Rich Development Co. Ltd. (5512) AI Stock Analysis

Rich Development Co. Ltd.

(TPEx:5512)

Select Model

Rating:40Underperform

Price Target:TWD 6.50▼(-7.54% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by weak financial fundamentals: although revenue recovered and operating margins reached multi-year highs, interest and non-operating costs left a 1.7% net margin and sub-1% return on equity, while debt climbed to NT$22.4 billion (1.65x equity) and the company burned NT$1.51 billion of operating cash in 2025, funding the gap with more borrowing. Technicals reinforce the caution, with the price below all key moving averages and negative MACD, though deeply oversold readings suggest scope for a near-term bounce. Valuation adds little support, with a P/E above 51x on depressed earnings and only a 1.4% dividend yield. Evidence of project deliveries restoring cash inflows and debt reduction would be the key catalysts for an improved outlook.

Positive Factors

Revenue reboundThe sharp 2025 revenue rebound indicates stronger project activity or revenue recognition after several uneven years. If this higher level of activity persists, it can improve operating leverage, support resource utilization, and provide a stronger base for future earnings generation.

Negative Factors

Negative cash flowThe sharp reversal to negative operating and free cash flow weakens the quality of 2025 earnings and may increase funding needs. Persistent cash outflows would constrain investment flexibility, add pressure to the balance sheet, and make leverage harder to manage through project cycles.

Rich Development Co. Ltd. (5512) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.28B
Dividend Yield: 1.42%
Average Volume (3M): 543.85K
Price to Earnings (P/E): 49.7
Beta (1Y): 0.29
Revenue Growth: 3.80%
EPS Growth: -14.46%
Country: TW
Employees: 9,141
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Rich Development Co. Ltd. Business Overview & Revenue Model

Company Description

Rich Development Co., Ltd. engages in the construction business. The company operates through the Construction Sector, Wastewater Treatment Sector, and Tourist Hotel Department segments. It is involved in the leasing and sale of residential buildings...

Rich Development Co. Ltd. Financial Statement Overview

Summary

Operating trends improved in 2025 — revenue rebounded to roughly NT$7.0 billion and gross (21.3%) and operating (13.2%) margins hit multi-year highs — but the quality of earnings is poor. Heavy interest and non-operating costs cut net income to just NT$118 million (1.7% net margin) with return on equity under 1%. The balance sheet is highly leveraged, with debt rising to NT$22.4 billion against NT$13.5 billion of equity (1.65x debt-to-equity) and equity funding only ~30% of assets. Cash flow is the weakest link: operating cash flow swung to negative NT$1.51 billion and free cash flow to negative NT$1.71 billion, with the shortfall funded by new borrowing. Lumpy, project-driven results add further unpredictability.

Income Statement

47Neutral

Balance Sheet

40Negative

Cash Flow

29Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.82B	7.00B	5.95B	7.71B	6.31B	5.74B
Gross Profit	1.40B	1.49B	1.04B	1.18B	714.88M	1.14B
EBITDA	1.51B	1.37B	1.03B	1.08B	584.79M	1.12B
Net Income	108.80M	118.30M	128.23M	240.60M	-127.93M	181.09M
Balance Sheet
Total Assets	46.06B	44.78B	41.33B	40.28B	40.19B	40.73B
Cash, Cash Equivalents and Short-Term Investments	5.18B	6.16B	6.65B	5.14B	4.24B	5.00B
Total Debt	23.34B	22.38B	19.54B	18.93B	19.67B	20.22B
Total Liabilities	27.49B	26.32B	22.89B	22.91B	23.29B	23.31B
Stockholders Equity	13.47B	13.53B	13.69B	13.64B	13.21B	13.50B
Cash Flow
Free Cash Flow	1.06B	-1.71B	23.09M	1.05B	137.78M	-934.53M
Operating Cash Flow	1.12B	-1.51B	901.60M	1.81B	574.83M	95.56M
Investing Cash Flow	-4.71M	-281.20M	-1.36B	-876.03M	-372.21M	68.30M
Financing Cash Flow	428.63M	2.64B	1.56B	-560.37M	-1.08B	394.41M

Rich Development Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5512 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5520	79Outperform	TWD 4.91B	8.62	―	8.55%	-2.83%	-6.29%
TW:5519	65Neutral	TWD 5.12B	4.44	―	14.83%	27.73%	65.34%
TW:2536	63Neutral	TWD 5.92B	4.26	―	11.24%	86.45%	163.81%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3266	51Neutral	TWD 4.77B	28.73	―	3.69%	-46.16%	-65.52%
TW:5512	40Underperform	TWD 5.34B	49.71	―	1.42%	3.80%	-14.46%
TW:5531	39Underperform	TWD 5.87B	53.27	―	―	-72.62%	-9.86%

* General Sector Average

Performance Comparison

TW:5512 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5512	Rich Development Co. Ltd.	7.03	-1.26	-15.20%
TW:2536	Hong Pu Real Estate Development CO LTD	17.80	-6.29	-26.11%
TW:3266	Sunty Development Co. Ltd.	13.55	0.49	3.72%
TW:5519	Longda Construction & Development Corporation	22.25	-2.25	-9.18%
TW:5520	Lihtai Construction Enterprise Co., Ltd.	81.90	-1.87	-2.23%
TW:5531	Shining Building Business Co. Ltd.	6.00	-3.25	-35.14%

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

Rich Development Co. Ltd. AI Stock Analysis