Shinkong Insurance Co., Ltd. (2850) AI Stock Analysis

Shinkong Insurance Co., Ltd.

(TWSE:2850)

Select Model

Rating:73Outperform

Price Target:TWD 176.00▲(12.46% Upside)

Action:initiatedcoverage

Date:11/09/26

Shinkong Insurance scores well on the strength of its financial foundation: a virtually debt-free balance sheet, steadily rising equity, an 18.7% return on equity and materially expanded margins that have more than doubled net income since 2020. Valuation reinforces the case, with a modest 10.3x P/E, a 4.6% dividend yield and very low volatility. The main drags are a sharp deterioration in cash conversion — free cash flow covered just 15% of net income in 2025 — and a top line that has flattened and slipped modestly. Technically, the shares remain above their 100- and 200-day averages but are consolidating below shorter-term averages with subdued momentum readings. A rebound in cash generation and a return to premium growth would be the key catalysts for a higher score.

Positive Factors

Improving ProfitabilityRising net income and expanding margins indicate stronger profitability over several years rather than a single-period improvement. If maintained, this gives Shinkong Insurance greater capacity to strengthen capital, support policy growth, and absorb variability in claims or investment results.

Negative Factors

Sharp Cash-Flow DeteriorationThe steep 2025 decline in operating and free cash flow creates uncertainty about the timing and reliability of internally generated funds. Weak cash conversion relative to earnings could constrain flexibility for growth, capital allocation, or absorbing adverse claims and investment outcomes.

Shinkong Insurance Co., Ltd. (2850) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 49.29B
Dividend Yield: 4.65%
Average Volume (3M): 266.83K
Price to Earnings (P/E): 10.1
Beta (1Y): 0.13
Revenue Growth: 21.66%
EPS Growth: 45.77%
Country: TW
Employees: 1,540
Sector: General
Sector Strength: 55
Industry: Insurance - Property & Casualty

Shinkong Insurance Co., Ltd. Business Overview & Revenue Model

Company Description

Shinkong Insurance Co., Ltd. operates as a key participant in Taiwan's property insurance industry. The firm provides a broad spectrum of insurance solutions, encompassing coverage for motor vehicles, fire, marine operations, engineering endeavors, v...

Shinkong Insurance Co., Ltd. Financial Statement Overview

Summary

Earnings quality is strong: net income has more than doubled since 2020 to NT$3.88 billion, net margin nearly doubled to 18.6%, and operating margin expanded to 22.6%, pointing to better underwriting and expense discipline (Income Statement 79). The balance sheet is the standout (86) — essentially debt-free, equity up to NT$20.7 billion with an equity-to-assets cushion near one-third, and return on equity improving to 18.7%. Offsetting this, cash flow is the clear weak link (38): operating cash flow collapsed to NT$126 million in 2025 from NT$5.0 billion, with free cash flow covering only about 15% of net income. Revenue also dipped roughly 2.6% after four years of growth, and the sharp fall in reported gross margin needs clarification.

Income Statement

79Positive

Balance Sheet

86Very Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.11B	20.83B	20.85B	19.94B	18.93B	18.46B
Gross Profit	8.66B	11.87B	17.94B	17.10B	15.94B	15.55B
EBITDA	5.82B	4.83B	4.11B	3.63B	2.58B	2.76B
Net Income	4.86B	3.88B	3.31B	2.91B	2.00B	2.25B
Balance Sheet
Total Assets	60.73B	62.43B	54.61B	47.03B	44.00B	43.89B
Cash, Cash Equivalents and Short-Term Investments	1.66B	14.09B	16.20B	12.91B	12.20B	13.16B
Total Debt	316.39M	25.76M	120.03M	16.57M	33.84M	34.92M
Total Liabilities	38.72B	41.68B	35.37B	29.51B	28.97B	28.63B
Stockholders Equity	22.00B	20.74B	19.24B	17.52B	15.03B	15.26B
Cash Flow
Free Cash Flow	-8.79B	19.45M	4.94B	1.52B	98.48M	1.63B
Operating Cash Flow	-8.73B	125.57M	5.00B	1.59B	178.01M	1.70B
Investing Cash Flow	116.47M	76.84M	-64.42M	-76.84M	-64.28M	-271.96M
Financing Cash Flow	-2.27B	-2.27B	-1.59B	-818.68M	-1.03B	-632.28M

Shinkong Insurance Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2850 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2851	81Outperform	TWD 35.94B	4.42	―	4.76%	21.22%	481.08%
TW:2850	73Outperform	TWD 48.82B	10.12	―	4.65%	21.66%	45.77%
TW:2849	63Neutral	TWD 28.48B	14.95	―	3.46%	9.63%	40.11%
TW:2845	58Neutral	TWD 61.30B	12.45	―	4.08%	-13.12%	18.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2889	55Neutral	TWD 57.76B	13.10	―	3.13%	65.79%	174.93%
TW:2897	52Neutral	TWD 28.84B	12.26	―	5.05%	―	20.11%

* General Sector Average

Performance Comparison

TW:2850 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2850	Shinkong Insurance Co., Ltd.	156.50	44.77	40.07%
TW:2845	Far Eastern International Bank	12.60	0.52	4.33%
TW:2849	Entie Commercial Bank	14.75	2.01	15.78%
TW:2851	Central Reinsurance Corporation	46.25	21.60	87.64%
TW:2889	IBF Financial Holdings Co., Ltd.	15.95	0.68	4.49%
TW:2897	O-Bank Co. Ltd.	10.30	1.62	18.70%

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

Shinkong Insurance Co., Ltd. AI Stock Analysis