Highwealth Construction Corp. (2542) AI Stock Analysis

Highwealth Construction Corp.

(TWSE:2542)

Select Model

Rating:50Neutral

Price Target:TWD 38.00▲(1.33% Upside)

Action:initiatedcoverage

Date:11/10/26

Weak financial performance characterized by high leverage and cash burn, along with bearish technical signals, weigh on the score. Strong valuation metrics from low P/E and high dividend yield provide a counterbalancing positive factor.

Positive Factors

Solid Profitability2025 net and EBIT margins of about 14% and 21% show that the development portfolio can produce meaningful operating and bottom-line profit. This profitability provides an earnings base to support project execution, although it must be assessed alongside the company’s cyclical revenue pattern.

Negative Factors

High and Rising LeverageDebt materially exceeds equity and leverage increased further in 2025, creating a heavier financing burden. This reduces financial flexibility, raises sensitivity to funding conditions, and could constrain development activity or shareholder returns if the property cycle weakens.

Highwealth Construction Corp. (2542) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 79.83B
Dividend Yield: 10.67%
Average Volume (3M): 10.17M
Price to Earnings (P/E): 8.7
Beta (1Y): 0.25
Revenue Growth: 111.39%
EPS Growth: 66.30%
Country: TW
Employees: 106
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Highwealth Construction Corp. Business Overview & Revenue Model

Company Description

Highwealth Construction Corp., encompassing its affiliated companies, primarily focuses on the development, sale, and rental of residential and commercial real estate projects throughout Taiwan. Its diverse operations are structured around three core...

Highwealth Construction Corp. Financial Statement Overview

Summary

Revenue volatility and positive but inconsistent profitability are offset by high leverage above 2.8x and repeated negative operating and free cash flows, pointing to significant financial risk.

Income Statement

58Neutral

Balance Sheet

42Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	58.37B	31.06B	36.93B	44.07B	26.63B	44.28B
Gross Profit	18.10B	9.29B	12.99B	15.42B	8.97B	13.73B
EBITDA	14.45B	6.80B	10.75B	12.21B	5.83B	10.24B
Net Income	9.91B	4.44B	6.29B	2.44B	3.74B	8.19B
Balance Sheet
Total Assets	271.35B	276.20B	245.57B	226.87B	225.17B	203.52B
Cash, Cash Equivalents and Short-Term Investments	23.09B	37.31B	37.14B	35.54B	28.82B	25.66B
Total Debt	166.17B	172.72B	145.61B	136.03B	148.96B	134.14B
Total Liabilities	210.90B	213.18B	181.50B	169.54B	176.12B	157.80B
Stockholders Equity	49.41B	52.75B	52.37B	46.57B	44.58B	40.72B
Cash Flow
Free Cash Flow	13.78B	-14.17B	-2.09B	15.70B	-10.68B	-12.69B
Operating Cash Flow	14.49B	-13.68B	397.20M	17.18B	-9.20B	-12.65B
Investing Cash Flow	-4.10B	-2.60B	-952.34M	-1.26B	-1.44B	1.93B
Financing Cash Flow	-4.98B	11.82B	3.74B	-15.37B	12.91B	12.07B

Highwealth Construction Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2542 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%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2542	50Neutral	TWD 79.00B	8.68	―	10.67%	111.39%	66.30%
TW:2923	45Neutral	TWD 45.07B	-7.63	―	0.49%	63.04%	-1055.08%
TW:2540	40Underperform	TWD 41.29B	-5743.59	―	13.39%	-12.51%	8.08%

* General Sector Average

Performance Comparison

TW:2542 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2542	Highwealth Construction Corp.	37.50	3.12	9.07%
TW:2539	Sakura Development Co., Ltd.	30.05	-7.95	-20.93%
TW:2540	JSL Construction & Development Co., Ltd.	44.80	3.29	7.93%
TW:2597	Ruentex Engineering & Construction Co. Ltd.	164.50	15.77	10.61%
TW:2923	Sino Horizon Holdings Ltd.	24.65	4.95	25.11%
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

Highwealth Construction Corp. AI Stock Analysis