JSL Construction & Development Co., Ltd. (2540) AI Stock Analysis

JSL Construction & Development Co., Ltd.

(TWSE:2540)

Select Model

Rating:40Underperform

Price Target:TWD 42.00▼(-6.25% Downside)

Action:initiatedcoverage

Date:11/09/26

JSL Construction & Development scores low primarily because of deteriorating fundamentals: margins compressed across every line, net profit fell roughly two-thirds, ROE dropped to 3.9%, and operating cash flow was deeply negative at -NT$8.2bn while debt climbed to NT$31.6bn (about 1.9x equity). This leaves the company heavily dependent on credit access and Taiwan's property cycle. Technicals reinforce the caution, with the price below all major moving averages and negative MACD, though oversold RSI and Stochastic readings hint at potential short-term stabilization. Valuation offers partial support through a 13.7% dividend yield and very low beta, but the payout's sustainability is doubtful given weak cash generation, and the negative P/E provides no earnings-based support.

Positive Factors

Asset base expansionThe substantial expansion of the asset base indicates that JSL has increased its operating and development scale over several years. A larger platform can support more construction and property-development activity, broaden future revenue opportunities, and provide a stronger base for rebuilding returns if profitability improves.

Negative Factors

Persistent cash burnRepeatedly negative operating cash flow indicates that reported earnings are not converting into cash and that the business has consumed substantial liquidity. The deterioration to approximately -8.20B increases reliance on financing or balance-sheet flexibility, limiting the capacity to fund projects and withstand weaker conditions.

JSL Construction & Development Co., Ltd. (2540) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 43.09B
Dividend Yield: 13.39%
Average Volume (3M): 576.87K
Price to Earnings (P/E): -5743.6
Beta (1Y): 0.09
Revenue Growth: -12.51%
EPS Growth: 8.08%
Country: TW
Employees: 12
Sector: General
Sector Strength: 55
Industry: Real Estate - Services

JSL Construction & Development Co., Ltd. Business Overview & Revenue Model

Company Description

JSL Construction & Development Co., Ltd. is a Taiwanese entity primarily engaged in the real estate sector, focusing on both property brokerage and development activities. The company's operations span a range of services, including acting as an agen...

JSL Construction & Development Co., Ltd. Financial Statement Overview

Summary

Financials are the weakest link. Revenue growth stalled (roughly +1% after +38% and +71% in prior years) while margins compressed sharply — gross margin fell from 33.4% to 20.6%, operating margin halved to 12.3%, and net income dropped about two-thirds to NT$644m. The balance sheet shows healthy equity growth to NT$16.4bn, but debt surged 32% to NT$31.6bn (about 1.9x equity), and ROE collapsed from 15.5% to 3.9%. Most critically, operating and free cash flow were deeply negative at -NT$8.2bn, driven by land banking and construction-in-progress, meaning profits are not converting to cash and the gap is funded by rising borrowings. The company remains profitable and asset-rich, but leverage, weak returns, and funding dependence make the profile high-risk.

Income Statement

46Neutral

Balance Sheet

42Neutral

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.34B	11.30B	11.16B	8.10B	4.73B	5.52B
Gross Profit	1.35B	2.33B	3.73B	3.32B	1.41B	2.32B
EBITDA	422.14M	1.52B	3.20B	2.47B	919.81M	1.74B
Net Income	-7.71M	644.19M	1.90B	1.51B	444.62M	1.13B
Balance Sheet
Total Assets	63.21B	60.32B	48.73B	35.56B	27.11B	20.41B
Cash, Cash Equivalents and Short-Term Investments	3.20B	9.53B	7.61B	4.31B	3.32B	2.57B
Total Debt	33.25B	31.57B	23.88B	18.34B	15.64B	10.72B
Total Liabilities	52.44B	43.90B	36.48B	26.61B	20.97B	14.15B
Stockholders Equity	10.77B	16.43B	12.26B	8.95B	6.14B	6.26B
Cash Flow
Free Cash Flow	-7.48B	-8.21B	-4.85B	-3.34B	-4.17B	-1.54B
Operating Cash Flow	-7.47B	-8.20B	-4.53B	-3.33B	-4.16B	-1.53B
Investing Cash Flow	-1.37B	-1.58B	-554.87M	-123.44M	-168.47M	-686.79M
Financing Cash Flow	7.00B	11.21B	6.81B	4.00B	4.39B	2.81B

JSL Construction & Development Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2540 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	71Outperform	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:2540 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2540	JSL Construction & Development Co., Ltd.	44.80	2.05	4.79%
TW:1808	Run Long Construction Co., Ltd.	36.25	-6.59	-15.39%
TW:2539	Sakura Development Co., Ltd.	30.05	-8.28	-21.60%
TW:2548	Huaku Development Co., Ltd.	94.50	6.19	7.01%
TW:2597	Ruentex Engineering & Construction Co. Ltd.	164.50	14.83	9.91%
TW:5522	Farglory Land Development Co. Ltd.	56.30	6.96	14.10%

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

JSL Construction & Development Co., Ltd. AI Stock Analysis