Hua Yu Lien Development Co., Ltd. (1436) AI Stock Analysis

Hua Yu Lien Development Co., Ltd.

(TWSE:1436)

Select Model

Rating:55Neutral

Price Target:TWD 36.00▲(9.42% Upside)

Action:initiatedcoverage

Date:11/09/26

Hua Yu Lien scores in the middle of the range. The dominant drag is cash flow: operating and free cash flow have been negative in five of the past six years as land and work-in-progress investment consumes profits, leaving the company dependent on debt funding with leverage around 2x equity. Offsetting this, margins are outstanding (50% gross, 25% net) and the multi-year profit trend is strongly higher, even though 2025 revenue and earnings stepped down from a record 2024. Valuation provides meaningful support with a P/E of 12.1 and a very high dividend yield, though the payout's durability is questionable given the earnings decline. Technicals are the near-term headwind, with the price below all major moving averages and negative MACD momentum.

Positive Factors

Strong ProfitabilityThe latest annual period combines approximately 50% gross margins with 25% net margins, showing meaningful earnings conversion from development activity. This profitability provides internal capacity to support operations, absorb project variability, and preserve economic value across the next several quarters.

Negative Factors

Persistent Negative Cash FlowNegative operating and free cash flow across 2023–2025 shows that reported profits have not translated consistently into cash. Persistent outflows can increase reliance on financing, reduce flexibility for new projects, and heighten liquidity pressure if development sales or project timing weaken.

Hua Yu Lien Development Co., Ltd. (1436) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.28B
Dividend Yield: 15.34%
Average Volume (3M): 141.86K
Price to Earnings (P/E): -193.5
Beta (1Y): 0.19
Revenue Growth: -78.07%
EPS Growth: -99.85%
Country: TW
Employees: 18
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Hua Yu Lien Development Co., Ltd. Business Overview & Revenue Model

Company Description

Hua Yu Lien Development Co., Ltd., with its headquarters located in Taipei City, Taiwan, is primarily involved in the construction, leasing, and selling of residential properties and buildings across the nation. Beyond its core real estate operations...

Hua Yu Lien Development Co., Ltd. Financial Statement Overview

Summary

Profitability is the clear strength: fiscal 2025 gross margin near 50%, operating margin around 37% and net margin of 25%, with profits several times 2020 levels. However, revenue fell about 14% to NT$3.89 billion and net income dropped from NT$2.33 billion to NT$973 million, underscoring the lumpy, project-driven earnings pattern. The balance sheet is leveraged, with total debt up 24% to NT$13.24 billion and debt-to-equity near 2.0x, though that ratio is the lowest in six years. Cash flow is the weakest link, with negative operating cash flow of NT$72.6 million and negative free cash flow of NT$79.1 million in 2025 — the fifth negative year out of six — as land and inventory spending absorbs profits, albeit with the shortfall narrowing sharply toward breakeven.

Income Statement

68Positive

Balance Sheet

45Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.72B	3.89B	6.96B	1.63B	3.94B	2.58B
Gross Profit	1.37B	1.95B	3.58B	1.37B	1.26B	855.82M
EBITDA	931.95M	1.46B	2.99B	1.14B	904.96M	583.16M
Net Income	548.42M	973.25M	2.33B	945.94M	630.64M	486.38M
Balance Sheet
Total Assets	20.96B	21.67B	19.09B	15.07B	13.05B	13.69B
Cash, Cash Equivalents and Short-Term Investments	2.10B	3.78B	2.15B	1.67B	1.44B	1.43B
Total Debt	12.34B	13.24B	10.68B	9.56B	8.38B	9.28B
Total Liabilities	14.68B	14.73B	12.77B	11.13B	9.77B	10.67B
Stockholders Equity	5.55B	6.50B	6.14B	3.82B	3.28B	3.02B
Cash Flow
Free Cash Flow	69.35M	-79.12M	-312.49M	-1.07B	1.63B	-1.35B
Operating Cash Flow	75.70M	-72.56M	-312.41M	-1.07B	1.63B	-1.35B
Investing Cash Flow	363.56M	236.91M	-105.69M	-38.12M	-16.10M	40.73M
Financing Cash Flow	-1.60B	1.86B	1.16B	848.57M	-1.24B	1.45B

Hua Yu Lien Development Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1436 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6186	67Neutral	TWD 6.18B	5.39	―	17.86%	-36.90%	-38.48%
TW:2505	65Neutral	TWD 6.57B	5.07	―	5.76%	179.05%	102.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1436	55Neutral	TWD 6.58B	-193.53	―	15.34%	-78.07%	-99.85%
TW:2534	51Neutral	TWD 7.05B	156.32	―	10.27%	-78.07%	-96.57%
TW:5525	49Neutral	TWD 6.49B	5.43	―	5.66%	235.09%	662.07%
TW:5531	39Underperform	TWD 5.87B	55.18	―	―	-72.62%	-9.86%

* General Sector Average

Performance Comparison

TW:1436 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1436	Hua Yu Lien Development Co., Ltd.	32.90	-23.79	-41.97%
TW:2505	Kuo Yang Construction Co., Ltd.	17.35	-0.56	-3.12%
TW:2534	Hung Sheng Construction Co., Ltd.	14.60	-4.45	-23.36%
TW:5525	Sweeten Real Estate Development Co. Ltd.	21.20	-5.69	-21.15%
TW:5531	Shining Building Business Co. Ltd.	6.17	-3.02	-32.86%
TW:6186	Shin Ruenn Development Co., Ltd	27.05	-23.63	-46.63%

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

Hua Yu Lien Development Co., Ltd. AI Stock Analysis