Tonlin Department Store Co., Ltd. (2910) AI Stock Analysis

Tonlin Department Store Co., Ltd.

(TWSE:2910)

Select Model

Rating:58Neutral

Price Target:TWD 23.50▲(5.15% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 58 reflects a company with strong profitability metrics and an attractive valuation, but these are significantly counterbalanced by a concerning decline in revenue and weak cash flow generation. The primary risk is the sustainability of profits if the top-line contraction continues, which is echoed by bearish technical signals showing the stock in a downtrend. The high dividend yield and low P/E ratio provide a margin of safety and are the most compelling positive factors.

Positive Factors

Strong ProfitabilityStrong gross, operating, and net profitability indicates that Tonlin is converting department-store sales into earnings effectively. Sustained margin strength can support reinvestment, dividends, and resilience against moderate changes in consumer demand over the next several quarters.

Negative Factors

Persistent Revenue DeclineMulti-year revenue contraction raises concerns about the durability of customer demand and the company’s ability to expand its commercial base. Even with strong margins, continued top-line erosion can eventually limit operating leverage, earnings growth, and reinvestment capacity.

Tonlin Department Store Co., Ltd. (2910) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.96B
Dividend Yield: 4.65%
Average Volume (3M): 13.37K
Price to Earnings (P/E): 13.4
Beta (1Y): 0.28
Revenue Growth: 1.41%
EPS Growth: 40.69%
Country: TW
Employees: 70
Sector: General
Sector Strength: 55
Industry: Department Stores

Tonlin Department Store Co., Ltd. Business Overview & Revenue Model

Company Description

Headquartered in Taipei, Taiwan, Tonlin Department Store Co., Ltd. is a prominent Taiwanese retail enterprise established in 1971. The company operates a chain of department stores throughout Taiwan, presenting a diverse selection of fashion, beauty,...

Tonlin Department Store Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The income statement shows excellent margin expansion (gross margin to 88%, net margin to 41%), but this is offset by a declining revenue trend (-3.4% YoY). The balance sheet has moderate leverage (D/E 1.14x) and improving ROE (7.8%), but high absolute debt of $3.16B. Cash flow is a concern, with a 25.6% decline in free cash flow and a low operating cash flow to net income ratio of 0.37x, indicating poor earnings quality.

Income Statement

78Positive

Balance Sheet

55Neutral

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	540.84M	518.35M	606.04M	684.08M	711.97M	528.60M
Gross Profit	455.93M	456.97M	431.03M	399.72M	351.45M	322.69M
EBITDA	385.56M	356.07M	394.12M	355.75M	222.73M	245.36M
Net Income	321.26M	215.08M	197.94M	204.91M	96.39M	140.69M
Balance Sheet
Total Assets	6.81B	6.37B	5.97B	5.59B	5.70B	6.02B
Cash, Cash Equivalents and Short-Term Investments	885.06M	874.28M	744.97M	788.88M	593.72M	575.14M
Total Debt	3.58B	3.16B	2.77B	2.54B	2.87B	3.21B
Total Liabilities	4.04B	3.61B	3.25B	3.00B	3.31B	3.62B
Stockholders Equity	2.77B	2.76B	2.72B	2.59B	2.39B	2.40B
Cash Flow
Free Cash Flow	312.24M	237.64M	424.27M	280.75M	527.27M	179.53M
Operating Cash Flow	324.63M	245.43M	424.88M	285.73M	555.13M	262.85M
Investing Cash Flow	-744.93M	-372.68M	-627.79M	16.78M	-64.10M	-40.99M
Financing Cash Flow	515.13M	215.37M	190.25M	-333.92M	-435.12M	-216.23M

Tonlin Department Store Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2910 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2755	70Outperform	TWD 4.12B	14.34	―	3.95%	19.14%	22.20%
TW:2910	58Neutral	TWD 3.89B	13.37	―	4.65%	1.41%	40.69%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:9934	43Neutral	TWD 3.85B	13.36	―	1.08%	2.25%	309.21%
TW:8044	29Underperform	TWD 4.35B	-5.98	―	―	4.49%	19.29%

* General Sector Average

Performance Comparison

TW:2910 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2910	Tonlin Department Store Co., Ltd.	22.35	2.16	10.67%
TW:2755	YoungQin International Co. Ltd.	88.50	-8.48	-8.75%
TW:7791	Lucky Royal Co. Ltd.	46.45	-23.66	-33.74%
TW:7867	Test Rite Retail Co., Ltd.	43.00	-5.70	-11.70%
TW:8044	PChome Online, Inc.	21.55	-9.25	-30.03%
TW:9934	Globe Union Industrial Corp.	9.28	-0.62	-6.27%

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 10, 2026

Tonlin Department Store Co., Ltd. AI Stock Analysis