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

Standard Chemical & Pharmaceutical Co. Ltd.

(TWSE:1720)

Select Model

Rating:70.1Outperform

Price Target:TWD 61.00▲(10.51% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is supported primarily by strong financial performance and attractive valuation, especially the low leverage, profitability, and dividend yield. Weak technical momentum and declining margins limit the upside assessment.

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 10.85B
Dividend Yield: 3.62%
Average Volume (3M): 222.24K
Price to Earnings (P/E): 10.8
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

Strong financial profile driven by low leverage, solid profitability, rising equity, and improving free cash flow. Declining margins and uneven cash-flow conversion temper the score.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

78Positive

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	9.40	―	6.15%	0.24%	28.93%
TW:1720	70Outperform	TWD 10.81B	10.82	―	3.62%	4.62%	9.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6576	42Neutral	TWD 11.52B	519.28	―	―	6.41%	―
TW:6945	40Underperform	TWD 11.22B	-21.76	―	―	―	―
TW:6535	39Underperform	TWD 12.33B	-33.67	―	―	-24.84%	9.09%

* 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.	55.20	1.85	3.46%
TW:3218	Universal Vision Biotechnology Co., Ltd.	126.00	-22.69	-15.26%
TW:6467	TAHO Pharmaceuticals Ltd	230.00	61.50	36.50%
TW:6535	LUMOSA THERAPEUTICS CO LTD	80.80	-108.20	-57.25%
TW:6576	Foresee Pharmaceuticals Co., Ltd.	73.00	-12.20	-14.32%
TW:6945	AP Biosciences, Inc.	117.50	7.00	6.33%

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