Ares International Corp. (2471) AI Stock Analysis

Ares International Corp.

(TWSE:2471)

Select Model

Rating:80Outperform

Price Target:TWD 59.00▼(-1.34% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is driven primarily by solid fundamentals: a fortress balance sheet with virtually no debt, improving profitability (43.4% gross margin, 18.2% ROE) and a sharp rebound in free cash flow to NT$250.2 million in 2025. Valuation adds strong support, with an 11.2x P/E and a 6.4% dividend yield that is comfortably covered by cash flow. Technicals are constructive but unspectacular, with the price above all key moving averages and a positive MACD, while RSI and Stochastic sit in neutral territory. The main risks limiting a higher score are the company's historically modest and uneven growth, fluctuating operating profit, and volatile year-to-year cash flow, meaning 2025's strong results must be sustained to confirm a new baseline. Earnings call and corporate event components were excluded due to missing data, with their weight redistributed across the remaining factors.

Positive Factors

Revenue GrowthThe sustained upward revenue trajectory indicates expanding business activity and improving demand for the company’s enterprise software and IT services. Continued top-line growth can support reinvestment, strengthen customer relationships, and provide a durable foundation for earnings over the next several quarters.

Negative Factors

Uneven Operating Cash FlowOperating cash flow that regularly trails net income suggests earnings conversion is affected by working-capital swings and timing in collections or project delivery. Persistent unevenness could make internally funded investment and shareholder distributions less predictable despite the latest improvement in free cash flow.

Ares International Corp. (2471) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.99B
Dividend Yield: 5.54%
Average Volume (3M): 688.24K
Price to Earnings (P/E): 12.4
Beta (1Y): 0.41
Revenue Growth: 9.46%
EPS Growth: 85.40%
Country: TW
Employees: 288
Sector: General
Sector Strength: 55
Industry: Information Technology Services

Ares International Corp. Business Overview & Revenue Model

Company Description

Founded in 1980 and headquartered in Taipei, Taiwan, Ares International Corp. delivers a broad spectrum of IT products and specialized services. The company primarily caters to financial institutions, government agencies, and enterprises across Taiwa...

Ares International Corp. Financial Statement Overview

Summary

Ares International posted its strongest year in 2025: revenue up roughly 14% to NT$1.00 billion, gross margin at a period-high 43.4%, operating margin recovering to 17.9%, and net income of NT$171.7 million (17.2% net margin). The balance sheet is the standout strength — essentially debt-free (debt/equity ~0.02) with equity funding about 61% of assets and ROE improving to 18.2%. Cash generation rebounded sharply, with operating cash flow doubling to NT$258.8 million and free cash flow more than tripling to NT$250.2 million on minimal capex, confirming high-quality, cash-backed earnings. Offsetting these strengths are a historically modest growth cadence (under 5% annually in 2021–2024), operating profit that has swung meaningfully year to year, and lumpy free cash flow, meaning 2025's step-up still needs to be repeated before it becomes the new baseline.

Income Statement

76Positive

Balance Sheet

86Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	1.00B	877.67M	841.83M	802.50M	800.73M
Gross Profit	456.25M	434.11M	352.42M	343.79M	335.99M	333.78M
EBITDA	239.25M	202.72M	190.16M	197.15M	197.82M	159.60M
Net Income	228.86M	171.74M	157.38M	172.97M	143.42M	114.53M
Balance Sheet
Total Assets	1.67B	1.54B	1.45B	1.46B	1.41B	1.34B
Cash, Cash Equivalents and Short-Term Investments	1.14B	958.33M	873.87M	950.47M	890.12M	836.09M
Total Debt	12.26M	22.10M	11.52M	16.66M	6.97M	21.23M
Total Liabilities	798.40M	594.70M	524.54M	545.50M	530.03M	516.27M
Stockholders Equity	865.44M	944.45M	919.53M	910.29M	873.47M	815.14M
Cash Flow
Free Cash Flow	406.99M	250.21M	75.12M	126.09M	169.84M	18.78M
Operating Cash Flow	408.43M	258.76M	127.32M	128.80M	172.06M	21.15M
Investing Cash Flow	14.38M	-104.00K	92.19M	2.16M	-28.26M	1.64M
Financing Cash Flow	-164.83M	-164.78M	-172.91M	-151.21M	-122.56M	-88.32M

Ares International Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2471 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2471	80Outperform	TWD 2.57B	12.38	―	5.54%	9.46%	85.40%
TW:3158	77Outperform	TWD 2.48B	10.66	―	8.04%	―	―
TW:3570	73Outperform	TWD 2.76B	13.01	―	5.72%	5.84%	6.04%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5356	55Neutral	TWD 2.51B	18.70	―	8.21%	4.87%	156.29%

* General Sector Average

Performance Comparison

TW:2471 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2471	Ares International Corp.	59.80	12.42	26.22%
TW:3158	SysJust Co., Ltd.	80.80	-27.15	-25.15%
TW:3570	Otsuka Information Technology Corp.	169.50	4.62	2.80%
TW:5356	Sirtec International Co., Ltd.	24.35	1.01	4.31%
TW:6614	International Integrated Systems, Inc.	31.70	-33.00	-51.00%
TW:7823	CyCraft Technology Corporation	77.00	-71.00	-47.97%

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

Ares International Corp. AI Stock Analysis