Kuen Ling Machinery Refrigerating Co.,Ltd. (4527) AI Stock Analysis

Kuen Ling Machinery Refrigerating Co.,Ltd.

(TPEx:4527)

Select Model

Rating:70Outperform

Price Target:TWD 48.00▲(9.09% Upside)

Action:initiatedcoverage

Date:11/09/26

Kuen Ling Machinery Refrigerating scores well on financial resilience and valuation, offset by a cyclical earnings downturn and soft near-term price momentum. The balance sheet is the core strength — minimal leverage (D/E 0.18), majority equity funding, and 14.4% ROE — supported by strong cash conversion with free cash flow covering ~90% of net income. Valuation is compelling at 9.7x earnings with a 10.1% dividend yield, providing meaningful income and downside cushion. The principal risk is the income statement: revenue fell ~16% and net income ~19% in the latest year, compressing operating margin to 9.4% despite a six-year-high gross margin, underscoring exposure to the machinery demand cycle. Technically, the stock trades below its 20- and 50-day averages with a negative MACD and weak RSI, suggesting limited near-term upward momentum, though a low beta of 0.27 keeps volatility contained.

Positive Factors

Sustainable ProfitabilityHealthy gross, operating, and net margins show that the company retains meaningful profitability within industrial machinery. ROE around 14% indicates efficient use of shareholder capital, supporting internal funding capacity and a durable earnings base if operating conditions remain normal.

Negative Factors

Cyclical Revenue DeclineThe sharp year-over-year contraction shows that revenue and earnings remain exposed to cyclical industrial demand. Lower sales reduce operating leverage and can weaken profitability even when margins remain healthy, making future earnings less consistent than the multi-year improvement through 2024.

Kuen Ling Machinery Refrigerating Co.,Ltd. (4527) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.93B
Dividend Yield: 10.10%
Average Volume (3M): 22.87K
Price to Earnings (P/E): 9.6
Beta (1Y): 0.30
Revenue Growth: 5.28%
EPS Growth: 63.10%
Country: TW
Employees: 606
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Kuen Ling Machinery Refrigerating Co.,Ltd. Business Overview & Revenue Model

Company Description

Established in Kaohsiung, Taiwan, in 1977, Kuen Ling Machinery Refrigerating Co., Ltd. is dedicated to the manufacturing and distribution of a broad spectrum of ice water systems and air conditioning equipment. The company's market reach spans Taiwan...

Kuen Ling Machinery Refrigerating Co.,Ltd. Financial Statement Overview

Summary

A conservatively financed, cash-generative manufacturer working through a cyclical downturn. The balance sheet is the standout (score 78): debt-to-equity of just 0.18, equity funding ~53% of assets, borrowings below one year of EBITDA, and a solid 14.4% ROE. Cash flow is healthy (score 73) with NT$435m operating and NT$393m free cash flow, and free cash flow covering ~90% of net income — the best conversion in the period reviewed — though both metrics fell from the prior year's peak. The income statement is the weak link (score 64): revenue dropped ~16% to NT$3.07bn and net income fell ~19% to NT$259m, with operating margin slipping to 9.4% despite gross margin improving to a six-year high of 26.3%, signalling lost volume leverage rather than poor cost control.

Income Statement

64Positive

Balance Sheet

78Positive

Cash Flow

73Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.10B	3.07B	3.65B	3.48B	3.03B	2.53B
Gross Profit	842.74M	807.63M	907.85M	840.57M	704.73M	600.60M
EBITDA	456.38M	358.97M	485.51M	437.34M	332.27M	273.99M
Net Income	329.10M	258.55M	319.55M	258.40M	204.05M	150.79M
Balance Sheet
Total Assets	3.10B	3.38B	3.48B	3.65B	3.19B	2.87B
Cash, Cash Equivalents and Short-Term Investments	790.85M	935.07M	793.60M	472.06M	403.20M	538.97M
Total Debt	140.10M	323.03M	313.19M	376.85M	347.81M	349.98M
Total Liabilities	1.29B	1.49B	1.57B	1.91B	1.56B	1.34B
Stockholders Equity	1.71B	1.80B	1.80B	1.63B	1.54B	1.43B
Cash Flow
Free Cash Flow	561.45M	393.46M	493.41M	311.74M	15.74M	5.45M
Operating Cash Flow	616.42M	435.34M	576.75M	410.13M	85.47M	63.00M
Investing Cash Flow	-68.31M	-50.55M	-78.31M	-87.56M	-71.60M	-57.72M
Financing Cash Flow	-368.44M	-223.54M	-167.42M	-251.46M	-153.55M	-72.57M

Kuen Ling Machinery Refrigerating Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4527 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4527	70Outperform	TWD 3.02B	9.61	―	10.10%	5.28%	63.10%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6609	53Neutral	TWD 3.56B	-185.63	―	1.57%	1.32%	34.95%
TW:1506	44Neutral	TWD 2.72B	213.43	―	―	6.47%	-2.14%
TW:1530	43Neutral	TWD 2.68B	23.57	―	0.38%	1.34%	75.78%
TW:4564	40Underperform	TWD 3.26B	-9.39	―	―	-28.53%	21.13%

* General Sector Average

Performance Comparison

TW:4527 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4527	Kuen Ling Machinery Refrigerating Co.,Ltd.	44.00	4.18	10.51%
TW:1506	Right Way Industrial Co., Ltd.	9.28	-2.87	-23.62%
TW:1530	Awea Mechantronic Co. Ltd.	26.00	1.63	6.69%
TW:4564	Mosa Industrial Corp.	14.00	-2.20	-13.58%
TW:4570	Jason Co., Ltd. (Taiwan)	70.00	5.58	8.66%
TW:6609	Taiwan Takisawa Technology Co., Ltd.	54.00	18.35	51.47%

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

Kuen Ling Machinery Refrigerating Co.,Ltd. AI Stock Analysis