Nankang Rubber Tire Corp., Ltd. (2101) AI Stock Analysis

Nankang Rubber Tire Corp., Ltd.

(TWSE:2101)

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Rating:50Neutral

Price Target:TWD 27.00▼(-2.35% Downside)

Action:initiatedcoverage

Date:11/09/26

Nankang Rubber Tire scores below average, held back mainly by a stretched balance sheet and inconsistent earnings. Debt has climbed to roughly NT$23.0bn against a shrinking NT$12.7bn equity base (debt-to-equity ~1.81x), while revenue halved and margins compressed sharply versus an unusually strong 2024, with part of the latest profit coming from non-operating sources. The clearest bright spot on the fundamental side is the swing back to positive operating and free cash flow after four straight years of cash burn. Technically, the shares are in a persistent downtrend, trading below all key moving averages with negative MACD, though RSI and Stochastic readings indicate the stock is heavily sold down. Valuation provides the main offset, with a 4.9x P/E and 4.74% dividend yield, but investors should weigh that discount against the leverage and the need for the company to prove its cash generation and core tire margins are durable.

Positive Factors

Established tire business and distributionNankang has an established tire-focused operating model, recognized branding, and distribution through both domestic and international channels. This provides a platform for recurring replacement demand and broader market access, supporting business continuity and potential scale over the next several quarters.

Negative Factors

Elevated leverageSustained leverage well above equity reduces financial flexibility and makes the company more sensitive to operating downturns. Higher debt obligations can constrain investment, dividends, and other capital-allocation choices while increasing the consequences of weaker industry conditions.

Nankang Rubber Tire Corp., Ltd. (2101) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 19.82B
Dividend Yield: 4.70%
Average Volume (3M): 1.99M
Price to Earnings (P/E): 4.9
Beta (1Y): 0.25
Revenue Growth: 10.34%
EPS Growth: 107.24%
Country: TW
Employees: 1,159
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Nankang Rubber Tire Corp., Ltd. Business Overview & Revenue Model

Company Description

Nankang Rubber Tire Corp.,Ltd., headquartered in Taipei City, Taiwan, is a global enterprise established in 1959. The company is primarily engaged in the manufacturing and worldwide distribution of a comprehensive selection of tires, alongside other...

Nankang Rubber Tire Corp., Ltd. Financial Statement Overview

Summary

Weighted toward the weak balance sheet (36) and volatile income statement (44), partly offset by an improving cash flow profile (52). Revenue halved to roughly NT$8.4bn from an unusually strong NT$15.2bn in 2024, with gross margin compressing to 21.5% and operating margin to 6.9%; net income of about NT$810m exceeded EBIT, indicating a meaningful non-operating contribution. Leverage is the core concern: total debt has risen to roughly NT$23.0bn while equity slipped to NT$12.7bn, lifting debt-to-equity to about 1.81x with equity only ~23% of assets, and ROE fell to 6.4% from 21.7%. The clearest positive is the return to positive operating cash flow (~NT$1.83bn) and free cash flow (~NT$1.40bn) after four years of heavy cash burn, though sustainability is still unproven.

Income Statement

44Neutral

Balance Sheet

36Negative

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.96B	8.43B	15.22B	7.85B	7.41B	8.08B
Gross Profit	6.33B	1.81B	4.89B	1.55B	1.07B	1.33B
EBITDA	5.66B	1.22B	4.23B	1.11B	-194.56M	642.53M
Net Income	4.13B	809.78M	2.95B	134.01M	-1.02B	-243.25M
Balance Sheet
Total Assets	45.83B	54.28B	44.14B	41.62B	37.32B	37.32B
Cash, Cash Equivalents and Short-Term Investments	2.98B	5.28B	2.48B	3.10B	3.41B	6.26B
Total Debt	9.53B	22.96B	20.71B	20.36B	17.67B	17.18B
Total Liabilities	30.80B	41.61B	30.57B	31.26B	27.01B	26.07B
Stockholders Equity	15.04B	12.67B	13.57B	10.36B	10.31B	11.25B
Cash Flow
Free Cash Flow	7.92B	1.40B	-1.35B	-3.03B	-3.27B	-3.71B
Operating Cash Flow	8.47B	1.83B	-772.84M	-2.78B	-2.96B	-2.86B
Investing Cash Flow	-54.87M	-3.25B	534.35M	551.63M	739.07M	-2.07B
Financing Cash Flow	-7.67B	588.10M	307.31M	2.65B	435.53M	4.23B

Nankang Rubber Tire Corp., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2101 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6605	70Outperform	TWD 21.39B	8.33	―	5.04%	0.52%	23.32%
TW:2247	59Neutral	TWD 17.31B	15.46	―	6.76%	-17.17%	-31.53%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2103	50Neutral	TWD 19.40B	9.47	―	1.15%	9.79%	2185.39%
TW:2101	50Neutral	TWD 20.27B	4.93	―	4.70%	10.34%	107.24%
TW:2106	48Neutral	TWD 14.75B	32.34	―	4.21%	4.27%	15.53%
TW:1312	30Underperform	TWD 19.04B	-3.07	―	―	28.15%	-81.09%

* General Sector Average

Performance Comparison

TW:2101 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2101	Nankang Rubber Tire Corp., Ltd.	27.65	-6.89	-19.96%
TW:1312	Grand Pacific Petrochemical Corp.	12.65	1.65	15.00%
TW:2103	TSRC Corporation	23.50	8.94	61.39%
TW:2106	Kenda Rubber Industrial Co., Ltd	15.45	-4.98	-24.37%
TW:2247	Pan German Universal Motors Ltd.	214.50	-55.65	-20.60%
TW:6605	Depo Auto Parts Industrial Co. Ltd.	129.00	-4.68	-3.50%

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

Nankang Rubber Tire Corp., Ltd. AI Stock Analysis