Hiyes International Co., Ltd. (2348) AI Stock Analysis

Hiyes International Co., Ltd.

(TWSE:2348)

Select Model

Rating:46Neutral

Price Target:TWD 63.00▲(0.00% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by financial fundamentals: a highly leveraged balance sheet at nearly 4x debt-to-equity, persistently negative operating and free cash flow, and a roughly 50% drop in net income on a 16% revenue decline. Technicals reinforce the caution, with the price below all major moving averages and a negative MACD, though the oversold RSI hints at potential short-term stabilization. A low P/E of 13.8 and a near 7.8% dividend yield provide meaningful valuation support and lift the overall score, but the sustainability of that payout depends on converting project inventory into cash. This is a cyclical, leverage-driven developer where project completion timing and debt costs will be the decisive swing factors.

Positive Factors

Strong Operating ProfitabilityStrong gross and operating margins indicate favorable project-level economics and provide a meaningful earnings buffer. If these margins remain sustainable, the company can retain more revenue as operating profit, supporting reinvestment and resilience across its development activities.

Negative Factors

High and Rising LeverageRapidly rising leverage reduces balance-sheet flexibility and leaves less capacity to absorb a weaker property cycle. Greater debt dependence can also restrict funding for new projects, increase financing sensitivity, and amplify the effect of any decline in profitability or asset values.

Hiyes International Co., Ltd. (2348) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.04B
Dividend Yield: 7.94%
Average Volume (3M): 360.53K
Price to Earnings (P/E): 13.5
Beta (1Y): 0.36
Revenue Growth: -23.68%
EPS Growth: -40.40%
Country: TW
Employees: 6
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Hiyes International Co., Ltd. Business Overview & Revenue Model

Company Description

Hiyes International Co., Ltd. primarily operates within Taiwan's real estate sector, specializing in agency and brokerage services. Their core offerings encompass a wide range of property types, from pre-sale and newly constructed homes to existing r...

Hiyes International Co., Ltd. Financial Statement Overview

Summary

Hiyes remains profitable with solid reported margins (roughly 36% gross, 28% operating, 15% net) and a double-digit return on equity, but the underlying trend is deteriorating. Revenue fell about 16% to NT$7.35bn and net income nearly halved to NT$1.09bn, while margins have compressed steadily since 2020. The balance sheet is the main risk: debt-to-equity of roughly 3.8x, with equity funding only about 17% of assets, leaving a thin cushion against a housing slowdown or higher rates. Cash flow is weakest of all — operating and free cash flow were negative roughly NT$1.08bn, negative in five of the past six years, meaning reported profits are funded by rising borrowings rather than cash. The narrowing of the cash burn versus the prior year and proven ability to generate strong cash in delivery years are the key offsets.

Income Statement

55Neutral

Balance Sheet

33Negative

Cash Flow

21Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	7.22B	7.35B	10.16B	7.75B	5.09B	6.36B
Gross Profit	2.20B	2.65B	3.74B	2.68B	2.28B	3.25B
EBITDA	1.57B	2.10B	3.14B	1.89B	1.58B	2.48B
Net Income	761.85M	1.09B	2.23B	1.66B	934.39M	1.66B
Balance Sheet
Total Assets	50.25B	47.94B	42.82B	30.14B	26.73B	21.59B
Cash, Cash Equivalents and Short-Term Investments	5.40B	5.94B	5.76B	5.38B	3.77B	2.84B
Total Debt	34.19B	32.07B	27.08B	17.73B	16.93B	12.87B
Total Liabilities	40.38B	37.42B	32.23B	21.79B	20.00B	15.34B
Stockholders Equity	7.73B	8.34B	8.79B	7.03B	5.80B	5.58B
Cash Flow
Free Cash Flow	-2.29B	-1.08B	-6.16B	2.25B	-1.27B	-4.51B
Operating Cash Flow	-2.29B	-1.08B	-6.14B	2.25B	-1.26B	-4.50B
Investing Cash Flow	-1.14B	-473.54M	-1.79B	-393.33M	-578.09M	-515.79M
Financing Cash Flow	2.95B	1.71B	8.31B	81.82M	2.78B	5.83B

Hiyes International Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2348 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5515	77Outperform	TWD 9.49B	4.77	―	7.01%	17.87%	298.44%
TW:5511	75Outperform	TWD 9.30B	5.21	―	5.26%	20.98%	75.51%
TW:5508	56Neutral	TWD 10.60B	11.99	―	5.70%	35.18%	9.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2524	50Neutral	TWD 11.63B	38.78	―	―	-77.56%	-89.27%
TW:2527	47Neutral	TWD 11.22B	7.00	―	3.50%	-13.36%	48.38%
TW:2348	46Neutral	TWD 10.05B	13.49	―	7.94%	-23.68%	-40.40%

* General Sector Average

Performance Comparison

TW:2348 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2348	Hiyes International Co., Ltd.	63.00	-8.51	-11.91%
TW:2524	King's Town Construction Co., Ltd.	31.75	-9.25	-22.56%
TW:2527	Hung Ching Development & Construction Co. Ltd	42.85	17.49	68.95%
TW:5508	Yungshin Construction & Development Co., Ltd.	48.75	-19.60	-28.68%
TW:5511	Te Chang Construction Co., Ltd.	68.40	16.47	31.72%
TW:5515	Chien Kuo Construction Co., Ltd	47.05	22.19	89.30%

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

Hiyes International Co., Ltd. AI Stock Analysis