Scinopharm Taiwan, Ltd. (1789) AI Stock Analysis

Scinopharm Taiwan, Ltd.

(TWSE:1789)

Select Model

Rating:53.5Neutral

Price Target:TWD 20.50▲(4.33% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score is constrained by a very poor valuation, with a P/E ratio over 943, which is the most significant risk. Financial performance is a mixed bag, with a very strong balance sheet offset by a dramatic revenue decline and margin compression. Technicals offer some near-term support as the stock trades above short-term moving averages, but this does not outweigh the fundamental and valuation headwinds.

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)

Market Cap: TWD 15.54B
Dividend Yield: 1.48%
Average Volume (3M): 541.75K
Price to Earnings (P/E): 889.1
Beta (1Y): 0.33
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

Financial performance is mixed. The balance sheet is a fortress with a 0.07 debt-to-equity ratio, but the income statement shows severe top-line pressure with an 89.1% revenue decline and compressed margins. Cash flow is adequate but shows strain, with only half of net income converting to free cash flow.

Income Statement

35Negative

Balance Sheet

75Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.07B	3.16B	3.41B	3.19B	3.26B	2.76B
Gross Profit	877.39M	1.10B	1.30B	1.22B	1.25B	1.28B
EBITDA	512.79M	673.97M	909.38M	819.15M	885.34M	690.37M
Net Income	37.73M	136.95M	339.35M	287.06M	353.22M	243.47M
Balance Sheet
Total Assets	12.36B	11.86B	11.94B	11.72B	11.91B	11.69B
Cash, Cash Equivalents and Short-Term Investments	3.50B	3.11B	4.17B	3.95B	4.35B	4.13B
Total Debt	873.09M	762.67M	676.75M	621.10M	677.91M	557.60M
Total Liabilities	1.90B	1.33B	1.42B	1.36B	1.46B	1.18B
Stockholders Equity	10.46B	10.52B	10.53B	10.36B	10.45B	10.51B
Cash Flow
Free Cash Flow	576.85M	305.82M	462.18M	-53.59M	523.75M	188.50M
Operating Cash Flow	805.65M	597.11M	750.91M	231.13M	773.79M	509.82M
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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6620	70Outperform	TWD 22.66B	66.49	―	1.69%	―	―
TW:4114	61Neutral	TWD 14.91B	17.44	―	3.08%	20.99%	5.70%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1789	54Neutral	TWD 15.81B	889.14	―	1.48%	-4.75%	-90.91%
TW:6547	40Underperform	TWD 15.25B	-411.25	―	―	44.37%	78.11%

* General Sector Average

Performance Comparison

TW:1789 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1789	Scinopharm Taiwan, Ltd.	19.65	2.25	12.91%
TW:4114	Synmosa Biopharma Corp	27.55	-2.14	-7.20%
TW:6547	Medigen Vaccine Biologics Corp.	46.80	9.40	25.13%
TW:6586	CHO Pharma, Inc.	75.40	45.35	150.92%
TW:6589	EirGenix, Inc.	54.00	-27.90	-34.07%
TW:6620	Handa Pharmaceuticals Inc	123.00	4.45	3.75%

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

Scinopharm Taiwan, Ltd. AI Stock Analysis