Hung Sheng Construction Co., Ltd. (2534) AI Stock Analysis

Hung Sheng Construction Co., Ltd.

(TWSE:2534)

Select Model

Rating:51Neutral

Price Target:TWD 15.00▲(2.74% Upside)

Action:initiatedcoverage

Date:11/09/26

Hung Sheng scores in the lower-middle range. Financial performance is the dominant factor: the company delivered a strong earnings rebound with attractive margins, but cash generation is weak relative to reported profit, leverage remains high at nearly NT$14.7 billion, and revenue is highly volatile given its project-completion business model. Technicals are the next biggest drag — the shares trade below all key moving averages with negative MACD, though deeply oversold readings hint at potential for a near-term bounce. Valuation is mixed: an exceptionally high dividend yield of about 10% is offset by a trailing P/E of 248 and questions over payout sustainability. With no earnings call or corporate event data available, the score reflects financials, technicals and valuation only.

Positive Factors

Strong Profit MarginsConsistently strong gross and operating margins indicate that Hung Sheng retains attractive economics when projects generate revenue. This margin structure can support profitability and internal funding capacity over the next several quarters, even though reported revenue remains cyclical.

Negative Factors

Revenue CyclicalityRepeated revenue declines and the sharp 2025 contraction reduce visibility into near-term earnings and indicate strong dependence on project completion and property-market conditions. This cyclicality can make margins and returns difficult to sustain consistently across the next several quarters.

Hung Sheng Construction Co., Ltd. (2534) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.88B
Dividend Yield: 10.27%
Average Volume (3M): 442.72K
Price to Earnings (P/E): 156.3
Beta (1Y): 0.29
Revenue Growth: -78.07%
EPS Growth: -96.57%
Country: TW
Employees: 85
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Hung Sheng Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Hung Sheng Construction Co., Ltd. engages in commission of contractors to build public housing for sale and rental. It operates through the following segments: Sales of Real Estate, Construction, and Lease. The Sale of Real Estate segment is involved...

Hung Sheng Construction Co., Ltd. Financial Statement Overview

Summary

A mixed but improving picture. The income statement is the bright spot (68): revenue more than doubled to NT$4.74 billion and net income tripled to NT$974 million, with healthy gross, operating and net margins of roughly 41%, 26% and 21%. The balance sheet (55) is adequately capitalized with equity funding about 48% of assets and debt-to-equity easing to 0.98, but the NT$14.68 billion debt load remains heavy and ROE of about 6.5% is modest. Cash flow (45) is the weakest link — operating cash flow of NT$514 million covered only about half of reported net income and just ~4% of total borrowings, and has swung wildly over the past five years. Overall, margins and the earnings rebound are impressive, but lumpy project-driven revenue, leverage and weak cash conversion cap the score.

Income Statement

68Positive

Balance Sheet

55Neutral

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.16B	4.74B	2.11B	2.55B	6.97B	3.88B
Gross Profit	795.50M	1.94B	981.30M	1.15B	3.00B	1.66B
EBITDA	415.49M	1.32B	630.59M	857.31M	2.34B	1.14B
Net Income	25.11M	974.43M	297.86M	520.87M	1.97B	844.00M
Balance Sheet
Total Assets	32.27B	31.61B	32.28B	32.29B	30.73B	32.68B
Cash, Cash Equivalents and Short-Term Investments	1.42B	1.45B	1.59B	2.00B	2.18B	1.87B
Total Debt	15.27B	14.68B	14.86B	14.73B	12.95B	16.38B
Total Liabilities	17.94B	16.56B	17.69B	17.61B	15.80B	19.22B
Stockholders Equity	14.32B	15.05B	14.59B	14.69B	14.93B	13.46B
Cash Flow
Free Cash Flow	-1.66B	511.25M	393.45M	-145.83M	4.47B	975.28M
Operating Cash Flow	-1.65B	513.97M	399.96M	-143.79M	4.47B	978.82M
Investing Cash Flow	-10.35M	-10.29M	55.94M	-1.21B	262.43M	231.24M
Financing Cash Flow	502.69M	-636.27M	-411.14M	957.15M	-3.98B	-1.23B

Hung Sheng Construction Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2534 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:4419	42Neutral	TWD 7.67B	-30.07	―	―	3.46%	7.51%

* General Sector Average

Performance Comparison

TW:2534 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2534	Hung Sheng Construction Co., Ltd.	14.60	-4.45	-23.36%
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:4419	King House Co., Ltd.	45.00	1.25	2.86%
TW:5525	Sweeten Real Estate Development Co. Ltd.	21.20	-5.69	-21.15%
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

Hung Sheng Construction Co., Ltd. AI Stock Analysis