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Scinopharm Taiwan, Ltd. (1789) AI Stock Analysis

TW:1789

Scinopharm Taiwan, Ltd.

(TWSE:1789)

Select Model
Rating:57Neutral
Price Target:TWD 21.00â–²(3.70% Upside)
Action:initiatedcoverage
Date:11/09/26

Scinopharm Taiwan scores in the middle of the range. Financial strength is genuine — an almost debt-free balance sheet and cash flow that comfortably exceeds reported earnings give the company real staying power — but it is offset by six years of flat revenue, a steep margin squeeze and a roughly 60% drop in net income that leaves return on equity at just 1.3%. Valuation compounds the concern, with a P/E near 898 driven by depressed earnings and only a 1.4% dividend yield. Technicals are the modest bright spot, with the price above its 20-, 50- and 100-day averages and a positive MACD, though it still trades below the 200-day average and momentum readings are only neutral-to-firm. Overall: low financial risk, but limited earnings momentum and a demanding valuation.

Positive Factors
Very Low LeveragePersistently low leverage and a sizable equity base give Scinopharm financial flexibility through industry cycles. Limited borrowing dependence reduces balance-sheet pressure and preserves capacity to fund operations or pursue growth without relying heavily on additional debt.
Negative Factors
Sharp Revenue ContractionA sharp revenue decline threatens utilization, customer momentum, and the scale benefits of pharmaceutical manufacturing. If the contraction persists over the next several quarters, it could make recovery in earnings more difficult and reduce the resources available for investment.

Scinopharm Taiwan, Ltd. (1789) vs. SPDR S&P 500 ETF (SPY)

-10%0%10%20%30%40%50%60%70%TW:1789+16.36%SPY+10.92%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 15.66B
Dividend Yield
1.43%
Average Volume (3M)
525.24K
Price to Earnings (P/E)
916.3
Beta (1Y)
0.32
Revenue Growth
-4.75%
EPS Growth
-90.91%
Country
TW
Employees
1,010
Sector
General
Sector Strength
55
Industry
Drug Manufacturers - Specialty & Generic

Scinopharm Taiwan, Ltd. Business Overview & Revenue Model

Company Description

ScinoPharm Taiwan, Ltd., along with its subsidiaries, specializes in the research, development, production, and global distribution of cGMP-compliant active pharmaceutical ingredients (APIs). The company supplies these APIs to pharmaceutical clients...

Scinopharm Taiwan, Ltd. Financial Statement Overview

Summary

A fortress balance sheet (score 84) anchors the profile: equity funds nearly 89% of assets and debt-to-equity sits at just 0.07, leaving minimal financial risk. Cash flow is also respectable (66), with operating cash flow of NT$597 million running more than four times net income and free cash flow positive at NT$306 million, though both have declined year over year. The clear weak spot is the income statement (42): revenue has stagnated for six years and fell about 7% to NT$3.16 billion, while gross, operating and net margins all compressed sharply, cutting net income roughly 60% to NT$137 million and pushing return on equity to just 1.3%. Net result is a safe but under-earning business with little near-term profit momentum.

Income Statement

42Neutral

Balance Sheet

84Very Positive

Cash Flow

66Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.07B3.16B3.41B3.19B3.26B2.76B
Gross Profit877.39M1.10B1.30B1.22B1.25B1.28B
EBITDA512.79M673.97M909.38M819.15M885.34M690.37M
Net Income37.73M136.95M339.35M287.06M353.22M243.47M
Balance Sheet
Total Assets12.36B11.86B11.94B11.72B11.91B11.69B
Cash, Cash Equivalents and Short-Term Investments3.50B3.11B4.17B3.95B4.35B4.13B
Total Debt873.09M762.67M676.75M621.10M677.91M557.60M
Total Liabilities1.90B1.33B1.42B1.36B1.46B1.18B
Stockholders Equity10.46B10.52B10.53B10.36B10.45B10.51B
Cash Flow
Free Cash Flow576.85M305.82M462.18M-53.59M523.75M188.50M
Operating Cash Flow805.65M597.11M750.91M231.13M773.79M509.82M
Investing Cash Flow-229.22M-1.45B-293.38M-233.29M-253.62M-69.98M
Financing Cash Flow-210.75M-203.50M-244.89M-340.98M-314.83M-412.77M

Scinopharm Taiwan, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:1789 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:6620TW:662070OutperformTWD 20.83B72.70―1.65%――
TW:4114TW:411461NeutralTWD 14.97B17.63―3.05%11.40%9.36%
TW:1789TW:178957NeutralTWD 16.01B916.29―1.43%-4.75%-90.91%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:6547TW:654740UnderperformTWD 16.94B-408.17――44.37%78.11%

* General Sector Average

Performance Comparison

0%100%200%300%TW:1789TW:4114TW:6547TW:6586TW:6589TW:6620Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:1789 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:1789Scinopharm Taiwan, Ltd.20.252.7515.70%
TW:4114Synmosa Biopharma Corp27.85-1.93-6.48%
TW:6547Medigen Vaccine Biologics Corp.51.5014.0037.33%
TW:6586CHO Pharma, Inc.74.4043.90143.93%
TW:6589EirGenix, Inc.51.40-16.40-24.19%
TW:6620Handa Pharmaceuticals Inc125.506.465.43%
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