Kwong Lung Enterprise Co., Ltd. AI Stock Analysis
Kwong Lung Enterprise Co., Ltd. (8916) AI Stock Analysis
Kwong Lung Enterprise Co., Ltd.
(TPEx:8916)
Kwong Lung Enterprise scores in the middle of the range. The dominant drag is deteriorating profitability — margins compressed across the board and net income fell roughly 38% — alongside a debt load that has nearly tripled in two years while ROE dropped to 7%. Offsetting this, the company generated a strong free cash flow rebound to NT$930m, retains a majority equity-funded balance sheet, and returned to revenue growth. Technically, the shares trade below all key moving averages with negative MACD and sub-50 RSI, reflecting a weak price trend. Valuation provides the main support: a modest 13.8x P/E and a 7.58% dividend yield offer meaningful income and downside cushion, provided earnings and the payout hold up.
Kwong Lung Enterprise Co., Ltd. (8916) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 5.85B
- Dividend Yield
- 7.68%
- Average Volume (3M)
- 62.12K
- Price to Earnings (P/E)
- 18.4
- Beta (1Y)
- 0.10
- Revenue Growth
- 4.11%
- EPS Growth
- -25.92%
- Country
- TW
- Employees
- 5,267
- Sector
- General
- Sector Strength
- 55
- Industry
- Apparel - Footwear & Accessories
Kwong Lung Enterprise Co., Ltd. Business Overview & Revenue Model
Company Description
Kwong Lung Enterprise Co., Ltd. specializes in the production and global sale of apparel, operating across Taiwan, mainland China, Vietnam, and Japan. Its diverse business operations are structured into three key segments: Apparel, Down Material, and...
Kwong Lung Enterprise Co., Ltd. Financial Statement Overview
Summary
Mixed fundamentals. Revenue returned to growth (+7.9% to NT$8.54bn), but profitability deteriorated sharply: gross margin fell to 15.3% from 17.3%, operating margin halved to 5.6%, and net income dropped ~38% to NT$377m — the weakest since 2020. The balance sheet still carries a solid ~55% equity funding of assets, yet debt nearly tripled in two years to NT$3.00bn (D/E 0.56) while ROE slid to 7.0%. The clear bright spot is cash generation: operating cash flow rebounded to NT$1.13bn and free cash flow swung positive to NT$930m, exceeding net income and signalling sound earnings quality — though cash flow has been erratic historically. Pronounced cyclicality in both sales and cash flow caps the score.
Income Statement
44NeutralBalance Sheet
56NeutralCash Flow
64Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.16B | 8.54B | 7.89B | 7.71B | 10.30B | 8.06B |
| Gross Profit | 1.17B | 1.31B | 1.37B | 1.31B | 1.69B | 920.93M |
| EBITDA | 541.60M | 645.39M | 945.40M | 935.33M | 1.12B | 686.24M |
| Net Income | 432.47M | 377.13M | 609.29M | 577.70M | 919.08M | 515.29M |
Balance Sheet | ||||||
| Total Assets | 10.41B | 9.80B | 10.28B | 7.98B | 8.57B | 8.29B |
| Cash, Cash Equivalents and Short-Term Investments | 1.21B | 1.31B | 1.08B | 1.49B | 1.60B | 1.45B |
| Total Debt | 3.24B | 3.00B | 2.43B | 1.08B | 1.33B | 1.82B |
| Total Liabilities | 5.35B | 4.40B | 4.30B | 2.38B | 2.99B | 3.31B |
| Stockholders Equity | 5.04B | 5.38B | 5.83B | 5.60B | 5.57B | 4.96B |
Cash Flow | ||||||
| Free Cash Flow | 547.92M | 929.91M | -251.73M | 987.44M | 1.32B | -840.88M |
| Operating Cash Flow | 674.75M | 1.13B | 106.39M | 1.26B | 1.59B | -507.72M |
| Investing Cash Flow | -297.94M | -619.76M | -898.86M | -1.09B | -589.93M | 671.03M |
| Financing Cash Flow | -442.00M | -164.05M | 387.50M | -745.50M | -964.92M | 100.05M |
Kwong Lung Enterprise Co., Ltd. Peers Comparison
Overall Rating
TW:658563Neutral
TW:131556Neutral- TW:891655Neutral
TW:840453Neutral
TW:443850Neutral
TW:144442Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:6585 | 63Neutral | TWD 6.76B | 10.51 | ― | 4.81% | 9.62% | 46.90% |
| TW:1315 | 56Neutral | TWD 6.76B | 28.61 | ― | 6.45% | -8.65% | 262.92% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:8916 | 55Neutral | TWD 5.91B | 18.35 | ― | 7.68% | 4.11% | -25.92% |
| TW:8404 | 53Neutral | TWD 5.08B | 14.77 | ― | 4.20% | 3.76% | -76.04% |
| TW:4438 | 50Neutral | TWD 6.34B | 8.95 | ― | 4.24% | 9.45% | 132.67% |
| TW:1444 | 42Neutral | TWD 5.96B | -20.94 | ― | ― | 1.94% | 28.28% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:8916 | Kwong Lung Enterprise Co., Ltd. | 39.50 | -5.23 | -11.68% | |
| TW:1315 | Tah Hsin Industrial Corp. | 69.80 | 9.63 | 16.00% | |
| TW:1444 | LeaLea Enterprise Co., Ltd. | 6.16 | -0.17 | -2.69% | |
| TW:4438 | Quang Viet Enterprise Co., Ltd. | 54.30 | -24.89 | -31.43% | |
| TW:6585 | DingZing Advanced Materials, Inc. | 93.50 | -1.30 | -1.37% | |
| TW:8404 | Paiho Shih Holdings Corporation | 11.90 | -12.54 | -51.32% |
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