Lotus Pharmaceutical Co., Ltd. (1795) AI Stock Analysis

Lotus Pharmaceutical Co., Ltd.

(TWSE:1795)

Select Model

Rating:59Neutral

Price Target:TWD 173.00▲(10.90% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is constrained primarily by elevated balance-sheet leverage, weaker free cash flow conversion, and bearish technical positioning. Strong revenue growth and profitability, together with an attractive P/E ratio, provide meaningful support but do not offset the financial and momentum risks.

Positive Factors

Multi-year revenue growthRevenue nearly doubled across 2020-2025, demonstrating sustained commercial expansion rather than reliance on a single reporting period. Continued scale can support broader market reach, fund product development, and strengthen the company’s ability to absorb operating investments over the next several quarters.

Negative Factors

Sharp leverage increaseThe rapid increase in leverage materially changes Lotus’s financial risk profile from its previously conservative position. Higher debt can increase interest burden and reduce flexibility to fund product development or manage weaker operating periods, making balance-sheet discipline important over the coming quarters.

Lotus Pharmaceutical Co., Ltd. (1795) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 41.62B
Dividend Yield: 1.64%
Average Volume (3M): 1.08M
Price to Earnings (P/E): 10.8
Beta (1Y): 0.40
Revenue Growth: 48.98%
EPS Growth: -21.95%
Country: TW
Employees: 1,099
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Lotus Pharmaceutical Co., Ltd. Business Overview & Revenue Model

Company Description

Lotus Pharmaceutical Co., Ltd. operates as a pharmaceutical enterprise, specializing in the research, development, production, and sale of generic medicines. Its market presence extends across Taiwan, South Korea, the United States, and other global...

Lotus Pharmaceutical Co., Ltd. Financial Statement Overview

Summary

Revenue growth, profitability, and operating cash flow are strengths, but sharply higher leverage, declining margins, and weaker free cash flow conversion materially reduce financial quality.

Income Statement

78Positive

Balance Sheet

48Neutral

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.49B	20.51B	18.58B	16.96B	14.63B	12.65B
Gross Profit	13.03B	10.64B	10.92B	9.38B	7.81B	5.64B
EBITDA	9.44B	7.44B	8.21B	6.87B	5.26B	2.93B
Net Income	3.77B	4.72B	5.07B	4.11B	3.02B	1.40B
Balance Sheet
Total Assets	108.59B	106.15B	40.10B	32.99B	29.53B	21.22B
Cash, Cash Equivalents and Short-Term Investments	6.33B	7.74B	6.03B	1.77B	1.98B	1.61B
Total Debt	58.45B	55.93B	13.67B	11.58B	8.92B	6.39B
Total Liabilities	84.28B	82.37B	18.92B	15.66B	15.66B	10.15B
Stockholders Equity	24.31B	23.78B	21.18B	17.33B	13.87B	11.07B
Cash Flow
Free Cash Flow	2.61B	3.13B	4.69B	-1.65B	650.03M	-1.50B
Operating Cash Flow	4.50B	7.48B	6.15B	1.61B	3.72B	119.66M
Investing Cash Flow	-13.63B	-12.47B	-2.69B	-3.25B	-4.66B	-1.58B
Financing Cash Flow	11.13B	6.90B	714.09M	1.40B	1.26B	1.66B

Lotus Pharmaceutical Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1795 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6491	76Outperform	TWD 31.20B	15.39	―	2.55%	18.45%	24.17%
TW:6472	60Neutral	TWD 50.12B	32.71	―	2.48%	-5.57%	-62.77%
TW:1795	59Neutral	TWD 44.28B	10.79	―	1.64%	48.98%	-21.95%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6949	33Underperform	TWD 54.47B	-138.20	―	―	7.81%	―

* General Sector Average

Performance Comparison

TW:1795 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1795	Lotus Pharmaceutical Co., Ltd.	156.00	-130.37	-45.52%
TW:6472	Bora Pharmaceuticals Co Ltd	403.00	-150.21	-27.15%
TW:6491	Pegavision Corp.	392.50	70.73	21.98%
TW:6949	PELL Bio-Med Technology Co Ltd	44.75	25.91	137.55%
TW:7686	A-Top Health Biotech Co., Ltd.	729.00	209.00	40.19%
TW:7924	TLC BioSciences Corp	402.50	192.00	91.21%

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

Lotus Pharmaceutical Co., Ltd. AI Stock Analysis