Sunny Friend Environmental Technology Co., Ltd. (8341) AI Stock Analysis

Sunny Friend Environmental Technology Co., Ltd.

(TWSE:8341)

Select Model

Rating:68Neutral

Price Target:TWD 79.00▲(3.40% Upside)

Action:initiatedcoverage

Date:11/09/26

Sunny Friend scores above average, driven primarily by healthy financials: two consecutive years of revenue and profit growth, strong cash conversion with operating cash flow at 2.3x net income, and aggressive deleveraging to 0.54x debt-to-equity. Valuation reinforces the case, with a modest 13.8x P/E and a 5.5% dividend yield backed by robust free cash flow. The main drag is technical weakness — the shares sit below all key moving averages with negative MACD and depressed momentum readings. Longer-term watch items include margins and returns that remain well below 2020-2021 peaks and lumpy free cash flow tied to capacity investment. Earnings call and corporate event components were excluded due to unavailable data, with their weight redistributed across the remaining factors.

Positive Factors

Revenue and Profit RecoveryThe return to revenue growth alongside higher profit indicates improving operating traction after the weaker 2023–2024 period. If maintained, this recovery can reinforce the company’s earnings base, support reinvestment, and improve its ability to compete over the next several quarters.

Negative Factors

Profitability Below Prior PeaksAlthough profitability has recovered, the lower margin and return profile versus 2020–2022 shows that earnings efficiency has not fully returned to earlier highs. This may limit operating leverage and reduce the amount of profit generated from each unit of revenue over time.

Sunny Friend Environmental Technology Co., Ltd. (8341) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 9.80B
Dividend Yield: 5.24%
Average Volume (3M): 200.27K
Price to Earnings (P/E): 12.8
Beta (1Y): 0.25
Revenue Growth: 11.74%
EPS Growth: 29.44%
Country: TW
Employees: 356
Sector: General
Sector Strength: 55
Industry: Waste Management

Sunny Friend Environmental Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Sunny Friend Environmental Technology Co., Ltd., established in 1994 and headquartered in Yúnlín, Taiwan, delivers extensive environmental services throughout Taiwan and China. The company's primary focus is medical waste incineration, with operation...

Sunny Friend Environmental Technology Co., Ltd. Financial Statement Overview

Summary

Solid and improving fundamentals. Revenue grew ~8% to NT$3.99bn with operating margin expanding to 23.8% and net income up ~21% to NT$583m (Income Statement 64). The balance sheet is the standout improvement, with debt cut to NT$2.90bn and leverage down to 0.54x equity from 1.68x in 2022, though ROE of 11.0% remains well below prior peaks (Balance Sheet 74). Cash generation is strongest, with operating cash flow up 24% to NT$1.35bn (2.3x net income) and free cash flow nearly doubling to NT$973m (Cash Flow 78). Offsetting these strengths are multi-year margin erosion versus 2020-2021 levels, modest single-digit growth, and free cash flow that swings with the capital-spending cycle.

Income Statement

64Positive

Balance Sheet

74Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.32B	3.99B	3.70B	3.26B	3.84B	3.35B
Gross Profit	1.95B	1.72B	1.57B	1.34B	1.79B	1.75B
EBITDA	1.95B	1.68B	1.40B	1.22B	1.76B	1.71B
Net Income	681.11M	582.87M	480.20M	408.56M	861.29M	944.91M
Balance Sheet
Total Assets	10.22B	10.06B	10.59B	10.37B	10.52B	9.73B
Cash, Cash Equivalents and Short-Term Investments	1.02B	989.95M	1.21B	948.15M	1.24B	960.28M
Total Debt	2.61B	2.90B	3.51B	3.71B	5.40B	4.86B
Total Liabilities	4.40B	4.25B	4.88B	5.10B	7.07B	6.43B
Stockholders Equity	5.34B	5.32B	5.24B	5.01B	3.21B	3.19B
Cash Flow
Free Cash Flow	823.41M	972.89M	545.19M	-34.67M	705.55M	34.05M
Operating Cash Flow	1.43B	1.35B	1.09B	851.01M	1.58B	1.27B
Investing Cash Flow	-516.46M	-369.81M	-596.11M	-776.20M	-1.27B	-1.50B
Financing Cash Flow	-843.06M	-1.16B	-471.26M	-215.47M	-280.14M	87.02M

Sunny Friend Environmental Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8341 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6790	68Neutral	TWD 9.84B	11.96	―	7.19%	-3.83%	17.72%
TW:8341	68Neutral	TWD 9.93B	12.76	―	5.24%	11.74%	29.44%
TW:8936	64Neutral	TWD 10.12B	9.21	―	7.35%	27.31%	26.91%
TW:1103	60Neutral	TWD 9.36B	9.30	―	3.92%	-7.13%	1104.31%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4306	44Neutral	TWD 9.28B	15.55	―	4.96%	4.17%	151.80%

* General Sector Average

Performance Comparison

TW:8341 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8341	Sunny Friend Environmental Technology Co., Ltd.	76.40	-3.30	-4.14%
TW:1103	Chia Hsin Cement Corporation	13.30	0.27	2.09%
TW:4306	Yem Chio Co., Ltd.	14.10	1.16	8.98%
TW:6790	Yuen Foong Yu Consumer Products Co., Ltd.	36.85	1.42	4.02%
TW:7818	Kemflo International Co Ltd	53.60	-47.04	-46.74%
TW:8936	Kuo Toong International Co., Ltd.	40.80	-24.44	-37.46%

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

Sunny Friend Environmental Technology Co., Ltd. AI Stock Analysis