Kuo Toong International Co., Ltd. (8936) AI Stock Analysis

Kuo Toong International Co., Ltd.

(TPEx:8936)

Select Model

Rating:64Neutral

Price Target:TWD 43.00▲(6.04% Upside)

Action:initiatedcoverage

Date:11/09/26

Kuo Toong scores in the moderate range, anchored by solid fundamentals and an attractive valuation but held back by poor cash conversion and a weak price trend. Earnings and revenue have compounded strongly, leverage has nearly halved and ROE has reached 15%, while a 9.7x P/E and 7.43% dividend yield make the shares inexpensive on a headline basis. Offsetting this, operating cash flow covered less than half of reported profit and free cash flow fell sharply, leaving a thin internal funding cushion against remaining debt — a concern for sustaining the high payout. Technically, the stock sits below all major moving averages with negative MACD and deeply depressed RSI and Stochastic readings, reflecting persistent selling pressure. The result is a profitable, cheaply valued builder whose cash flow consistency and price trend need to stabilise before the risk profile improves.

Positive Factors

Revenue GrowthSustained revenue expansion through 2025 indicates continued demand for the company’s pipeline products and infrastructure-related offerings. This growth supports operating scale, reinforces its position with municipal and utility customers, and provides a foundation for maintaining earnings over the next several quarters.

Negative Factors

Weak Cash ConversionWeak and inconsistent conversion of reported earnings into cash is a material constraint on financial quality. The sharp 2025 free-cash-flow decline can limit internally funded growth, dividends, or debt reduction, while recurring working-capital swings or investment needs may keep liquidity volatile.

Kuo Toong International Co., Ltd. (8936) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.08B
Dividend Yield: 7.40%
Average Volume (3M): 1.17M
Price to Earnings (P/E): 9.4
Beta (1Y): 0.53
Revenue Growth: 27.31%
EPS Growth: 26.91%
Country: TW
Employees: 165
Sector: General
Sector Strength: 55
Industry: Construction Materials

Kuo Toong International Co., Ltd. Business Overview & Revenue Model

Company Description

Kuo Toong International Co., Ltd., based in Kaohsiung, Taiwan, specializes in the engineering, production, and installation of piping systems for water supply and distribution. The company's extensive range of offerings includes various concrete prod...

Kuo Toong International Co., Ltd. Financial Statement Overview

Summary

Kuo Toong combines strong growth with improving balance sheet health but weak cash conversion. Revenue rose to NT$6.31 billion (+20% in the latest year after ~27% prior), net income reached NT$1.01 billion, and net margin expanded to ~16% from 3.4% in 2020 (Income Statement: 78). The balance sheet has de-leveraged meaningfully, with debt-to-equity falling from 0.91 to 0.54 and ROE climbing to 15%, though roughly half the asset base is still liability-funded (Balance Sheet: 71). Cash flow is the clear weak spot: operating cash flow of NT$455 million covered only ~45% of net income and free cash flow fell ~63% year over year, signalling profits absorbed by working capital and project build-out (Cash Flow: 38). Also notable is the gross margin drop from 38.0% in 2023 to ~26%, implying growth driven by volume rather than pricing power.

Income Statement

78Positive

Balance Sheet

71Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.86B	6.31B	5.25B	4.13B	3.79B	4.62B
Gross Profit	1.66B	1.64B	1.34B	1.57B	1.10B	1.07B
EBITDA	1.60B	1.54B	1.29B	1.25B	1.01B	786.65M
Net Income	1.08B	1.01B	837.21M	713.87M	625.15M	448.37M
Balance Sheet
Total Assets	14.48B	14.07B	13.37B	11.83B	11.26B	13.28B
Cash, Cash Equivalents and Short-Term Investments	2.23B	1.85B	2.45B	2.13B	1.70B	1.88B
Total Debt	3.68B	3.66B	3.63B	2.97B	3.17B	4.31B
Total Liabilities	6.33B	5.52B	5.32B	4.45B	4.26B	6.54B
Stockholders Equity	6.33B	6.76B	6.29B	5.67B	5.36B	4.80B
Cash Flow
Free Cash Flow	351.12M	161.04M	41.15M	831.63M	310.97M	31.23M
Operating Cash Flow	446.15M	454.71M	214.07M	940.24M	354.47M	104.95M
Investing Cash Flow	-242.21M	-250.87M	-686.76M	-226.39M	-227.36M	-158.43M
Financing Cash Flow	-127.74M	-499.48M	245.85M	-469.99M	101.22M	278.39M

Kuo Toong International Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8936 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8341	68Neutral	TWD 9.93B	12.71	―	5.30%	11.74%	29.44%
TW:2033	66Neutral	TWD 8.94B	261.02	―	0.27%	-1.16%	-4.45%
TW:8936	64Neutral	TWD 10.12B	9.40	―	7.40%	27.31%	26.91%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8937	39Underperform	TWD 10.58B	183.46	―	0.10%	655.50%	80.09%

* General Sector Average

Performance Comparison

TW:8936 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8936	Kuo Toong International Co., Ltd.	40.55	-18.19	-30.97%
TW:2033	Chia Ta World Co., Ltd.	74.60	59.10	381.29%
TW:7818	Kemflo International Co Ltd	52.20	-47.47	-47.63%
TW:7934	ReTech Environmental Solutions Co., Ltd.	554.00	153.00	38.15%
TW:8341	Sunny Friend Environmental Technology Co., Ltd.	75.50	-2.30	-2.96%
TW:8937	Her Chee Industrial Co., Ltd.	23.85	-15.65	-39.62%

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

Kuo Toong International Co., Ltd. AI Stock Analysis