King's Town Construction Co Ltd

King's Town Construction Co Ltd has a market price of 33.25 TWD per share and a market capitalization of 12,168,934,750 TWD. The company's price-to-earnings ratio is 34.54, and its price-to-book ratio is 0.67, indicating that the market is valuing the company at a discount to its book value. The enterprise value to EBITDA ratio is 62.18, and the enterprise value to revenue ratio is 23.16, both of which are significantly higher than typical industry benchmarks, suggesting a high valuation relative to earnings and revenue.

The company's profitability metrics show a return on equity of 1.93% and a return on assets of 0.93%, both of which are below the industry median for real estate development and operations firms. The operating margin is 37.25% (482,306,000 TWD operating income / 1,294,875,000 TWD revenue), and the net profit margin is 27.21% (352,317,000 TWD net income / 1,294,875,000 TWD revenue), which are relatively high for the real estate sector. However, the company's gross margin is 48.88% (633,125,000 TWD gross profit / 1,294,875,000 TWD revenue), which is in line with industry norms.

The company's revenue is concentrated in its core real estate development and operations business, with no disclosed segment breakdown. The geographic exposure is primarily within Taiwan, with no material international operations reported. The company's total assets are 37,736,104,000 TWD, and its total liabilities are 19,457,530,000 TWD, resulting in a debt-to-equity ratio of 0.97, which is relatively low for a real estate company. The current ratio is 3.55, indicating strong short-term liquidity.

The company's growth trajectory is modest, with a revenue of 1,294,875,000 TWD in the latest reporting period. The outlook for the current fiscal year is for a slight increase in revenue, with a projected growth rate of less than 5%. The company's capital expenditure is minimal at -4,267,000 TWD, suggesting a conservative approach to reinvestment. The company's free cash flow is 370,325,000 TWD, which is positive and indicates the company is generating more cash than it is using.

The company faces a medium liquidity risk, as indicated by the risk assessment, and a low dilution risk. The key flag of concern is that the company's net cash is negative after subtracting total debt, which could impact its ability to meet short-term obligations. The company has not disclosed any recent events or filings that would significantly impact its operations or financial position.

Cash conversion ratio of 0.42 outperforms the cohort median of 0.29, demonstrating superior cash generation.

Capital expenditure relative to revenue is lower than peers, suggesting efficient capital allocation strategies.

Dilution risk is assessed as low, providing stability for existing shareholders' equity positions.

Credit risk is flagged as high, indicating potential difficulties in meeting financial obligations or debt servicing.

Liquidity risk is rated medium, suggesting potential challenges in managing short-term financial obligations.

Revenue TWD 5.84B; Operating income TWD 2.13B.

• ▍Revenue TWD 5.84B
• ▍Operating income TWD 2.13B
• ▍Net margin 32.4%

Revenue TWD 1.25B; Operating income TWD 531.1M.

• ▍Revenue TWD 1.25B
• ▍Operating income TWD 531.1M
• ▍Net margin 31.1%

Revenue TWD 1.29B; Operating income TWD 482.3M.

• ▍Revenue TWD 1.29B
• ▍Operating income TWD 482.3M
• ▍Net margin 27.2%

Revenue TWD 9.28B, +263,5% YoY; Operating income +329,8% YoY.

• ▍Revenue TWD 9.28B, +263,5% YoY
• ▍Operating income +329,8% YoY
• ▍Net income +540,6% YoY
• ▍Free cash flow +464,4% YoY
• ▍Net margin 30.5%

Revenue TWD 2.55B, −24,5% YoY; Operating income −41,7% YoY.

• ▍Revenue TWD 2.55B, −24,5% YoY
• ▍Operating income −41,7% YoY
• ▍Net income −56,2% YoY
• ▍Free cash flow −52,1% YoY
• ▍Net margin 17.3%

Revenue TWD 3.38B, −49,2% YoY; Operating income −33,4% YoY.

• ▍Revenue TWD 3.38B, −49,2% YoY
• ▍Operating income −33,4% YoY
• ▍Net income −40,2% YoY
• ▍Free cash flow −39,0% YoY
• ▍Net margin 29.8%

Revenue TWD 6.66B; Operating income TWD 2.07B.

• ▍Revenue TWD 6.66B
• ▍Operating income TWD 2.07B
• ▍Net margin 25.3%