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Kaori Heat Treatment Co (8996) Fair Value & Analysis

Industrials · TW · Market cap 94.3B TWD

KH Kaori Heat Treatment Co 8996 · TW
Price1,045 TWD
Fair Value154.40 TWD
Upside-85.2%
Quality58/100
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Mixed Growth
Solidly profitable · 14.5% net margin
Low debt · generates free cash flow
0.41% dividend yield
Mixed vs. peers (7/14)
Wide moat 74/100
Evidence: High Range 85.50 TWD – 215.58 TWD Share as image

Fair value as of: Jul 19, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from 153.08 TWD to 154.40 TWD (+0.9%) since Jul 12, 2026. Share price −20.8% over the past month.

A solid business, but screening 85% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (215.58 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (85.50 TWD to 215.58 TWD) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

1,590 TWD 37.26 TWD Fair Value 154.40 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range 37.26 TWD – 1,590 TWD · fair‑value band 85.50 TWD – 215.58 TWD · the 1,045 TWD price screens above the 154.40 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Kaori Heat Treatment Co (8996) currently trades at 1,045 TWD, while our model-based Fair Value estimate is 154.40 TWD, implying the stock looks roughly 85.2% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Kaori Heat Treatment Co generated revenue of 9.0B TWD at a net margin of 14.5%. Revenue grew 237.6% year over year. It earns a return on equity of 33.2%. The balance sheet holds a net cash position of 227M TWD. Fundamentals as of Jul 19, 2026

Our scenario range runs from 85.50 TWD (bear case) to 215.58 TWD (bull case); at 1,045 TWD, the current price sits above 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 20% below its 52-week high and 343% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -85%, 8996 screens richer 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 BearBaseBull Evidence
Highest evidence
Growth DCF 53.84 TWD 83.45 TWD 134.20 TWD 80
Residual Income 57.76 TWD 74.24 TWD 254.00 TWD 76
Rev-Margin DCF 88.41 TWD 153.53 TWD 238.59 TWD 74
All 26 models by family
DCF Models
FCF DCF 54.24 TWD 86.84 TWD 144.47 TWD 38
Owner Earnings 114.36 TWD 197.73 TWD 345.11 TWD 31
5Y Revenue Exit 88.41 TWD 156.51 TWD 251.69 TWD 39
5Y EBITDA Exit 108.81 TWD 199.07 TWD 315.16 TWD 41
5Y P/E Exit 116.89 TWD 215.93 TWD 331.89 TWD 38
10Y Revenue Exit 73.60 TWD 134.81 TWD 233.53 TWD 36
10Y EBITDA Exit 90.29 TWD 166.20 TWD 287.27 TWD 37
10Y P/E Exit 95.68 TWD 178.64 TWD 301.44 TWD 35
Earnings-Based
Graham-Dodd 60.73 TWD 293.23 TWD 403.79 TWD 54
Lynch FV 78.39 TWD 111.99 TWD 145.59 TWD 50
PEG = 1.0 78.39 TWD 111.99 TWD 145.59 TWD 46
EPV 97.82 TWD 111.52 TWD 123.50 TWD 59
Dividend Discount
Gordon GGM 36.16 TWD 75.19 TWD 119.29 TWD 70
DDM Multi-Stage 36.16 TWD 63.41 TWD 78.92 TWD 61
Multiples
P/E Multiple 140.66 TWD 187.54 TWD 234.43 TWD 63
P/S Multiple 106.27 TWD 141.69 TWD 177.11 TWD 58
P/B Multiple 113.87 TWD 151.82 TWD 189.78 TWD 55
EV/EBIT 156.17 TWD 203.01 TWD 249.85 TWD 53
EV/EBITDA 143.53 TWD 186.16 TWD 228.78 TWD 54
EV/Revenue 104.91 TWD 143.17 TWD 181.42 TWD 43
Asset-Based
NCAV (Graham) 22.46 TWD 30.10 TWD 44.92 TWD 50
Growth DCF
Growth DCF 53.84 TWD 83.45 TWD 134.20 TWD 80
Rev-Margin DCF 88.41 TWD 153.53 TWD 238.59 TWD 74
Economic Profit
Residual Income 57.76 TWD 74.24 TWD 254.00 TWD 76
ROIC Compounder 108.85 TWD 139.15 TWD 177.00 TWD 72
Growth Earnings
Growth-Adj P/E 122.13 TWD 174.47 TWD 226.80 TWD 68

