Kindom Development Co., Ltd. (2520) AI Stock Analysis

Kindom Development Co., Ltd.

(TWSE:2520)

Select Model

Rating:52Neutral

Price Target:TWD 34.00▲(4.29% Upside)

Action:initiatedcoverage

Date:11/09/26

Kindom Development scores modestly below average. The dominant drag is financial performance: revenue, margins and profits retreated sharply from an exceptional 2024, and operating and free cash flow turned negative while debt rose roughly 26% to fund land and project build-out - a combination that warrants monitoring even if it largely reflects the lumpy nature of residential development. Technicals add further caution, with the shares below their key moving averages and MACD negative, though the deeply depressed RSI and Stochastic readings suggest selling may be stretched. Partially offsetting these risks, the balance sheet has de-levered materially since 2020, capital intensity is low, and the valuation is supportive with a 10.1x P/E and a near-5% dividend yield. The result is a cyclically challenged but reasonably priced name best suited to investors comfortable with developer earnings volatility.

Positive Factors

Revenue GrowthStrong recent revenue growth indicates that the company has continued to advance project sales or recognized development revenue across a favorable period. If this growth is sustained, it can support operating scale, strengthen cash generation, and provide a broader base for future earnings.

Negative Factors

Negative Cash ConversionNegative operating and free cash flow despite reported net income signals weaker cash conversion and possible working-capital or project-timing pressure. Persistent deterioration would reduce internally generated funding, increase reliance on financing, and heighten liquidity risk during a weaker property cycle.

Kindom Development Co., Ltd. (2520) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 19.51B
Dividend Yield: 4.96%
Average Volume (3M): 1.34M
Price to Earnings (P/E): 9.5
Beta (1Y): 0.26
Revenue Growth: 12.79%
EPS Growth: -1.84%
Country: TW
Employees: 47
Sector: General
Sector Strength: 55
Industry: Residential Construction

Kindom Development Co., Ltd. Business Overview & Revenue Model

Company Description

Kindom Development Co., Ltd., together with its subsidiaries, constructs, develops, and sells real estate properties in Taiwan. It operates through three segments: Building, Construction, and Department Stores segments. The Building segment rents or...

Kindom Development Co., Ltd. Financial Statement Overview

Summary

Blending the Income Statement (51), Balance Sheet (58) and Cash Flow (38) scores produces a below-average result. The latest year was a clear down-cycle: revenue fell to roughly NT$22.9bn from NT$28.7bn, gross margin compressed to about 22.5% from 33.7%, and net income dropped roughly 72% to around NT$1.6bn, cutting ROE to about 6.4%. The balance sheet is the relative bright spot, with debt-to-equity down to roughly 0.97 from 1.77 in 2020 and equity near NT$24.4bn, though total debt rose about 26% in the latest year to fund land banking. Cash flow is the weakest link, swinging to negative operating cash flow of about NT$4.0bn and negative free cash flow of roughly NT$4.2bn after a strongly positive 2024 - typical of project-completion-driven developers but a reminder of recurring reliance on external funding.

Income Statement

51Neutral

Balance Sheet

58Neutral

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.03B	22.87B	28.68B	19.44B	21.51B	25.19B
Gross Profit	6.21B	5.14B	9.67B	5.87B	5.92B	7.02B
EBITDA	4.49B	3.58B	8.15B	4.56B	4.57B	5.73B
Net Income	1.98B	1.56B	5.55B	2.40B	3.13B	3.51B
Balance Sheet
Total Assets	66.95B	64.84B	58.13B	57.56B	55.86B	53.85B
Cash, Cash Equivalents and Short-Term Investments	19.12B	17.02B	19.99B	14.30B	19.30B	18.50B
Total Debt	24.39B	23.76B	18.87B	22.79B	24.38B	24.45B
Total Liabilities	38.49B	35.30B	29.93B	34.22B	34.30B	33.85B
Stockholders Equity	23.87B	24.42B	24.54B	19.96B	18.52B	17.56B
Cash Flow
Free Cash Flow	3.84B	-4.21B	9.77B	1.83B	2.62B	8.91B
Operating Cash Flow	4.04B	-4.04B	9.86B	1.91B	2.76B	9.04B
Investing Cash Flow	-1.45B	153.91M	88.47M	68.67M	-1.20B	-40.62M
Financing Cash Flow	155.00K	2.51B	-5.92B	-2.56B	-2.12B	-4.43B

Kindom Development Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2520 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2535	69Neutral	TWD 22.94B	8.79	―	5.12%	36.46%	95.03%
TW:6177	63Neutral	TWD 20.19B	4.75	―	6.98%	87.69%	186.00%
TW:2530	56Neutral	TWD 15.35B	27.01	―	6.70%	-59.46%	-71.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2520	52Neutral	TWD 19.79B	9.53	―	4.96%	12.79%	-1.84%
TW:5213	49Neutral	TWD 14.98B	11.69	―	14.40%	-32.16%	-55.65%
TW:2515	41Neutral	TWD 18.32B	22.48	―	―	1.46%	4.78%

* General Sector Average

Performance Comparison

TW:2520 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2520	Kindom Development Co., Ltd.	32.60	0.80	2.53%
TW:2515	BES Engineering Corp.	10.50	-5.21	-33.17%
TW:2530	Delpha Construction Co., Ltd.	18.05	-8.59	-32.25%
TW:2535	Da-Cin Construction Co., Ltd.	89.80	30.73	52.03%
TW:5213	YeaShin International Development Co. Ltd.	19.45	-1.73	-8.16%
TW:6177	DA-LI DEVELOPMENT Co., Ltd.	43.00	0.09	0.20%

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

Kindom Development Co., Ltd. AI Stock Analysis