Kaimei Electronic Corporation (2375) AI Stock Analysis

Kaimei Electronic Corporation

(TWSE:2375)

Select Model

Rating:54Neutral

Price Target:TWD 88.00▼(-13.30% Downside)

Action:initiatedcoverage

Date:11/09/26

Kaimei Electronic scores in the lower-middle range. The primary drag is severe technical weakness: the stock trades well below all key moving averages with sharply negative MACD momentum, and the deeply oversold RSI and Stochastic readings reflect the depth of the recent decline rather than a confirmed bottom. Financially, the company is low-risk — debt has been cut by nearly 70% since 2022 and equity funds roughly two-thirds of assets — but this is offset by a 4.1% return on equity, an 18% drop in net income, and two consecutive years of declining operating and free cash flow. Margin repair (gross margin up to 20.0%) and two years of revenue growth are genuine positives, yet a 22.7x P/E and a modest 1.38% yield leave valuation unsupportive given current earnings power. The investment case rests on whether improving operating margins can finally translate into higher earnings as the components cycle recovers.

Positive Factors

Improved LeverageThe substantial reduction in debt relative to equity improves financial flexibility and balance-sheet resilience. Lower leverage can reduce financing pressure and leave more capacity to withstand operating volatility or support future investment without relying as heavily on additional borrowing.

Negative Factors

Margin CompressionThe decline in net and operating margins shows that recent revenue recovery has not translated proportionally into profit. Persistent cost pressure or an unfavorable mix could limit earnings growth, reduce operating resilience, and make future results more dependent on continued sales expansion.

Kaimei Electronic Corporation (2375) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.59B
Dividend Yield: 1.18%
Average Volume (3M): 4.17M
Price to Earnings (P/E): 24.4
Beta (1Y): 1.68
Revenue Growth: 6.76%
EPS Growth: 20.62%
Country: TW
Employees: 955
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Kaimei Electronic Corporation Business Overview & Revenue Model

Company Description

Kaimei Electronic Corp. specializes in the manufacturing and global distribution of capacitors and motor fans. Its diverse range of capacitors includes conductive polymer aluminum solid, conductive polymer hybrid, and aluminum electrolytic types. For...

Kaimei Electronic Corporation Financial Statement Overview

Summary

A conservative, well-capitalized profile paired with modest returns. The balance sheet is the standout (score 76): debt cut from NT$8.37bn in 2022 to NT$2.57bn in 2025, debt-to-equity down to 0.26x, and equity funding ~68% of assets — strong downside protection, though asset utilization and a 4.1% ROE are weak. The income statement is the laggard (score 53): revenue has grown two straight years to NT$5.55bn with gross margin rebuilding to 20.0% and EBIT rising to NT$489m, but net income fell ~18% to NT$405m as non-operating support faded, leaving earnings far below the 2021 peak. Cash flow is solid but fading (score 64): operating cash flow of NT$790m covers net income ~1.9x with healthy conversion, yet both operating and free cash flow have declined for two consecutive years.

Income Statement

53Neutral

Balance Sheet

76Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.78B	5.55B	5.26B	4.81B	5.87B	7.72B
Gross Profit	1.08B	1.11B	988.11M	730.18M	1.02B	1.75B
EBITDA	832.67M	903.07M	1.05B	995.93M	1.34B	1.86B
Net Income	451.77M	405.26M	494.71M	265.48M	612.12M	1.17B
Balance Sheet
Total Assets	14.95B	14.56B	14.86B	14.24B	18.93B	18.85B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.01B	3.76B	3.18B	8.84B	7.44B
Total Debt	1.88B	2.57B	3.36B	3.63B	8.37B	8.16B
Total Liabilities	4.32B	4.68B	5.16B	5.26B	10.10B	10.32B
Stockholders Equity	10.63B	9.87B	9.69B	8.98B	8.83B	8.52B
Cash Flow
Free Cash Flow	30.02M	525.70M	786.44M	1.06B	802.29M	309.99M
Operating Cash Flow	442.62M	790.36M	1.01B	1.27B	1.32B	766.75M
Investing Cash Flow	651.40M	910.35M	-469.63M	2.95B	-463.57M	-3.01B
Financing Cash Flow	-679.21M	-953.10M	-463.01M	-4.92B	-411.63M	1.63B

Kaimei Electronic Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2375 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8109	71Outperform	TWD 9.89B	14.80	―	3.64%	32.66%	44.89%
TW:6291	60Neutral	TWD 9.32B	24.34	―	1.93%	35.76%	169.17%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6284	54Neutral	TWD 9.52B	22.94	―	2.95%	-4.53%	-44.11%
TW:2375	54Neutral	TWD 10.60B	24.40	―	1.18%	6.76%	20.62%
TW:2484	48Neutral	TWD 9.92B	45.90	―	1.10%	4.27%	212.95%
TW:6834	44Neutral	TWD 9.54B	35.12	―	0.37%	47.04%	875.06%

* General Sector Average

Performance Comparison

TW:2375 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2375	Kaimei Electronic Corporation	101.50	4.85	5.02%
TW:2484	Siward Crystal Technology Co., Ltd	63.80	42.69	202.30%
TW:6284	INPAQ Technology Co., Ltd	64.00	-18.90	-22.80%
TW:6291	Analog Integrations Corporation	311.00	156.25	100.97%
TW:6834	Ever Ohms Technology Co. Ltd.	104.50	77.18	282.53%
TW:8109	P-DUKE Technology Co. Ltd	123.50	27.96	29.26%

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

Kaimei Electronic Corporation AI Stock Analysis