Kenmec Mechanical Engineering Co., Ltd. (6125) AI Stock Analysis

Kenmec Mechanical Engineering Co., Ltd.

(TPEx:6125)

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Rating:43Neutral

Price Target:TWD 36.00▼(-9.55% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is constrained primarily by fragile profitability, negative free cash flow, and an extremely high P/E ratio. A declining technical trend further weakens the outlook, although the improved balance sheet, recovered operating cash flow, and oversold momentum indicators provide limited support.

Positive Factors

Revenue RecoveryThe 2025 revenue rebound shows that the company regained top-line momentum after a weak prior year. If sustained, stronger project activity can improve operating leverage, support utilization of its engineering capabilities, and provide a foundation for rebuilding profitability over coming quarters.

Negative Factors

Negative Operating ProfitPersistent operating losses show that the revenue recovery has not yet translated into healthy core profitability. Compressed gross margin further limits operating leverage, making earnings more sensitive to project execution and leaving less room to absorb cost increases or weaker activity.

Kenmec Mechanical Engineering Co., Ltd. (6125) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.24B
Dividend Yield: 1.26%
Average Volume (3M): 929.88K
Price to Earnings (P/E): 271.4
Beta (1Y): 1.16
Revenue Growth: 28.63%
EPS Growth: 8.01%
Country: TW
Employees: 994
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Kenmec Mechanical Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Kenmec Mechanical Engineering Co., Ltd., a Taiwan-based firm, specializes in providing a wide array of engineering solutions and industrial equipment. Their product portfolio features advanced automation systems, including cutting-edge robotics and a...

Kenmec Mechanical Engineering Co., Ltd. Financial Statement Overview

Summary

Revenue grew and the company returned to a small profit, while debt declined and operating cash flow recovered. However, negative EBIT and EBITDA margins, very low ROE, and negative free cash flow indicate fragile financial quality.

Income Statement

38Negative

Balance Sheet

65Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	3.86B	3.34B	2.70B	5.55B	5.36B	4.04B
Gross Profit	752.75M	491.73M	476.64M	1.15B	998.08M	168.78M
EBITDA	-79.92M	-143.05M	-156.43M	1.22B	841.84M	-450.45M
Net Income	-19.02M	26.18M	-143.23M	796.00M	470.07M	-287.36M
Balance Sheet
Total Assets	12.44B	11.76B	11.91B	11.66B	11.09B	10.50B
Cash, Cash Equivalents and Short-Term Investments	3.21B	2.66B	2.83B	2.37B	2.99B	2.29B
Total Debt	3.50B	3.33B	3.81B	3.66B	1.70B	1.84B
Total Liabilities	5.76B	5.97B	6.08B	5.88B	5.58B	5.77B
Stockholders Equity	4.66B	4.43B	4.55B	4.01B	3.61B	3.38B
Cash Flow
Free Cash Flow	-363.18M	-63.14M	-458.23M	-3.02B	945.84M	344.24M
Operating Cash Flow	-87.81M	278.56M	-196.86M	-858.68M	1.22B	1.53B
Investing Cash Flow	850.61M	-389.50M	143.15M	-1.10B	-570.10M	-982.77M
Financing Cash Flow	-113.99M	-299.07M	731.55M	1.56B	129.49M	-424.73M

Kenmec Mechanical Engineering Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6125 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5284	60Neutral	TWD 12.88B	13.81	―	2.13%	41.38%	58.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6438	52Neutral	TWD 11.34B	24.48	―	3.57%	18.41%	-25.67%
TW:1597	44Neutral	TWD 10.08B	51.54	―	0.60%	43.45%	186.00%
TW:6125	43Neutral	TWD 10.21B	271.43	―	1.26%	28.63%	8.01%

* General Sector Average

Performance Comparison

TW:6125 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6125	Kenmec Mechanical Engineering Co., Ltd.	39.80	-24.74	-38.33%
TW:1597	Chieftek Precision Co., Ltd.	117.00	42.99	58.08%
TW:4537	Shuz Tung Machinery Industrial Co., Ltd.	129.00	89.86	229.60%
TW:5284	JPP Holding Co., Ltd.	231.50	-63.50	-21.53%
TW:6438	Symtek Automation Asia Co., Ltd.	140.00	9.14	6.99%
TW:7815	Sync-Tech System Corp.	315.00	166.93	112.73%

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

Kenmec Mechanical Engineering Co., Ltd. AI Stock Analysis