Sun-Sea Construction Corporation (5516) AI Stock Analysis

Sun-Sea Construction Corporation

(TPEx:5516)

Select Model

Rating:46Neutral

Price Target:TWD 12.00▼(-6.61% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by a strained balance sheet — 4.5x debt-to-equity with equity at only ~14% of assets — combined with razor-thin margins and a net profit barely above breakeven, leaving little room for error on project execution. Positives include a return to revenue growth and profitability, a strong swing to NT$259 million in operating and free cash flow, and meaningful debt reduction, though the cash improvement looks largely working-capital driven. Technicals are neutral, with the price caught between its short- and long-term moving averages and no clear trend. Valuation at 12.2x earnings is based on minimal profits and there is no dividend, offering limited support. Sustained margin improvement and further deleveraging are needed before the recovery can be considered secure.

Positive Factors

Revenue GrowthThe reported 26.8% revenue-growth measure indicates expanding business activity and a larger base of construction work. If sustained, stronger revenue can improve operating scale, support overhead absorption, and provide more capacity to rebuild profitability over the next several quarters.

Negative Factors

High LeverageDebt remains high relative to equity and current earnings capacity, limiting financial flexibility in a cyclical construction environment. Elevated leverage can increase pressure on cash allocation and make it harder for the company to absorb weaker project conditions or fund future growth.

Sun-Sea Construction Corporation (5516) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 662.36M
Dividend Yield: ―
Average Volume (3M): 26.11K
Price to Earnings (P/E): 12.7
Beta (1Y): -0.00
Revenue Growth: 26.78%
EPS Growth: ―
Country: TW
Employees: 328
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Sun-Sea Construction Corporation Business Overview & Revenue Model

Company Description

Sun-Sea Construction Corporation operates within Taiwan's building and civil engineering sectors. Its diverse portfolio encompasses the development of various structures, from commercial complexes, parking facilities, educational institutions, techno...

Sun-Sea Construction Corporation Financial Statement Overview

Summary

Sun-Sea Construction is in the early innings of a fragile turnaround. Revenue rebounded about 8% to NT$2.18 billion and the company swung from a NT$186 million loss to a NT$8.5 million profit, while operating cash flow turned strongly positive at NT$259 million after five straight years of burn, funding a NT$526 million debt reduction. Offsetting this, the balance sheet remains the weakest link: debt-to-equity of 4.5x with equity at only ~14% of assets, and net margin of just 0.4% offers almost no cushion against a single adverse contract. The cash inflow also appears largely working-capital driven rather than structurally sustainable.

Income Statement

42Neutral

Balance Sheet

30Negative

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.53B	2.18B	2.01B	2.78B	2.44B	2.26B
Gross Profit	162.87M	110.86M	-76.36M	-144.41M	246.57M	232.80M
EBITDA	130.87M	93.18M	-114.92M	-175.33M	203.69M	180.58M
Net Income	52.47M	8.50M	-186.11M	-187.88M	128.82M	120.48M
Balance Sheet
Total Assets	3.18B	3.25B	3.72B	3.67B	3.13B	2.81B
Cash, Cash Equivalents and Short-Term Investments	250.17M	705.34M	1.08B	613.13M	750.76M	924.91M
Total Debt	1.93B	2.00B	2.53B	2.26B	1.75B	1.37B
Total Liabilities	2.71B	2.81B	3.28B	3.05B	2.30B	2.09B
Stockholders Equity	465.18M	441.22M	432.91M	627.64M	830.21M	719.81M
Cash Flow
Free Cash Flow	508.68M	258.84M	-391.08M	-27.17M	-486.19M	-196.65M
Operating Cash Flow	509.38M	259.04M	-389.27M	-25.43M	-350.71M	-193.47M
Investing Cash Flow	7.35M	41.05M	37.11M	-84.08M	-215.31M	-179.48M
Financing Cash Flow	-443.01M	-480.93M	212.69M	459.32M	344.58M	566.93M

Sun-Sea Construction Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5516 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:7715	59Neutral	TWD 759.95M	38.36	―	19.94%	-44.65%	-84.66%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6624	49Neutral	TWD 784.64M	62.79	―	0.80%	-31.58%	-81.33%
TW:5516	46Neutral	TWD 659.78M	12.65	―	―	26.78%	―
TW:5345	40Underperform	TWD 718.10M	-274.61	―	―	229.58%	90.01%
TW:3018	29Underperform	TWD 745.49M	-2.58	―	―	-56.49%	-244.54%

* General Sector Average

Performance Comparison

TW:5516 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5516	Sun-Sea Construction Corporation	12.85	-2.10	-14.05%
TW:3018	Lung Ming Green Energy Technology Engineering Co Ltd.	9.15	-3.05	-25.00%
TW:5345	Fullhome Development Co., Ltd.	19.25	-5.60	-22.54%
TW:6624	Ever-Clear Environmental Eng. Corp.	36.00	1.24	3.57%
TW:6911	Chyunn Environment Corporation	27.15	-2.46	-8.30%
TW:7715	Yuh Shan Environmental Engineering Co., Ltd.	24.00	-4.18	-14.85%

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

Sun-Sea Construction Corporation AI Stock Analysis