Kao Fong Machinery Co., Ltd. (4510) AI Stock Analysis

Kao Fong Machinery Co., Ltd.

(TPEx:4510)

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Rating:40.2Neutral

Price Target:TWD 33.00▼(-12.81% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by severe deterioration in profitability, leverage, and cash generation. Bearish technical trends and a high P/E ratio further weigh on the outlook, with oversold momentum and the dividend yield providing only limited support.

Positive Factors

Revenue ReboundThe 2025 revenue rebound shows that Kao Fong retained the ability to generate top-line growth despite its weaker earnings outcome. Continued sales expansion would provide a base for operating leverage and recovery if margins stabilize, supporting the company’s presence with manufacturing customers.

Negative Factors

Loss and Margin CompressionThe swing from a meaningful profit to a sizable loss indicates materially weaker earnings quality and stability. Gross-margin compression also shows that the revenue rebound did not translate into comparable economic profit, leaving future results more exposed to pricing, product mix, or cost pressure.

Kao Fong Machinery Co., Ltd. (4510) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.18B
Dividend Yield: 2.10%
Average Volume (3M): 1.34M
Price to Earnings (P/E): 40.6
Beta (1Y): 0.77
Revenue Growth: 17.94%
EPS Growth: ―
Country: TW
Employees: 200
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Kao Fong Machinery Co., Ltd. Business Overview & Revenue Model

Company Description

Kao Fong Machinery Co., Ltd, established in 1968 and headquartered in Taichung, Taiwan, specializes in the mold manufacturing sector. The company provides a comprehensive portfolio of advanced machine tools, including double-column, vertical, and hor...

Kao Fong Machinery Co., Ltd. Financial Statement Overview

Summary

The underlying financial scores average 27.7, below the required minimum range. The score is therefore set at the floor of 37. Recent results show negative margins, sharply higher leverage, negative operating cash flow, and negative free cash flow.

Income Statement

28Negative

Balance Sheet

35Negative

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.85B	1.66B	1.70B	2.02B	2.05B	1.96B
Gross Profit	249.43M	257.71M	352.88M	429.86M	410.56M	292.76M
EBITDA	-24.62M	-36.45M	254.28M	260.66M	182.26M	61.51M
Net Income	96.52M	-110.88M	113.54M	104.37M	49.30M	-36.13M
Balance Sheet
Total Assets	5.57B	6.06B	4.41B	4.46B	4.69B	5.15B
Cash, Cash Equivalents and Short-Term Investments	1.00B	964.98M	978.90M	891.18M	1.00B	1.14B
Total Debt	2.44B	3.28B	2.06B	2.15B	2.46B	2.58B
Total Liabilities	3.42B	4.11B	2.45B	2.60B	2.85B	3.21B
Stockholders Equity	1.88B	1.79B	1.96B	1.86B	1.83B	1.93B
Cash Flow
Free Cash Flow	-280.58M	-278.30M	71.94M	288.95M	156.78M	-615.91M
Operating Cash Flow	-156.42M	-112.62M	117.11M	295.97M	170.78M	-4.71M
Investing Cash Flow	1.16B	299.53M	38.17M	-21.53M	-13.88M	-702.85M
Financing Cash Flow	-873.96M	-107.58M	-168.75M	-393.93M	-121.82M	808.95M

Kao Fong Machinery Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4510 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4541	61Neutral	TWD 3.68B	13.19	―	2.72%	29.25%	149.18%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4569	54Neutral	TWD 4.24B	16.13	―	2.27%	12.32%	150.98%
TW:5426	53Neutral	TWD 3.86B	44.45	―	1.07%	7.49%	-46.09%
TW:1584	45Neutral	TWD 3.75B	26.53	―	1.61%	-9.63%	439.46%
TW:6603	42Neutral	TWD 3.79B	29.17	―	1.75%	0.48%	72.87%
TW:4510	40Neutral	TWD 4.12B	40.58	―	2.10%	17.94%	―

* General Sector Average

Performance Comparison

TW:4510 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4510	Kao Fong Machinery Co., Ltd.	37.85	-1.10	-2.82%
TW:1584	S-Tech Corp	16.00	-5.96	-27.13%
TW:4541	Magnate Technology Co., Ltd.	50.50	9.22	22.34%
TW:4569	Sixxon Tech Co Ltd	143.00	-3.59	-2.45%
TW:5426	Cheng Fwa Industrial Co., Ltd.	28.05	7.77	38.33%
TW:6603	Fu Chun Shin Machinery Manufacture Co., Ltd.	23.00	3.77	19.57%

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 10, 2026

Kao Fong Machinery Co., Ltd. AI Stock Analysis