L&K Engineering Co. Ltd. (6139) AI Stock Analysis

L&K Engineering Co. Ltd.

(TWSE:6139)

Select Model

Rating:79.9Outperform

Price Target:TWD 615.00▼(-2.38% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is driven primarily by excellent financial strength and favorable valuation. Weak momentum across all listed moving averages and negative MACD materially reduce the score, although oversold momentum indicators provide some potential for technical stabilization.

Positive Factors

Revenue and Margin ExpansionL&K has demonstrated durable operating improvement through rapid revenue expansion and steadily higher gross, operating, and net margins. This indicates stronger project economics and earnings conversion, giving the company a better base for sustaining growth and absorbing normal cost fluctuations.

Negative Factors

Project Working-Capital VariabilityAs a project-based engineering contractor, cash conversion can vary with project timing, billing, and execution demands. Even with currently strong cash generation, uneven working-capital requirements could temporarily absorb liquidity and make quarterly earnings and cash flow less predictable as operations scale.

L&K Engineering Co. Ltd. (6139) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 145.82B
Dividend Yield: 3.65%
Average Volume (3M): 2.35M
Price to Earnings (P/E): 11.5
Beta (1Y): 1.37
Revenue Growth: 67.60%
EPS Growth: 136.83%
Country: TW
Employees: 1,770
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

L&K Engineering Co. Ltd. Business Overview & Revenue Model

Company Description

L&K Engineering Co., Ltd. provides turnkey engineering services in Taiwan, Hongkong, and internationally. It installs pipes, heating and air conditioning systems; wholesale and retail of medical equipment; imports, exports, customer development and a...

L&K Engineering Co. Ltd. Financial Statement Overview

Summary

Excellent financial performance, supported by strong revenue and profit growth, expanding margins, very low leverage, high return on equity, and robust free cash flow. Moderating growth and moderate operating cash flow coverage are the main limitations.

Income Statement

94Very Positive

Balance Sheet

91Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	96.36B	77.48B	65.09B	56.90B	35.74B	23.75B
Gross Profit	18.73B	12.27B	8.12B	5.16B	2.74B	1.40B
EBITDA	16.72B	10.27B	7.54B	4.84B	1.93B	628.43M
Net Income	11.69B	7.14B	4.34B	2.89B	999.14M	321.40M
Balance Sheet
Total Assets	120.52B	83.38B	60.50B	54.36B	49.02B	32.24B
Cash, Cash Equivalents and Short-Term Investments	43.87B	48.22B	28.05B	17.17B	14.71B	7.90B
Total Debt	2.62B	2.33B	1.84B	2.64B	5.32B	5.16B
Total Liabilities	91.54B	56.68B	39.96B	38.79B	36.21B	20.85B
Stockholders Equity	20.70B	19.46B	14.59B	10.93B	8.70B	7.79B
Cash Flow
Free Cash Flow	14.54B	23.00B	12.43B	5.57B	7.39B	1.26B
Operating Cash Flow	14.71B	23.22B	12.54B	5.61B	7.56B	1.34B
Investing Cash Flow	-2.73B	-715.48M	-678.79M	962.99M	-1.58B	624.60M
Financing Cash Flow	-3.13B	-2.52B	-2.23B	-3.10B	-362.01M	-614.40M

L&K Engineering Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6139 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2404	81Outperform	TWD 180.68B	14.98	―	4.02%	71.98%	76.08%
TW:6139	80Outperform	TWD 142.05B	11.54	―	3.65%	67.60%	136.83%
TW:5434	74Outperform	TWD 97.59B	16.52	―	2.58%	21.35%	55.48%
TW:6691	71Outperform	TWD 75.85B	15.98	―	3.57%	92.72%	86.13%
TW:5536	69Neutral	TWD 89.71B	16.92	―	2.67%	25.59%	38.05%
TW:6196	59Neutral	TWD 92.54B	19.17	―	1.52%	86.15%	58.05%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:6139 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6139	L&K Engineering Co. Ltd.	630.00	224.00	55.17%
TW:2404	United Integrated Services Co., Ltd.	994.00	237.31	31.36%
TW:5434	Topco Scientific Co., Ltd.	520.00	220.90	73.85%
TW:5536	Acter Group Corporation Limited	748.00	108.01	16.88%
TW:6196	Marketech International Corp.	424.50	191.31	82.04%
TW:6691	YANKEY ENGINEERING Co. LTD.	588.00	202.55	52.55%

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

L&K Engineering Co. Ltd. AI Stock Analysis