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Kwang Ming Silk Mill Co (4420) Fair Value & Analysis

Consumer Cyclical · TW · Market cap 1.4B TWD

KM Kwang Ming Silk Mill Co 4420 · TWO
Price35.40 TWD
Fair Value89.85 TWD
Upside+153.8%
Quality57/100
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Expensive Growth
Thin margins · 3.3% net margin
Low debt · negative free cash flow
Mixed vs. peers (6/11)
Narrow moat 23/100
Evidence: Medium Range 47.78 TWD – 116.81 TWD Share as image

Fair value as of: Jul 23, 2026

From 13 valuation models · updated 18 days ago

Share price −4.2% over the past month.

A solid business, screening 154% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (47.78 TWD). The market is more pessimistic than our downside scenario.
  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (47.78 TWD to 116.81 TWD) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

72.10 TWD 20.19 TWD Fair Value 89.85 TWD Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 23, 2026.

How to read this chart

60‑month range 20.19 TWD – 72.10 TWD · fair‑value band 47.78 TWD – 116.81 TWD · the 35.40 TWD price screens below the 89.85 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

Kwang Ming Silk Mill Co (4420) currently trades at 35.40 TWD, while our model-based Fair Value estimate is 89.85 TWD, implying the stock looks roughly 153.8% undervalued today. The Quality Score stands at 57/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Kwang Ming Silk Mill Co generated revenue of 1.0B TWD at a net margin of 3.3%. Revenue declined 7.6% year over year. It earns a return on equity of 2.3%. Net debt stands at 36.7M TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 47.78 TWD (bear case) to 116.81 TWD (bull case); at 35.40 TWD, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 37% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -27% fair-value upside, at 154%, 4420 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income 35.06 TWD 41.17 TWD 65.93 TWD 76
Gordon GGM 42.73 TWD 77.00 TWD 106.00 TWD 70
Growth-Adj P/E 62.90 TWD 89.85 TWD 116.81 TWD 68
All 13 models by family
DCF Models
Owner Earnings 68.64 TWD 102.79 TWD 150.47 TWD 31
Earnings-Based
Graham-Dodd 37.59 TWD 135.88 TWD 183.22 TWD 54
Lynch FV 32.19 TWD 45.99 TWD 59.79 TWD 50
PEG = 1.0 32.19 TWD 45.99 TWD 59.79 TWD 46
Dividend Discount
Gordon GGM 42.73 TWD 77.00 TWD 106.00 TWD 70
DDM Multi-Stage 42.73 TWD 70.34 TWD 82.25 TWD 61
Multiples
P/E Multiple 91.21 TWD 121.61 TWD 152.01 TWD 63
P/S Multiple 22.81 TWD 30.41 TWD 38.01 TWD 58
P/B Multiple 70.48 TWD 93.97 TWD 117.47 TWD 55
EV/EBITDA 10.01 TWD 12.58 TWD 15.15 TWD 54
Asset-Based
NCAV (Graham) 18.61 TWD 24.94 TWD 37.23 TWD 50
Economic Profit
Residual Income 35.06 TWD 41.17 TWD 65.93 TWD 76
Growth Earnings
Growth-Adj P/E 62.90 TWD 89.85 TWD 116.81 TWD 68

Widest divergence: DCF Models (102.79 TWD) versus Asset-Based (24.94 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 1.0B TWD
Revenue growth (YoY) -7.6%
Net margin 3.3%
Return on equity 2.3%
Free cash flow −149M TWD FY2025
P/E ratio 6.4
More key figures
Operating margin 0.8%
EPS (TTM) 5.52 TWD
EPS growth (YoY) -96.6%
Net debt 36.7M TWD FY2025

Figures from reported company fundamentals · as of Jul 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 56 · Market factors (momentum, volatility) 34

Profitability 52
Margins and returns on capital today
Quality Growth 65
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 85
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 11
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Kwang Ming Silk Mill Co., Ltd. manufactures and sells polyester processed yarns and related fiber products in Taiwan. The company operates in two divisions, Fiber and Real Estate Development. It offers fine denier and functional yarns; knitted fabrics; and composite, specialized functional, and synthetic fabrics.

Full company description

Kwang Ming Silk Mill Co., Ltd. manufactures and sells polyester processed yarns and related fiber products in Taiwan. The company operates in two divisions, Fiber and Real Estate Development. It offers fine denier and functional yarns; knitted fabrics; and composite, specialized functional, and synthetic fabrics. The company's products are used in garment fabrics, industrial fabrics, environmentally friendly recycled, polyester fabrics, etc., as well as for outdoor casual wear and sportswear. In addition, it is involved in the development and leasing of residential, commercial office buildings, and factories. Kwang Ming Silk Mill Co., Ltd. was incorporated in 1955 and is based in Taipei, Taiwan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kwang Ming Silk Mill Co reported revenue of 1.0B TWD in FY2025 versus 917M TWD in FY2021, a compound +2.8%/yr. Reported net income was 224M TWD in FY2025, compounding +28.3%/yr from FY2021.

Growth Quality 53/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.0B TWD
Latest YoY
+22.7%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.6%
Avg. growth/yr (9Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.7%
Revenue +2.8%/yr
FY21 917M TWD
FY22 929M TWD
FY23 689M TWD
FY24 836M TWD
FY25 1.0B TWD
Net income +28.3%/yr
FY21 82.6M TWD
FY22 −4.4M TWD
FY23 1.6B TWD
FY24 250M TWD
FY25 224M TWD

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Cite: Fair Value Calculator (2026). "Kwang Ming Silk Mill Co Fair Value". https://www.fairvalue-calculator.com/stock/4420

Peer Group

Textile Manufacturing · 307 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Above median
Fair Value upside +154% · Top 25%
Return on equity (TTM) 2% · Below median
Return on assets -0% · Below median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 1% · Below median
Revenue growth -8% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 6.4× · Cheaper than 75% of peers
P/S (TTM) 0.04× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 8
FUTURE 0 · sector 0
PAST 9 · sector 15
HEALTH 100 · sector 95
DIVIDEND 0 · sector 34

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$44.40 HK$75.65 +70%
Tongkun Group 601233 ¥23.56 ¥14.53 -38%
Inner Mongolia ERDOS Resources Co 600295 ¥12.04 ¥14.35 +19%
HMT (Xiamen) New Technical Materials Co 603306 ¥91.75 ¥12.85 -86%
Far Eastern New Century Corporation 1402 27.55 TWD 28.72 TWD +4%
K.P.R. Mill Limited KPRMILL ₹1,083 ₹467.49 -57%
Zhejiang Orient Holdings 600120 ¥5.18 ¥2.21 -57%
Vardhman Textiles Limited VTL ₹602.20 ₹437.53 -27%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 323.84 TRY +86%
Shandong Fiberglass Group 605006 ¥16.75 ¥6.42 -62%

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Frequently asked questions

Is Kwang Ming Silk Mill Co (4420) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 89.85 TWD versus a price of 35.40 TWD, about +154% (undervalued).
What is the fair value of 4420?
Our model-based fair value for Kwang Ming Silk Mill Co is 89.85 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 35.40 TWD.
What is the quality score of 4420?
Kwang Ming Silk Mill Co has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Kwang Ming Silk Mill Co (4420)?
Kwang Ming Silk Mill Co reported trailing-twelve-month revenue of about 1.0B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 4420?
The net profit margin of Kwang Ming Silk Mill Co is about 3.3%, meaning it keeps roughly 3.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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