SYN-TECH Chemical & Pharmaceutical Co. Ltd. (1777) AI Stock Analysis

SYN-TECH Chemical & Pharmaceutical Co. Ltd.

(TPEx:1777)

Select Model

Rating:76.3Outperform

Price Target:TWD 86.00▲(14.97% Upside)

Action:initiatedcoverage

Date:11/09/26

SYN-TECH scores well on the strength of its fortress balance sheet and cash generation: debt-to-equity of just 0.09, equity funding ~87% of assets, and free cash flow of ~NT$501M that comfortably covers earnings. That financial resilience is paired with an attractive valuation — a P/E near 10 and a 5.27% dividend yield — giving investors both downside cushion and income. The principal drag is earnings momentum: revenue growth stalled to low single digits and margins compressed sharply in the latest year, cutting net income by about a third and pushing ROE down to roughly 10%. Technicals are mildly supportive, with the price above its 50-, 100- and 200-day averages and a positive MACD, though neutral RSI suggests a near-term consolidation. A reacceleration in revenue and margin stabilization would be needed to justify a higher rating.

Positive Factors

Accelerating Revenue GrowthThe sharp 2025 revenue acceleration indicates stronger demand or expanded business activity across the company’s API and fine-chemical operations. If sustained, higher scale can improve operating leverage, support investment in production capabilities, and strengthen customer relevance over the next several quarters.

Negative Factors

Profitability ContractionThe 2025 margin and net-income decline raises questions about the durability of recent earnings growth, even though revenue expanded strongly. Higher costs, an unfavorable product mix, or less favorable one-off items could continue to limit profit conversion and weaken earnings consistency.

SYN-TECH Chemical & Pharmaceutical Co. Ltd. (1777) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.33B
Dividend Yield: 5.35%
Average Volume (3M): 52.99K
Price to Earnings (P/E): 10.1
Beta (1Y): 0.22
Revenue Growth: -1.07%
EPS Growth: 10.62%
Country: TW
Employees: 223
Sector: General
Sector Strength: 55
Industry: Medical - Pharmaceuticals

SYN-TECH Chemical & Pharmaceutical Co. Ltd. Business Overview & Revenue Model

Company Description

SYN-TECH Chem. & Pharm. Co., Ltd. manufactures and sells active pharmaceutical ingredients (APIs) in Taiwan, Asia, Europe, the Americas, and internationally. The company offers test drugs and surfactants, as well as various Chinese, Western, and anim...

SYN-TECH Chemical & Pharmaceutical Co. Ltd. Financial Statement Overview

Summary

A financially sound profile anchored by a near debt-free balance sheet (score 85) — equity funds ~87% of assets and debt-to-equity is just 0.09 — and strong cash generation (score 80), with operating cash flow of ~NT$559M running at more than 2x net income and free cash flow rebounding ~68% to ~NT$501M after two negative years. The income statement is the weaker link (score 68): revenue has grown steadily to ~NT$1.30B over five years, but growth slowed to low single digits in the latest year while gross margin fell from ~39% to ~34%, operating margin from ~39% to ~25%, and net income dropped about a third to NT$262M. Return on equity has also eased to ~10%, suggesting a large, conservatively deployed capital base. Overall: low financial risk and high-quality cash flows, offset by margin compression and decelerating growth.

Income Statement

68Positive

Balance Sheet

85Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.27B	1.30B	1.26B	1.11B	986.30M	893.23M
Gross Profit	488.10M	444.11M	486.94M	409.52M	360.98M	284.01M
EBITDA	523.16M	467.00M	634.37M	430.56M	319.08M	240.04M
Net Income	331.47M	261.61M	393.28M	251.01M	295.29M	177.16M
Balance Sheet
Total Assets	3.16B	2.96B	2.85B	2.90B	2.78B	2.90B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.05B	656.80M	666.92M	964.12M	1.49B
Total Debt	254.95M	227.12M	111.33M	402.75M	427.99M	765.13M
Total Liabilities	587.80M	369.57M	291.65M	583.48M	580.13M	911.71M
Stockholders Equity	2.58B	2.59B	2.56B	2.32B	2.20B	1.98B
Cash Flow
Free Cash Flow	344.90M	501.19M	408.85M	-175.05M	-48.67M	29.76M
Operating Cash Flow	401.22M	559.49M	622.61M	262.29M	428.73M	151.82M
Investing Cash Flow	-45.63M	-58.30M	-210.45M	-316.66M	-337.46M	-386.31M
Financing Cash Flow	-98.69M	-109.38M	-422.28M	-123.66M	-476.17M	840.04M

SYN-TECH Chemical & Pharmaceutical Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1777 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1777	76Outperform	TWD 3.34B	10.11	―	5.35%	-1.07%	10.62%
TW:1752	65Neutral	TWD 3.02B	16.07	―	5.35%	-6.10%	-26.89%
TW:1786	64Neutral	TWD 3.89B	26.80	―	3.67%	-2.25%	-15.57%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4120	40Underperform	TWD 3.85B	-6.75	―	8.91%	3.77%	-78.32%
TW:6875	37Underperform	TWD 3.24B	-9.23	―	―	-69.26%	-24.53%

* General Sector Average

Performance Comparison

TW:1777 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1777	SYN-TECH Chemical & Pharmaceutical Co. Ltd.	74.80	0.94	1.28%
TW:1752	Nang Kuang Pharmaceutical Co., Ltd.	29.90	-6.84	-18.62%
TW:1786	SciVision Biotech Inc.	52.00	-20.15	-27.93%
TW:4120	Orient Europharma Co., Ltd.	44.90	2.73	6.48%
TW:6838	Formosa Pharmaceuticals, Inc.	20.35	-7.10	-25.87%
TW:6875	Pharmosa Biopharm Inc.	25.25	-24.40	-49.14%

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

SYN-TECH Chemical & Pharmaceutical Co. Ltd. AI Stock Analysis