Kee Tai Properties Co., Ltd. (2538) AI Stock Analysis

Kee Tai Properties Co., Ltd.

(TWSE:2538)

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Rating:48Neutral

Price Target:TWD 8.00▼(-2.20% Downside)

Action:initiatedcoverage

Date:11/09/26

Kee Tai Properties scores below average, driven primarily by weak financial fundamentals: sharply lower revenue, a second consecutive year of declining profit, earnings dependent on non-operating gains, negative operating and free cash flow, and still-meaningful leverage at 1.46x debt-to-equity with a low 2.7% ROE. Technicals reinforce the caution, with the stock trading below all major moving averages and a negative MACD, although deeply oversold RSI and Stochastic readings hint at scope for a near-term bounce. Valuation provides the main offset — a moderate 13.5x P/E, a high 6.16% dividend yield and low beta — but the durability of those earnings and that payout is questionable given the cash burn. Meaningful progress on deleveraging since 2021 is a genuine positive, yet the outcome remains tied to project completion timing and the Taiwanese property cycle.

Positive Factors

Profitability recoveryNet income turned positive in 2022–2025 after losses in 2020–2021, showing a meaningful recovery in reported profitability. This provides a stronger earnings base for the next several quarters, although results remain volatile and sensitive to project timing.

Negative Factors

Elevated leverageDebt consistently exceeding equity leaves Kee Tai exposed to financing demands during weaker property cycles and reduces room for strategic investment. Because leverage has not materially de-risked, interest, refinancing, and project-funding requirements may continue to constrain financial flexibility over the coming quarters.

Kee Tai Properties Co., Ltd. (2538) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.60B
Dividend Yield: 6.11%
Average Volume (3M): 607.06K
Price to Earnings (P/E): 13.6
Beta (1Y): 0.30
Revenue Growth: -36.52%
EPS Growth: ―
Country: TW
Employees: 75
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Kee Tai Properties Co., Ltd. Business Overview & Revenue Model

Company Description

Kee Tai Properties Co., Ltd. is a Taiwanese enterprise primarily operating within the construction and property development sectors. The company's activities include the building and sale of various types of real estate, encompassing everything from...

Kee Tai Properties Co., Ltd. Financial Statement Overview

Summary

Financials are fragile despite a post-2021 recovery. Revenue collapsed to NT$299 million and net income has fallen for a second straight year to NT$154 million, with the bulk of profit coming from non-operating gains rather than core property sales (operating profit only ~NT$28 million). The balance sheet is leveraged at 1.46x debt-to-equity, though debt has been cut roughly 30% since 2021 and equity is slowly eroding, leaving ROE thin at 2.7%. Cash flow is the weakest link: operating and free cash flow swung back to negative NT$336 million, so reported earnings are not converting into cash, and the multi-year record is highly erratic.

Income Statement

48Neutral

Balance Sheet

50Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	311.34M	298.72M	983.50M	376.27M	350.56M	254.99M
Gross Profit	286.00M	249.48M	329.84M	269.54M	264.46M	156.16M
EBITDA	341.39M	400.29M	458.88M	1.91B	392.31M	58.67M
Net Income	265.00M	153.68M	252.56M	411.27M	191.18M	-137.07M
Balance Sheet
Total Assets	17.51B	17.73B	18.31B	19.57B	25.13B	21.08B
Cash, Cash Equivalents and Short-Term Investments	1.76B	2.16B	2.97B	3.73B	6.84B	3.20B
Total Debt	8.27B	8.33B	8.47B	9.52B	10.03B	12.03B
Total Liabilities	12.02B	12.02B	12.38B	13.55B	18.93B	14.76B
Stockholders Equity	5.49B	5.72B	5.93B	6.01B	5.83B	5.91B
Cash Flow
Free Cash Flow	-640.56M	-335.82M	529.12M	-1.40B	6.03B	10.61M
Operating Cash Flow	-640.56M	-335.82M	529.12M	-1.16B	6.03B	10.61M
Investing Cash Flow	4.11M	846.60M	1.22B	2.86B	-2.50B	-211.28M
Financing Cash Flow	-67.69M	-477.98M	-1.60B	-2.03B	-2.47B	149.17M

Kee Tai Properties Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2538 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2516	68Neutral	TWD 3.71B	9.59	―	―	-17.80%	82.70%
TW:6212	62Neutral	TWD 3.62B	17.10	―	9.87%	-60.85%	-70.77%
TW:5533	60Neutral	TWD 3.92B	19.93	―	4.36%	-19.87%	-6.97%
TW:2514	57Neutral	TWD 3.81B	26.13	―	―	-4.02%	-79.62%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2538	48Neutral	TWD 3.64B	13.61	―	6.11%	-36.52%	―
TW:2537	36Underperform	TWD 3.28B	27.22	―	―	62.26%	-41.64%

* General Sector Average

Performance Comparison

TW:2538 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2538	Kee Tai Properties Co., Ltd.	8.18	-2.13	-20.64%
TW:2514	Long Bon International Co., Ltd.	10.45	-4.30	-29.15%
TW:2516	New Asia Construction & Development Corp.	16.50	1.65	11.11%
TW:2537	We & Win Development Co., Ltd	10.95	0.15	1.39%
TW:5533	Founding Construction Development Co., Ltd.	13.75	-0.28	-1.97%
TW:6212	Li Ming Development Construction Co., Ltd.	35.40	-4.95	-12.27%

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

Kee Tai Properties Co., Ltd. AI Stock Analysis