Tien Liang Biotech Co., Ltd. (4127) AI Stock Analysis

Tien Liang Biotech Co., Ltd.

(TPEx:4127)

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Rating:40Underperform

Price Target:TWD 31.00▼(-14.25% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held down primarily by deteriorating financial performance: a swing to operating and net losses despite a revenue rebound, steady gross margin erosion, and a rapid build-up of debt to roughly 1.26x equity that has left operating cash flow covering only about 5% of total debt. Technicals reinforce the caution, with the price trading below all major moving averages and a deeply negative MACD signalling a sustained downtrend. Valuation offers no relief, as a 22.4x P/E is hard to justify against loss-making results and there is no dividend. Partially offsetting these risks are the strong 2025 top-line recovery, a still-healthy gross margin for the sector, continued positive operating and free cash flow, and an equity base near 40% of assets. The investment case depends on the asset expansion translating into higher-margin revenue soon enough to restore profitability and reduce leverage.

Positive Factors

Revenue GrowthThe return to 9.6% revenue growth shows that the company is still expanding its commercial activity despite weaker profitability. Sustained top-line progress can broaden the revenue base, support operating leverage over time, and provide a foundation for rebuilding earnings if cost pressures moderate.

Negative Factors

Return to LossesThe shift from profit to net loss, alongside negative EBIT and EBITDA, represents a broad deterioration in earnings quality rather than an isolated bottom-line issue. Persistent operating losses could reduce reinvestment capacity, weaken resilience, and make future growth more dependent on financing.

Tien Liang Biotech Co., Ltd. (4127) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.67B
Dividend Yield: ―
Average Volume (3M): 287.58K
Price to Earnings (P/E): 23.6
Beta (1Y): 0.32
Revenue Growth: 52.12%
EPS Growth: ―
Country: TW
Employees: 88
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Tien Liang Biotech Co., Ltd. Business Overview & Revenue Model

Company Description

Tien Liang BioTech Co., Ltd., established in 1960 and headquartered in New Taipei City, Taiwan, is a pharmaceutical enterprise involved in the development, manufacturing, and global distribution of a diverse array of health and medicinal products. Th...

Tien Liang Biotech Co., Ltd. Financial Statement Overview

Summary

Weak overall. Revenue rebounded strongly in 2025 to roughly NT$512 million after two down years, but gross margin eroded from about 64% in 2022 to 54%, and the company swung to an operating loss of about NT$16 million and a net loss near NT$10 million (Income Statement 33). The balance sheet has leveraged up rapidly, with borrowings rising to about NT$599 million from NT$85 million in 2023 and debt-to-equity at roughly 1.26x, while equity has been flat since 2021 and ROE turned negative (Balance Sheet 42). Cash flow is the relative bright spot but is weakening: operating cash flow fell to about NT$38 million and free cash flow dropped roughly 67% to NT$14 million, leaving operating cash flow at only about 5% of total debt (Cash Flow 47).

Income Statement

33Negative

Balance Sheet

42Neutral

Cash Flow

47Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	650.87M	511.79M	385.21M	459.99M	528.52M	571.32M
Gross Profit	376.74M	277.86M	229.91M	286.15M	336.55M	338.28M
EBITDA	40.79M	-6.07M	25.49M	31.05M	72.15M	63.06M
Net Income	69.09M	-10.25M	11.70M	17.73M	59.48M	46.60M
Balance Sheet
Total Assets	1.22B	1.18B	888.68M	654.03M	676.43M	655.35M
Cash, Cash Equivalents and Short-Term Investments	197.10M	152.31M	130.67M	142.22M	107.84M	118.47M
Total Debt	598.00M	598.54M	345.20M	84.66M	114.13M	156.87M
Total Liabilities	704.10M	709.19M	410.76M	161.05M	201.30M	241.30M
Stockholders Equity	519.25M	474.04M	477.92M	492.98M	475.13M	414.05M
Cash Flow
Free Cash Flow	37.54M	14.33M	44.20M	64.33M	20.87M	44.61M
Operating Cash Flow	60.37M	37.52M	48.34M	69.67M	21.88M	45.21M
Investing Cash Flow	-121.75M	-299.22M	-301.51M	-4.78M	-1.21M	-1.18M
Financing Cash Flow	67.44M	253.34M	241.62M	-30.52M	-31.30M	-40.80M

Tien Liang Biotech Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4127 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4111	76Outperform	TWD 1.71B	9.16	―	4.56%	5.33%	13.75%
TW:1295	59Neutral	TWD 1.57B	10.01	―	7.16%	-5.28%	-27.33%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6846	55Neutral	TWD 1.33B	10.22	―	8.05%	-3.09%	-27.22%
TW:4127	40Underperform	TWD 1.65B	23.58	―	―	52.12%	―

* General Sector Average

Performance Comparison

TW:4127 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4127	Tien Liang Biotech Co., Ltd.	36.15	5.35	17.37%
TW:1295	Synbio Tech Inc	41.80	-54.05	-56.39%
TW:4111	Chi Sheng Pharma & Biotech Co., Ltd.	28.50	-0.44	-1.53%
TW:6846	Greenyn Biotechnology Co., Ltd.	49.00	-24.31	-33.16%
TW:6886	Far East Bio-Tec. Co., Ltd.	38.65	-4.02	-9.41%
TW:7806	Gin Hwa Biotech, Inc.	49.40	-9.44	-16.05%

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

Tien Liang Biotech Co., Ltd. AI Stock Analysis