King's Town Construction Co., Ltd. (2524) AI Stock Analysis

King's Town Construction Co., Ltd.

(TWSE:2524)

Select Model

Rating:50Neutral

Price Target:TWD 32.00▲(0.63% Upside)

Action:initiatedcoverage

Date:11/09/26

The score reflects a financially sound but highly cyclical developer going through a trough. Solid equity growth, improving leverage (D/E 0.84) and uninterrupted profitability are offset by a steep fiscal 2025 decline in revenue and earnings, a drop in return on equity to about 3%, and weak, inconsistent cash generation against a sizeable debt load. Technicals add to the caution, with the price below all key moving averages and a negative MACD confirming a downtrend. Valuation offers little support, as the elevated 39.4x P/E is inflated by depressed earnings and there is no dividend yield to cushion returns. Results should improve when the next project cycle completes, but visibility is poor in the meantime.

Positive Factors

Strong Operating MarginsConsistently high gross and operating margins show the company can convert development activity into strong operating economics. Although 2025 revenue contracted sharply, the margin record indicates that completed projects can support attractive profitability when the development cycle is favorable.

Negative Factors

Severe Revenue CyclicalityThe sharp 2025 revenue decline highlights substantial exposure to project timing and the property cycle. Large swings in reported sales make earnings less predictable, complicate resource planning, and reduce confidence that recent profitability can be maintained consistently over the next several quarters.

King's Town Construction Co., Ltd. (2524) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 11.69B
Dividend Yield: ―
Average Volume (3M): 94.09K
Price to Earnings (P/E): 38.8
Beta (1Y): 0.52
Revenue Growth: -77.56%
EPS Growth: -89.27%
Country: TW
Employees: 203
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

King's Town Construction Co., Ltd. Business Overview & Revenue Model

Company Description

King's Town Construction Co., Ltd. is a prominent real estate developer operating within Taiwan. The company undertakes the full spectrum of property activities, including the development, construction, leasing, and sale of various assets. These incl...

King's Town Construction Co., Ltd. Financial Statement Overview

Summary

King's Town Construction remains consistently profitable with healthy margins (about 43% gross, 32% operating, 17% net), and its balance sheet is the clear strength — equity up to NT$21.0 billion and debt-to-equity improved to 0.84, the best level in six years. However, fiscal 2025 was a trough year typical of project-completion accounting: revenue fell roughly 60% to NT$3.68 billion and net profit dropped nearly 78% to NT$629 million, compressing return on equity to about 3%. Cash flow is the weakest element, with operating cash flow of just NT$200 million covering only about a third of net profit and a track record that includes three negative years in the past five, leaving thin cash generation against a sizeable NT$17.7 billion debt load.

Income Statement

56Neutral

Balance Sheet

63Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	2.21B	3.68B	9.28B	2.55B	3.38B	6.66B
Gross Profit	1.10B	1.58B	4.18B	1.28B	1.95B	2.69B
EBITDA	777.24M	1.26B	3.54B	890.07M	1.46B	2.19B
Net Income	301.74M	628.68M	2.83B	442.04M	1.01B	1.69B
Balance Sheet
Total Assets	40.53B	39.90B	41.12B	37.03B	35.06B	34.51B
Cash, Cash Equivalents and Short-Term Investments	777.16M	1.70B	3.03B	702.30M	710.04M	1.15B
Total Debt	18.08B	17.74B	19.04B	18.23B	16.74B	16.49B
Total Liabilities	19.26B	18.87B	20.55B	19.30B	17.79B	18.14B
Stockholders Equity	21.27B	21.03B	20.56B	17.73B	17.28B	16.37B
Cash Flow
Free Cash Flow	-2.12B	181.90M	1.59B	-1.39B	-621.45M	-161.64M
Operating Cash Flow	-2.10B	200.39M	1.59B	-1.38B	-610.89M	-157.60M
Investing Cash Flow	351.32M	-516.18M	28.43M	38.50M	-30.01M	42.18M
Financing Cash Flow	532.60M	-1.51B	745.80M	1.37B	176.22M	558.95M

King's Town Construction Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2524 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8936	64Neutral	TWD 10.12B	9.40	―	7.40%	27.31%	26.91%
TW:9940	62Neutral	TWD 13.63B	16.33	―	3.23%	―	―
TW:5508	56Neutral	TWD 10.60B	12.29	―	5.67%	35.18%	9.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2524	50Neutral	TWD 11.63B	38.84	―	―	-77.56%	-89.27%
TW:2527	47Neutral	TWD 11.22B	6.95	―	3.53%	-13.36%	48.38%
TW:2545	41Neutral	TWD 11.83B	36.84	―	8.96%	-24.11%	-43.91%

* General Sector Average

Performance Comparison

TW:2524 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2524	King's Town Construction Co., Ltd.	31.80	-9.20	-22.44%
TW:2527	Hung Ching Development & Construction Co. Ltd	42.55	17.48	69.70%
TW:2545	Huang Hsiang Construction Corporation	31.25	-5.76	-15.57%
TW:5508	Yungshin Construction & Development Co., Ltd.	48.95	-20.73	-29.75%
TW:8936	Kuo Toong International Co., Ltd.	40.55	-18.19	-30.97%
TW:9940	Sinyi Realty Inc.	18.55	-3.35	-15.29%

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

King's Town Construction Co., Ltd. AI Stock Analysis