Standard Chemical & Pharmaceutical Co. Ltd. (1720) AI Stock Analysis

Standard Chemical & Pharmaceutical Co. Ltd.

(TWSE:1720)

Select Model

Rating:71Outperform

Price Target:TWD 61.00▲(10.91% Upside)

Action:initiatedcoverage

Date:11/09/26

Standard Chemical & Pharmaceutical scores well on fundamentals, led by high-quality cash generation (operating cash flow roughly double net income) and a conservatively financed balance sheet with debt-to-equity of just 0.18 and 15.1% ROE. Valuation reinforces the case, with a modest 10.3x P/E and a 3.6% dividend yield. The score is held back by two factors: visible 2025 margin compression alongside decelerating revenue growth of about 3%, typical of generic drug pricing pressure, and weak technicals, with the price below all key moving averages and a negative MACD, though near-oversold RSI and Stochastic readings suggest selling pressure may be maturing.

Positive Factors

Multi-year revenue expansionThe sustained increase in revenue demonstrates meaningful business expansion and growing commercial scale. Continued top-line development can support operating leverage, broaden the company’s healthcare market presence, and provide a durable foundation for earnings growth over the next several quarters.

Negative Factors

Margin normalizationThe decline from peak margins shows that prior profitability levels may not be fully sustainable. If margin normalization continues, earnings could grow more slowly than revenue, limiting operating leverage and reducing the funds available for investment, dividends, or other capital allocation.

Standard Chemical & Pharmaceutical Co. Ltd. (1720) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.83B
Dividend Yield: 3.64%
Average Volume (3M): 222.42K
Price to Earnings (P/E): 10.2
Beta (1Y): 0.11
Revenue Growth: 4.62%
EPS Growth: 9.56%
Country: TW
Employees: 1,130
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Standard Chemical & Pharmaceutical Co. Ltd. Business Overview & Revenue Model

Company Description

Standard Chem & Pharm Co. Ltd. (SCP) is a Taiwanese enterprise specializing in the development, manufacturing, and commercialization of a broad spectrum of pharmaceutical products, nutritional supplements, and Active Pharmaceutical Ingredients (APIs)...

Standard Chemical & Pharmaceutical Co. Ltd. Financial Statement Overview

Summary

Fundamentals are the core strength. Cash flow is excellent (score 83): operating cash flow rose to NT$1.87bn and runs at roughly twice net income, with free cash flow up ~26% to NT$1.38bn as capex normalises after a heavy investment cycle. The balance sheet is equally robust (score 81), with equity compounding to NT$6.12bn, debt-to-equity down to a conservative 0.18 and ROE of 15.1%. The income statement is the weaker link (score 72): revenue has compounded ~10% since 2020 but growth slowed to ~3% in 2025, and gross, operating and EBITDA margins all compressed (operating margin fell from 24.4% to 19.4%), leaving earnings below the 2022 peak despite a ~5% rise in net income.

Income Statement

72Positive

Balance Sheet

81Very Positive

Cash Flow

83Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.08B	7.02B	6.79B	6.24B	5.85B	4.60B
Gross Profit	3.02B	2.91B	2.99B	2.73B	2.49B	2.07B
EBITDA	1.91B	1.80B	2.06B	1.61B	1.66B	1.25B
Net Income	1.03B	927.66M	880.50M	834.89M	1.15B	706.73M
Balance Sheet
Total Assets	12.32B	11.80B	11.18B	11.19B	10.97B	10.10B
Cash, Cash Equivalents and Short-Term Investments	2.32B	2.39B	1.81B	2.28B	2.60B	2.99B
Total Debt	1.04B	1.13B	921.19M	1.33B	2.25B	1.97B
Total Liabilities	2.99B	2.51B	2.20B	3.05B	3.53B	3.30B
Stockholders Equity	6.19B	6.12B	5.91B	5.30B	4.75B	4.34B
Cash Flow
Free Cash Flow	1.12B	1.38B	1.10B	710.83M	30.29M	609.12M
Operating Cash Flow	1.58B	1.87B	1.69B	1.34B	1.23B	827.03M
Investing Cash Flow	-752.69M	-1.31B	-771.69M	-485.50M	-1.08B	819.12M
Financing Cash Flow	-466.68M	-309.71M	-1.44B	-1.08B	-465.44M	-117.54M

Standard Chemical & Pharmaceutical Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1720 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3218	73Outperform	TWD 10.68B	9.21	―	6.15%	0.24%	28.93%
TW:1720	71Outperform	TWD 10.81B	10.22	―	3.64%	4.62%	9.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6576	42Neutral	TWD 11.52B	524.28	―	―	6.41%	―
TW:6945	40Underperform	TWD 11.22B	-20.83	―	―	―	―
TW:6535	39Underperform	TWD 12.33B	-31.94	―	―	-24.84%	9.15%

* General Sector Average

Performance Comparison

TW:1720 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1720	Standard Chemical & Pharmaceutical Co. Ltd.	55.00	2.61	4.99%
TW:3218	Universal Vision Biotechnology Co., Ltd.	126.00	-10.89	-7.95%
TW:6467	TAHO Pharmaceuticals Ltd	246.00	70.00	39.77%
TW:6535	LUMOSA THERAPEUTICS CO LTD	73.50	-116.50	-61.32%
TW:6576	Foresee Pharmaceuticals Co., Ltd.	73.10	-4.40	-5.68%
TW:6945	AP Biosciences, Inc.	115.00	1.00	0.88%

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

Standard Chemical & Pharmaceutical Co. Ltd. AI Stock Analysis