Lan Fa Textile Co., Ltd. (1459) AI Stock Analysis

Lan Fa Textile Co., Ltd.

(TWSE:1459)

Select Model

Rating:74Outperform

Price Target:TWD 19.00▲(9.20% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is supported primarily by improved financial condition and very attractive valuation, including low P/E and high dividend yield. Technical signals are mixed, while declining revenue, earnings volatility, and limited debt coverage moderate the overall result.

Positive Factors

Profitability RecoveryProfitability recovered materially in 2025, restoring positive gross profit and a strong net margin after two weak years. If maintained, this rebound can rebuild retained earnings and support internal funding, although durability depends on avoiding another downturn.

Negative Factors

Revenue VolatilityVolatile revenue and the 2025 year-over-year decline make the recent profit improvement less predictable than a steady growth trend. Uneven demand can limit operating leverage, complicate planning, and make future earnings more sensitive to textile-market cycles.

Lan Fa Textile Co., Ltd. (1459) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.08B
Dividend Yield: 21.77%
Average Volume (3M): 373.25K
Price to Earnings (P/E): 7.2
Beta (1Y): 0.39
Revenue Growth: ―
EPS Growth: ―
Country: TW
Employees: 413
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Lan Fa Textile Co., Ltd. Business Overview & Revenue Model

Company Description

Lan Fa Textile Co.,Ltd. specializes in the production and supply of a diverse range of polyester yarns and fibers. The company's offerings include standard polyester yarns available in various finishes, such as matte, semi-lustrous, and glossy option...

Lan Fa Textile Co., Ltd. Financial Statement Overview

Summary

Improved profitability, sharply lower leverage, and stronger operating and free cash flow support the score. Revenue contraction, historical earnings volatility, moderate ROE, and limited debt coverage remain risks.

Income Statement

70Positive

Balance Sheet

82Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.05B	1.10B	1.31B	1.20B	1.96B	2.47B
Gross Profit	199.90M	142.40M	-76.08M	-156.79M	31.22M	102.66M
EBITDA	-19.66M	613.23M	416.91M	229.59M	-237.63M	120.92M
Net Income	612.57M	255.65M	214.72M	23.54M	-443.37M	637.97M
Balance Sheet
Total Assets	5.23B	4.68B	4.86B	4.59B	5.44B	6.50B
Cash, Cash Equivalents and Short-Term Investments	2.55B	1.64B	1.61B	1.06B	1.80B	2.82B
Total Debt	954.91M	921.70M	1.48B	1.61B	2.39B	2.80B
Total Liabilities	2.12B	1.16B	1.70B	1.80B	2.63B	3.05B
Stockholders Equity	3.11B	3.51B	3.15B	2.79B	2.82B	3.45B
Cash Flow
Free Cash Flow	359.11M	303.24M	14.50M	29.90M	34.66M	79.67M
Operating Cash Flow	355.30M	303.85M	16.53M	31.85M	41.64M	80.52M
Investing Cash Flow	1.01B	628.24M	-112.89M	962.95M	212.27M	507.04M
Financing Cash Flow	-668.92M	-495.54M	-110.23M	-866.71M	-532.47M	-320.56M

Lan Fa Textile Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1459 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1459	74Outperform	TWD 3.68B	7.16	―	21.77%	―	―
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:1464	47Neutral	TWD 3.96B	11.49	―	2.69%	-3.78%	110.06%
TW:1460	46Neutral	TWD 4.02B	-29.03	―	―	-17.70%	48.98%

* General Sector Average

Performance Comparison

TW:1459 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1459	Lan Fa Textile Co., Ltd.	17.40	5.04	40.83%
TW:1414	Tung Ho Textile Co., Ltd.	16.95	-1.74	-9.30%
TW:1460	Everest Textile Co., Ltd.	5.96	0.35	6.24%
TW:1464	De Licacy Industrial Co., Ltd.	9.31	-1.23	-11.71%

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

Lan Fa Textile Co., Ltd. AI Stock Analysis