King Yuan Electronics Co., Ltd. (2449) AI Stock Analysis

King Yuan Electronics Co., Ltd.

(TWSE:2449)

Select Model

Rating:56Neutral

Price Target:TWD 212.00▼(-6.81% Downside)

Action:initiatedcoverage

Date:11/09/26

King Yuan Electronics scores in the middle of the range. The fundamental picture is mixed: record profitability, 30% revenue growth and nearly 22% ROE are offset by deteriorating cash conversion, a NT$19.2 billion free cash flow deficit from an aggressive NT$32 billion capex program, and rising leverage. Technicals are the biggest drag, with the share price far below all major moving averages and negative MACD confirming a sustained downtrend, though oversold RSI and stochastic readings hint at possible near-term stabilization. Valuation offers limited cushion, as a 27.8x P/E is full for a cyclical semiconductor services firm and the sub-0.5% dividend yield provides minimal support. The investment case hinges on whether the new capacity converts into durable revenue and cash flow growth.

Positive Factors

Strong profitability and returnsHigh gross, operating, and net margins indicate meaningful profitability across the company’s semiconductor testing and assembly services. ROE of about 22% further shows that the business is generating strong returns on shareholder capital, supporting reinvestment and competitive resilience over the next several quarters.

Negative Factors

Sharp free-cash-flow deteriorationThe sharp move to roughly negative 19.2B in free cash flow materially reduces near-term financial optionality. Although operating cash flow remains positive, the reversal indicates a heavy investment or working-capital pull that could constrain internal funding, liquidity flexibility, and shareholder returns if it persists.

King Yuan Electronics Co., Ltd. (2449) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 293.37B
Dividend Yield: 0.44%
Average Volume (3M): 25.42M
Price to Earnings (P/E): 30.2
Beta (1Y): 1.55
Revenue Growth: 34.64%
EPS Growth: -10.44%
Country: TW
Employees: 30,347
Sector: General
Sector Strength: 55
Industry: Semiconductors

King Yuan Electronics Co., Ltd. Business Overview & Revenue Model

Company Description

King Yuan Electronics Co., Ltd. designs, manufactures, sells, tests, and assembles integrated circuits. It offers test services, such as wafer probing; final test; burn-in; system level testing; and back end service. It also provides Technology Innov...

King Yuan Electronics Co., Ltd. Financial Statement Overview

Summary

Strong earnings momentum offset by weak cash generation. Revenue rebounded roughly 30% to NT$34.9 billion, margins expanded at every level (gross 35.8%, operating 25.8%, net 31.7%), and net income hit a record NT$11.1 billion with ROE near 22% (Income Statement: 82). The balance sheet retains a solid equity base at about half of total assets, but debt rose 53% to NT$33.1 billion, lifting debt-to-equity to 0.66 (Balance Sheet: 70). The clear weak spot is cash flow (46): operating cash flow fell 29% to NT$13.2 billion even as profits rose, cash conversion slipped to 0.83x net income, and roughly NT$32 billion of capital spending pushed free cash flow to negative NT$19.2 billion. Earnings quality is also a concern since net income now exceeds operating profit, implying reliance on non-operating gains.

Income Statement

82Very Positive

Balance Sheet

70Positive

Cash Flow

46Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.59B	34.93B	26.86B	33.03B	36.78B	33.76B
Gross Profit	15.39B	12.52B	9.34B	11.14B	13.07B	10.35B
EBITDA	21.04B	16.52B	13.73B	14.89B	18.72B	16.41B
Net Income	9.33B	11.06B	7.78B	5.84B	6.84B	5.18B
Balance Sheet
Total Assets	128.75B	101.18B	86.71B	73.91B	74.36B	72.22B
Cash, Cash Equivalents and Short-Term Investments	13.32B	17.96B	10.33B	12.26B	12.82B	8.65B
Total Debt	42.18B	33.14B	21.66B	23.87B	26.80B	26.70B
Total Liabilities	66.08B	50.74B	42.00B	33.88B	37.41B	37.34B
Stockholders Equity	62.66B	50.43B	43.30B	38.90B	36.09B	34.18B
Cash Flow
Free Cash Flow	-13.23B	-19.21B	3.61B	6.53B	8.55B	-276.87M
Operating Cash Flow	16.75B	13.15B	18.48B	14.26B	19.03B	13.72B
Investing Cash Flow	-29.68B	-13.08B	-14.36B	-7.27B	-9.97B	-13.52B
Financing Cash Flow	10.94B	4.61B	-2.78B	-7.50B	-4.85B	426.51M

King Yuan Electronics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2449 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2441	68Neutral	TWD 61.72B	16.59	―	2.77%	24.12%	55.55%
TW:6257	63Neutral	TWD 86.62B	21.04	―	2.37%	17.57%	74.17%
TW:3264	62Neutral	TWD 90.99B	20.47	―	2.19%	31.88%	80.58%
TW:2449	56Neutral	TWD 292.08B	30.21	―	0.44%	34.64%	-10.44%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6239	54Neutral	TWD 172.30B	23.17	―	1.96%	29.10%	65.42%
TW:8150	43Neutral	TWD 56.50B	26.66	―	1.53%	28.18%	1244.96%

* General Sector Average

Performance Comparison

TW:2449 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2449	King Yuan Electronics Co., Ltd.	227.50	23.01	11.25%
TW:2441	Greatek Electronics, Inc.	108.50	33.95	45.54%
TW:3264	Ardentec Corporation	192.00	103.17	116.13%
TW:6239	Powertech Technology Inc.	230.00	63.28	37.96%
TW:6257	Sigurd Microelectronics Corp.	179.00	81.94	84.41%
TW:8150	ChipMOS Technologies, Inc.	80.20	36.76	84.61%

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

King Yuan Electronics Co., Ltd. AI Stock Analysis