Les Enphants Co. Ltd. (2911) AI Stock Analysis

Les Enphants Co. Ltd.

(TWSE:2911)

Select Model

Rating:41Neutral

Price Target:TWD 5.50▲(2.04% Upside)

Action:initiatedcoverage

Date:11/09/26

Les Enphants scores poorly, driven primarily by a deteriorating financial profile: six straight years of revenue decline, a sharp drop in gross margin, a record operating loss, and negative operating and free cash flow that contradict the headline net profit. Equity has eroded to just 29% of assets and leverage, though much improved from 6.0x to 1.6x debt-to-equity, remains high. Technicals add to the caution, with the price below all key moving averages and a negative MACD, though oversold RSI and Stochastic readings leave room for a short-term bounce. The very low P/E of 1.41 offers only superficial appeal because the earnings behind it are not cash-backed, and there is no dividend to support the shares. Sustained positive operating cash flow and a halt to the revenue slide would be the key signals needed for a re-rating.

Positive Factors

Improved Balance SheetThe sharp reduction in leverage and increase in equity strengthen financial stability compared with 2024. A less burdened balance sheet can provide more flexibility to manage operations and fund priorities, although the remaining leverage still requires disciplined execution and sustained business improvement.

Negative Factors

Multi-Year Revenue DeclineThe prolonged contraction in revenue signals persistent top-line pressure rather than a single weak period. Shrinking sales reduce operating leverage, make fixed costs harder to absorb, and limit the company’s ability to invest in its infant and children’s products business over the next several quarters.

Les Enphants Co. Ltd. (2911) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 567.68M
Dividend Yield: ―
Average Volume (3M): 91.64K
Price to Earnings (P/E): 1.3
Beta (1Y): 0.61
Revenue Growth: -23.53%
EPS Growth: ―
Country: TW
Employees: 5,163
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

Les Enphants Co. Ltd. Business Overview & Revenue Model

Company Description

Les Enphants Co., Ltd. manufactures and sells clothing, toys, and supplies for children and infants in Taiwan, China, and internationally. It also offers warehouse management, leasing, and property management services. The company sells its products...

Les Enphants Co. Ltd. Financial Statement Overview

Summary

All three statements are weak. Revenue has fallen for six consecutive years (NT$4.03bn in 2020 to NT$2.33bn), gross margin collapsed from ~41% to 28.6%, and the operating loss widened to NT$607mn (-26% margin), the worst of the period. The reported net profit of NT$225.8mn and 29% ROE are flattered by non-operating/one-off items and a shrunken equity base rather than operational improvement. Cash flow is the weakest link: operating cash flow of -NT$242mn and free cash flow of -NT$254mn, with negative FCF in five of six years. The balance sheet has contracted sharply (assets down to NT$2.69bn, equity just 29% of assets) and leverage remains elevated at 1.6x debt-to-equity. The one genuine positive is meaningful deleveraging from a precarious 6.0x the prior year, but persistent cash burn and no sign of revenue stabilization keep the overall profile fragile.

Income Statement

22Negative

Balance Sheet

28Negative

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.99B	2.33B	2.81B	3.07B	3.34B	3.71B
Gross Profit	663.02M	667.84M	1.15B	1.24B	1.38B	1.63B
EBITDA	-327.79M	-417.18M	-111.34M	-168.22M	-170.32M	168.30M
Net Income	417.39M	225.77M	-427.44M	-529.19M	-626.57M	-246.06M
Balance Sheet
Total Assets	3.53B	2.69B	3.90B	3.89B	4.35B	5.41B
Cash, Cash Equivalents and Short-Term Investments	828.00M	903.57M	905.17M	490.41M	355.14M	791.60M
Total Debt	1.37B	1.27B	2.69B	2.14B	2.09B	2.18B
Total Liabilities	2.06B	1.82B	3.39B	2.99B	2.99B	3.47B
Stockholders Equity	1.36B	776.33M	450.01M	848.43M	1.32B	1.89B
Cash Flow
Free Cash Flow	-355.27M	-254.46M	-104.48M	-39.87M	-335.92M	-66.15M
Operating Cash Flow	-332.73M	-241.93M	-60.91M	16.16M	-259.34M	23.07M
Investing Cash Flow	1.54B	1.68B	-10.71M	-26.96M	-2.13M	408.50M
Financing Cash Flow	-1.09B	-1.43B	448.36M	111.85M	-209.02M	46.45M

Les Enphants Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2911 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2941	62Neutral	TWD 400.14M	11.06	―	8.77%	3.67%	-18.16%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4413	55Neutral	TWD 584.02M	14.57	―	1.67%	44.06%	―
TW:8443	46Neutral	TWD 724.78M	-6.94	―	1.84%	-8.69%	-40.73%
TW:2911	41Neutral	TWD 556.12M	1.35	―	―	-23.53%	―
TW:2929	39Underperform	TWD 629.94M	-2.56	―	―	-15.89%	-1071.95%

* General Sector Average

Performance Comparison

TW:2911 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2911	Les Enphants Co. Ltd.	5.39	0.61	12.79%
TW:2929	TOPBI International Holdings Limited	5.71	-2.74	-32.43%
TW:2940	Sun Own Industrial Co., Ltd.	23.95	-0.44	-1.78%
TW:2941	Mister International Enterprise Corp.	26.00	-16.54	-38.88%
TW:4413	EST GLOBAL APPAREL Co., Ltd.	18.00	-0.62	-3.31%
TW:8443	SHUI-MU International Co., Ltd.	10.90	-0.80	-6.84%

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

Les Enphants Co. Ltd. AI Stock Analysis