Huang Hsiang Construction Corporation (2545) AI Stock Analysis

Huang Hsiang Construction Corporation

(TWSE:2545)

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Rating:41Neutral

Price Target:TWD 30.00▼(-4.00% Downside)

Action:initiatedcoverage

Date:11/09/26

Huang Hsiang Construction scores low primarily on financial fundamentals: a steep earnings downcycle, ROE under 5%, roughly 2.8x debt-to-equity leverage, and over NT$5bn of cash burn as capital is tied up in land and construction. Technicals reinforce the caution, with the stock trading below all major moving averages and a negative MACD, although oversold RSI and Stochastic readings suggest selling pressure may be nearing exhaustion. Valuation is the one partial offset — a near-9% dividend yield is compelling, but the elevated 37x P/E and weak cash generation raise doubts about payout durability. Investors should view this as a high-leverage, cash-consuming developer whose results hinge on the timing of project completions and the health of Taiwan's property market.

Positive Factors

Strong operating marginsStrong gross and operating margins provide a meaningful profitability base for the development business, with 2025 still showing about 40% gross margin and 24% operating margin. That margin structure can support resilience when projects are executed successfully.

Negative Factors

Elevated leverageDebt-to-equity around 2.8x in 2025 indicates substantial leverage relative to the equity base. That structure can reduce financial flexibility when property conditions weaken, increase dependence on financing, and make returns more sensitive to project outcomes.

Huang Hsiang Construction Corporation (2545) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 12.00B
Dividend Yield: 8.96%
Average Volume (3M): 276.68K
Price to Earnings (P/E): 36.8
Beta (1Y): 0.52
Revenue Growth: -24.11%
EPS Growth: -43.91%
Country: TW
Employees: 143
Sector: General
Sector Strength: 55
Industry: Real Estate - Diversified

Huang Hsiang Construction Corporation Business Overview & Revenue Model

Company Description

Huang Hsiang Construction Corporation, operating with its subsidiaries, specializes in the development, sale, and leasing of public residential and commercial structures throughout Taiwan. The firm, established in 1991, was initially known as Huang M...

Huang Hsiang Construction Corporation Financial Statement Overview

Summary

Weak across all three statements. Revenue halved from a record NT$12.4bn in 2024 to NT$6.1bn, with net income collapsing from NT$2.97bn to NT$681m and net margin compressing from ~24% to ~11% (Income Statement: 45). The balance sheet is aggressively leveraged at ~2.8x debt-to-equity with debt of NT$41.9bn versus NT$14.9bn equity, while ROE fell from ~22% to ~4.6% (Balance Sheet: 36). Cash flow is the weakest link, with operating and free cash flow at negative NT$5.21bn and negative operating cash flow in four of the last six years, leaving the company dependent on continued bank financing (Cash Flow: 25). Offsetting positives are durable 40–48% gross margins, solid ~24% EBIT margins, and a slowly growing equity base.

Income Statement

45Neutral

Balance Sheet

36Negative

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.53B	6.08B	12.39B	4.75B	7.07B	7.85B
Gross Profit	1.20B	2.46B	5.36B	1.95B	3.02B	3.73B
EBITDA	618.74M	1.80B	4.36B	1.72B	2.67B	3.07B
Net Income	361.00M	681.48M	2.97B	761.77M	1.90B	2.45B
Balance Sheet
Total Assets	64.49B	60.32B	55.30B	53.83B	50.80B	47.51B
Cash, Cash Equivalents and Short-Term Investments	4.23B	3.24B	4.35B	1.77B	2.38B	2.28B
Total Debt	44.65B	41.91B	37.99B	40.08B	37.02B	33.54B
Total Liabilities	49.85B	45.38B	41.60B	42.35B	38.58B	35.11B
Stockholders Equity	14.65B	14.94B	13.70B	11.48B	12.23B	12.40B
Cash Flow
Free Cash Flow	-5.42B	-5.21B	4.51B	-858.30M	-1.32B	-1.29B
Operating Cash Flow	-5.41B	-5.21B	4.53B	-852.75M	-1.31B	-1.29B
Investing Cash Flow	-24.94M	-22.40M	-1.21B	-914.66M	105.61M	-466.19M
Financing Cash Flow	3.26B	4.43B	-2.75B	1.67B	1.43B	2.83B

Huang Hsiang Construction Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2545 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8936	64Neutral	TWD 10.12B	9.40	―	7.40%	27.31%	26.91%
TW:9940	62Neutral	TWD 13.63B	16.33	―	3.23%	―	―
TW:5508	56Neutral	TWD 10.60B	12.29	―	5.67%	35.18%	9.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2524	50Neutral	TWD 11.63B	38.84	―	―	-77.56%	-89.27%
TW:2527	47Neutral	TWD 11.22B	6.95	―	3.53%	-13.36%	48.38%
TW:2545	41Neutral	TWD 11.83B	36.84	―	8.96%	-24.11%	-43.91%

* General Sector Average

Performance Comparison

TW:2545 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2545	Huang Hsiang Construction Corporation	31.25	-5.76	-15.57%
TW:2524	King's Town Construction Co., Ltd.	31.80	-9.20	-22.44%
TW:2527	Hung Ching Development & Construction Co. Ltd	42.55	17.48	69.70%
TW:5508	Yungshin Construction & Development Co., Ltd.	48.95	-20.73	-29.75%
TW:8936	Kuo Toong International Co., Ltd.	40.55	-18.19	-30.97%
TW:9940	Sinyi Realty Inc.	18.55	-3.35	-15.29%

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

Huang Hsiang Construction Corporation AI Stock Analysis