Kunyue Development Co., Ltd. (5206) AI Stock Analysis

Kunyue Development Co., Ltd.

(TPEx:5206)

Select Model

Rating:51.4Neutral

Price Target:TWD 22.00▼(-5.17% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily reduced by weak cash generation, elevated leverage, and negative technical momentum. Strong profitability and attractive valuation, including a low P/E ratio and 4.45% dividend yield, provide meaningful support but do not offset the company’s financial risk.

Positive Factors

Profitability recoveryThe return to positive net income after the 2022 loss, together with higher net and operating margins, indicates that the business has regained meaningful profitability. If these margins hold, they can provide a stronger earnings base and improve resilience over the coming quarters.

Negative Factors

Sharp revenue contractionRepeated and substantial revenue declines make the recent margin recovery less durable because a smaller sales base can limit earnings growth and reduce operating leverage. Continued contraction would also make it harder for the company to absorb fixed costs and sustain profitability over the next several quarters.

Kunyue Development Co., Ltd. (5206) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.70B
Dividend Yield: 4.21%
Average Volume (3M): 204.63K
Price to Earnings (P/E): 3.8
Beta (1Y): 0.36
Revenue Growth: 20.26%
EPS Growth: 89.58%
Country: TW
Employees: 72
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Kunyue Development Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 1975 and situated in Taichung, Taiwan, Kunyue Development Co., Ltd. focuses on comprehensive real estate development and ongoing property maintenance. The company's activities span from initial land preparation and building constructio...

Kunyue Development Co., Ltd. Financial Statement Overview

Summary

Profitability was strong, supported by 2025 net income growth and solid margins, but the overall financial profile is constrained by high leverage and persistently negative operating and free cash flow.

Income Statement

68Positive

Balance Sheet

45Neutral

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.39B	3.78B	2.44B	3.37B	396.95M	1.93B
Gross Profit	950.83M	1.20B	788.70M	852.45M	91.99M	320.36M
EBITDA	625.46M	752.50M	451.92M	449.29M	-88.24M	108.08M
Net Income	495.12M	590.00M	321.74M	358.23M	-104.31M	83.47M
Balance Sheet
Total Assets	17.59B	17.48B	15.85B	12.17B	11.73B	9.58B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.80B	757.30M	1.05B	1.06B	435.34M
Total Debt	9.57B	10.87B	9.66B	7.19B	7.16B	5.45B
Total Liabilities	13.49B	13.79B	12.67B	9.11B	8.95B	6.62B
Stockholders Equity	4.10B	3.69B	3.18B	3.06B	2.78B	2.96B
Cash Flow
Free Cash Flow	-2.31B	-1.26B	-2.18B	204.34M	-782.94M	-1.03B
Operating Cash Flow	-2.31B	-1.25B	-2.17B	204.91M	-782.78M	-1.03B
Investing Cash Flow	373.74M	267.03M	-467.76M	-144.71M	-193.17M	-229.64M
Financing Cash Flow	1.45B	1.13B	2.34B	-69.36M	1.60B	929.99M

Kunyue Development Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5206 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5520	79Outperform	TWD 4.91B	8.62	―	8.55%	-2.83%	-6.29%
TW:3188	61Neutral	TWD 4.07B	3.04	―	14.83%	460.94%	448.37%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4907	52Neutral	TWD 4.73B	5.62	―	3.71%	-16.37%	73.98%
TW:5206	51Neutral	TWD 4.54B	3.77	―	4.21%	20.26%	89.58%
TW:3266	51Neutral	TWD 4.77B	28.73	―	3.69%	-46.16%	-65.52%
TW:5523	39Underperform	TWD 4.67B	-266.31	―	1.66%	-25.53%	-403.43%

* General Sector Average

Performance Comparison

TW:5206 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5206	Kunyue Development Co., Ltd.	23.20	-6.55	-22.01%
TW:3188	Golden Long Teng Development Co. Ltd.	21.55	-4.72	-17.95%
TW:3266	Sunty Development Co. Ltd.	13.55	0.53	4.10%
TW:4907	Fu Yu Property Co. Ltd.	40.40	2.75	7.30%
TW:5520	Lihtai Construction Enterprise Co., Ltd.	81.90	-1.96	-2.34%
TW:5523	Fong Chien Construction Co., Ltd.	30.20	0.74	2.53%

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

Kunyue Development Co., Ltd. AI Stock Analysis