Sincere Security Corp. Ltd. (6721) AI Stock Analysis

Sincere Security Corp. Ltd.

(TPEx:6721)

Select Model

Rating:64Neutral

Price Target:TWD 47.00▲(6.33% Upside)

Action:initiatedcoverage

Date:11/09/26

Sincere Security scores moderately well, driven by a conservatively financed balance sheet (debt-to-equity ~0.12, ROE ~16%) and steady revenue growth that has nearly doubled the top line since 2020. Valuation adds meaningful support, with a low 8.75 P/E and a 7.47% dividend yield. These strengths are offset by two clear risks: very thin and compressed margins (net margin under 3%, about half 2020 levels) with weakening cash conversion — free cash flow fell 46% in the latest year — and a persistently negative technical trend, with the price below all key moving averages and a negative MACD, despite deeply oversold RSI and Stochastic readings that could spark a near-term bounce. Sustained margin recovery and steadier cash flow would be the key catalysts for a higher score.

Positive Factors

Multi-year revenue growthA sustained revenue uptrend indicates that the company continues to attract demand and expand its operating scale. Over the next several quarters, this growth can support stronger fixed-cost absorption, reinvestment in security services, and continued development of its commercial and institutional customer base.

Negative Factors

Structural margin compressionProfitability remains thinner than in 2020–2021, suggesting that pricing, competition, or cost pressures have reduced earnings leverage. If this pattern persists, revenue growth will translate less efficiently into operating profit and may constrain reinvestment or capital returns.

Sincere Security Corp. Ltd. (6721) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.08B
Dividend Yield: 7.47%
Average Volume (3M): 16.43K
Price to Earnings (P/E): 8.8
Beta (1Y): 0.16
Revenue Growth: 1.29%
EPS Growth: 0.29%
Country: TW
Employees: 715
Sector: General
Sector Strength: 55
Industry: Specialty Business Services

Sincere Security Corp. Ltd. Business Overview & Revenue Model

Company Description

Sincere Security Corp. Ltd., together with its subsidiaries, engages in the cleaning, security, and mechanical and electrical maintenance services in Taiwan. It offers building management, and fire safety equipment installation and maintenance servic...

Sincere Security Corp. Ltd. Financial Statement Overview

Summary

A solid balance sheet (score 78) anchors the profile: debt-to-equity of only ~0.12, equity funding ~53% of assets, and a healthy ~15.9% return on equity. The income statement (62) shows consistent growth — revenue up from NT$2.08bn in 2020 to NT$3.63bn in 2025 (~12% CAGR) with EBIT up ~30% — but margins are structurally thin, with gross margin at ~5.2% and net margin ~2.9%, roughly half their 2020 levels. Cash flow (55) is the weakest link: operating cash flow fell to NT$82m from NT$160m and free cash flow dropped ~46% to NT$63m, converting only ~76% of net income, with a multi-year history of volatility. Net result: a low-risk, conservatively financed business paired with a lower-quality, low-margin earnings stream.

Income Statement

62Positive

Balance Sheet

78Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.70B	3.63B	3.32B	2.98B	2.64B	2.22B
Gross Profit	207.20M	189.20M	156.46M	125.27M	124.17M	175.41M
EBITDA	164.45M	148.83M	147.85M	118.06M	108.43M	158.92M
Net Income	113.70M	104.73M	98.85M	74.98M	66.76M	108.87M
Balance Sheet
Total Assets	1.20B	1.24B	1.13B	1.14B	1.02B	859.77M
Cash, Cash Equivalents and Short-Term Investments	352.32M	422.07M	401.81M	417.32M	347.93M	258.81M
Total Debt	93.78M	76.10M	50.79M	129.73M	94.55M	99.19M
Total Liabilities	541.32M	579.77M	507.78M	559.68M	460.17M	428.32M
Stockholders Equity	650.50M	659.50M	622.27M	581.92M	560.94M	431.45M
Cash Flow
Free Cash Flow	94.22M	62.55M	134.99M	72.24M	1.38M	42.49M
Operating Cash Flow	120.98M	82.44M	159.68M	96.62M	16.98M	125.07M
Investing Cash Flow	-4.61M	-18.42M	-7.67M	8.93M	-9.15M	-67.98M
Financing Cash Flow	-23.87M	-43.75M	-146.63M	-21.89M	50.05M	-62.78M

Sincere Security Corp. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6721 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8034	72Outperform	TWD 974.95M	14.79	―	6.92%	-36.61%	-49.17%
TW:6721	64Neutral	TWD 1.08B	8.75	―	7.47%	1.29%	0.29%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:6721 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6721	Sincere Security Corp. Ltd.	44.20	-13.27	-23.09%
TW:6938	Neweb Information Co. Ltd.	77.50	-9.53	-10.95%
TW:7825	New Smart Technology Co., Ltd.	49.90	-3.12	-5.88%
TW:7868	Inforcom Technology Co., Ltd.	50.00	16.67	50.03%
TW:8034	Opnet Technologies Co., Ltd.	17.35	-2.07	-10.66%
TW:8298	Genie Networks Ltd.	38.45	-3.46	-8.25%

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

Sincere Security Corp. Ltd. AI Stock Analysis