La Kaffa International Co., Ltd. (2732) AI Stock Analysis

La Kaffa International Co., Ltd.

(TPEx:2732)

Select Model

Rating:54Neutral

Price Target:TWD 61.00▲(2.01% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by declining profitability, materially higher leverage, and weak technical momentum. Improved cash generation and an attractive dividend yield provide support, but they do not fully offset the financial and trend risks.

Positive Factors

Positive revenue recoveryThe return to revenue growth indicates that the company retained demand and regained some commercial momentum after two weaker years. Continued top-line expansion would provide a base for operating leverage, support reinvestment in its beverage and café concepts, and improve longer-term earnings resilience.

Negative Factors

Sharp profitability compressionThe steep decline in both net and operating margins shows that revenue is converting into substantially less profit, weakening earnings quality and reducing protection against further cost pressure. Persistently thin margins could limit reinvestment capacity and make future earnings more sensitive to modest operational setbacks.

La Kaffa International Co., Ltd. (2732) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.65B
Dividend Yield: 6.69%
Average Volume (3M): 25.42K
Price to Earnings (P/E): 17.2
Beta (1Y): 0.14
Revenue Growth: 26.17%
EPS Growth: 282.20%
Country: TW
Employees: 1,364
Sector: General
Sector Strength: 55
Industry: Restaurants

La Kaffa International Co., Ltd. Business Overview & Revenue Model

Company Description

La Kaffa International Co., Ltd., founded in 2004 and headquartered in Zhubei City, Taiwan, operates a global network of cafes and food establishments. These outlets serve a diverse menu, encompassing popular beverages like tea and coffee, alongside...

La Kaffa International Co., Ltd. Financial Statement Overview

Summary

Revenue, gross margin, operating cash flow, and free cash flow improved, but sharply lower net income and margins, higher leverage, declining equity returns, and weaker debt-servicing capacity materially reduce financial quality.

Income Statement

55Neutral

Balance Sheet

43Neutral

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.99B	4.30B	4.01B	4.10B	4.21B	4.18B
Gross Profit	2.53B	2.22B	2.05B	1.99B	1.85B	1.71B
EBITDA	631.29M	563.26M	674.42M	689.54M	667.40M	520.14M
Net Income	169.22M	50.24M	218.60M	292.33M	296.86M	135.64M
Balance Sheet
Total Assets	5.81B	6.12B	5.15B	5.01B	4.35B	4.17B
Cash, Cash Equivalents and Short-Term Investments	883.80M	1.63B	1.22B	1.21B	816.63M	906.33M
Total Debt	2.63B	3.06B	1.96B	1.87B	1.33B	1.20B
Total Liabilities	3.60B	3.92B	2.79B	2.80B	2.20B	2.08B
Stockholders Equity	1.78B	1.77B	1.96B	1.87B	1.85B	1.78B
Cash Flow
Free Cash Flow	534.80M	420.39M	310.21M	452.93M	415.93M	106.14M
Operating Cash Flow	716.33M	576.93M	467.71M	720.44M	545.39M	206.04M
Investing Cash Flow	-645.03M	-591.45M	49.09M	-228.26M	-113.29M	93.99M
Financing Cash Flow	-115.56M	467.98M	-592.08M	-111.85M	-512.76M	-462.12M

La Kaffa International Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2732 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2739	59Neutral	TWD 3.02B	8.13	―	7.88%	2.69%	414.01%
TW:2945	57Neutral	TWD 2.60B	26.02	―	3.93%	23.01%	-26.72%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1233	55Neutral	TWD 2.58B	30.64	―	0.70%	1.42%	17.11%
TW:2754	54Neutral	TWD 2.89B	15.31	―	1.64%	6.28%	91.71%
TW:2732	54Neutral	TWD 2.79B	17.20	―	6.69%	26.17%	282.20%
TW:2722	39Underperform	TWD 2.71B	-33.07	―	0.79%	-6.05%	-28.49%

* General Sector Average

Performance Comparison

TW:2732 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2732	La Kaffa International Co., Ltd.	59.80	-7.92	-11.70%
TW:1233	Ten Ren Tea Co., Ltd.	28.50	-2.09	-6.82%
TW:2722	Chateau International Development Co. Ltd.	18.85	-10.30	-35.33%
TW:2739	My Humble House Hospitality Management Consulting Co Ltd	32.75	-1.49	-4.35%
TW:2754	Kura Sushi Asia Co., Ltd.	61.00	-25.20	-29.23%
TW:2945	Simple Mart Retail Co., Ltd.	38.15	1.64	4.49%

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

La Kaffa International Co., Ltd. AI Stock Analysis