Chien Kuo Construction Co., Ltd (5515) AI Stock Analysis

Chien Kuo Construction Co., Ltd

(TWSE:5515)

Select Model

Rating:77Outperform

Price Target:TWD 53.00▲(10.76% Upside)

Action:initiatedcoverage

Date:11/09/26

Chien Kuo Construction scores well overall, driven primarily by robust financial performance: expanding revenue and margins, a near debt-free balance sheet with 17% ROE, and outsized free cash flow that fully covered earnings. Valuation reinforces the case, with a P/E under 5 and a 7% dividend yield offering both value and income, supported by low volatility. The main drag is near-term technical weakness — the price has fallen below its 20-, 50- and 100-day averages with negative MACD — alongside the inherent cyclicality of project-based revenue, volatile operating cash flow and a reliance on non-operating income that may not repeat.

Positive Factors

Very Low LeverageVery low leverage reduces financial risk and leaves more operating cash available for project execution, reinvestment, or shareholder returns. The steadily larger equity base also provides greater resilience if construction activity weakens or project economics become less favorable.

Negative Factors

Declining and Volatile RevenueA revenue decline after earlier volatility indicates that stronger earnings are not yet supported by consistent top-line expansion. Uneven project activity can make future workload and revenue less predictable, limiting confidence that recent profitability will compound steadily.

Chien Kuo Construction Co., Ltd (5515) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 9.43B
Dividend Yield: 6.90%
Average Volume (3M): 536.33K
Price to Earnings (P/E): 4.8
Beta (1Y): 0.21
Revenue Growth: 17.87%
EPS Growth: 298.44%
Country: TW
Employees: 1,180
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Chien Kuo Construction Co., Ltd Business Overview & Revenue Model

Company Description

Chien Kuo Construction Co., Ltd., along with its subsidiaries, specializes in construction projects throughout Taiwan and China. The company's services encompass a broad range of structures, including residential buildings, hotels, office complexes,...

Chien Kuo Construction Co., Ltd Financial Statement Overview

Summary

Strong across all three statements. Revenue rose ~16% to NT$7.10 billion after a 46% prior-year jump, with gross margin more than doubling since 2020 to 16.6% and net income up ~33% to NT$904 million (12.7% net margin). The balance sheet is exceptionally conservative, with debt-to-equity of just 0.03 and return on equity of 17.2%. Cash flow was outstanding, with NT$2.65 billion of operating cash flow (roughly 3x net income) and NT$2.64 billion of free cash flow on minimal capex. Offsetting these strengths are the project-driven lumpiness of revenue and cash flow (operating cash flow was negative in 2022), reliance on non-operating income to lift reported profit, and asset growth funded largely by project-related liabilities such as customer advances.

Income Statement

80Positive

Balance Sheet

83Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.96B	7.10B	6.12B	4.19B	5.07B	5.33B
Gross Profit	1.53B	1.18B	784.38M	367.97M	548.53M	624.37M
EBITDA	1.48B	1.20B	890.93M	463.80M	259.50M	307.20M
Net Income	1.99B	903.64M	681.76M	338.51M	184.12M	405.15M
Balance Sheet
Total Assets	12.83B	11.02B	9.07B	8.09B	7.79B	8.35B
Cash, Cash Equivalents and Short-Term Investments	7.80B	6.28B	4.01B	5.01B	4.30B	4.88B
Total Debt	152.19M	159.97M	200.00M	41.48M	849.79M	738.00M
Total Liabilities	6.98B	5.77B	4.14B	3.24B	3.05B	3.64B
Stockholders Equity	5.85B	5.25B	4.94B	4.85B	4.74B	4.70B
Cash Flow
Free Cash Flow	2.69B	2.64B	413.44M	1.55B	-506.47M	567.85M
Operating Cash Flow	2.78B	2.65B	516.20M	1.56B	-391.88M	576.39M
Investing Cash Flow	-152.76M	-518.63M	-792.69M	-2.01B	1.08B	-218.31M
Financing Cash Flow	-485.84M	-599.83M	-568.00M	-1.11B	-167.72M	-507.13M

Chien Kuo Construction Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5515 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5515	77Outperform	TWD 9.49B	4.76	―	6.90%	17.87%	298.44%
TW:5511	75Outperform	TWD 9.30B	5.37	―	5.22%	15.89%	75.28%
TW:2528	63Neutral	TWD 8.68B	10.46	―	7.74%	-69.18%	-72.70%
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:2527	47Neutral	TWD 11.22B	6.95	―	3.53%	-13.36%	48.38%
TW:2547	45Neutral	TWD 9.64B	86.39	―	8.46%	46.09%	-87.69%

* General Sector Average

Performance Comparison

TW:5515 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5515	Chien Kuo Construction Co., Ltd	47.85	22.72	90.40%
TW:2527	Hung Ching Development & Construction Co. Ltd	42.55	17.48	69.70%
TW:2528	Crowell Development Corp.	16.85	-7.95	-32.05%
TW:2547	Radium Life Tech Co., Ltd.	9.46	-0.79	-7.73%
TW:5508	Yungshin Construction & Development Co., Ltd.	48.95	-20.73	-29.75%
TW:5511	Te Chang Construction Co., Ltd.	69.00	17.31	33.49%

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

Chien Kuo Construction Co., Ltd AI Stock Analysis