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2548

Huaku Development TWSE:2548 Stock Report

Last Price

NT$89.60

Market Cap

NT$24.8b

7D

0.3%

1Y

0.9%

Updated

05 Oct, 2022

Data

Company Financials
2548 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends5/6

2548 Stock Overview

Huaku Development Co., Ltd. builds, constructs, sells, and leases residential and commercial buildings in Taiwan and China.

Huaku Development Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Huaku Development
Historical stock prices
Current Share PriceNT$89.60
52 Week HighNT$95.90
52 Week LowNT$84.80
Beta0.21
1 Month Change-2.71%
3 Month Change3.94%
1 Year Change0.90%
3 Year Change7.82%
5 Year Change29.85%
Change since IPO591.54%

Recent News & Updates

Shareholder Returns

2548TW Real EstateTW Market
7D0.3%-1.0%-1.7%
1Y0.9%-6.0%-16.9%

Return vs Industry: 2548 exceeded the TW Real Estate industry which returned -6% over the past year.

Return vs Market: 2548 exceeded the TW Market which returned -16.9% over the past year.

Price Volatility

Is 2548's price volatile compared to industry and market?
2548 volatility
2548 Average Weekly Movement1.7%
Real Estate Industry Average Movement2.9%
Market Average Movement5.1%
10% most volatile stocks in TW Market8.3%
10% least volatile stocks in TW Market2.4%

Stable Share Price: 2548 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 2548's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1989n/aFrank Chung Zhonghttps://www.huaku.com.tw

Huaku Development Co., Ltd. builds, constructs, sells, and leases residential and commercial buildings in Taiwan and China. It also sells and leases general industrial plants and warehouses. The company was formerly known as Huaku Construction Co., Ltd.

Huaku Development Fundamentals Summary

How do Huaku Development's earnings and revenue compare to its market cap?
2548 fundamental statistics
Market CapNT$24.81b
Earnings (TTM)NT$5.15b
Revenue (TTM)NT$23.41b

4.8x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2548 income statement (TTM)
RevenueNT$23.41b
Cost of RevenueNT$15.87b
Gross ProfitNT$7.53b
Other ExpensesNT$2.39b
EarningsNT$5.15b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)18.60
Gross Margin32.18%
Net Profit Margin21.98%
Debt/Equity Ratio66.4%

How did 2548 perform over the long term?

See historical performance and comparison

Dividends

8.4%

Current Dividend Yield

40%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2548 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2548?

Other financial metrics that can be useful for relative valuation.

2548 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA5.4x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 2548's PE Ratio compare to its peers?

2548 PE Ratio vs Peers
The above table shows the PE ratio for 2548 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.1x
2539 Sakura DevelopmentLtd
14.2xn/aNT$23.3b
2501 Cathay Real Estate DevelopmentLtd
22xn/aNT$18.5b
2511 Prince Housing & Development
22.1xn/aNT$17.8b
2524 King's Town Construction
10.1xn/aNT$12.5b
2548 Huaku Development
4.8xn/aNT$24.8b

Price-To-Earnings vs Peers: 2548 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (17.1x).


Price to Earnings Ratio vs Industry

How does 2548's PE Ratio compare vs other companies in the TW Real Estate Industry?

Price-To-Earnings vs Industry: 2548 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the TW Real Estate industry average (12.3x)


Price to Earnings Ratio vs Fair Ratio

What is 2548's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2548 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2548's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 2548 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2548 (NT$89.6) is trading below our estimate of fair value (NT$230.61)

Significantly Below Fair Value: 2548 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Huaku Development forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.9%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Huaku Development has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine whether Huaku Development is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Huaku Development performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2548 has high quality earnings.

Growing Profit Margin: 2548's current net profit margins (22%) are lower than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: 2548's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: 2548's earnings growth over the past year (241.2%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: 2548 earnings growth over the past year (241.2%) exceeded the Real Estate industry 6.2%.


Return on Equity

High ROE: 2548's Return on Equity (26.9%) is considered high.


