Huaku Development Co., Ltd. AI Stock Analysis
Huaku Development Co., Ltd. (2548) AI Stock Analysis
Huaku Development Co., Ltd.
(TWSE:2548)
Huaku earns an above-average score driven by strong 2025 financial results: record revenue, NT$3.2 billion of net profit, a NT$9.9 billion operating cash harvest, and a materially deleveraged balance sheet with debt-to-equity back below 1x. Valuation reinforces the case, with a 7.5x P/E and a 7.9% dividend yield. The main drags are technical: the stock trades below all key moving averages with negative MACD and neutral momentum readings, signalling persistent downward pressure. Investors should also weigh the six-year low gross margin of 28.2%, still-elevated leverage, and the inherent cyclicality of developer earnings, which makes the current trailing profit and cash flow difficult to repeat in the next project phase.
Huaku Development Co., Ltd. (2548) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 32.11B
- Dividend Yield
- 7.68%
- Average Volume (3M)
- 1.12M
- Price to Earnings (P/E)
- 7.8
- Beta (1Y)
- 0.00
- Revenue Growth
- 330.96%
- EPS Growth
- 810.71%
- Country
- TW
- Employees
- 134
- Sector
- General
- Sector Strength
- 55
- Industry
- Real Estate - Development
Huaku Development Co., Ltd. Business Overview & Revenue Model
Company Description
Huaku Development Co., Ltd. is a real estate enterprise specializing in the construction, leasing, and sale of residential and commercial properties. Its operations primarily cover both Taiwan and China. The company further extends its services to in...
Huaku Development Co., Ltd. Financial Statement Overview
Summary
Huaku closed 2025 with record revenue of NT$18.2 billion (up roughly 272%), NT$3.2 billion of net income, a 17.8% net margin, and a restored 14.5% return on equity. Cash conversion was the standout: operating cash flow swung to +NT$9.9 billion from -NT$4.9 billion, free cash flow of NT$9.8 billion was about three times net income, and that cash funded a debt reduction from NT$26.8 billion to NT$20.5 billion, bringing debt-to-equity down to 0.91x from 1.29x. Offsetting these strengths are a six-year low gross margin of 28.2% (versus 35.8% in 2024), still-meaningful leverage at about 38% of assets, and the highly cyclical nature of developer earnings and cash flow, which are likely to turn negative again during the next land and construction phase.
Income Statement
71PositiveBalance Sheet
67PositiveCash Flow
74Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.92B | 18.24B | 7.21B | 15.80B | 14.85B | 13.55B |
| Gross Profit | 5.99B | 5.15B | 2.58B | 5.22B | 4.74B | 4.36B |
| EBITDA | 4.81B | 4.05B | 2.00B | 4.46B | 3.84B | 3.70B |
| Net Income | 3.95B | 3.24B | 1.39B | 3.58B | 2.96B | 2.92B |
Balance Sheet | ||||||
| Total Assets | 53.87B | 54.26B | 56.50B | 43.59B | 41.56B | 42.63B |
| Cash, Cash Equivalents and Short-Term Investments | 7.52B | 9.70B | 5.77B | 1.55B | 1.84B | 2.56B |
| Total Debt | 23.64B | 20.46B | 26.79B | 16.30B | 14.94B | 17.70B |
| Total Liabilities | 33.06B | 31.83B | 35.65B | 22.80B | 22.19B | 24.12B |
| Stockholders Equity | 20.80B | 22.42B | 20.84B | 20.78B | 19.27B | 18.38B |
Cash Flow | ||||||
| Free Cash Flow | 9.87B | 9.79B | -4.99B | 613.11M | 4.23B | -962.40M |
| Operating Cash Flow | 9.88B | 9.89B | -4.90B | 614.89M | 4.24B | -950.91M |
| Investing Cash Flow | 198.58M | 1.47B | -1.98B | 14.85M | -82.80M | 18.85M |
| Financing Cash Flow | -7.99B | -8.11B | 9.12B | -822.61M | -4.88B | 2.81B |
Huaku Development Co., Ltd. Peers Comparison
Overall Rating
TW:253569Neutral- TW:254868Neutral
TW:180852Neutral
TW:252052Neutral
TW:254040Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:2535 | 69Neutral | TWD 22.94B | 8.79 | ― | 5.12% | 36.46% | 95.03% |
| 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:2520 | 52Neutral | TWD 19.79B | 9.53 | ― | 4.96% | 12.79% | -1.84% |
| TW:2540 | 40Underperform | TWD 41.29B | -5743.59 | ― | 13.39% | -12.51% | 8.08% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2548 | Huaku Development Co., Ltd. | 94.50 | 6.19 | 7.01% | |
| TW:01010T | Millerful No 1 Real Estate Investment Trust | 10.00 | 0.33 | 3.41% | |
| TW:1808 | Run Long Construction Co., Ltd. | 36.25 | -6.59 | -15.39% | |
| TW:2520 | Kindom Development Co., Ltd. | 32.60 | 0.80 | 2.53% | |
| TW:2535 | Da-Cin Construction Co., Ltd. | 89.80 | 30.73 | 52.03% | |
| TW:2540 | JSL Construction & Development Co., Ltd. | 44.80 | 2.05 | 4.79% |
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