New Palace International Co., Ltd. AI Stock Analysis
New Palace International Co., Ltd. (8940) AI Stock Analysis
New Palace International Co., Ltd.
(TWSE:8940)
New Palace International scores modestly below average. The dominant drag is profitability: revenue has turned down roughly 6%, gross margin collapsed from about 51% to 38%, operating margin halved to 4.2%, and net margin is just 2.3%, with earnings swinging unpredictably from year to year. Offsetting this, cash generation remains genuinely strong — operating cash flow of NT$237 million is about five times net income and free cash flow has been positive for four straight years — while leverage continues to improve toward a debt-to-equity ratio of 1.09. Technicals add little support, with the price below both the 100- and 200-day averages and a negative MACD, and valuation is unattractive at a 27.4 P/E with no dividend. A margin recovery and stabilized sales would be the key catalysts for a higher score.
New Palace International Co., Ltd. (8940) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 971.87M
- Dividend Yield
- ―
- Average Volume (3M)
- 43.23K
- Price to Earnings (P/E)
- 19.3
- Beta (1Y)
- 0.32
- Revenue Growth
- 5.63%
- EPS Growth
- -3.32%
- Country
- TW
- Employees
- 726
- Sector
- General
- Sector Strength
- 55
- Industry
- Restaurants
New Palace International Co., Ltd. Business Overview & Revenue Model
Company Description
New Palace International Co., Ltd. is primarily involved in managing restaurant establishments. Beyond its dining operations, the company offers a range of culinary services, encompassing general food provision, elaborate wedding banquets, and compre...
New Palace International Co., Ltd. Financial Statement Overview
Summary
A mixed profile that blends solid cash generation with weak profitability. Cash flow is the standout (score 68): operating cash flow of NT$237 million is roughly five times net income, and free cash flow of NT$180 million marks a fourth consecutive positive year, though both declined year over year (-33% and -21%). The balance sheet is adequate (score 56) with debt-to-equity improving to 1.09 from 1.70 in 2022 and equity rebuilt to NT$762 million, but leverage still slightly exceeds equity and ROE is a modest 4.9%. The income statement is the weakest link (score 45): revenue fell about 6% to NT$1.59 billion after three years of recovery, gross margin compressed from ~51% to 38%, operating margin halved to 4.2%, and net margin is a razor-thin 2.3% with highly volatile earnings (NT$106m to NT$8m to NT$37m).
Income Statement
45NeutralBalance Sheet
56NeutralCash Flow
68Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.61B | 1.59B | 1.70B | 1.54B | 977.95M | 668.72M |
| Gross Profit | 512.91M | 607.86M | 865.91M | 811.82M | 487.35M | 280.18M |
| EBITDA | 274.89M | 280.40M | 400.31M | 363.89M | 196.03M | 19.55M |
| Net Income | 35.88M | 37.28M | 8.27M | 106.39M | 23.34M | -119.46M |
Balance Sheet | ||||||
| Total Assets | 2.11B | 2.16B | 2.24B | 2.12B | 2.12B | 1.75B |
| Cash, Cash Equivalents and Short-Term Investments | 354.38M | 309.19M | 307.67M | 249.38M | 277.32M | 251.04M |
| Total Debt | 847.36M | 833.69M | 924.23M | 852.06M | 1.02B | 779.47M |
| Total Liabilities | 1.18B | 1.30B | 1.41B | 1.32B | 1.44B | 1.10B |
| Stockholders Equity | 826.37M | 762.25M | 724.53M | 705.47M | 599.29M | 565.72M |
Cash Flow | ||||||
| Free Cash Flow | 192.15M | 179.84M | 228.41M | 162.81M | -8.99M | -67.81M |
| Operating Cash Flow | 255.21M | 237.31M | 351.15M | 332.76M | 195.52M | 7.40M |
| Investing Cash Flow | -112.24M | -103.81M | -129.95M | -164.69M | -195.95M | -92.16M |
| Financing Cash Flow | -110.72M | -174.86M | -162.87M | -192.84M | 37.39M | 24.43M |
New Palace International Co., Ltd. Peers Comparison
Overall Rating
TW:275170Outperform
TW:807764Neutral- TW:894051Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:2751 | 70Outperform | TWD 1.04B | 10.38 | ― | 8.56% | 24.76% | 15.78% |
| TW:8077 | 64Neutral | TWD 886.61M | 5.96 | ― | 4.95% | 3.19% | 40.37% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:8940 | 51Neutral | TWD 968.50M | 19.26 | ― | ― | 5.63% | -3.32% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:8940 | New Palace International Co., Ltd. | 14.30 | -6.40 | -30.92% | |
| TW:1269 | Kanpai Co. Ltd. | 50.90 | -4.80 | -8.62% | |
| TW:2751 | Kingza International Co Ltd | 52.50 | -8.99 | -14.62% | |
| TW:2758 | LOUISA Professional Coffee LTD. | 52.00 | -37.87 | -42.14% | |
| TW:7789 | Casual Restaurants, Inc. | 46.50 | 5.00 | 12.05% | |
| TW:8077 | Green World Hotels Co., Ltd. | 40.00 | -3.47 | -7.99% |
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