SanDi Properties Co. Ltd. (1438) AI Stock Analysis

SanDi Properties Co. Ltd.

(TWSE:1438)

Select Model

Rating:50Neutral

Price Target:TWD 21.50▼(-0.46% Downside)

Action:initiatedcoverage

Date:11/09/26

SanDi Properties scores below average, driven primarily by financial quality concerns. While FY2025 marked a genuine profit recovery with near-30% gross margins, persistent negative operating cash flow (NT$1.7 billion outflow) and a sevenfold increase in debt since 2020 mean growth depends on continued borrowing, leaving limited buffer if project sales or financing conditions deteriorate. Earnings are also highly lumpy, with two loss years in the past three. Technically the stock is neutral — stabilizing above short-term averages but still below its 200-day trend with flat momentum. The low P/E of 8.3 provides valuation support, and a small 0.93% dividend yield adds modest income, but these are not enough to offset the cash flow and leverage risks. Key factors to watch are project delivery and pre-sales conversion, which will determine whether inventory turns into cash and reduces reliance on debt.

Positive Factors

Revenue expansionThe sharp two-year revenue expansion shows that the company has recently increased the scale of its property activity. If this higher revenue base is sustained, it can improve operating absorption and provide a stronger platform for future earnings, although the pack notes that growth has been unusually volatile.

Negative Factors

High leverageDebt-to-equity near 2.8x, after reaching about 4.1x in 2023, leaves the company exposed to refinancing pressure and downturns. Debt growth from 1.23B in 2020 to 8.69B in 2025 also indicates expansion has relied heavily on borrowing, constraining flexibility.

SanDi Properties Co. Ltd. (1438) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.59B
Dividend Yield: 0.93%
Average Volume (3M): 47.76K
Price to Earnings (P/E): 8.3
Beta (1Y): 0.23
Revenue Growth: 41.65%
EPS Growth: ―
Country: TW
Employees: 20
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

SanDi Properties Co. Ltd. Business Overview & Revenue Model

Company Description

Headquartered in Kaohsiung, Taiwan, SanDi Properties Co.,Ltd. was established in 1944, originally operating as Yu Foong International Corporation. The company's operations encompass the development and construction of commercial and industrial facili...

SanDi Properties Co. Ltd. Financial Statement Overview

Summary

FY2025 brought a clear earnings rebound — revenue up about 8% to NT$1.26 billion, a swing from a NT$141 million loss to NT$194 million profit, and gross margin recovering from near zero to 29.2% (Income Statement: 56). However, the balance sheet is heavily leveraged (Balance Sheet: 40), with total debt up roughly sevenfold since 2020 to NT$8.69 billion, debt-to-equity of 2.77x and only a modest 6.2% return on equity, despite leverage improving from the 2023 peak of 4.1x. Cash flow is the weakest element (Cash Flow: 27): operating cash flow was negative NT$1.71 billion and free cash flow negative NT$1.74 billion in FY2025, with outflows in four of the last six years, meaning growth is being funded by new borrowing rather than internally generated cash. Results are also extremely lumpy given the project-based development model.

Income Statement

56Neutral

Balance Sheet

40Negative

Cash Flow

27Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.65B	1.26B	1.17B	316.11M	595.26M	12.30M
Gross Profit	525.11M	367.90M	275.00K	60.27M	448.14M	6.64M
EBITDA	431.65M	300.47M	15.48M	38.81M	440.25M	35.73M
Net Income	288.33M	194.02M	-140.93M	-64.95M	373.55M	30.09M
Balance Sheet
Total Assets	14.71B	14.43B	12.79B	10.87B	8.28B	5.24B
Cash, Cash Equivalents and Short-Term Investments	255.18M	570.89M	2.00B	719.42M	845.52M	200.00M
Total Debt	9.19B	8.69B	7.51B	7.62B	5.61B	3.87B
Total Liabilities	11.56B	11.29B	9.84B	9.01B	6.26B	4.13B
Stockholders Equity	3.14B	3.14B	2.95B	1.86B	2.01B	1.11B
Cash Flow
Free Cash Flow	-1.72B	-1.74B	369.99M	-1.11B	46.83M	-1.03B
Operating Cash Flow	-1.69B	-1.71B	373.49M	-1.11B	46.88M	-1.03B
Investing Cash Flow	-431.55M	-345.63M	-688.03M	-5.76M	-2.01B	-2.00B
Financing Cash Flow	1.28B	625.57M	1.91B	765.82M	2.24B	3.03B

SanDi Properties Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1438 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6171	65Neutral	TWD 2.49B	13.39	―	8.13%	-55.77%	-74.32%
TW:1439	62Neutral	TWD 2.66B	9.30	―	1.75%	160.15%	33.83%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1438	50Neutral	TWD 2.59B	8.34	―	0.93%	41.65%	―
TW:2705	49Neutral	TWD 2.80B	20.00	―	―	-4.36%	88.01%
TW:2509	37Underperform	TWD 2.89B	135.93	―	―	445.07%	―
TW:5324	27Underperform	TWD 2.78B	-188.82	―	―	-39.07%	-150.68%

* General Sector Average

Performance Comparison

TW:1438 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1438	SanDi Properties Co. Ltd.	21.60	-9.98	-31.60%
TW:1439	Ascent Development Co Ltd	28.55	1.62	6.02%
TW:2509	Chainqui Construction Development Co., Ltd.	12.90	-1.90	-12.84%
TW:2705	LEOFOO DEVELOPMENT CO., LTD.	14.80	-2.10	-12.43%
TW:5324	Shihlin Development Co., Ltd.	12.50	1.85	17.37%
TW:6171	Tacheng Real Estate Co.,Ltd.	24.60	-1.21	-4.70%

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

SanDi Properties Co. Ltd. AI Stock Analysis