Kenda Rubber Ind Co Ltd

Kenda Rubber Ind Co Ltd maintains a debt-to-equity ratio of 0.87, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 2.25, suggesting it can cover its short-term obligations but with limited excess capacity. Free cash flow stands at 528 million TWD, which is lower than the operating cash flow of 1.49 billion TWD, reflecting capital expenditures of 780 million TWD in the period.

Profitability metrics show a return on equity (ROE) of 2.07% and a return on assets (ROA) of 0.92%, both below the industry median for Tires & Rubber Products. The gross profit margin is 22.5%, while the operating margin is 5.35%, indicating a relatively narrow margin structure compared to peers. The company's net income of 425 million TWD is derived from a revenue base of 9.12 billion TWD, translating to a net margin of 4.66%.

Geographically, Kenda's revenue is concentrated in undisclosed regions, as no specific geographic breakdown is provided in the available data. The company operates in a single disclosed segment, with no further segmentation of products or markets. This lack of diversification may expose the company to regional economic fluctuations and supply chain disruptions.

Looking ahead, Kenda's revenue is expected to remain stable, with no significant growth or contraction projected in the current or next fiscal year. The company's capital expenditures are expected to remain consistent with recent levels, as no material changes in capex plans are disclosed. The absence of analyst price targets beyond 22.00 TWD suggests a neutral outlook, with one "hold" recommendation and no "buy" or "strong buy" ratings.

The risk assessment highlights a key flag: net cash is negative after subtracting total debt, indicating a potential liquidity constraint. The company's dilution risk is assessed as low, with no near-term pressure from share issuance or convertible instruments. However, the debt-to-equity ratio of 0.87 suggests a moderate level of leverage, which could increase financial risk in a rising interest rate environment.

Recent events include the publication of the latest financial data, which provides a comprehensive view of the company's performance. No material events such as mergers, acquisitions, or regulatory actions are disclosed in the available data.

Analysts project 32.1% upside to a consensus target price of TWD 22.0, suggesting undervaluation relative to current market price.

Cash conversion ratio of 3.51 exceeds the 75th percentile of the Tires & Rubber Products cohort, indicating superior cash generation efficiency.

Net income reached TWD 1.24 billion in FY2025, representing a significant recovery from the TWD 338 million low recorded in FY2023.

Gross profit expanded to TWD 7.54 billion in FY2025, demonstrating improved top-line profitability despite flat revenue trends.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity value erosion from new issuances.

The company carries a high credit risk flag, indicating significant concerns regarding its ability to meet financial obligations.

Debt-to-equity ratio of 0.87 sits in the bottom quartile of its cohort, implying higher financial leverage and risk than peers.

Revenue TWD 8.70B, −1,2% YoY.

• ▍Revenue TWD 8.70B, −1,2% YoY

Revenue TWD 8.02B, +0,3% YoY; Operating income +52,6% YoY.

• ▍Revenue TWD 8.02B, +0,3% YoY
• ▍Operating income +52,6% YoY
• ▍Net income −67,7% YoY
• ▍Free cash flow +60,7% YoY
• ▍Net margin 0.8%

Revenue TWD 8.18B, −7,3% YoY; Operating income −55,6% YoY.

• ▍Revenue TWD 8.18B, −7,3% YoY
• ▍Operating income −55,6% YoY
• ▍Net income −56,5% YoY
• ▍Free cash flow −111,8% YoY
• ▍Net margin 0.9%

Revenue TWD 8.96B, −1,8% YoY; Operating income −65,2% YoY.

• ▍Revenue TWD 8.96B, −1,8% YoY
• ▍Operating income −65,2% YoY
• ▍Net income −120,4% YoY
• ▍Free cash flow −57,4% YoY
• ▍Net margin -1.0%

Revenue TWD 8.81B; Operating income TWD 127.4M.

• ▍Revenue TWD 8.81B
• ▍Operating income TWD 127.4M
• ▍Net margin 0.8%

Revenue TWD 8.00B; Operating income TWD 77.7M.

• ▍Revenue TWD 8.00B
• ▍Operating income TWD 77.7M
• ▍Net margin 2.6%

Revenue TWD 8.82B; Operating income TWD 350.2M.

• ▍Revenue TWD 8.82B
• ▍Operating income TWD 350.2M
• ▍Net margin 2.0%

Revenue TWD 9.12B; Operating income TWD 487.8M.

• ▍Revenue TWD 9.12B
• ▍Operating income TWD 487.8M
• ▍Net margin 4.7%

Revenue TWD 33.96B, −0,7% YoY; Operating income −61,1% YoY.

• ▍Revenue TWD 33.96B, −0,7% YoY
• ▍Operating income −61,1% YoY
• ▍Net income −89,9% YoY
• ▍Free cash flow −158,4% YoY
• ▍Net margin 0.4%

Revenue TWD 34.20B, −0,7% YoY; Operating income +13,5% YoY.

• ▍Revenue TWD 34.20B, −0,7% YoY
• ▍Operating income +13,5% YoY
• ▍Net income +40,9% YoY
• ▍Free cash flow −68,9% YoY
• ▍Net margin 3.6%

Revenue TWD 34.44B, −10,8% YoY; Operating income +461,7% YoY.

• ▍Revenue TWD 34.44B, −10,8% YoY
• ▍Operating income +461,7% YoY
• ▍Net income +160,5% YoY
• ▍Free cash flow +299,2% YoY
• ▍Net margin 2.6%

Revenue TWD 38.62B, +10,7% YoY; Operating income −86,8% YoY.

• ▍Revenue TWD 38.62B, +10,7% YoY
• ▍Operating income −86,8% YoY
• ▍Net income −63,2% YoY
• ▍Free cash flow −13,0% YoY
• ▍Net margin 0.9%