Widest divergence: Growth Earnings (174.47 TWD) versus Asset-Based (30.10 TWD). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 9.0B TWD
Revenue growth (YoY) +238%
Net margin 14.5%
Return on equity 33.2%
Free cash flow 274M TWD FY2025
P/E ratio 113.7
More key figures
Operating margin 20.7%
EPS (TTM) 8.93 TWD
Dividend yield 0.4%
EPS growth (YoY) +347%
Net cash 227M TWD FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 58 · Market factors (momentum, volatility) 57

Profitability 58
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 26
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 28
Disciplined investing over empire-building
Low Volatility 14
Calm price path (market factor)
Momentum 74
Price trend over the last 3–12 months (market factor)
52W Momentum 78
Distance to the 52-week high (market factor)
Net Issuance 88
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

Kaori Heat Treatment Co., Ltd. engages in the research, development, manufacture, and sale of heat exchanger and thermal energy products in Taiwan, Asia, the United States, Europe, and internationally.

Full company description

Kaori Heat Treatment Co., Ltd. engages in the research, development, manufacture, and sale of heat exchanger and thermal energy products in Taiwan, Asia, the United States, Europe, and internationally. The company offers brazed and gasketed plate heat exchangers, methanol fuel cells, hydrogen generators, and automatic methanol mixers; plate heat exchange inverters; brazing and welding products; fuel cell products; and liquid cooling solutions. It also engages in the manufacture and sales of mechanical hardware; and the development, manufacture, and sales of heat exchange products or thermal products. The company serves refrigeration and HVAC, semiconductor and electronics, energy, machinery and manufacturing, marine and transportation, healthcare, and data center industries. The company was incorporated in 1970 and is headquartered in Taoyuan City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kaori Heat Treatment Co reported revenue of 6.6B TWD in FY2025 versus 2.2B TWD in FY2021, a compound +31.0%/yr. Reported net income was 830M TWD in FY2025, compounding +53.6%/yr from FY2021.

Growth Quality 86/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
6.6B TWD
Latest YoY
+64.4%
Avg. growth/yr (3Y)
+32.3%
Avg. growth/yr (5Y)
+25.9%
Avg. growth/yr (21Y)
+11.8%
Revenue +31.0%/yr
FY21 2.2B TWD
FY22 2.8B TWD
FY23 4.3B TWD
FY24 4.0B TWD
FY25 6.6B TWD
Net income +53.6%/yr
FY21 149M TWD
FY22 301M TWD
FY23 577M TWD
FY24 593M TWD
FY25 830M TWD

8996 screens 85% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Kaori Heat Treatment Co Fair Value". https://www.fairvalue-calculator.com/stock/8996

Peer Group

Specialty Industrial Machinery · 809 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 58 · Above median
Fair Value upside −85% · Bottom 25%
Return on equity (TTM) 33% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth 238% · Top 25%
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 113.7× · Pricier than 75% of peers
P/B 22.59× · Pricier than 75% of peers
P/S (TTM) 10.49× · Pricier than 75% of peers
P/FCF 10.7× · Pricier than median
EV/EBITDA 52.5× · Pricier 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 0 · sector 0
FUTURE 100 · sector 23
PAST 100 · sector 28
HEALTH 97 · sector 96
DIVIDEND 8 · sector 24

VALUE 0: the price sits above our fair-value range.

Insider activity: 30/100

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Kaori Heat Treatment Co (8996) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of 154.40 TWD versus a price of 1,045 TWD, about −85% (overvalued).
What is the fair value of 8996?
Our model-based fair value for Kaori Heat Treatment Co is 154.40 TWD (as of Jul 19, 2026), built from audited fundamentals. The current price is 1,045 TWD.
What is the quality score of 8996?
Kaori Heat Treatment Co has a Quality Score of 58/100. 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 Kaori Heat Treatment Co (8996)?
Kaori Heat Treatment Co reported trailing-twelve-month revenue of about 9.0B TWD (latest available figure, as of Jul 19, 2026).
What is the net profit margin of 8996?
The net profit margin of Kaori Heat Treatment Co is about 14.5%, meaning it keeps roughly 14.5% 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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