HD Renewable Energy Co., Ltd. (6873) AI Stock Analysis

HD Renewable Energy Co., Ltd.

(TWSE:6873)

Select Model

Rating:42Neutral

Price Target:TWD 48.00▼(-2.74% Downside)

Action:initiatedcoverage

Date:11/09/26

HD Renewable Energy scores low primarily because of weakening fundamentals: revenue declined, margins compressed across every line, net profit more than halved, debt more than tripled to push leverage to roughly 1.5x equity, and both operating and free cash flow turned sharply negative as project capex continued. Technical indicators reinforce the caution, with the stock trading well below all key moving averages and MACD deeply negative. Valuation offers partial support through a 5.1% dividend yield, but the high trailing P/E of 53.9 and the cash burn that funds that payout temper the appeal. The long-term renewable growth story remains intact, yet near-term earnings weakness, rising leverage and persistent cash outflows dominate the current picture.

Positive Factors

Renewable Energy PlatformThe company operates across solar development, clean-power investment, project execution, asset management and related energy services. This platform gives it several ways to participate in renewable infrastructure growth and can support recurring capabilities beyond a single project or revenue stream.

Negative Factors

Revenue and Margin ContractionThe 2025 revenue decline and sharp compression in gross and net margins indicate weaker earnings quality and reduced operating efficiency. If this persists, lower profitability could constrain reinvestment, weaken returns on capital, and make future project growth more dependent on external funding.

HD Renewable Energy Co., Ltd. (6873) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.26B
Dividend Yield: 5.14%
Average Volume (3M): 621.60K
Price to Earnings (P/E): 49.3
Beta (1Y): 0.47
Revenue Growth: -27.19%
EPS Growth: -89.80%
Country: TW
Employees: 100
Sector: General
Sector Strength: 55
Industry: Independent Power Producers

HD Renewable Energy Co., Ltd. Business Overview & Revenue Model

Company Description

HD Renewable Energy Co., LTD. operates within Taiwan, focusing on the production and supply of electrical power. The company's extensive involvement encompasses the entire lifecycle of solar photovoltaic projects, from their initial development and s...

HD Renewable Energy Co., Ltd. Financial Statement Overview

Summary

A strong multi-year growth record (revenue nearly quadrupled since 2020) has given way to a clear deterioration in the latest year. Revenue fell about 7.9% to NT$8.78 billion, gross margin narrowed to 22.4% from 26.5%, operating margin dropped to 10.1% from 16.5%, and net income fell roughly 58% to NT$504 million (Income Statement score 51). The balance sheet shows heavy expansion funded by debt, which more than tripled to NT$15.5 billion and lifted debt-to-equity to about 1.49x from 0.48x, while ROE slumped to 4.8% from 13.4% (Balance Sheet score 45). Cash flow is the weakest element: operating cash flow swung to negative NT$2.74 billion from positive NT$2.05 billion, and free cash flow fell to negative NT$6.45 billion amid heavy project capex, marking the fourth negative year in five (Cash Flow score 27). The build-out may eventually deliver recurring contracted cash flows, but current leverage and cash burn are material risks.

Income Statement

51Neutral

Balance Sheet

45Neutral

Cash Flow

27Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.76B	8.78B	10.13B	5.84B	4.87B	2.64B
Gross Profit	1.98B	1.96B	2.69B	1.51B	1.13B	364.57M
EBITDA	1.10B	1.11B	1.79B	1.14B	857.99M	250.36M
Net Income	133.66M	503.91M	1.20B	815.41M	650.11M	165.28M
Balance Sheet
Total Assets	33.49B	32.20B	18.53B	13.08B	6.10B	3.15B
Cash, Cash Equivalents and Short-Term Investments	1.65B	2.37B	4.59B	3.99B	1.96B	823.02M
Total Debt	17.27B	15.48B	4.31B	4.06B	579.15M	407.86M
Total Liabilities	22.08B	20.34B	9.25B	7.23B	2.71B	1.51B
Stockholders Equity	9.84B	10.42B	8.95B	5.53B	3.35B	1.64B
Cash Flow
Free Cash Flow	-4.82B	-6.45B	-837.27M	-3.35B	653.66M	-344.14M
Operating Cash Flow	-1.94B	-2.74B	2.05B	-1.78B	1.24B	-206.96M
Investing Cash Flow	-4.57B	-7.26B	-5.51B	-1.65B	-1.18B	-190.99M
Financing Cash Flow	2.73B	7.93B	4.08B	5.26B	1.07B	900.04M

HD Renewable Energy Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6873 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1618	68Neutral	TWD 6.89B	7.36	―	4.76%	-6.86%	16.98%
TW:6894	67Neutral	TWD 8.26B	22.51	―	2.45%	57.88%	81.74%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3708	49Neutral	TWD 8.37B	2.76	―	6.90%	-79.42%	2756.52%
TW:6873	42Neutral	TWD 7.04B	49.32	―	5.14%	-27.19%	-89.80%
TW:6869	39Underperform	TWD 8.02B	-7.15	―	3.44%	7.77%	-192.71%

* General Sector Average

Performance Comparison

TW:6873 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6873	HD Renewable Energy Co., Ltd.	49.35	-56.10	-53.20%
TW:1618	Hold-Key Electric Wire & Cable Co., Ltd	35.75	-5.98	-14.32%
TW:3708	Swancor Holding Co., Ltd.	94.20	-26.10	-21.69%
TW:6869	J&V Energy Technology Co.Ltd.	58.20	-37.40	-39.12%
TW:6894	Waste Recovery Technology Inc	347.00	131.50	61.02%
TW:7922	Evoasis Inc.	100.00	-46.50	-31.74%

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

HD Renewable Energy Co., Ltd. AI Stock Analysis