KWorld Computer Co., Ltd. (3287) AI Stock Analysis

KWorld Computer Co., Ltd.

(TPEx:3287)

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Rating:70Outperform

Price Target:TWD 81.00▲(7.71% Upside)

Action:initiatedcoverage

Date:11/09/26

KWorld Computer earns an above-average score driven by a conservative, nearly debt-free balance sheet and strong revenue growth, paired with a powerful price uptrend that has the stock trading far above all major moving averages with positive MACD momentum. An inexpensive 10.1x P/E and 2.05% dividend yield further support the score. Holding the score back are the core profitability trends: gross margin compression to ~23%, operating income of only 1.6% of sales, a ~36% decline in net income, and reliance on non-operating items for most reported profit — alongside historically lumpy cash generation. Investors should also note the rally is extended, with RSI and Stochastics near overbought territory, raising the risk of near-term consolidation. The key test ahead is converting rapid top-line scale into durable operating margins.

Positive Factors

Low leverage and financial flexibilityConsistently low leverage reduces refinancing pressure and preserves financial flexibility. This gives KWorld greater capacity to withstand operating volatility, fund product development, and pursue growth without relying heavily on additional borrowing or exposing equity holders to excessive financial risk.

Negative Factors

Gross margin compression and thin EBITThe sharp decline in gross margin and very thin EBIT margin leave limited protection against cost pressure or weaker demand. Unless KWorld restores product profitability, even modest operating setbacks could materially reduce earnings and constrain its ability to convert revenue growth into durable profits.

KWorld Computer Co., Ltd. (3287) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.04B
Dividend Yield: 1.99%
Average Volume (3M): 1.62M
Price to Earnings (P/E): 9.1
Beta (1Y): 0.17
Revenue Growth: 20.68%
EPS Growth: ―
Country: TW
Employees: 200
Sector: General
Sector Strength: 55
Industry: Technology Distributors

KWorld Computer Co., Ltd. Business Overview & Revenue Model

Company Description

Kworld Computer Co.,Ltd is an enterprise that supplies a variety of digital entertainment solutions, serving customers in its home country of Taiwan and across global markets. Their extensive product line features specialized audio accessories for ga...

KWorld Computer Co., Ltd. Financial Statement Overview

Summary

A near debt-free balance sheet (debt-to-equity of 0.09, equity funding 59% of assets) is the standout strength, scoring 76 and providing ample capacity to fund the working capital needed for growth. However, the income statement (54) shows growth of lower quality: revenue rose ~24% to NT$941m, but gross margin compressed to ~23%, operating income was just NT$15m (1.6% of sales), and net income fell ~36%, with most of the bottom line coming from non-operating items. Cash flow (56) rebounded to NT$63m operating and ~NT$37m free cash flow, covering nearly all net income, but history shows highly volatile, working-capital-driven swings. Overall: financially stable and well capitalized, but profitability and earnings quality are weakening.

Income Statement

54Neutral

Balance Sheet

76Positive

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	965.00M	940.85M	761.59M	620.34M	450.08M	694.20M
Gross Profit	286.46M	212.99M	204.22M	188.65M	126.67M	195.85M
EBITDA	141.01M	37.54M	146.74M	82.45M	20.61M	100.61M
Net Income	350.25M	65.86M	103.47M	40.38M	1.06M	49.98M
Balance Sheet
Total Assets	1.32B	1.04B	982.09M	946.84M	708.17M	785.09M
Cash, Cash Equivalents and Short-Term Investments	733.63M	427.76M	407.71M	371.40M	287.23M	207.21M
Total Debt	106.81M	54.08M	51.90M	24.44M	35.12M	49.21M
Total Liabilities	439.58M	373.31M	304.95M	329.24M	143.90M	214.89M
Stockholders Equity	810.35M	618.58M	615.22M	551.59M	511.26M	509.41M
Cash Flow
Free Cash Flow	43.32M	36.98M	2.26M	70.28M	148.73M	-121.64M
Operating Cash Flow	73.05M	63.07M	10.26M	87.26M	151.68M	-117.41M
Investing Cash Flow	-110.44M	4.45M	105.59M	-103.01M	-15.80M	-43.00M
Financing Cash Flow	-2.41M	-64.56M	-35.19M	-22.20M	-35.11M	31.99M

KWorld Computer Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3287 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3287	70Outperform	TWD 3.48B	9.15	―	1.99%	20.68%	―
TW:3484	64Neutral	TWD 3.26B	11.97	―	6.05%	-3.70%	-19.49%
TW:2477	56Neutral	TWD 3.33B	24.14	―	6.57%	6.09%	-56.35%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6152	48Neutral	TWD 2.94B	-107.35	―	―	42.75%	―
TW:3024	41Neutral	TWD 3.24B	311.35	―	1.88%	-63.48%	-92.73%
TW:3294	41Neutral	TWD 3.29B	-61.54	―	―	-7.94%	-41.30%

* General Sector Average

Performance Comparison

TW:3287 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3287	KWorld Computer Co., Ltd.	75.20	45.01	149.07%
TW:2477	Meiloon Industrial Co., Ltd.	21.30	-1.38	-6.06%
TW:3024	Action Electronics Co., Ltd	11.70	0.65	5.87%
TW:3294	Megaforce Co. Ltd.	24.95	-16.15	-39.29%
TW:3484	Solteam Incorporation	41.30	-5.35	-11.46%
TW:6152	Prime Electronics & Satellitics Inc.	18.50	9.51	105.78%

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

KWorld Computer Co., Ltd. AI Stock Analysis