Lung Ming Green Energy Technology Engineering Co Ltd. (3018) AI Stock Analysis

Lung Ming Green Energy Technology Engineering Co Ltd.

(TWSE:3018)

Select Model

Rating:29Underperform

Price Target:TWD 8.50▼(-7.10% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is driven primarily by severe financial deterioration: six straight years of losses, a revenue base less than a third of 2020 levels, a return to negative gross margin in 2025, and an operating cash burn of NT$208.4 million that consumes roughly 37% of equity annually. The materially de-levered balance sheet (0.17x debt-to-equity) is the main offset and buys management time, but it is being depleted by ongoing losses. Technicals reinforce the caution, with the price below all key moving averages and negative MACD, though oversold RSI levels hint at scope for a short-term bounce. Valuation provides no cushion given negative earnings and no dividend. Investors would need to see backlog rebuilding, cost control and a return to positive gross profit before the risk profile improves.

Positive Factors

Lower LeverageThe sharp reduction in debt relative to equity materially improves financial flexibility compared with prior years. Lower leverage can reduce balance-sheet pressure and refinancing exposure, giving the company more capacity to manage operating volatility while pursuing a recovery.

Negative Factors

Shrinking RevenueVolatile and declining revenue weakens visibility into the company’s durable demand base and makes fixed costs harder to absorb. The 2025 contraction following the prior rebound suggests that growth has not stabilized, limiting confidence in near-term operating leverage.

Lung Ming Green Energy Technology Engineering Co Ltd. (3018) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 693.47M
Dividend Yield: ―
Average Volume (3M): 59.63K
Price to Earnings (P/E): -2.6
Beta (1Y): 0.37
Revenue Growth: -56.49%
EPS Growth: -244.54%
Country: TW
Employees: 85
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Lung Ming Green Energy Technology Engineering Co Ltd. Business Overview & Revenue Model

Company Description

Lung Ming Green Energy Technology Engineering Co., Ltd. offers crucial services in mechanical and electrical system integration, general construction, and waste management. These solutions are provided for a variety of projects, including high-tech f...

Lung Ming Green Energy Technology Engineering Co Ltd. Financial Statement Overview

Summary

Financials are very weak. Revenue has fallen for most of the past six years, from roughly NT$1.63 billion in 2020 to NT$462.7 million in 2025, and the company has been loss-making every year, with the 2025 net loss widening to NT$160.3 million (-34.7% margin). Gross margin turned negative again (-9.8%), indicating projects are being delivered below direct cost. Cash generation is the weakest link, with a 2025 operating cash outflow of NT$208.4 million, roughly twenty times the prior year. The one offset is a repaired balance sheet: debt was cut to NT$97.3 million and debt-to-equity now sits at a conservative 0.17x, though ongoing losses (ROE -28.5%) are rapidly eroding the NT$562.2 million equity cushion.

Income Statement

11Very Negative

Balance Sheet

46Neutral

Cash Flow

9Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	354.60M	462.65M	851.42M	599.88M	1.28B	1.62B
Gross Profit	-72.02M	-45.38M	71.41M	24.18M	-114.04M	54.41M
EBITDA	-229.33M	-179.44M	-53.73M	-88.92M	-219.32M	-148.20M
Net Income	-268.23M	-160.32M	-93.36M	-113.89M	-213.59M	-310.18M
Balance Sheet
Total Assets	1.16B	1.25B	1.65B	1.21B	1.05B	1.52B
Cash, Cash Equivalents and Short-Term Investments	235.16M	303.57M	324.33M	198.35M	113.64M	351.25M
Total Debt	85.55M	97.29M	404.84M	342.47M	428.79M	680.11M
Total Liabilities	766.33M	688.47M	946.23M	1.06B	917.74M	1.25B
Stockholders Equity	398.33M	562.20M	708.44M	157.03M	131.54M	270.60M
Cash Flow
Free Cash Flow	-150.38M	-209.02M	-11.41M	-297.28M	-164.78M	-168.64M
Operating Cash Flow	-149.57M	-208.38M	-10.25M	-296.86M	-164.65M	-166.16M
Investing Cash Flow	492.08M	512.22M	-161.85M	101.06M	134.19M	170.61M
Financing Cash Flow	-313.02M	-294.70M	141.13M	306.56M	-98.07M	134.40M

Lung Ming Green Energy Technology Engineering Co Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3018 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:7715	59Neutral	TWD 759.95M	38.36	―	19.94%	-44.65%	-84.66%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6624	49Neutral	TWD 784.64M	62.79	―	0.80%	-31.58%	-81.33%
TW:8087	34Underperform	TWD 730.41M	16099.37	―	5.29%	81.74%	―
TW:3018	29Underperform	TWD 745.49M	-2.58	―	―	-56.49%	-244.54%

* General Sector Average

Performance Comparison

TW:3018 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3018	Lung Ming Green Energy Technology Engineering Co Ltd.	9.15	-3.05	-25.00%
TW:6624	Ever-Clear Environmental Eng. Corp.	36.00	1.24	3.57%
TW:6723	JG Environmental Technology Co., Ltd.	27.85	-12.76	-31.42%
TW:6911	Chyunn Environment Corporation	27.15	-2.46	-8.30%
TW:7715	Yuh Shan Environmental Engineering Co., Ltd.	24.00	-4.18	-14.85%
TW:8087	Leadsun Greentech Corporation	19.90	-17.80	-47.21%

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

Lung Ming Green Energy Technology Engineering Co Ltd. AI Stock Analysis