Kwong Lung Enterprise Co., Ltd. (8916) AI Stock Analysis

Kwong Lung Enterprise Co., Ltd.

(TPEx:8916)

Select Model

Rating:57Neutral

Price Target:TWD 41.00▲(3.80% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 57 reflects a company with significant strengths and weaknesses. The most impactful positive factor is the very attractive valuation, driven by a low P/E ratio and a high dividend yield. This is supported by robust cash flow generation. However, these are counterbalanced by a clear downtrend in the stock's technicals and, most importantly, a deteriorating profitability profile with compressing margins. The company's strong cash position provides a buffer, but the declining earnings power is a major concern.

Positive Factors

Revenue RecoveryThe 2025 revenue rebound indicates renewed demand for the company’s bedding and textile offerings after softer prior-year momentum. If maintained, improving sales can support better operating leverage, customer retention, and reinvestment across branded and OEM/ODM channels.

Negative Factors

Profitability CompressionThe substantial decline in both net and EBIT margins shows that revenue recovery has not translated into comparable earnings strength. Persistent margin pressure would reduce reinvestment capacity, weaken returns from scale, and make future profits more sensitive to cost changes.

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

Financial performance is mixed. Cash flow is a standout strength (Score 78), with a dramatic recovery in operating and free cash flow. However, this is offset by a weak income statement (Score 42) showing significant margin compression and a declining net profit margin. The balance sheet (Score 55) is stable but shows rising leverage and declining returns. The overall financial picture is one of strong liquidity buffering against deteriorating profitability.

Income Statement

42Neutral

Balance Sheet

55Neutral

Cash Flow

78Positive

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8916 against its peers
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:8916	57Neutral	TWD 5.91B	18.35	―	7.68%	4.11%	-25.92%
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: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

TW:8916 and its peers over the selected period
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%

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

Kwong Lung Enterprise Co., Ltd. AI Stock Analysis