Lungteh Shipbuilding Co. Ltd. (6753) AI Stock Analysis

Lungteh Shipbuilding Co. Ltd.

(TWSE:6753)

Select Model

Rating:64Neutral

Price Target:TWD 111.00▲(4.23% Upside)

Action:initiatedcoverage

Date:11/09/26

Lungteh's score is anchored by a sound financial profile: strong multi-year revenue and margin expansion, a materially stronger and less leveraged balance sheet, and healthy returns on equity. An inexpensive 10.3x P/E adds further support. The main drag is price action — the stock sits well below all key moving averages with negative MACD, signalling a persistent downtrend, though extremely low RSI and Stochastic readings indicate the selling has become stretched. Secondary concerns are stalling revenue growth, recent gross and operating margin compression, volatile contract-driven cash flows and a modest 1.2% dividend yield. The result is a moderately above-average score: fundamentally solid and cheaply valued, but awaiting evidence of renewed growth and a trend reversal.

Positive Factors

Solid ProfitabilityHealthy gross, operating, and net margins show that Lungteh converts vessel activity into meaningful earnings. This profitability provides internal funding capacity, supports resilience through normal industry cycles, and indicates an established operating model rather than dependence on volume alone.

Negative Factors

Revenue DeclineThe 2025 revenue contraction highlights volatility in Lungteh’s growth profile and raises questions about the near-term consistency of vessel demand or project execution. A smaller revenue base can reduce operating leverage and make future earnings more sensitive to individual contract timing.

Lungteh Shipbuilding Co. Ltd. (6753) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 12.25B
Dividend Yield: 1.17%
Average Volume (3M): 996.61K
Price to Earnings (P/E): 10.0
Beta (1Y): 1.09
Revenue Growth: 13.20%
EPS Growth: 158.92%
Country: TW
Employees: 815
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

Lungteh Shipbuilding Co. Ltd. Business Overview & Revenue Model

Company Description

Lungteh Shipbuilding Co., Ltd. specializes in marine vessel construction. Their extensive product line includes military ships, high-speed patrol and interceptor boats, rigid inflatable boats (RIBs), and various support craft for port operations. The...

Lungteh Shipbuilding Co. Ltd. Financial Statement Overview

Summary

Lungteh scores well on fundamentals. Revenue has nearly tripled since 2020 to about NT$5.2 billion and margins are structurally higher (net margin 13.0% vs 7.4% in 2020), while the balance sheet has de-risked sharply — equity more than tripled to NT$4.7 billion and debt-to-equity fell to 0.51 from 1.36 in 2022, with ROE still solid at 14.6%. Offsetting this, growth has flattened to low single digits, gross margin compressed to 19.7% from 22.7%, EBIT margin slipped to 16.3%, and net income edged lower. Cash flow is the weakest link (score 63): operating cash flow rebounded to NT$1.44 billion and free cash flow turned positive at NT$580 million, but heavy capex and milestone-driven contract timing make cash generation highly erratic year to year.

Income Statement

74Positive

Balance Sheet

76Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.74B	5.25B	5.12B	4.99B	3.83B	2.24B
Gross Profit	1.69B	1.03B	1.16B	954.12M	593.36M	417.20M
EBITDA	1.74B	1.07B	1.13B	981.98M	552.68M	408.81M
Net Income	1.23B	683.74M	706.62M	575.00M	287.23M	213.69M
Balance Sheet
Total Assets	10.84B	11.07B	10.16B	9.07B	6.88B	5.36B
Cash, Cash Equivalents and Short-Term Investments	3.36B	3.93B	3.44B	3.14B	891.19M	370.97M
Total Debt	2.60B	2.41B	2.78B	2.01B	2.63B	2.01B
Total Liabilities	5.52B	6.38B	6.47B	6.03B	4.96B	3.69B
Stockholders Equity	5.32B	4.69B	3.69B	3.03B	1.93B	1.66B
Cash Flow
Free Cash Flow	-282.50M	579.55M	-827.04M	2.26B	263.37M	307.13M
Operating Cash Flow	128.90M	1.44B	-91.17M	2.54B	640.44M	760.34M
Investing Cash Flow	-520.52M	-940.99M	-918.49M	-162.24M	-455.38M	-795.70M
Financing Cash Flow	-60.36M	-84.31M	692.87M	-128.60M	356.15M	-28.57M

Lungteh Shipbuilding Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6753 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2617	70Outperform	TWD 12.58B	8.20	―	4.99%	16.08%	14.41%
TW:5609	70Outperform	TWD 11.17B	9.34	―	7.15%	15.14%	7.70%
TW:8936	64Neutral	TWD 10.12B	9.40	―	7.40%	27.31%	26.91%
TW:6753	64Neutral	TWD 12.90B	10.01	―	1.17%	13.20%	158.92%
TW:8478	62Neutral	TWD 11.31B	12.15	―	5.51%	3.54%	24.60%
TW:2612	61Neutral	TWD 11.20B	11.05	―	3.87%	1.54%	-21.98%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:6753 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6753	Lungteh Shipbuilding Co. Ltd.	106.50	-11.46	-9.71%
TW:2612	Chinese Maritime Transport Ltd.	56.80	7.07	14.22%
TW:2617	Taiwan Navigation Co., Ltd.	30.05	1.84	6.50%
TW:5609	Dimerco Express Corporation	78.30	3.46	4.62%
TW:8478	Alexander Marine Co., Ltd.	118.00	-72.94	-38.20%
TW:8936	Kuo Toong International Co., Ltd.	40.55	-18.19	-30.97%

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

Lungteh Shipbuilding Co. Ltd. AI Stock Analysis