Hong Pu Real Estate Development CO LTD (2536) AI Stock Analysis

Hong Pu Real Estate Development CO LTD

(TWSE:2536)

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Rating:63Neutral

Price Target:TWD 19.00▲(7.65% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is driven primarily by a strong but cyclical financial year — record revenue, a fourfold profit increase, a NT$6.3 billion swing into positive cash flow and a meaningful reduction in leverage — tempered by margin compression, a still-heavy debt load and a history of loss-making, cash-consuming years. A deeply discounted P/E of 4.3 and an 11.3% dividend yield provide valuation support, though both reflect peak-cycle earnings. The main drag is technical: the stock sits below all major moving averages with negative MACD momentum, indicating persistent selling pressure despite the improved fundamentals.

Positive Factors

Revenue and Profit RecoveryThe sharp annual recovery shows that the company can convert completed or commercialized development activity into materially higher revenue and profit. If execution remains consistent, stronger earnings provide greater capacity to fund projects, support shareholders, and reinforce its position in Taiwan’s property market.

Negative Factors

Elevated Balance-Sheet LeverageDebt remains high relative to the equity base, leaving the developer exposed to financing-rate pressure and weaker property conditions. Elevated leverage can absorb operating cash through interest and repayment needs, constrain new project investment, and reduce flexibility if sales or development timing deteriorates.

Hong Pu Real Estate Development CO LTD (2536) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.86B
Dividend Yield: 11.33%
Average Volume (3M): 780.71K
Price to Earnings (P/E): 4.2
Beta (1Y): 0.26
Revenue Growth: 86.45%
EPS Growth: 163.81%
Country: TW
Employees: 28
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Hong Pu Real Estate Development CO LTD Business Overview & Revenue Model

Company Description

Founded in 1988, Hong Pu Real Estate Development Co., Ltd. operates from its headquarters in Taipei, Taiwan. The company's primary business activities involve the development, leasing, and sale of residential and commercial properties throughout Taiw...

Hong Pu Real Estate Development CO LTD Financial Statement Overview

Summary

Hong Pu is in the harvest phase of its project cycle, producing record results: revenue jumped more than fourfold to roughly NT$10.5 billion, net income surged to NT$1.06 billion, and operating cash flow swung to a positive NT$6.3 billion with free cash flow nearly matching net income — a sign of high-quality, cash-backed earnings. Debt was cut by NT$4.9 billion, lowering debt-to-equity from 2.03 to 1.50, and ROE recovered to 8.4%. Offsetting this, gross margin slipped to 21.1% and operating margin narrowed to 15.5%, leverage remains heavy with equity funding only about 31% of assets, and the multi-year record of loss-making years and large cash outflows highlights how quickly results reverse when the next land-buying and construction cycle begins.

Income Statement

68Positive

Balance Sheet

52Neutral

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.77B	10.46B	2.45B	3.23B	684.36M	322.54M
Gross Profit	2.39B	2.20B	556.89M	908.70M	381.05M	122.70M
EBITDA	1.99B	1.67B	577.50M	726.04M	387.97M	162.79M
Net Income	1.38B	1.06B	204.12M	231.04M	-62.51M	-34.66M
Balance Sheet
Total Assets	38.82B	41.22B	44.77B	41.88B	39.53B	33.91B
Cash, Cash Equivalents and Short-Term Investments	4.86B	2.65B	1.42B	1.09B	207.63M	1.73B
Total Debt	18.30B	19.04B	23.94B	23.70B	22.89B	20.17B
Total Liabilities	25.17B	27.64B	32.37B	29.56B	27.27B	22.17B
Stockholders Equity	12.73B	12.66B	11.76B	11.73B	11.66B	11.72B
Cash Flow
Free Cash Flow	7.56B	6.29B	-238.98M	351.38M	-3.39B	-9.45B
Operating Cash Flow	7.56B	6.33B	-238.50M	351.38M	-3.39B	-9.45B
Investing Cash Flow	-4.99M	-39.51M	556.07M	-88.56M	264.06M	81.03M
Financing Cash Flow	-4.49B	-5.06B	15.26M	619.60M	2.75B	9.05B

Hong Pu Real Estate Development CO LTD Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2536 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%
TW:2536	63Neutral	TWD 5.92B	4.22	―	11.33%	86.45%	163.81%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5525	49Neutral	TWD 6.49B	5.43	―	5.66%	235.09%	662.07%
TW:5512	40Underperform	TWD 5.34B	49.93	―	1.44%	3.80%	-14.46%
TW:5531	39Underperform	TWD 5.87B	55.18	―	―	-72.62%	-9.86%

* General Sector Average

Performance Comparison

TW:2536 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2536	Hong Pu Real Estate Development CO LTD	17.65	-6.17	-25.90%
TW:2505	Kuo Yang Construction Co., Ltd.	17.35	-0.56	-3.12%
TW:5512	Rich Development Co. Ltd.	6.93	-1.35	-16.30%
TW:5525	Sweeten Real Estate Development Co. Ltd.	21.20	-5.69	-21.15%
TW:5531	Shining Building Business Co. Ltd.	6.17	-3.02	-32.86%
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

Hong Pu Real Estate Development CO LTD AI Stock Analysis