Da-Cin Construction Co., Ltd. (2535) AI Stock Analysis

Da-Cin Construction Co., Ltd.

(TWSE:2535)

Select Model

Rating:69Neutral

Price Target:TWD 98.00▲(9.13% Upside)

Action:initiatedcoverage

Date:11/09/26

Da-Cin Construction scores above average, driven by record profitability and an attractive valuation. Revenue surged roughly 50%, net income hit a record NT$1.69 billion, and operating cash flow swung to nearly NT$4 billion, enabling the first meaningful deleveraging in years. A low P/E of 8.7 paired with a 5.2% dividend yield adds a compelling income and value angle. The main constraints are quality-of-earnings and balance sheet risks: operating margin fell to 7.8% from 11.1%, a portion of profit derives from non-operating income, debt remains elevated versus historical levels, and cash flow has been volatile and often negative in recent years. Technically, the stock holds a solid position above its 200-day average but is consolidating near-term with soft momentum readings. Sustaining margins and repeating positive cash generation are the key tests ahead.

Positive Factors

Revenue RecoveryThe 2025 revenue rebound indicates improved demand or backlog conversion after two uneven years. If the recovery continues, stronger project activity can support operating scale, reinforce market presence, and provide a foundation for sustained earnings growth over the next several quarters.

Negative Factors

Margin CompressionThe substantial decline in net and EBIT margins shows that revenue growth is not translating into profitability at the prior rate. Higher costs, an unfavorable project mix, or pricing pressure could limit earnings conversion and make future profit growth more sensitive to execution.

Da-Cin Construction Co., Ltd. (2535) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 23.65B
Dividend Yield: 5.12%
Average Volume (3M): 254.54K
Price to Earnings (P/E): 8.8
Beta (1Y): 0.36
Revenue Growth: 36.46%
EPS Growth: 95.03%
Country: TW
Employees: 120
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Da-Cin Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Da-Cin Construction Co.,Ltd. is a prominent firm specializing in both civil engineering and general building construction, with operations spanning Taiwan, Singapore, Malaysia, and Vietnam. The company's operations are distinctly managed through its...

Da-Cin Construction Co., Ltd. Financial Statement Overview

Summary

Da-Cin posted a breakout year: revenue up roughly 50% to NT$22.07 billion, record net income of NT$1.69 billion, and return on equity improving to 16.3%. Cash generation rebounded dramatically, with operating and free cash flow near NT$4 billion converting essentially all of net income into cash, while minimal capital spending leaves that cash available for debt paydown and dividends. Offsetting this, operating margin compressed sharply to 7.8% from 11.1%, gross margin remains below 2021-2022 levels, and net profit exceeded operating profit, signaling reliance on non-operating income. Leverage improved to 0.89 debt-to-equity but debt is still roughly 3.6x 2020 levels, with equity funding only about 34% of assets. Operating cash flow was negative in three of the prior four years, underscoring the lumpy working-capital cycle typical of construction.

Income Statement

73Positive

Balance Sheet

61Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.52B	22.07B	14.69B	14.51B	17.17B	14.81B
Gross Profit	2.81B	2.49B	1.63B	1.72B	2.31B	2.05B
EBITDA	2.30B	1.80B	1.70B	1.55B	1.86B	1.53B
Net Income	2.65B	1.69B	1.35B	1.19B	1.19B	1.22B
Balance Sheet
Total Assets	31.05B	30.52B	27.99B	23.95B	22.73B	21.93B
Cash, Cash Equivalents and Short-Term Investments	9.76B	9.63B	7.33B	6.53B	10.27B	11.39B
Total Debt	7.99B	9.16B	10.30B	7.11B	5.97B	5.27B
Total Liabilities	19.89B	19.84B	18.00B	14.71B	13.30B	13.11B
Stockholders Equity	10.81B	10.34B	9.77B	9.02B	9.23B	8.61B
Cash Flow
Free Cash Flow	3.39B	3.99B	-1.81B	-4.00B	-950.73M	2.33B
Operating Cash Flow	3.40B	3.99B	-1.76B	-3.99B	-833.36M	2.37B
Investing Cash Flow	-655.43M	-48.96M	460.00K	362.69M	74.59M	-578.66M
Financing Cash Flow	-3.03B	-1.89B	2.20B	-258.22M	-195.52M	1.27B

Da-Cin Construction Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2535 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2535	69Neutral	TWD 22.94B	8.79	―	5.12%	36.46%	95.03%
TW:6177	63Neutral	TWD 20.19B	4.75	―	6.98%	87.69%	186.00%
TW:9958	63Neutral	TWD 20.28B	10.57	―	6.03%	35.63%	31.07%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1808	52Neutral	TWD 34.49B	6.15	―	11.29%	7156.51%	―
TW:2520	52Neutral	TWD 19.79B	9.53	―	4.96%	12.79%	-1.84%
TW:2515	41Neutral	TWD 18.32B	22.48	―	―	1.46%	4.78%

* General Sector Average

Performance Comparison

TW:2535 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2535	Da-Cin Construction Co., Ltd.	89.80	30.73	52.03%
TW:1808	Run Long Construction Co., Ltd.	36.25	-6.59	-15.39%
TW:2515	BES Engineering Corp.	10.50	-5.21	-33.17%
TW:2520	Kindom Development Co., Ltd.	32.60	0.80	2.53%
TW:6177	DA-LI DEVELOPMENT Co., Ltd.	43.00	0.09	0.20%
TW:9958	Century Iron & Steel Industrial Co., Ltd.	73.10	-69.04	-48.57%

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

Da-Cin Construction Co., Ltd. AI Stock Analysis