Farglory Free Trade Zone Investment Holding Co., Ltd. (5607) AI Stock Analysis

Farglory Free Trade Zone Investment Holding Co., Ltd.

(TWSE:5607)

Select Model

Rating:64Neutral

Price Target:TWD 51.00▲(1.80% Upside)

Action:initiatedcoverage

Date:11/09/26

Farglory Free Trade Zone scores moderately well overall. The main support is fundamental: double-digit revenue growth, best-in-class margins and a sharp improvement in cash conversion, with free cash flow of NT$1.64bn covering about 11% of total debt annually and funding ongoing deleveraging. This is tempered by a heavily geared balance sheet (1.29x debt-to-equity, ~5.7x EBITDA) and a history of volatile earnings and capex cycles. The largest drag on the score is technical: the stock sits below all major moving averages with negative MACD, albeit at deeply oversold readings. An inexpensive 13.3x P/E and a 3.78% dividend yield provide valuation support and partially offset the weak price trend.

Positive Factors

Strong Operating ProfitabilityConsistently strong gross and operating profitability indicates that the company’s core free-trade-zone and support-services activities can generate attractive operating economics. This provides a durable base for reinvestment, dividend capacity, and resilience as revenue expands over the next several quarters.

Negative Factors

Meaningful Financial LeverageDebt exceeding equity leaves the company more exposed to financing costs and operating setbacks than a conservatively funded peer. Although leverage modestly improved and equity grew, the capital structure can constrain financial flexibility and reduce capacity to absorb weaker conditions or fund expansion.

Farglory Free Trade Zone Investment Holding Co., Ltd. (5607) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 18.60B
Dividend Yield: 3.59%
Average Volume (3M): 816.25K
Price to Earnings (P/E): 13.7
Beta (1Y): 0.71
Revenue Growth: 33.55%
EPS Growth: 64.73%
Country: TW
Employees: 654
Sector: General
Sector Strength: 55
Industry: Specialty Business Services

Farglory Free Trade Zone Investment Holding Co., Ltd. Business Overview & Revenue Model

Company Description

Farglory F T Z Investment Holding Co.,Ltd. functions as an investment holding entity primarily offering free trade zone administration and logistics solutions throughout Taiwan. Its services encompass extensive air freight handling, including the pre...

Farglory Free Trade Zone Investment Holding Co., Ltd. Financial Statement Overview

Summary

Blends a strong Income Statement score (76), a weaker Balance Sheet score (56) and a robust Cash Flow score (80). Revenue grew ~20% to NT$4.14bn with margin expansion across the board (gross 49.7%, operating 36.9%, net 24.8%) and a 60% EBITDA margin, while operating cash flow rose ~45% to NT$2.07bn and free cash flow ~55% to NT$1.64bn, confirming high earnings quality after the heavy 2021–2022 build-out. The constraint is leverage: NT$14.30bn of debt versus NT$11.05bn of equity (1.29x, ~5.7x EBITDA), alongside choppy annual earnings and margins still below the 2022 peak. Deleveraging for two consecutive years and improving ROE (9.3%) partly offset this.

Income Statement

76Positive

Balance Sheet

56Neutral

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.83B	4.14B	3.46B	2.91B	3.20B	2.54B
Gross Profit	2.49B	2.06B	1.64B	1.43B	1.94B	1.49B
EBITDA	3.07B	2.49B	2.03B	1.59B	1.88B	1.41B
Net Income	1.35B	1.03B	716.91M	892.20M	1.10B	570.95M
Balance Sheet
Total Assets	27.13B	27.16B	26.78B	25.20B	21.73B	19.02B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.12B	950.34M	956.17M	1.02B	2.12B
Total Debt	12.59B	14.30B	14.73B	13.53B	11.96B	9.17B
Total Liabilities	15.93B	16.10B	16.35B	15.21B	13.74B	11.64B
Stockholders Equity	11.19B	11.05B	10.42B	9.99B	7.99B	5.98B
Cash Flow
Free Cash Flow	2.10B	1.64B	1.06B	516.55M	904.99M	-396.40M
Operating Cash Flow	2.45B	2.07B	1.42B	1.22B	2.83B	1.63B
Investing Cash Flow	-172.31M	-931.18M	-2.06B	-3.85B	-5.01B	-4.07B
Financing Cash Flow	-1.77B	-813.78M	694.23M	2.72B	2.08B	2.70B

Farglory Free Trade Zone Investment Holding Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5607 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5607	64Neutral	TWD 18.56B	13.67	―	3.59%	33.55%	64.73%
TW:6177	63Neutral	TWD 20.19B	4.71	―	7.02%	93.90%	145.42%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2520	52Neutral	TWD 19.79B	9.97	―	4.88%	12.79%	-1.84%
TW:5530	51Neutral	TWD 18.88B	14.06	―	―	-13.52%	-8.62%
TW:5213	49Neutral	TWD 14.98B	11.54	―	14.25%	-32.16%	-55.65%

* General Sector Average

Performance Comparison

TW:5607 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5607	Farglory Free Trade Zone Investment Holding Co., Ltd.	50.10	3.28	7.01%
TW:01002T	Cathay No. 1 Real Estate Investment Trust	12.46	-1.65	-11.67%
TW:2520	Kindom Development Co., Ltd.	33.10	1.30	4.10%
TW:5213	YeaShin International Development Co. Ltd.	19.65	-1.53	-7.22%
TW:5530	Lungyen Life Service Corporation	44.95	-4.00	-8.17%
TW:6177	DA-LI DEVELOPMENT Co., Ltd.	42.75	-0.16	-0.38%

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

Farglory Free Trade Zone Investment Holding Co., Ltd. AI Stock Analysis