KMC (Kuei Meng) International Inc. (5306) AI Stock Analysis

KMC (Kuei Meng) International Inc.

(TWSE:5306)

Select Model

Rating:68Neutral

Price Target:TWD 93.00▲(10.58% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is supported primarily by strong profitability, low leverage, and attractive valuation. These strengths are offset by declining revenue and cash flow, while weak technical momentum weighs on the outlook.

Positive Factors

Strong ProfitabilityHigh gross and net margins indicate the company retains meaningful profitability after production and operating costs. If these margins remain durable, they can support internal investment, provide resilience against industry pressure, and preserve earnings power even when revenue growth is subdued.

Negative Factors

Revenue ContractionRecent revenue contraction and the gap versus 2021–2022 indicate that the company has not yet restored its prior operating scale. Continued top-line weakness could limit fixed-cost absorption, reduce growth investment capacity, and eventually pressure otherwise strong margins.

KMC (Kuei Meng) International Inc. (5306) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.53B
Dividend Yield: 4.52%
Average Volume (3M): 127.12K
Price to Earnings (P/E): 11.9
Beta (1Y): 0.29
Revenue Growth: -2.06%
EPS Growth: -17.27%
Country: TW
Employees: 1,770
Sector: General
Sector Strength: 55
Industry: Auto - Parts

KMC (Kuei Meng) International Inc. Business Overview & Revenue Model

Company Description

KMC (Kuei Meng) International Inc. manufactures and sells various types of chains, motorcycle components, and vehicle components in Asia, Europe, and the United States. The company offers bicycle chains, automobile timing systems, and garage door ope...

KMC (Kuei Meng) International Inc. Financial Statement Overview

Summary

Strong profitability and a conservative balance sheet support the score, but declining revenue, lower returns than in prior years, and weaker free cash flow limit upside.

Income Statement

72Positive

Balance Sheet

84Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.93B	4.68B	4.96B	4.73B	7.12B	7.75B
Gross Profit	2.06B	2.07B	2.07B	1.84B	3.40B	3.59B
EBITDA	1.53B	1.71B	1.62B	1.40B	2.86B	2.97B
Net Income	889.55M	965.02M	916.56M	741.84M	1.92B	2.01B
Balance Sheet
Total Assets	14.53B	13.85B	13.23B	12.06B	12.44B	11.44B
Cash, Cash Equivalents and Short-Term Investments	3.82B	3.57B	4.04B	3.99B	3.66B	2.24B
Total Debt	3.12B	3.08B	3.11B	3.03B	2.66B	2.17B
Total Liabilities	5.03B	4.96B	4.91B	4.42B	4.92B	4.89B
Stockholders Equity	9.50B	8.89B	8.32B	7.64B	7.52B	6.54B
Cash Flow
Free Cash Flow	574.76M	798.45M	972.17M	810.23M	2.17B	1.32B
Operating Cash Flow	892.19M	1.16B	1.31B	1.09B	2.62B	1.92B
Investing Cash Flow	-987.55M	-638.93M	-2.10B	-642.01M	-410.71M	-477.42M
Financing Cash Flow	-595.29M	-684.08M	-375.01M	-520.99M	-975.98M	-1.33B

KMC (Kuei Meng) International Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5306 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5306	68Neutral	TWD 10.60B	11.89	―	4.52%	-2.06%	-17.27%
TW:6279	64Neutral	TWD 11.90B	8.56	―	5.50%	12.67%	15.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3162	50Neutral	TWD 11.07B	100.76	―	1.20%	26.04%	-69.67%
TW:1569	48Neutral	TWD 13.70B	-27.37	―	―	-6.07%	33.08%
TW:8937	39Underperform	TWD 10.58B	184.23	―	0.10%	333.14%	―
TW:1536	33Underperform	TWD 10.59B	-19.77	―	―	-4.17%	-15.31%

* General Sector Average

Performance Comparison

TW:5306 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5306	KMC (Kuei Meng) International Inc.	84.10	-4.38	-4.94%
TW:1536	Hota Industrial Manufacturing Co., Ltd.	37.95	-21.45	-36.11%
TW:1569	Bin Chuan Enterprise Co., Ltd.	95.00	35.10	58.60%
TW:3162	United Alloy-Tech Company Ltd	71.90	16.20	29.07%
TW:6279	Hu Lane Associate, Inc.	100.00	-24.37	-19.59%
TW:8937	Her Chee Industrial Co., Ltd.	23.95	-15.55	-39.37%

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

KMC (Kuei Meng) International Inc. AI Stock Analysis