Run Long Construction Co., Ltd. (1808) AI Stock Analysis

Run Long Construction Co., Ltd.

(TWSE:1808)

Select Model

Rating:52Neutral

Price Target:TWD 32.00▼(-11.72% Downside)

Action:initiatedcoverage

Date:11/09/26

Run Long Construction scores in the below-average range, driven primarily by financial strain: sharply lower revenue and profit, compressed margins, leverage back up to 2.6x debt-to-equity, and persistently negative operating cash flow that forces continued reliance on borrowings. Technicals add little support, with the price trading under its 20-, 50- and 100-day averages and deeply oversold momentum readings, although it remains above the 200-day average. The offsetting positive is valuation — a low 7.3x P/E and an 8.0% dividend yield provide an attractive entry point for investors willing to tolerate the cyclical, project-driven nature of the business and the balance-sheet risk that comes with it.

Positive Factors

Strong ProfitabilityConsistently strong gross and net margins show that the company can generate meaningful profit from its construction and development activities. Maintaining profitability across several years provides an earnings base that can support operations and investment, even though project revenue remains cyclical.

Negative Factors

High and Worsening LeverageElevated and worsening debt relative to equity reduces financial flexibility during a property-development cycle. Higher leverage can increase refinancing and downturn risk, while also limiting the company’s ability to fund new projects or manage weaker operating periods without additional external financing.

Run Long Construction Co., Ltd. (1808) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 27.68B
Dividend Yield: 11.29%
Average Volume (3M): 1.63M
Price to Earnings (P/E): 6.2
Beta (1Y): 0.19
Revenue Growth: 7156.51%
EPS Growth: ―
Country: TW
Employees: 9,127
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Run Long Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Run Long Construction Co., Ltd. engages in the construction, sale, and leasing of residential and commercial buildings in Taiwan. It is also involved in engineering business. The company was incorporated in 1977 and is headquartered in Taipei City, T...

Run Long Construction Co., Ltd. Financial Statement Overview

Summary

Financials reflect a developer in a clear down-cycle. Revenue fell about 26% to NT$6.5B and net income dropped to NT$1.30B, far below the NT$7.70B 2023 peak, while gross margin compressed from 45.2% to 37.9%. Margins remain respectable (20.0% net, 10.1% ROE), but the balance sheet is stretched with NT$33.9B of debt against NT$12.8B of equity (2.6x debt-to-equity, up from 2.0x). Cash flow is the weakest element: operating and free cash flow were both negative (around NT$1.8B), the fifth negative year in six, keeping the company dependent on borrowings to fund land and construction. The narrowed cash burn versus the prior year's NT$7.69B outflow and the sizable land/inventory asset base are mitigating positives.

Income Statement

60Neutral

Balance Sheet

42Neutral

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.89B	6.50B	8.79B	30.68B	2.49B	10.48B
Gross Profit	5.74B	2.46B	3.97B	11.28B	812.62M	2.74B
EBITDA	4.86B	1.86B	2.97B	9.64B	441.41M	2.24B
Net Income	3.78B	1.30B	2.26B	7.70B	156.64M	1.67B
Balance Sheet
Total Assets	52.20B	56.34B	51.51B	42.54B	48.81B	39.33B
Cash, Cash Equivalents and Short-Term Investments	10.44B	6.13B	7.24B	4.32B	4.75B	6.39B
Total Debt	30.00B	33.90B	29.54B	20.96B	33.75B	25.64B
Total Liabilities	38.39B	43.49B	36.97B	29.03B	42.79B	32.65B
Stockholders Equity	13.81B	12.84B	14.54B	13.51B	6.02B	6.68B
Cash Flow
Free Cash Flow	10.30B	-1.82B	-7.70B	18.61B	-7.78B	-51.85M
Operating Cash Flow	10.30B	-1.81B	-7.69B	18.62B	-7.77B	-47.76M
Investing Cash Flow	-2.27M	-14.91M	251.16M	-14.96M	94.16M	846.56M
Financing Cash Flow	-4.51B	724.70M	9.72B	-16.72B	7.75B	-730.06M

Run Long Construction Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1808 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2504	72Outperform	TWD 35.89B	9.98	―	8.43%	-5.45%	-5.22%
TW:2535	69Neutral	TWD 22.94B	8.79	―	5.12%	36.46%	95.03%
TW:2548	68Neutral	TWD 31.37B	7.76	―	7.68%	330.96%	810.71%
TW:6177	63Neutral	TWD 20.19B	4.75	―	6.98%	87.69%	186.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2520	52Neutral	TWD 19.79B	9.53	―	4.96%	12.79%	-1.84%
TW:1808	52Neutral	TWD 34.49B	6.15	―	11.29%	7156.51%	―

* General Sector Average

Performance Comparison

TW:1808 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1808	Run Long Construction Co., Ltd.	36.25	-6.59	-15.39%
TW:2504	Goldsun Building Materials Co., Ltd.	30.85	-2.71	-8.07%
TW:2520	Kindom Development Co., Ltd.	32.60	0.80	2.53%
TW:2535	Da-Cin Construction Co., Ltd.	89.80	30.73	52.03%
TW:2548	Huaku Development Co., Ltd.	94.50	6.19	7.01%
TW:6177	DA-LI DEVELOPMENT Co., Ltd.	43.00	0.09	0.20%

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

Run Long Construction Co., Ltd. AI Stock Analysis