperform	TWD 15.17B	78.33	―	0.85%	-0.93%	―
TW:1312	30Underperform	TWD 19.04B	-3.05	―	―	40.97%	-18.15%

* General Sector Average

Performance Comparison

TW:1419 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1419	Shinkong Textile Co., Ltd.	60.70	-0.18	-0.30%
TW:1312	Grand Pacific Petrochemical Corp.	12.55	1.55	14.09%
TW:1313	UPC Technology Corporation	11.75	1.34	12.88%
TW:1440	Tainan Spinning Co., Ltd.	12.60	-1.43	-10.19%
TW:1711	Everlight Chemical Industrial Corporation	37.40	18.46	97.50%
TW:1714	Ho Tung Chemical Corp.	16.20	7.85	94.04%

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

Shinkong Textile Co., Ltd. AI Stock Analysis