Lihtai Construction Enterprise Co., Ltd. (5520) AI Stock Analysis

Lihtai Construction Enterprise Co., Ltd.

(TPEx:5520)

Select Model

Rating:79Outperform

Price Target:TWD 93.00▲(13.55% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is driven primarily by Lihtai's high-quality financial profile: consistent margin expansion, roughly 20% return on equity, a near debt-free balance sheet, and cash generation that exceeds reported earnings. Valuation reinforces the case, with a P/E of 8.5 and a free-cash-flow-backed dividend yield near 8.6%. The main drags are decelerating revenue growth and weak price action — the stock trades below all key moving averages with a negative MACD, though oversold readings suggest the selling may be stretched. Overall, a financially solid, income-oriented holding with near-term technical headwinds.

Positive Factors

Improving ProfitabilityImproving gross and net margins indicate stronger profitability from the company’s construction and development activities. If maintained, this margin discipline can partially offset project cyclicality, support resilient earnings, and provide more internal funding for future operations and growth.

Negative Factors

Sharp Revenue ContractionThe steep 2025 revenue decline raises a fundamental concern about demand visibility and the timing of project execution. Even with strong margins, prolonged top-line weakness could reduce operating leverage, limit future earnings growth, and make recent profitability harder to sustain.

Lihtai Construction Enterprise Co., Ltd. (5520) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.80B
Dividend Yield: 8.55%
Average Volume (3M): 5,063
Price to Earnings (P/E): 8.6
Beta (1Y): 0.18
Revenue Growth: -2.83%
EPS Growth: -6.29%
Country: TW
Employees: 112
Sector: General
Sector Strength: 55
Industry: Construction Materials

Lihtai Construction Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Lih Tai Construction Enterprise Co., Ltd., established in 1976, specializes in the production and distribution of ready-mixed concrete products, operating alongside its various subsidiaries. The company maintains its primary operations in Taipei City...

Lihtai Construction Enterprise Co., Ltd. Financial Statement Overview

Summary

Lihtai's financials are the clear anchor of this score. Revenue has grown from roughly NT$2.69 billion to NT$4.18 billion since 2020 while net income more than doubled, with gross, operating and net margins expanding consistently — rare in construction materials. The balance sheet is near debt-free (debt-to-equity of 0.10) with equity funding about two-thirds of assets and return on equity steady near 20%. Cash flow is the standout: operating cash flow of NT$925 million exceeds net income of NT$598 million, and free cash flow of NT$771 million grew about 22% on modest capex, giving ample flexibility for dividends and reinvestment. The main offset is slowing growth — top-line momentum cooled from double digits in 2022–2023 to low single digits most recently, with the latest reported growth figure signalling softer order or project timing.

Income Statement

83Very Positive

Balance Sheet

86Very Positive

Cash Flow

86Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.11B	4.18B	4.07B	3.83B	3.37B	2.78B
Gross Profit	922.95M	937.50M	857.82M	732.71M	618.62M	564.88M
EBITDA	896.02M	877.87M	818.57M	686.07M	548.57M	497.75M
Net Income	584.79M	598.12M	538.90M	468.56M	357.99M	335.48M
Balance Sheet
Total Assets	4.75B	4.51B	4.13B	3.64B	3.26B	3.01B
Cash, Cash Equivalents and Short-Term Investments	2.03B	1.68B	1.25B	829.77M	814.57M	725.41M
Total Debt	357.55M	302.28M	349.32M	360.66M	350.85M	312.75M
Total Liabilities	1.29B	1.33B	1.27B	1.11B	978.71M	834.76M
Stockholders Equity	3.29B	3.00B	2.70B	2.40B	2.17B	2.07B
Cash Flow
Free Cash Flow	842.47M	771.21M	629.95M	245.93M	369.31M	353.94M
Operating Cash Flow	905.87M	925.24M	742.51M	526.64M	405.49M	385.56M
Investing Cash Flow	-425.13M	-566.46M	-164.00M	-209.35M	-98.22M	-92.89M
Financing Cash Flow	-433.55M	-394.67M	-257.77M	-253.72M	-285.67M	-243.31M

Lihtai Construction Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5520 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	4.39	―	15.21%	27.73%	65.34%
TW:9946	60Neutral	TWD 4.85B	3.28	―	9.16%	335.99%	1373.59%
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	49.93	―	1.44%	3.80%	-14.46%
TW:5523	39Underperform	TWD 4.67B	-266.31	―	1.66%	-25.53%	-403.43%

* General Sector Average

Performance Comparison

TW:5520 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5520	Lihtai Construction Enterprise Co., Ltd.	81.90	-2.51	-2.98%
TW:3266	Sunty Development Co. Ltd.	13.55	0.44	3.34%
TW:5512	Rich Development Co. Ltd.	6.93	-1.35	-16.30%
TW:5519	Longda Construction & Development Corporation	21.70	-2.76	-11.27%
TW:5523	Fong Chien Construction Co., Ltd.	30.20	0.79	2.70%
TW:9946	San Far Property Limited	15.10	-1.13	-6.97%

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

Lihtai Construction Enterprise Co., Ltd. AI Stock Analysis