New Palace International Co., Ltd. (8940) AI Stock Analysis

New Palace International Co., Ltd.

(TWSE:8940)

Select Model

Rating:55Neutral

Price Target:TWD 15.50▲(8.39% Upside)

Action:initiatedcoverage

Date:11/09/26

Moderate financial performance with reliable cash generation and improving leverage forms the primary support, while mixed technical signals and elevated P/E without dividend yield cap the overall score.

Positive Factors

Recurring Cash GenerationRecurring operating cash flow and positive free cash flow provide internal funding for operations, debt service, and reinvestment. This improves financial flexibility over the next several quarters, even though the slower free-cash-flow growth in 2025 shows that cash generation is not accelerating.

Negative Factors

2025 Revenue DeclineThe 2025 revenue pullback interrupts the earlier recovery and indicates that demand or business momentum has not remained consistently strong. A weaker top line can reduce operating leverage, limit reinvestment capacity, and make future profit growth more dependent on cost control.

New Palace International Co., Ltd. (8940) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 958.37M
Dividend Yield: ―
Average Volume (3M): 42.72K
Price to Earnings (P/E): 19.3
Beta (1Y): 0.33
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

Post-pandemic revenue recovery offset by compressed gross margins near 38% and low net margins around 2%; balance sheet shows improved leverage with D/E at 1.1 and positive ROE; cash flow remains healthy with consistent positive operating cash flow and solid FCF conversion.

Income Statement

47Neutral

Balance Sheet

61Positive

Cash Flow

71Positive

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8940 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2751	70Outperform	TWD 1.04B	10.29	―	8.56%	24.76%	15.78%
TW:8077	64Neutral	TWD 886.61M	5.90	―	5.00%	3.19%	40.37%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8940	55Neutral	TWD 968.50M	19.32	―	―	5.63%	-3.32%

* General Sector Average

Performance Comparison

TW:8940 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8940	New Palace International Co., Ltd.	14.30	-6.10	-29.90%
TW:1269	Kanpai Co. Ltd.	50.90	-4.52	-8.16%
TW:2751	Kingza International Co Ltd	52.50	-8.90	-14.49%
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%

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

New Palace International Co., Ltd. AI Stock Analysis