Tacheng Real Estate Co.,Ltd. (6171) AI Stock Analysis

Tacheng Real Estate Co.,Ltd.

(TPEx:6171)

Select Model

Rating:65Neutral

Price Target:TWD 27.00▲(9.76% Upside)

Action:initiatedcoverage

Date:11/09/26

Tacheng Real Estate scores in the moderate range. Its greatest strength is financial resilience: a conservatively financed balance sheet with debt-to-equity of just 0.34, steadily compounding equity, and record margins of 47% gross and 32.5% net. These are offset by a 46% revenue decline, a 33% drop in earnings, falling ROE, and a sizable NT$445.6 million operating cash outflow — reflecting the lumpy, working-capital-heavy nature of project-based development. Supporting the score, the shares trade above all major moving averages with positive MACD momentum and neutral RSI/Stochastic readings, and a standout 8.1% dividend yield provides income appeal, though the 18.6x P/E is only fair given depressed earnings. Overall: low solvency risk and attractive income, but poor earnings and cash flow visibility that should be assessed over a multi-year cycle.

Positive Factors

Strong profitability and marginsStrong gross and net margins indicate that the company retains meaningful profitability from its real estate activities despite a weaker revenue environment. If maintained, this margin profile can support earnings resilience and provide internal resources for operations and future projects over the coming quarters.

Negative Factors

Sharp revenue contractionThe sharp latest-period revenue decline highlights substantial top-line volatility, which is a material weakness for a property developer. Lower project or transaction activity can reduce earnings visibility, weaken operating leverage, and make future profitability more dependent on the timing of individual developments.

Tacheng Real Estate Co.,Ltd. (6171) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.37B
Dividend Yield: 8.13%
Average Volume (3M): 64.03K
Price to Earnings (P/E): 13.4
Beta (1Y): 0.20
Revenue Growth: -55.77%
EPS Growth: -74.32%
Country: TW
Employees: 22
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Tacheng Real Estate Co.,Ltd. Business Overview & Revenue Model

Company Description

Tacheng Real Estate Co.,Ltd. operates primarily within Taiwan's property sector. Its core activities include the development, rental, and sale of residential and commercial real estate. Beyond property dealings, the firm also engages in the wholesale...

Tacheng Real Estate Co.,Ltd. Financial Statement Overview

Summary

A mixed but fundamentally sound picture. The balance sheet is the standout strength (score 74): equity has nearly doubled since 2020 to NT$2.54 billion, debt-to-equity has halved to a conservative 0.34, and total debt is only about 20% of assets — unusually low for a property developer and a genuine cushion against a cycle downturn. Profitability is solid (income statement 64) with record gross and net margins of 47% and 32.5%, though revenue fell roughly 46% to NT$1.18 billion and net income dropped about 33% to NT$382 million, with ROE compressing to 15.1%. Cash flow is the clear weak point (38): operating and free cash flow swung to an outflow of NT$445.6 million as capital was tied up in land and construction inventory, the second negative year in five. Earnings and cash generation are inherently lumpy and should be judged across a full project cycle.

Income Statement

64Positive

Balance Sheet

74Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	451.75M	1.18B	1.82B	1.38B	1.94B	2.03B
Gross Profit	219.40M	549.12M	790.24M	359.63M	521.42M	600.88M
EBITDA	175.01M	487.13M	714.92M	290.37M	432.37M	497.03M
Net Income	137.11M	381.98M	572.66M	247.84M	346.04M	417.74M
Balance Sheet
Total Assets	4.66B	4.32B	4.63B	3.26B	3.23B	3.41B
Cash, Cash Equivalents and Short-Term Investments	345.94M	116.15M	652.18M	586.70M	227.97M	206.36M
Total Debt	1.09B	872.09M	914.31M	566.14M	738.41M	874.82M
Total Liabilities	2.29B	1.79B	2.22B	1.28B	1.40B	1.79B
Stockholders Equity	2.37B	2.54B	2.40B	1.98B	1.83B	1.62B
Cash Flow
Free Cash Flow	-511.38M	-445.62M	228.61M	397.26M	433.06M	-174.49M
Operating Cash Flow	-511.38M	-445.62M	231.68M	397.40M	433.33M	-174.33M
Investing Cash Flow	165.39M	205.58M	-346.64M	213.73M	-144.25M	-78.91M
Financing Cash Flow	-97.00K	-295.98M	213.41M	-285.37M	-267.47M	-53.17M

Tacheng Real Estate Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6171 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6171	65Neutral	TWD 2.49B	13.39	―	8.13%	-55.77%	-74.32%
TW:1439	62Neutral	TWD 2.66B	9.30	―	1.75%	160.15%	33.83%
TW:5529	59Neutral	TWD 2.35B	2.67	―	―	5393.35%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1438	50Neutral	TWD 2.59B	8.34	―	0.93%	41.65%	―
TW:2722	39Underperform	TWD 2.71B	-33.07	―	0.79%	-6.05%	-28.49%
TW:5324	27Underperform	TWD 2.78B	-188.82	―	―	-39.07%	-150.68%

* General Sector Average

Performance Comparison

TW:6171 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6171	Tacheng Real Estate Co.,Ltd.	24.60	-1.21	-4.70%
TW:1438	SanDi Properties Co. Ltd.	21.60	-9.98	-31.60%
TW:1439	Ascent Development Co Ltd	28.55	1.62	6.02%
TW:2722	Chateau International Development Co. Ltd.	18.85	-9.80	-34.21%
TW:5324	Shihlin Development Co., Ltd.	12.50	1.85	17.37%
TW:5529	Mega International Development Co., Ltd.	21.95	-3.90	-15.09%

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

Tacheng Real Estate Co.,Ltd. AI Stock Analysis