Johnson Chemical Pharmaceutical Works Co., Ltd. (4747) AI Stock Analysis

Johnson Chemical Pharmaceutical Works Co., Ltd.

(TPEx:4747)

Select Model

Rating:53Neutral

Price Target:TWD 22.00▲(39.24% Upside)

Action:initiatedcoverage

Date:11/09/26

Johnson Chemical is financially safe but currently underperforming. The conservative balance sheet — minimal debt and a large equity base — is the main support, yet revenue has turned lower, net income fell 36%, return on equity has slipped to about 3%, and an aggressive capex cycle has all but erased free cash flow. Technicals reinforce caution, with the price below all major moving averages and a negative MACD, though oversold RSI and Stochastic readings hint at scope for a near-term bounce. Valuation at 19.6x earnings looks demanding given the earnings decline, only partly offset by a 2.43% dividend yield and low beta. Resilient ~40% gross margins and operating cash flow exceeding net income keep the underlying business sound; the score would improve if the investment cycle restores growth and margins.

Positive Factors

Strong Revenue GrowthRevenue accelerated 47.8% in 2025 after modest 2024 growth, showing stronger sales momentum. If sustained, this expansion can improve operating scale, support investment in pharmaceutical products, and reinforce the company’s position in specialty and generic markets.

Negative Factors

Sharp Free Cash Flow DeclineFree cash flow fell about 78% to roughly 7.7M in 2025, while covering only about 11% of net income versus 76–79% in 2023–2024. Weak conversion makes reported earnings less dependable for funding investment and shareholder returns over coming quarters.

Johnson Chemical Pharmaceutical Works Co., Ltd. (4747) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.44B
Dividend Yield: 3.32%
Average Volume (3M): 90.65K
Price to Earnings (P/E): -23.3
Beta (1Y): 0.19
Revenue Growth: 4.56%
EPS Growth: -172.55%
Country: TW
Employees: 188
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Johnson Chemical Pharmaceutical Works Co., Ltd. Business Overview & Revenue Model

Company Description

Johnson Chemical Pharmaceutical Works Co., Ltd., established in 1959 and headquartered in New Taipei City, Taiwan, is a Taiwanese company that engages in the manufacturing, importing, and distribution of pharmaceutical raw materials, active ingredien...

Johnson Chemical Pharmaceutical Works Co., Ltd. Financial Statement Overview

Summary

A fortress-like balance sheet (score 72) is the clear strength: equity funds roughly 82% of assets and debt-to-equity sits at just 0.15, leaving ample flexibility and minimal refinancing risk. However, earnings quality has weakened (income statement 53) as revenue fell from NT$611.4M to NT$569.8M and net income dropped 36% to NT$53.5M, compressing net margin to 9.4% and EBIT margin to 12.9%. Cash flow (51) is adequate — operating cash flow of NT$71.7M exceeds net income at about 1.3x — but heavy capex cut free cash flow to only NT$7.7M, a 78% decline. Return on equity has slid to roughly 3.1%, showing the enlarged capital base is not yet productive. Gross margins holding near 40% suggest intact pricing power and a recoverable base.

Income Statement

53Neutral

Balance Sheet

72Positive

Cash Flow

51Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	577.93M	569.77M	611.41M	606.71M	494.67M	411.49M
Gross Profit	227.10M	228.35M	247.97M	244.63M	204.38M	171.92M
EBITDA	80.63M	93.67M	133.19M	126.59M	101.74M	78.30M
Net Income	89.38M	53.51M	84.12M	79.70M	64.85M	49.10M
Balance Sheet
Total Assets	2.56B	2.09B	1.97B	1.99B	1.04B	1.03B
Cash, Cash Equivalents and Short-Term Investments	261.73M	1.15B	1.07B	1.09B	168.47M	202.23M
Total Debt	645.00M	260.95M	150.22M	160.83M	60.00M	80.00M
Total Liabilities	820.26M	384.37M	261.36M	320.99M	167.56M	178.91M
Stockholders Equity	1.74B	1.71B	1.70B	1.67B	871.66M	848.24M
Cash Flow
Free Cash Flow	-40.87M	7.66M	49.68M	103.83M	29.98M	15.06M
Operating Cash Flow	24.29M	71.71M	62.88M	136.95M	89.69M	52.35M
Investing Cash Flow	-1.30B	-153.76M	-12.96M	-33.28M	-59.92M	-38.15M
Financing Cash Flow	444.87M	61.53M	-67.47M	815.47M	-63.53M	-107.64M

Johnson Chemical Pharmaceutical Works Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4747 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8279	69Neutral	TWD 2.21B	10.69	―	6.18%	-3.92%	-29.93%
TW:4148	60Neutral	TWD 1.96B	10.66	―	3.40%	15.66%	31.51%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4747	53Neutral	TWD 1.60B	-23.25	―	3.32%	4.56%	-172.55%
TW:4108	47Neutral	TWD 2.06B	-48.44	―	―	1.10%	54.83%

* General Sector Average

Performance Comparison

TW:4747 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4747	Johnson Chemical Pharmaceutical Works Co., Ltd.	15.80	-15.92	-50.19%
TW:4108	Phytohealth Corporation	10.40	-3.85	-27.02%
TW:4148	All Cosmos Bio-Tech Holding Corp.	29.40	-10.25	-25.86%
TW:6659	Timing Pharmaceutical Co. Ltd.	20.20	-19.76	-49.44%
TW:7888	Libo Pharma Corp.	24.70	-20.45	-45.29%
TW:8279	Syngen Biotech Co., Ltd.	80.90	-43.20	-34.81%

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

Johnson Chemical Pharmaceutical Works Co., Ltd. AI Stock Analysis