Kingwaytek Technology Co Ltd (6516) AI Stock Analysis

Kingwaytek Technology Co Ltd

(TPEx:6516)

Select Model

Rating:59Neutral

Price Target:TWD 53.00▼(-1.12% Downside)

Action:initiatedcoverage

Date:11/09/26

Kingwaytek scores moderately. The strongest support comes from an essentially debt-free balance sheet with equity funding nearly 80% of assets, combined with a 23% revenue rebound and record net income. However, the quality of those earnings is questionable: free cash flow fell more than 80% and covered less than half of reported profit, while gross, operating and EBITDA margins all compressed. Technicals are the biggest drag, with the share price below all major moving averages and a negative MACD confirming a persistent downtrend, though oversold RSI and Stochastic readings hint at potential stabilization. Valuation is balanced — a fairly full 23.9x P/E is offset by a well-covered 4.6% dividend yield. Investors get low financial risk and income appeal, but should look for margin stabilization, improved cash conversion and a trend reversal before expecting re-rating. Earnings call and corporate event components were excluded due to lack of data, with their weight redistributed across the remaining factors.

Positive Factors

Conservative Balance SheetVery low leverage gives Kingwaytek substantial financial flexibility and reduces refinancing risk across business cycles. A conservative capital structure can support continued investment and dividend capacity while providing greater resilience if operating conditions weaken over the next several quarters.

Negative Factors

Weak Cash ConversionThe sharp 2025 deterioration in operating and free cash flow is a meaningful earnings-quality risk because reported profit converted into substantially less cash. If this pattern persists, it could constrain internally funded investment, dividends, and the company’s ability to respond flexibly to weaker demand.

Kingwaytek Technology Co Ltd (6516) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.94B
Dividend Yield: 4.37%
Average Volume (3M): 43.21K
Price to Earnings (P/E): 25.3
Beta (1Y): 0.42
Revenue Growth: 19.59%
EPS Growth: 46.27%
Country: TW
Employees: 177
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Kingwaytek Technology Co Ltd Business Overview & Revenue Model

Company Description

Founded in Taipei, Taiwan in 1998, Kingwaytek Technology Co., Ltd. specializes in creating electronic maps and developing Geographic Information Systems (GIS). The company's mapping solutions encompass telecommunications maps, advanced 3D representat...

Kingwaytek Technology Co Ltd Financial Statement Overview

Summary

Kingwaytek combines renewed growth with a fortress balance sheet, but cash conversion is a clear weak spot. Revenue rebounded roughly 23% to about NT$547 million with record net income of NT$85.0 million and high gross margins near 55% (Income Statement: 69). The balance sheet is exceptionally conservative, with debt-to-equity of just 0.03 and equity funding close to 80% of assets, though return on equity is only 8.4% and capital appears under-deployed (Balance Sheet: 83). Offsetting these strengths, operating cash flow fell to about NT$31.4 million from NT$89.8 million and free cash flow collapsed over 80% to NT$13.2 million, covering only ~42% of net income, alongside margin compression across gross, operating and EBITDA lines (Cash Flow: 41).

Income Statement

69Positive

Balance Sheet

83Very Positive

Cash Flow

41Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	619.10M	546.97M	444.19M	505.48M	481.11M	343.62M
Gross Profit	308.55M	298.46M	251.65M	242.22M	248.52M	193.67M
EBITDA	147.52M	143.41M	141.49M	117.85M	131.67M	98.06M
Net Income	121.00M	85.05M	82.16M	60.95M	78.93M	46.04M
Balance Sheet
Total Assets	1.20B	1.27B	1.30B	1.27B	1.22B	1.13B
Cash, Cash Equivalents and Short-Term Investments	676.89M	747.07M	884.94M	966.10M	891.80M	853.34M
Total Debt	24.72M	29.55M	11.22M	23.20M	33.02M	15.05M
Total Liabilities	248.88M	261.79M	205.82M	239.39M	188.06M	129.09M
Stockholders Equity	946.18M	1.01B	1.09B	1.03B	1.03B	996.40M
Cash Flow
Free Cash Flow	131.51M	13.24M	77.24M	129.12M	82.08M	62.53M
Operating Cash Flow	143.85M	31.41M	89.75M	145.82M	121.66M	72.70M
Investing Cash Flow	-25.38M	177.73M	-149.42M	-94.06M	63.36M	-140.60M
Financing Cash Flow	-264.15M	-174.18M	-36.60M	-71.11M	-49.40M	-20.30M

Kingwaytek Technology Co Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6516 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6516	59Neutral	TWD 2.96B	25.25	―	4.37%	19.59%	46.27%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6152	48Neutral	TWD 2.94B	-107.35	―	―	42.75%	―
TW:3552	38Underperform	TWD 3.08B	-9.48	―	1.57%	-3.76%	-661.55%

* General Sector Average

Performance Comparison

TW:6516 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6516	Kingwaytek Technology Co Ltd	53.60	-5.70	-9.62%
TW:2252	CUBTEK Inc.	28.80	9.45	48.84%
TW:2256	oToBrite Electronic,Inc.	72.50	46.09	174.52%
TW:3552	Tung Thih Electronic Co., Ltd.	31.85	-37.81	-54.28%
TW:6152	Prime Electronics & Satellitics Inc.	18.50	9.51	105.78%
TW:6722	Whetron Electronics Co., Ltd.	29.95	-27.65	-48.01%

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

Kingwaytek Technology Co Ltd AI Stock Analysis