Far Glory Hotel Co., Ltd. (2712) AI Stock Analysis

Far Glory Hotel Co., Ltd.

(TWSE:2712)

Select Model

Rating:43Neutral

Price Target:TWD 12.00▼(-2.83% Downside)

Action:initiatedcoverage

Date:11/09/26

Far Glory Hotel scores poorly overall, driven primarily by continued unprofitability: gross margin has compressed to 4.9%, the company posted an operating loss of NT$30M and a net loss of NT$40M, and revenue has been highly erratic year to year. The balance sheet is the main mitigating factor, with equity funding 61% of assets, leverage reduced to a D/E of 0.47, and both operating and free cash flow back in positive territory — giving management runway for a turnaround. Technicals reinforce caution, with the stock below all key moving averages and negative MACD confirming a sustained downtrend, though deeply oversold RSI and Stochastic readings hint at scope for a near-term bounce. Valuation provides little support given negative earnings and no dividend. Investors should look for evidence of sustained margin recovery and a return to profitability before treating the recent improvement as durable.

Positive Factors

Improved 2025 Cash GenerationThe return to positive operating and free cash flow in 2025 indicates improved cash discipline or lower investment intensity after a difficult prior year. If maintained, better cash conversion can support hotel operations, reduce funding pressure, and improve financial resilience.

Negative Factors

Sharp Revenue DeclineA second consecutive annual revenue decline, including an approximately 47% drop in 2025, signals substantial pressure on demand or operating scale. Persistently lower revenue reduces fixed-cost absorption and makes a durable return to prior profitability more difficult.

Far Glory Hotel Co., Ltd. (2712) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.30B
Dividend Yield: ―
Average Volume (3M): 14.04K
Price to Earnings (P/E): -47.3
Beta (1Y): 0.36
Revenue Growth: 25.09%
EPS Growth: 72.18%
Country: TW
Employees: 341
Sector: General
Sector Strength: 55
Industry: Gambling, Resorts & Casinos

Far Glory Hotel Co., Ltd. Business Overview & Revenue Model

Company Description

FarGlory Hotel Co.,Ltd is primarily engaged in the management and operation of the Farglory Hotel, situated in Hualien, Taiwan. This establishment offers a comprehensive range of amenities and services to its guests, including various accommodation o...

Far Glory Hotel Co., Ltd. Financial Statement Overview

Summary

Blending a weak Income Statement (33), a relatively solid Balance Sheet (58) and a modest Cash Flow score (52) gives a below-average financial profile. The company remains unprofitable, with a net loss of NT$40M (-7.7% net margin) and gross margin collapsing to 4.9% from roughly 30-39% in prior years, alongside highly volatile revenue. The offsets are real but limited: losses narrowed sharply versus 2024, revenue rebounded to NT$525M, EBITDA stayed positive at NT$67M, debt fell from NT$564M to NT$484M (D/E 0.47), equity funds 61% of assets, and operating and free cash flow returned to positive territory (NT$46M and NT$33M). Still, equity has eroded from NT$1.28B in 2020 to NT$1.03B on accumulated losses, ROE is negative at -3.9%, and cash generation sits far below historical peaks — an early-stage recovery rather than a position of strength.

Income Statement

33Negative

Balance Sheet

58Neutral

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	545.42M	524.99M	354.98M	656.11M	532.94M	350.97M
Gross Profit	108.90M	25.54M	-24.41M	197.11M	155.84M	68.05M
EBITDA	68.20M	67.39M	-47.04M	155.81M	92.92M	33.24M
Net Income	-27.59M	-40.37M	-149.16M	49.03M	24.12M	-20.74M
Balance Sheet
Total Assets	1.62B	1.67B	1.81B	1.80B	1.85B	1.45B
Cash, Cash Equivalents and Short-Term Investments	39.66M	51.30M	98.17M	63.37M	139.69M	60.37M
Total Debt	431.69M	483.81M	563.68M	309.46M	379.71M	38.91M
Total Liabilities	617.09M	647.93M	742.93M	539.25M	636.15M	257.54M
Stockholders Equity	1.00B	1.03B	1.07B	1.26B	1.22B	1.19B
Cash Flow
Free Cash Flow	66.21M	32.57M	-168.38M	11.24M	-219.46M	-24.69M
Operating Cash Flow	78.17M	45.55M	-63.21M	130.70M	94.02M	32.26M
Investing Cash Flow	-16.03M	-17.11M	-108.99M	-123.72M	-316.21M	-7.12M
Financing Cash Flow	-102.14M	-82.21M	207.00M	-83.30M	301.52M	-38.17M

Far Glory Hotel Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2712 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5704	53Neutral	TWD 1.25B	61.91	―	―	10.31%	―
TW:6219	45Neutral	TWD 1.29B	11.01	―	6.44%	9.98%	-32.64%
TW:2719	44Neutral	TWD 1.25B	17.03	―	―	-20.72%	―
TW:2712	43Neutral	TWD 1.29B	-47.32	―	―	25.09%	72.18%
TW:2926	40Underperform	TWD 1.41B	47.78	―	1.53%	3.89%	-34.95%

* General Sector Average

Performance Comparison

TW:2712 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2712	Far Glory Hotel Co., Ltd.	12.35	-6.90	-35.84%
TW:2719	TSG Star Travel Corp	18.05	-16.95	-48.43%
TW:2926	Eslite Spectrum Corporation	30.10	-9.62	-24.22%
TW:5704	Hotel Royal Chihpen	21.05	-3.88	-15.55%
TW:6219	Full Wang International Development Co. Ltd.	10.40	-9.55	-47.87%
TW:6595	Juliens International Entertainment Group	29.40	-5.34	-15.36%

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

Far Glory Hotel Co., Ltd. AI Stock Analysis