Shin Foong Specialty & Applied Materials Co., Ltd. (6582) AI Stock Analysis

Shin Foong Specialty & Applied Materials Co., Ltd.

(TWSE:6582)

Select Model

Rating:44Neutral

Price Target:TWD 30.00▼(-5.66% Downside)

Action:initiatedcoverage

Date:11/09/26

Shin Foong scores in the lower band, driven primarily by a broken earnings engine: revenue has fallen roughly 90% from the 2021 peak, gross and operating margins are negative, and the company posted a net loss in the latest year. This is partly offset by an exceptionally strong, effectively debt-free balance sheet and a second consecutive year of positive operating and free cash flow, which give management ample runway to wait out the downturn. Technicals reinforce caution, with the price trading below all major moving averages and a negative MACD, although RSI and Stochastic readings near oversold levels hint that selling pressure may be easing. Valuation adds further risk, with a P/E of 80.7 on depressed earnings and no dividend to compensate investors. This is a financially resilient but currently unprofitable, highly cyclical chemicals play whose rerating depends on a recovery in pricing and volumes.

Positive Factors

Very Low LeverageExtremely low leverage limits interest burden and refinancing exposure, while substantial equity and stable assets provide a strong financial cushion. This should give Shin Foong flexibility to absorb earnings volatility, maintain operations, and fund opportunities without relying heavily on external financing.

Negative Factors

Sharp Revenue ContractionA substantial revenue decline signals weakened demand, reduced customer activity, or lower business volume across the company’s markets. If sustained, weaker sales can reduce operating leverage, limit investment capacity, and make it harder for Shin Foong to restore stable earnings over the next several quarters.

Shin Foong Specialty & Applied Materials Co., Ltd. (6582) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.42B
Dividend Yield: ―
Average Volume (3M): 46.76K
Price to Earnings (P/E): 45.4
Beta (1Y): 0.29
Revenue Growth: -55.46%
EPS Growth: ―
Country: TW
Employees: 663
Sector: General
Sector Strength: 55
Industry: Chemicals

Shin Foong Specialty & Applied Materials Co., Ltd. Business Overview & Revenue Model

Company Description

Shin Foong Specialty and Applied Materials Co., Ltd. manufactures and sells synthetic latex products in Taiwan. The company offers synthetic SBR, NBR, acrylic, and bio-latex, that is applied to color layer of thermal paper. Its products are used in v...

Shin Foong Specialty & Applied Materials Co., Ltd. Financial Statement Overview

Summary

A tale of two halves. The income statement is very weak (score 18): revenue has collapsed roughly 90% from the 2021 peak to about NT$821 million, with a negative gross margin of -8.3%, an operating margin of -23.9%, and a NT$43 million net loss in the latest year. Offsetting this, the balance sheet is a genuine fortress (score 80): NT$6.32 billion of equity funds nearly all of the NT$6.54 billion asset base, debt is just NT$32 million (debt/equity ~0.005), and equity has continued to edge higher despite weak earnings. Cash flow is adequate (score 52): operating cash flow improved to NT$205 million and free cash flow to NT$102 million, a second consecutive positive year and well above reported net income, indicating losses are largely non-cash. Net result: solvency is not in question, but returns on the large equity base are negligible (ROE -0.7%) and there is no clear evidence yet of an earnings recovery.

Income Statement

18Very Negative

Balance Sheet

80Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	529.68M	821.39M	1.71B	894.34M	1.70B	8.16B
Gross Profit	-47.27M	-67.86M	148.75M	21.36M	429.39M	4.93B
EBITDA	104.48M	-69.34M	235.97M	9.61M	435.95M	4.51B
Net Income	40.30M	-43.32M	104.91M	-107.86M	174.99M	3.48B
Balance Sheet
Total Assets	7.19B	6.54B	6.54B	6.24B	6.48B	8.73B
Cash, Cash Equivalents and Short-Term Investments	51.52M	233.38M	418.82M	1.04B	2.29B	5.01B
Total Debt	155.24M	32.45M	10.63M	10.70M	8.19M	8.03M
Total Liabilities	330.07M	216.44M	381.20M	377.07M	523.95M	1.37B
Stockholders Equity	6.86B	6.32B	6.16B	5.86B	5.96B	7.36B
Cash Flow
Free Cash Flow	87.35M	102.49M	78.97M	-280.94M	-430.01M	3.04B
Operating Cash Flow	153.03M	204.91M	151.92M	-177.84M	-292.05M	3.82B
Investing Cash Flow	-173.45M	-349.74M	54.50M	100.59M	1.95B	-3.14B
Financing Cash Flow	-1.05M	-85.78M	-4.24M	-163.82M	-1.60B	-1.07B

Shin Foong Specialty & Applied Materials Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6582 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1341	62Neutral	TWD 3.05B	11.73	―	6.93%	1.01%	22.95%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4706	54Neutral	TWD 3.32B	37.66	―	0.71%	7.93%	656.08%
TW:8463	53Neutral	TWD 3.19B	10.76	―	3.76%	-3.02%	-15.76%
TW:4720	51Neutral	TWD 3.12B	50.03	―	1.47%	2.43%	-43.09%
TW:4303	50Neutral	TWD 3.58B	2.93	―	3.70%	30.28%	-32.60%
TW:6582	44Neutral	TWD 3.38B	45.43	―	―	-55.46%	―

* General Sector Average

Performance Comparison

TW:6582 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6582	Shin Foong Specialty & Applied Materials Co., Ltd.	31.80	-0.55	-1.70%
TW:1341	Fulin Plastic Industry (Cayman) Holding Co., Ltd.	57.70	2.89	5.27%
TW:4303	Hsin-Li Chemical Industrial Corp.	27.00	-23.21	-46.22%
TW:4706	Tah Kong Chemical Industrial Corp.	42.00	14.70	53.87%
TW:4720	Tex Year Industries, Inc.	27.25	13.29	95.19%
TW:8463	Ruentex Materials Co Ltd	21.30	-3.95	-15.65%

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 Foong Specialty & Applied Materials Co., Ltd. AI Stock Analysis