Lungyen Life Service Corporation (5530) AI Stock Analysis

Lungyen Life Service Corporation

(TPEx:5530)

Select Model

Rating:51Neutral

Price Target:TWD 45.00▲(0.22% Upside)

Action:initiatedcoverage

Date:11/09/26

Lungyen Life Service scores below average, driven primarily by a deteriorating fundamental trend: operating and free cash flow swung negative in 2025 while margins compressed sharply and profits leaned on non-operating income. The offsetting strength is a well-capitalized balance sheet with minimal debt and consistently growing equity, which buys the company time to stabilize operations. Technicals compound the caution, with the share price below all major moving averages and negative MACD, though deeply oversold RSI and Stochastic readings suggest selling may be stretched near term. Valuation at a 13.7x P/E is reasonable but not compelling given falling earnings quality and no confirmed dividend support. The key issue for investors is whether management can restore operating margins and reverse the cash burn.

Positive Factors

Strong Balance SheetEquity of about 28.5B versus debt of 3.6B and debt-to-equity near 0.13 indicate substantial capitalization and moderate leverage. This provides financial flexibility to continue operations and absorb pressure while debt remains relatively small compared with the equity base.

Negative Factors

Negative Cash GenerationThe shift to negative operating and free cash flow is a meaningful deterioration from positive inflows during 2022–2024. Persistent cash deficits could reduce the company’s ability to fund operations and investments internally, while making working-capital movements and cash outlays more important to monitor.

Lungyen Life Service Corporation (5530) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 18.92B
Dividend Yield: ―
Average Volume (3M): 256.78K
Price to Earnings (P/E): 14.2
Beta (1Y): 0.33
Revenue Growth: -13.52%
EPS Growth: -8.62%
Country: TW
Employees: 490
Sector: General
Sector Strength: 55
Industry: Personal Products & Services

Lungyen Life Service Corporation Business Overview & Revenue Model

Company Description

Lungyen Life Service Corporation, headquartered in New Taipei City, Taiwan, specializes in offering comprehensive end-of-life services. Established in 1987, the company's business operations are structured across five distinct segments: columbarium s...

Lungyen Life Service Corporation Financial Statement Overview

Summary

A strong balance sheet (score 70) is offset by weakening earnings quality (income statement 55) and a serious cash flow reversal (28). Equity has grown steadily to NT$28.5bn with very low debt-to-equity of about 0.13, providing genuine financial resilience. However, revenue has stalled near NT$4bn, gross margin has eroded from roughly 67% to 55% since 2020, operating margin collapsed from about 45% to 20% in 2025, and net income fell about 28% to NT$1.16bn. Profits increasingly rely on non-operating income, ROE has slipped to about 4.1%, and both operating (NT$-793m) and free cash flow (NT$-999m) turned negative in 2025 — meaning reported earnings are not converting into cash.

Income Statement

55Neutral

Balance Sheet

70Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.76B	4.05B	4.16B	4.10B	3.96B	3.55B
Gross Profit	2.01B	2.21B	2.50B	2.59B	2.61B	2.34B
EBITDA	1.04B	1.09B	2.13B	1.72B	1.93B	1.90B
Net Income	1.41B	1.16B	1.61B	1.21B	1.33B	1.41B
Balance Sheet
Total Assets	83.33B	78.70B	73.32B	69.71B	66.82B	67.09B
Cash, Cash Equivalents and Short-Term Investments	13.93B	12.65B	10.16B	7.42B	3.56B	6.25B
Total Debt	4.76B	3.58B	1.19B	709.83M	178.00M	35.33M
Total Liabilities	52.04B	50.13B	47.07B	46.19B	45.30B	44.72B
Stockholders Equity	31.25B	28.54B	26.15B	23.41B	20.30B	20.70B
Cash Flow
Free Cash Flow	-780.21M	-998.64M	504.45M	341.92M	2.74B	1.92B
Operating Cash Flow	-593.43M	-792.70M	697.82M	716.89M	3.41B	2.67B
Investing Cash Flow	-1.38B	-1.59B	-817.01M	-418.59M	-2.05B	-2.12B
Financing Cash Flow	2.33B	2.35B	339.43M	-369.93M	-977.64M	-518.82M

Lungyen Life Service Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5530 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2535	69Neutral	TWD 22.94B	8.79	―	5.12%	36.46%	95.03%
TW:6177	63Neutral	TWD 20.19B	4.75	―	6.98%	87.69%	186.00%
TW:2543	57Neutral	TWD 15.06B	10.89	―	5.01%	30.85%	-14.12%
TW:2530	56Neutral	TWD 15.35B	27.01	―	6.70%	-59.46%	-71.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2520	52Neutral	TWD 19.79B	9.53	―	4.96%	12.79%	-1.84%
TW:5530	51Neutral	TWD 18.88B	14.23	―	―	-13.52%	-8.62%

* General Sector Average

Performance Comparison

TW:5530 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5530	Lungyen Life Service Corporation	44.90	-4.05	-8.27%
TW:2520	Kindom Development Co., Ltd.	32.60	0.80	2.53%
TW:2530	Delpha Construction Co., Ltd.	18.05	-8.59	-32.25%
TW:2535	Da-Cin Construction Co., Ltd.	89.80	30.73	52.03%
TW:2543	Hwang Chang General Contractor Co., Ltd.	30.50	-28.92	-48.67%
TW:6177	DA-LI DEVELOPMENT Co., Ltd.	43.00	0.09	0.20%

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

Lungyen Life Service Corporation AI Stock Analysis