First Hotel Co., Ltd. (2706) AI Stock Analysis

First Hotel Co., Ltd.

(TWSE:2706)

Select Model

Rating:70Outperform

Price Target:TWD 13.00▲(8.33% Upside)

Action:initiatedcoverage

Date:11/10/26

Strong financial performance with high profitability and minimal leverage is the primary positive driver, tempered by weak technical momentum; fair valuation provides additional support.

Positive Factors

Conservative Balance SheetVery low leverage reduces financial risk and gives First Hotel greater flexibility to withstand cyclical lodging conditions. A stable, substantial equity base also supports continued operations and provides room to fund opportunities without relying heavily on additional borrowing.

Negative Factors

Earnings and Revenue VolatilityThe sharp historical revenue declines show that First Hotel’s results can be sensitive to adverse operating conditions. This volatility makes future earnings harder to underwrite and means the company may experience meaningful swings in performance across the next business cycle.

First Hotel Co., Ltd. (2706) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.02B
Dividend Yield: 2.92%
Average Volume (3M): 107.29K
Price to Earnings (P/E): 17.8
Beta (1Y): 0.20
Revenue Growth: 4.52%
EPS Growth: 9.08%
Country: TW
Employees: 42
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

First Hotel Co., Ltd. Business Overview & Revenue Model

Company Description

First Hotel Company Ltd. operates a tourist hotel under the First Hotel name in Taiwan and Malaysia. The company operates through Tourism Service Department and Leasing segment. It is also involved in the tourist hotels, commercial building leasing,...

First Hotel Co., Ltd. Financial Statement Overview

Summary

High gross and net margins, exceptionally strong balance sheet with minimal debt, and robust cash flows with strong free cash flow growth.

Income Statement

84Very Positive

Balance Sheet

93Very Positive

Cash Flow

86Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	379.51M	376.92M	355.88M	343.30M	290.52M	252.88M
Gross Profit	295.23M	293.96M	273.71M	264.86M	227.05M	192.07M
EBITDA	326.46M	404.29M	326.36M	379.21M	369.29M	96.85M
Net Income	339.83M	325.56M	277.73M	300.69M	301.45M	78.40M
Balance Sheet
Total Assets	12.04B	11.66B	11.74B	11.42B	11.09B	10.44B
Cash, Cash Equivalents and Short-Term Investments	3.18B	3.05B	2.96B	2.89B	2.81B	2.66B
Total Debt	70.54M	73.38M	76.31M	81.33M	68.65M	81.66M
Total Liabilities	1.76B	1.54B	1.56B	1.52B	1.46B	1.46B
Stockholders Equity	10.28B	10.12B	10.18B	9.90B	9.63B	8.99B
Cash Flow
Free Cash Flow	244.57M	284.48M	149.06M	186.17M	146.88M	133.79M
Operating Cash Flow	252.40M	294.18M	151.11M	188.40M	147.09M	133.94M
Investing Cash Flow	-119.32M	-80.68M	-62.52M	5.37M	-108.59M	-15.63M
Financing Cash Flow	-181.47M	-180.40M	-176.89M	-164.02M	-68.13M	-72.93M

First Hotel Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2706 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2706	70Outperform	TWD 6.00B	17.83	―	2.92%	4.52%	9.08%
TW:9943	65Neutral	TWD 6.21B	9.28	―	7.09%	-5.24%	17.98%
TW:6184	62Neutral	TWD 5.57B	15.75	―	8.10%	0.53%	-39.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2614	55Neutral	TWD 6.02B	6.44	―	3.03%	-3.56%	36.37%
TW:2729	52Neutral	TWD 6.66B	23.05	―	4.75%	5.74%	-45.98%
TW:3086	47Neutral	TWD 5.89B	-398.10	―	0.06%	-2.07%	-17.71%

* General Sector Average

Performance Comparison

TW:2706 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2706	First Hotel Co., Ltd.	12.00	-0.73	-5.76%
TW:2614	Eastern Media International Corporation	13.20	-5.19	-28.21%
TW:2729	TTFB Co. Ltd.	146.00	-26.80	-15.51%
TW:3086	Wayi International Digital Entertainment Co., Ltd.	20.50	-1.60	-7.24%
TW:6184	Dafeng TV Ltd.	37.05	-7.79	-17.37%
TW:9943	Holiday Entertainment Co., Ltd.	49.35	-7.50	-13.19%

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

First Hotel Co., Ltd. AI Stock Analysis