Lily Textile Co. Ltd. (1443) AI Stock Analysis

Lily Textile Co. Ltd.

(TWSE:1443)

Select Model

Rating:53Neutral

Price Target:TWD 24.00▲(1.69% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by the balance sheet and cash flow profile: debt is roughly 2x equity and near 10x EBITDA, free cash flow remains negative, and net income fell about 38% year over year with ROE halving to 6.7%. Offsetting these risks are genuine operating improvements — record revenue, gross margin nearly doubling since 2020, strong 34% operating margins, steady deleveraging, and operating cash flow comfortably exceeding reported profit. Technically the stock is stabilizing above its short-term averages but still trades below its 100- and 200-day lines, signalling an unconfirmed recovery. An inexpensive 11.6x P/E provides modest support, though the lack of a dividend limits total-return appeal. Overall, a cheaply valued operator with improving fundamentals that must convert its investment cycle into positive free cash flow and reverse the earnings decline before the profile can be considered solid.

Positive Factors

Strong profitabilitySustained high gross and operating margins indicate that the company has retained meaningful profitability across recent years. This provides a stronger base for absorbing cost or demand changes, supporting reinvestment and preserving earnings power over the next several quarters.

Negative Factors

Elevated leveragePersistently high debt relative to equity limits financial flexibility and leaves less capacity to fund growth or withstand weaker operating conditions. Leverage can also constrain capital allocation, making the company more dependent on maintaining sufficient earnings and cash generation.

Lily Textile Co. Ltd. (1443) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.26B
Dividend Yield: ―
Average Volume (3M): 13.30K
Price to Earnings (P/E): 11.6
Beta (1Y): 0.29
Revenue Growth: -6.37%
EPS Growth: 172.97%
Country: TW
Employees: 2,367
Sector: General
Sector Strength: 55
Industry: Integrated Freight & Logistics

Lily Textile Co. Ltd. Business Overview & Revenue Model

Company Description

Lily Logistics Development Co., Ltd. operates logistics and warehousing businesses. The company's primary segments include Logistics, which involves warehousing, leasing, and processing, and a Sales segment for cloth products and other commodities.

Lily Textile Co. Ltd. Financial Statement Overview

Summary

Operations are improving but the financial profile remains strained. Revenue hit a record NT$980 million (up ~6% year over year) with gross margin expanding from 27% in 2020 to 48% and operating margin at a healthy 34%. However, net income dropped ~38% to NT$153 million, cutting the net margin from 27% to 16%, and return on equity halved to 6.7%. The balance sheet is the main risk: debt of NT$4.65 billion against NT$2.30 billion of equity (2.0x debt-to-equity, roughly 10x EBITDA), though leverage has steadily declined from 3.19x in 2020. Cash flow quality is good — NT$364 million of operating cash flow, about 2.4x net income — but heavy capital spending has kept free cash flow negative for five of six years, albeit narrowing to just negative NT$55 million this year.

Income Statement

63Positive

Balance Sheet

38Negative

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	936.89M	980.36M	924.40M	780.75M	847.50M	866.82M
Gross Profit	444.50M	471.68M	432.85M	361.43M	346.07M	257.02M
EBITDA	426.69M	468.87M	470.59M	344.22M	351.36M	380.56M
Net Income	275.42M	153.19M	245.52M	174.71M	143.01M	222.19M
Balance Sheet
Total Assets	7.99B	7.92B	7.66B	7.03B	6.51B	6.40B
Cash, Cash Equivalents and Short-Term Investments	407.32M	451.61M	360.06M	313.35M	330.07M	364.43M
Total Debt	4.64B	4.65B	4.46B	4.66B	4.38B	3.91B
Total Liabilities	6.06B	6.07B	5.93B	5.42B	5.17B	5.22B
Stockholders Equity	2.39B	2.30B	2.16B	1.98B	1.69B	1.43B
Cash Flow
Free Cash Flow	219.27M	-55.26M	-250.47M	-325.88M	58.70M	-127.83M
Operating Cash Flow	550.46M	364.17M	408.47M	267.20M	325.44M	248.09M
Investing Cash Flow	-396.48M	-484.02M	-696.12M	-622.46M	-287.38M	-381.85M
Financing Cash Flow	250.25M	197.47M	391.79M	273.18M	-32.39M	232.55M

Lily Textile Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1443 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1423	57Neutral	TWD 3.25B	9.56	―	11.04%	-2.43%	80.38%
TW:1457	56Neutral	TWD 3.31B	10.30	―	7.19%	-20.14%	30.46%
TW:1435	55Neutral	TWD 2.74B	-25.82	―	―	-24.87%	-105.68%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1414	53Neutral	TWD 3.36B	31.27	―	7.74%	-6.95%	298.25%
TW:1451	53Neutral	TWD 3.38B	11.29	―	5.87%	8.77%	-3.63%
TW:1443	53Neutral	TWD 3.18B	11.57	―	―	-6.37%	172.97%

* General Sector Average

Performance Comparison

TW:1443 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1443	Lily Textile Co. Ltd.	23.60	-4.50	-16.01%
TW:1414	Tung Ho Textile Co., Ltd.	16.95	-2.00	-10.54%
TW:1423	Reward Wool Industry Corporation	32.60	-3.27	-9.12%
TW:1435	Chung Fu Tex-International Corp.	19.60	-6.25	-24.18%
TW:1451	Nien Hsing Textile Co., Ltd.	17.05	0.58	3.54%
TW:1457	Yi Jinn Industrial Co.,Ltd	13.90	-1.54	-9.97%

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

Lily Textile Co. Ltd. AI Stock Analysis