Hwang Chang General Contractor Co., Ltd. (2543) AI Stock Analysis

Hwang Chang General Contractor Co., Ltd.

(TWSE:2543)

Select Model

Rating:57Neutral

Price Target:TWD 31.00▲(1.64% Upside)

Action:initiatedcoverage

Date:11/09/26

Hwang Chang scores in the middle of the range. The most significant drag is cash flow: two consecutive years of heavily negative free cash flow and operating cash covering only a fraction of reported earnings, alongside a 2025 revenue decline, margin compression and a roughly 30% drop in net income. Technicals compound the caution, with the price well below all key moving averages and negative MACD signalling a sustained downtrend. Supporting the score are a much-improved balance sheet (0.44 debt-to-equity, equity near half of assets), margins still well above historical norms, and an attractive valuation at 10.7x earnings with a 5.08% dividend yield. The result is a company that is financially stronger than five years ago and cheaply valued, but where weak cash conversion and poor price trend warrant caution.

Positive Factors

Revenue GrowthThe company has delivered meaningful revenue expansion over the measured cycle, indicating continued activity across its contracting business. A larger revenue base can support operating scale, strengthen market presence, and provide a foundation for rebuilding earnings if margins stabilize.

Negative Factors

Weak Cash ConversionWeak conversion of accounting earnings into operating cash and deeply negative recent free cash flow create a durable funding concern. If cash investment or working-capital absorption persists, the company may face greater volatility and less flexibility to fund operations internally.

Hwang Chang General Contractor Co., Ltd. (2543) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 15.69B
Dividend Yield: 5.01%
Average Volume (3M): 959.02K
Price to Earnings (P/E): 10.9
Beta (1Y): 0.30
Revenue Growth: 30.85%
EPS Growth: -14.12%
Country: TW
Employees: 1,001
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Hwang Chang General Contractor Co., Ltd. Business Overview & Revenue Model

Company Description

Hwang Chang General Contractor Co., Ltd is a Taiwanese firm that specializes in undertaking civil engineering projects. The company's business activities are structured into two primary divisions: Construction and Concrete. In addition to its general...

Hwang Chang General Contractor Co., Ltd. Financial Statement Overview

Summary

Hwang Chang has materially strengthened over five years — revenue nearly doubled since 2020, margins remain healthy (18.7% gross, 12.0% net, 21.4% EBITDA), equity has grown sharply and leverage has fallen to a conservative 0.44 debt-to-equity. However, 2025 marked a clear setback: revenue fell about 5%, gross margin compressed from 24.0% to 18.7%, and net income dropped roughly 30% to NT$1.41 billion, with ROE sliding from 29.2% to 14.2%. The dominant weakness is cash conversion — operating cash flow of NT$438 million covered less than a third of reported profit, and free cash flow was negative roughly NT$2.9 billion after NT$2.6 billion negative in 2024, leaving the company dependent on external funding. Solid balance sheet and profitability are offset by volatile earnings and weak cash generation.

Income Statement

66Positive

Balance Sheet

73Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.58B	11.84B	12.43B	11.28B	8.45B	8.00B
Gross Profit	2.50B	2.21B	2.99B	1.01B	381.20M	71.79M
EBITDA	2.98B	2.53B	3.24B	1.15B	645.87M	738.64M
Net Income	1.48B	1.41B	2.02B	510.03M	242.20M	369.58M
Balance Sheet
Total Assets	23.19B	20.43B	16.68B	14.71B	12.91B	9.14B
Cash, Cash Equivalents and Short-Term Investments	2.70B	3.53B	3.92B	3.74B	4.36B	1.50B
Total Debt	7.23B	4.37B	3.04B	2.07B	2.87B	2.45B
Total Liabilities	13.43B	10.10B	9.47B	11.38B	10.08B	6.58B
Stockholders Equity	9.36B	9.94B	6.90B	3.03B	2.60B	2.36B
Cash Flow
Free Cash Flow	-3.54B	-2.94B	-2.59B	1.97B	138.07M	449.97M
Operating Cash Flow	316.60M	438.25M	281.36M	3.78B	1.34B	810.15M
Investing Cash Flow	-3.88B	-3.36B	-2.43B	-2.78B	-1.32B	-395.89M
Financing Cash Flow	2.26B	2.51B	2.54B	-1.17B	219.09M	-248.33M

Hwang Chang General Contractor Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2543 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2546	74Outperform	TWD 13.19B	6.11	―	5.26%	13.48%	52.98%
TW:2543	57Neutral	TWD 15.06B	10.89	―	5.01%	30.85%	-14.12%
TW:2530	56Neutral	TWD 15.35B	27.01	―	6.70%	-59.46%	-71.61%
TW:3703	56Neutral	TWD 19.72B	8.71	―	4.40%	17.98%	267.52%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5213	49Neutral	TWD 14.98B	11.69	―	14.40%	-32.16%	-55.65%
TW:2515	41Neutral	TWD 18.32B	22.48	―	―	1.46%	4.78%

* General Sector Average

Performance Comparison

TW:2543 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2543	Hwang Chang General Contractor Co., Ltd.	30.50	-28.92	-48.67%
TW:2515	BES Engineering Corp.	10.50	-5.21	-33.17%
TW:2530	Delpha Construction Co., Ltd.	18.05	-8.59	-32.25%
TW:2546	Kedge Construction Co., Ltd.	91.30	13.56	17.44%
TW:3703	Continental Holdings Corp.	23.85	2.83	13.47%
TW:5213	YeaShin International Development Co. Ltd.	19.45	-1.73	-8.16%

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

Hwang Chang General Contractor Co., Ltd. AI Stock Analysis