Baolong International Co., Ltd. (1906) AI Stock Analysis

Baolong International Co., Ltd.

(TWSE:1906)

Select Model

Rating:44Neutral

Price Target:TWD 10.00▼(-0.50% Downside)

Action:initiatedcoverage

Date:11/09/26

Baolong scores in the lower band primarily because of deteriorating fundamentals: three straight years of revenue decline and 2025 net income of just NT$1.3 million leave profitability and return on equity near zero, while the equity base has shrunk sharply and lifted debt-to-equity to 0.59. The most important positive is cash generation, with NT$516 million of free cash flow funding debt reduction, but this looks largely working-capital driven and may not repeat. Technicals reinforce caution, with the price below all major moving averages and negative MACD momentum. Valuation at a 16.7x P/E on minimal earnings, paired with a modest 0.98% yield, offers little margin of safety. A sustained translation of improved operating margins into bottom-line profit would be the key catalyst for a higher score.

Positive Factors

Cash Flow ImprovementThe sharp 2025 improvement in operating and free cash flow strengthens internal funding capacity and provides more resources for working capital, investment, and financial obligations. If sustained, better cash conversion could reduce dependence on external financing and support business resilience.

Negative Factors

Profitability DeteriorationNear-breakeven net profitability and near-zero ROE show that the company is currently generating little return from its operations or shareholder capital. This weak earnings power limits reinvestment capacity and makes sustained recovery dependent on a material improvement in operating performance.

Baolong International Co., Ltd. (1906) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.53B
Dividend Yield: 1.00%
Average Volume (3M): 70.80K
Price to Earnings (P/E): 20.4
Beta (1Y): 0.28
Revenue Growth: 11.10%
EPS Growth: 329.56%
Country: TW
Employees: 20
Sector: General
Sector Strength: 55
Industry: Paper, Lumber & Forest Products

Baolong International Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 1965, Baolong International Co., Ltd. is a Taiwan-based enterprise primarily involved in the wholesale and distribution of industrial paper goods. Its product portfolio includes items such as facial tissue and corrugated paper. The com...

Baolong International Co., Ltd. Financial Statement Overview

Summary

A mixed picture dominated by weak earnings quality. Revenue has declined for three consecutive years (NT$4.60bn in 2022 to NT$3.11bn in 2025) and net income collapsed to NT$1.3 million, a near-zero net margin and return on equity (Income Statement score 31). The balance sheet is solvent but shrinking: total assets fell from NT$9.00bn to NT$5.55bn and equity from NT$6.87bn to NT$2.79bn, pushing debt-to-equity up to 0.59 despite absolute debt reduction (Balance Sheet score 47). The clear offset is cash generation, with operating cash flow of NT$516.4 million and nearly identical free cash flow on minimal capex (Cash Flow score 71), though this appears largely working-capital driven rather than earnings-led. Margin repair at the gross and operating level is encouraging, but it has yet to reach the bottom line.

Income Statement

31Negative

Balance Sheet

47Neutral

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.09B	3.11B	3.21B	3.39B	4.60B	1.84B
Gross Profit	309.21M	288.40M	240.15M	255.35M	447.65M	223.18M
EBITDA	156.28M	92.09M	59.88M	5.14M	430.03M	182.38M
Net Income	92.03M	1.27M	37.75M	30.10M	426.88M	184.58M
Balance Sheet
Total Assets	5.49B	5.55B	5.85B	6.79B	7.29B	9.00B
Cash, Cash Equivalents and Short-Term Investments	144.07M	152.10M	153.59M	110.32M	140.63M	17.70M
Total Debt	1.65B	1.65B	1.95B	1.97B	1.94B	1.51B
Total Liabilities	2.75B	2.75B	2.49B	2.44B	2.41B	2.14B
Stockholders Equity	2.74B	2.79B	3.37B	4.35B	4.88B	6.87B
Cash Flow
Free Cash Flow	564.69M	516.11M	111.98M	57.34M	191.38M	146.03M
Operating Cash Flow	564.99M	516.41M	116.85M	57.80M	191.38M	146.03M
Investing Cash Flow	-63.55M	-201.53M	-36.79M	-33.18M	-407.81M	-46.99M
Financing Cash Flow	-486.31M	-316.38M	-36.80M	-54.92M	339.36M	-101.33M

Baolong International Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1906 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4401	59Neutral	TWD 1.63B	11.77	―	4.51%	-1.66%	44.21%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1466	46Neutral	TWD 1.61B	-57.80	―	1.38%	-16.29%	28.23%
TW:5450	46Neutral	TWD 1.64B	19.00	―	1.87%	-2.47%	26.92%
TW:1906	44Neutral	TWD 1.52B	20.41	―	1.00%	11.10%	329.56%
TW:4716	38Underperform	TWD 1.53B	33.16	―	1.06%	-2.09%	85.82%
TW:1454	36Underperform	TWD 1.47B	-12.87	―	0.83%	-16.18%	-29.64%

* General Sector Average

Performance Comparison

TW:1906 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1906	Baolong International Co., Ltd.	10.05	-2.05	-16.94%
TW:1454	Taiwan Taffeta Fabric Co., Ltd	12.10	-0.99	-7.58%
TW:1466	Acelon Chemicals & Fiber Corporation.	14.45	-0.41	-2.77%
TW:4401	Toung Loong Textile Mfg. Co., Ltd.	13.30	-3.55	-21.07%
TW:4716	Daily Polymer Corp.	18.70	3.10	19.87%
TW:5450	Nam Liong Global Corporation	13.40	0.33	2.56%

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

Baolong International Co., Ltd. AI Stock Analysis