Sakura Development Co., Ltd. (2539) AI Stock Analysis

Sakura Development Co., Ltd.

(TWSE:2539)

Select Model

Rating:70Outperform

Price Target:TWD 33.00▲(9.82% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is supported primarily by strong profitability, improving balance-sheet leverage, and low valuation. These positives are offset by recent revenue and cash-flow deterioration and technically weak momentum, despite oversold indicators.

Positive Factors

Strong ProfitabilityExceptionally high gross, operating, and net margins indicate strong earnings power within the company’s development model. Sustained margins across 2023–2025 provide a meaningful buffer for project execution and support internal funding of future growth.

Negative Factors

Revenue CyclicalityThe sharp 2025 revenue decline, following earlier periods of contraction, shows that growth is uneven and tied to the property cycle. This makes future revenue, project deliveries, and earnings progression less predictable over the next several quarters.

Sakura Development Co., Ltd. (2539) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 37.17B
Dividend Yield: 2.00%
Average Volume (3M): 1.10M
Price to Earnings (P/E): 9.2
Beta (1Y): 0.11
Revenue Growth: -19.68%
EPS Growth: -27.30%
Country: TW
Employees: 113
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Sakura Development Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 1976 and headquartered in Taichung, Taiwan, Sakura Development Co.,Ltd specializes in the residential real estate market. The company's primary activities involve both the sale and rental of housing units, with its efforts mainly conce...

Sakura Development Co., Ltd. Financial Statement Overview

Summary

Strong profitability, improving leverage, rising equity, and substantial 2025 cash generation support the score. Recent revenue and free-cash-flow declines, weaker margins, and historically volatile cash flow are notable risks.

Income Statement

84Very Positive

Balance Sheet

82Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.58B	14.00B	9.02B	7.06B	6.26B	4.27B
Gross Profit	6.81B	5.74B	4.36B	3.23B	2.27B	1.36B
EBITDA	6.17B	5.13B	3.59B	2.48B	1.93B	992.10M
Net Income	5.02B	4.12B	2.83B	1.91B	1.51B	753.99M
Balance Sheet
Total Assets	32.56B	32.48B	31.53B	25.28B	20.96B	21.01B
Cash, Cash Equivalents and Short-Term Investments	6.09B	8.40B	5.10B	2.80B	1.19B	1.51B
Total Debt	7.22B	8.82B	9.50B	9.01B	8.54B	9.71B
Total Liabilities	12.55B	14.57B	17.25B	13.48B	11.00B	12.52B
Stockholders Equity	20.01B	17.91B	14.28B	11.79B	9.96B	8.49B
Cash Flow
Free Cash Flow	5.58B	5.27B	448.54M	410.42M	1.13B	-1.57B
Operating Cash Flow	5.58B	5.27B	451.03M	410.89M	1.13B	-1.56B
Investing Cash Flow	-33.58M	-8.12M	406.00K	1.61M	10.57M	-14.54M
Financing Cash Flow	-2.97B	-1.18B	180.71M	351.47M	-1.21B	1.59B

Sakura Development Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2539 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2597	73Outperform	TWD 50.96B	14.06	―	5.88%	19.74%	24.12%
TW:2539	70Outperform	TWD 42.87B	9.19	―	2.00%	-19.68%	-27.30%
TW:5522	70Outperform	TWD 43.85B	5.60	―	11.55%	163.53%	445.08%
TW:2548	68Neutral	TWD 31.37B	7.76	―	7.68%	330.96%	810.71%
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:2540	40Underperform	TWD 41.29B	-5743.59	―	13.39%	-12.51%	8.08%

* General Sector Average

Performance Comparison

TW:2539 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2539	Sakura Development Co., Ltd.	30.05	-7.95	-20.93%
TW:1808	Run Long Construction Co., Ltd.	36.25	-6.59	-15.39%
TW:2540	JSL Construction & Development Co., Ltd.	44.80	3.29	7.93%
TW:2548	Huaku Development Co., Ltd.	94.50	6.46	7.34%
TW:2597	Ruentex Engineering & Construction Co. Ltd.	164.50	15.77	10.61%
TW:5522	Farglory Land Development Co. Ltd.	56.30	6.23	12.45%

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

Sakura Development Co., Ltd. AI Stock Analysis