Shin Ruenn Development Co., Ltd (6186) AI Stock Analysis

Shin Ruenn Development Co., Ltd

(TPEx:6186)

Select Model

Rating:67Neutral

Price Target:TWD 29.00▲(7.21% Upside)

Action:initiatedcoverage

Date:11/09/26

Shin Ruenn scores moderately above average, driven by solid fundamentals and a very cheap valuation, offset by a weak price trend. The company is enjoying peak-cycle results — record revenue, margins and profit, nearly NT$2.8 billion of free cash flow, and a sharp reduction in leverage with return on equity near 30% — while trading at just 5.4x earnings with a dividend yield close to 18%. The main risks are structural and technical: revenue is lumpy and project-dependent, the balance sheet remains debt-heavy with a shrinking asset base that clouds the future pipeline, and the shares are in a sustained downtrend below all key moving averages with negative MACD, albeit at deeply oversold levels. No earnings call or corporate event data was available, so those factors were excluded and their weight redistributed.

Positive Factors

Strong ProfitabilitySolid gross and net margins indicate that the company can convert development revenue into meaningful operating and shareholder profits. Improved operating profitability versus 2024 provides a stronger earnings base, although maintaining it will depend on project execution and revenue stability.

Negative Factors

Sharp Revenue DeclineThe sharp year-over-year revenue decline demonstrates that earnings depend heavily on the timing and scale of development activity. Such top-line volatility makes future profits less predictable, can weaken operating leverage, and may complicate sustained cash generation and capital planning.

Shin Ruenn Development Co., Ltd (6186) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.17B
Dividend Yield: 17.86%
Average Volume (3M): 588.81K
Price to Earnings (P/E): 5.4
Beta (1Y): 0.28
Revenue Growth: -36.90%
EPS Growth: -38.48%
Country: TW
Employees: 49
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Shin Ruenn Development Co., Ltd Business Overview & Revenue Model

Company Description

Shin Ruenn Development Co., Ltd., headquartered in Taipei, Taiwan, was established in 1987. The company, originally known as Jinglay, Inc., officially adopted its current name in July 2011. Its operations encompass the development, acquisition, renta...

Shin Ruenn Development Co., Ltd Financial Statement Overview

Summary

Shin Ruenn is in the harvest phase of its development cycle and posted its strongest year in the period reviewed: revenue of roughly NT$9.45 billion (+4%), gross margin expanding to 28.4% from 23.7%, and net income up about 57% to NT$1.52 billion (Income Statement 76). Cash generation is a highlight, with NT$2.80 billion of operating cash flow and NT$2.79 billion of free cash flow — essentially 100% conversion of net income, signalling high earnings quality (Cash Flow 71). The balance sheet improved sharply, with debt cut to NT$8.12 billion and debt-to-equity falling to 1.58x from 2.94x while return on equity reached 29.7%, yet equity still funds only ~30% of assets and total assets shrank from NT$20.62 billion to NT$16.96 billion, raising questions about the future project pipeline (Balance Sheet 66). The core limitation is cyclicality: revenue has swung widely (NT$2.49bn to NT$9.45bn) and cash flow has been deeply negative in inventory-building years, so results should be judged over a full cycle rather than this peak year.

Income Statement

76Positive

Balance Sheet

66Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.39B	9.45B	9.12B	3.66B	2.49B	3.98B
Gross Profit	1.90B	2.69B	2.16B	905.07M	703.40M	820.90M
EBITDA	1.28B	1.91B	1.23B	569.91M	419.73M	569.94M
Net Income	987.80M	1.52B	971.23M	445.71M	327.25M	420.32M
Balance Sheet
Total Assets	16.17B	16.96B	20.62B	19.81B	17.92B	15.62B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.94B	2.76B	1.77B	1.14B	1.41B
Total Debt	7.77B	8.12B	11.39B	11.52B	11.31B	10.91B
Total Liabilities	11.58B	11.83B	16.75B	16.61B	14.84B	12.75B
Stockholders Equity	4.59B	5.13B	3.87B	3.20B	3.08B	2.87B
Cash Flow
Free Cash Flow	340.81M	2.79B	2.16B	555.57M	-496.78M	1.19B
Operating Cash Flow	340.92M	2.80B	2.16B	572.32M	-496.78M	1.19B
Investing Cash Flow	265.93M	532.81M	-536.81M	-363.50M	-43.47M	-143.68M
Financing Cash Flow	-1.35B	-3.54B	-435.47M	-208.64M	384.99M	-812.33M

Shin Ruenn Development Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6186 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6186	67Neutral	TWD 6.18B	5.39	―	17.86%	-36.90%	-38.48%
TW:2505	65Neutral	TWD 6.57B	5.07	―	5.76%	179.05%	102.73%
TW:2536	63Neutral	TWD 5.92B	4.22	―	11.33%	86.45%	163.81%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1436	55Neutral	TWD 6.58B	-193.53	―	15.34%	-78.07%	-99.85%
TW:5525	49Neutral	TWD 6.49B	5.43	―	5.66%	235.09%	662.07%
TW:5531	39Underperform	TWD 5.87B	55.18	―	―	-72.62%	-9.86%

* General Sector Average

Performance Comparison

TW:6186 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6186	Shin Ruenn Development Co., Ltd	27.05	-23.63	-46.63%
TW:1436	Hua Yu Lien Development Co., Ltd.	32.90	-23.79	-41.97%
TW:2505	Kuo Yang Construction Co., Ltd.	17.35	-0.56	-3.12%
TW:2536	Hong Pu Real Estate Development CO LTD	17.65	-6.17	-25.90%
TW:5525	Sweeten Real Estate Development Co. Ltd.	21.20	-5.69	-21.15%
TW:5531	Shining Building Business Co. Ltd.	6.17	-3.02	-32.86%

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

Shin Ruenn Development Co., Ltd AI Stock Analysis