Nan Ren Lake Leisure Amusement Co. Ltd. (5905) AI Stock Analysis

Nan Ren Lake Leisure Amusement Co. Ltd.

(TPEx:5905)

Select Model

Rating:38Underperform

Price Target:TWD 6.00▼(-3.69% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is constrained primarily by persistent unprofitability, negative cash generation, and high leverage. Weak technical momentum and a negative P/E provide additional risks, while oversold momentum indicators offer only limited potential support.

Positive Factors

Revenue RecoveryThe return to revenue growth shows that visitor demand and the company’s leisure offering have recovered from the earlier downturn. Continued top-line expansion would improve operating leverage and create a stronger base for converting the company’s substantial gross profit into sustainable earnings.

Negative Factors

Persistent UnprofitabilityRepeated annual net losses show that revenue recovery and high gross margins have not yet translated into sustainable profitability. Continued bottom-line losses can erode equity over time, restrict internally funded investment, and make the business more vulnerable if operating costs remain elevated.

Nan Ren Lake Leisure Amusement Co. Ltd. (5905) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.76B
Dividend Yield: ―
Average Volume (3M): 394.09K
Price to Earnings (P/E): -25.8
Beta (1Y): 0.41
Revenue Growth: 162.96%
EPS Growth: 63.44%
Country: TW
Employees: 400
Sector: General
Sector Strength: 55
Industry: Gambling, Resorts & Casinos

Nan Ren Lake Leisure Amusement Co. Ltd. Business Overview & Revenue Model

Company Description

Established in 1989 and headquartered in Kaohsiung City, Taiwan, Nan Ren Lake Leisure Amusement Co., Ltd. specializes in providing a variety of recreational and leisure facilities throughout Taiwan. Its extensive portfolio includes the renowned Natio...

Nan Ren Lake Leisure Amusement Co. Ltd. Financial Statement Overview

Summary

Persistent losses, high leverage, negative operating cash flow, and negative free cash flow materially weaken financial performance despite strong gross margins and partial revenue recovery.

Income Statement

30Negative

Balance Sheet

40Negative

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	2.53B	1.07B	978.86M	1.08B	966.11M	810.11M
Gross Profit	881.94M	783.79M	722.71M	839.92M	672.47M	536.32M
EBITDA	199.68M	93.52M	108.45M	194.45M	128.62M	82.91M
Net Income	-221.45M	-173.96M	-131.70M	-37.45M	-172.99M	-145.35M
Balance Sheet
Total Assets	6.99B	8.64B	8.31B	8.22B	9.13B	6.83B
Cash, Cash Equivalents and Short-Term Investments	903.38M	858.91M	1.19B	1.65B	1.61B	1.49B
Total Debt	2.84B	3.88B	3.61B	3.75B	4.74B	3.43B
Total Liabilities	3.78B	5.17B	4.61B	4.83B	5.72B	4.33B
Stockholders Equity	2.81B	2.78B	2.83B	2.66B	2.69B	2.22B
Cash Flow
Free Cash Flow	1.09B	-679.86M	-403.59M	-1.37B	-1.48B	-327.96M
Operating Cash Flow	1.25B	-281.31M	-192.65M	-128.09M	-199.79M	42.11M
Investing Cash Flow	-849.40M	-570.50M	-431.56M	-1.10B	-1.43B	-519.56M
Financing Cash Flow	-748.28M	422.03M	246.87M	1.16B	1.62B	615.50M

Nan Ren Lake Leisure Amusement Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5905 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2901	68Neutral	TWD 1.80B	56.59	―	1.50%	1.66%	24.15%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2743	54Neutral	TWD 1.93B	11.29	―	7.72%	2.46%	1.89%
TW:2702	47Neutral	TWD 1.83B	17.39	―	―	7.84%	―
TW:5905	38Underperform	TWD 1.77B	-25.77	―	―	162.96%	63.44%

* General Sector Average

Performance Comparison

TW:5905 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5905	Nan Ren Lake Leisure Amusement Co. Ltd.	6.23	-3.60	-36.62%
TW:2702	Hotel Holiday Garden	11.65	0.05	0.43%
TW:2743	Richmond International Travel & Tours Co Ltd	41.45	-42.08	-50.38%
TW:2901	Shin Shin Co. Ltd.	24.90	0.30	1.21%
TW:2942	Jing-Jan Retail Business Co., Ltd.	34.30	5.56	19.37%
TW:7705	Mercuries F&B Co Ltd	28.20	-10.76	-27.61%

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

Nan Ren Lake Leisure Amusement Co. Ltd. AI Stock Analysis