Shihlin Development Co Ltd

Shihlin Development Co Ltd has a market price of TWD 11.95 and a market capitalization of TWD 2.71 billion, with a price-to-book ratio of 2.04 and a price-to-tangible-book ratio of 2.04. The company's liquidity position is characterized by a current ratio of 1.5 and cash and equivalents of TWD 510.84 million, but it carries a significant long-term debt of TWD 7.29 billion, resulting in a debt-to-equity ratio of 5.51. The company's operating cash flow is negative at TWD -509.04 million, and its free cash flow is minimal at TWD 941,000.

The company's profitability is weak, with a net loss of TWD -37.94 million and an operating loss of TWD -16.48 million. Its return on equity is -2.87%, and its return on assets is -0.38%, both significantly below the industry median for real estate rental, development, and operations. The company's gross profit margin is 52.08%, but this is offset by high operating expenses and interest costs, leading to a negative operating margin.

Shihlin Development Co Ltd's revenue is concentrated in its core real estate rental, development, and operations business, with no disclosed geographic diversification in the provided data. The company's revenue concentration in a single business segment increases its exposure to market-specific risks, particularly in the real estate sector.

The company's growth trajectory is uncertain, with a net loss in the latest reporting period and no disclosed revenue growth in the outlook. The company's operating cash flow is negative, and its free cash flow is minimal, indicating limited capacity for reinvestment or debt reduction. The company's capital expenditure of TWD -6.08 million suggests a small level of investment in property, plant, and equipment.

The company's risk profile is elevated, with a medium liquidity risk and a debt-to-equity ratio of 5.51, which is significantly higher than the industry median. The company's dilution risk is low, with no dilution expected in the near term. The company's key financial flags include negative net cash after subtracting total debt, which indicates a high leverage position.

Recent events and disclosures indicate that the company has reported a net loss and negative operating cash flow in the latest period. The company's financial performance is in line with analyst estimates, with a last actual EPS of -TWD 7.46 and a last actual revenue of TWD 636.86 million. The company's financial disclosures do not indicate any material recent events that would significantly alter its risk profile.

Cash conversion of 13.42 ranks best-in-class among 932 real estate peers, indicating superior cash generation efficiency.

Revenue grew at a 13.0% CAGR over four years, demonstrating long-term top-line expansion despite recent volatility.

Gross profit remained positive at TWD 140.5 million in the latest period, suggesting underlying operational viability.

Debt-to-equity ratio of 5.51 sits in the bottom quartile, indicating excessive leverage compared to 1,007 peers.

Revenue TWD 1.16B, −55,3% YoY; Operating income −74,0% YoY.

• ▍Revenue TWD 1.16B, −55,3% YoY
• ▍Operating income −74,0% YoY
• ▍Net income −107,8% YoY
• ▍Free cash flow −51,9% YoY
• ▍Net margin -1.1%

Revenue TWD 2.59B, +325,4% YoY; Operating income +505,3% YoY.

• ▍Revenue TWD 2.59B, +325,4% YoY
• ▍Operating income +505,3% YoY
• ▍Net income +231,9% YoY
• ▍Free cash flow +786,2% YoY
• ▍Net margin 6.1%

Revenue TWD 609.2M, +34,7% YoY; Operating income +69,9% YoY.

• ▍Revenue TWD 609.2M, +34,7% YoY
• ▍Operating income +69,9% YoY
• ▍Net income +42,7% YoY
• ▍Free cash flow +168,0% YoY
• ▍Net margin -19.6%

Revenue TWD 452.2M, −38,6% YoY; Operating income −1,4% YoY.

• ▍Revenue TWD 452.2M, −38,6% YoY
• ▍Operating income −1,4% YoY
• ▍Net income −102,9% YoY
• ▍Free cash flow −232,0% YoY
• ▍Net margin -46.0%