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Financial Health

How is Huaku Development's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2548's short term assets (NT$36.3B) exceed its short term liabilities (NT$17.9B).

Long Term Liabilities: 2548's short term assets (NT$36.3B) exceed its long term liabilities (NT$2.8B).


Debt to Equity History and Analysis

Debt Level: 2548's net debt to equity ratio (48%) is considered high.

Reducing Debt: 2548's debt to equity ratio has reduced from 87.2% to 66.4% over the past 5 years.

Debt Coverage: 2548's debt is well covered by operating cash flow (51.6%).

Interest Coverage: 2548's interest payments on its debt are well covered by EBIT (527.7x coverage).


Balance Sheet


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Dividend

What is Huaku Development current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


8.37%

Current Dividend Yield

Dividend Yield vs Market

Huaku Development Dividend Yield vs Market
How does Huaku Development dividend yield compare to the market?
SegmentDividend Yield
Company (Huaku Development)8.4%
Market Bottom 25% (TW)2.5%
Market Top 25% (TW)6.9%
Industry Average (Real Estate)6.7%
Analyst forecast in 3 Years (Huaku Development)n/a

Notable Dividend: 2548's dividend (8.37%) is higher than the bottom 25% of dividend payers in the TW market (2.55%).

High Dividend: 2548's dividend (8.37%) is in the top 25% of dividend payers in the TW market (6.93%)


Stability and Growth of Payments

Stable Dividend: 2548's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2548's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.3%), 2548's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.7%), 2548's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

17.5yrs

Average board tenure


CEO

Frank Chung Zhong

23.5yrs

Tenure

Mr. Rong Chang Zhong, also known as Frank Chung serves as Chairman at Huaku Development Co., Ltd and has been its Director since April 12, 1999 and Chief Executive Director since. Mr. Zhong served as Presi...


Board Members

Experienced Board: 2548's board of directors are seasoned and experienced ( 17.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of 2548?
Owner TypeNumber of SharesOwnership Percentage
Private Companies14,690,9825.3%
Institutions47,052,34317.0%
General Public214,895,40177.7%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 22.2% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
5.31%
Newland Developers Group
14,690,982NT$1.3b0%no data
3.64%
The Vanguard Group, Inc.
10,067,640NT$902.1m1.86%no data
2.61%
Nan Shan Life Insurance Co Ltd, Asset Management Arm
7,218,000NT$646.7m0%0.28%
2.59%
BlackRock, Inc.
7,172,290NT$642.6m3.7%no data
1.88%
Norges Bank Investment Management
5,211,084NT$466.9m0%no data
1.6%
Dimensional Fund Advisors LP
4,414,428NT$395.5m0.38%no data
1.57%
Boston Partners Global Investors, Inc.
4,331,000NT$388.1m-2.3%0.01%
0.78%
BNY Mellon Asset Management
2,169,145NT$194.4m7.85%no data
0.42%
Grantham Mayo Van Otterloo & Co. LLC
1,163,900NT$104.3m-36.6%0.01%
0.32%
Union Asset Management Holding AG
886,985NT$79.5m0%no data
0.26%
State Street Global Advisors, Inc.
731,814NT$65.6m12.62%no data
0.17%
Nomura Asset Management Taiwan Limited
479,978NT$43.0m0.07%0.11%
0.14%
AXA Investment Managers S.A.
389,000NT$34.9m0%no data
0.12%
Cambria Investment Management, L.P.
330,000NT$29.6m1.54%0.1%
0.11%
MD Private Investment Counsel
318,000NT$28.5m3.58%0.08%
0.11%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
306,000NT$27.4m-12.32%no data
0.094%
Northern Trust Global Investments
260,000NT$23.3m0%no data
0.086%
Mercer Global Investments Europe Limited
237,000NT$21.2m0%no data
0.076%
Manulife Asset Management
209,683NT$18.8m0%no data
0.068%
Mercer Investments LLC
188,759NT$16.9m-5.98%0.01%
0.059%
Schroder Investment Management (Taiwan) Limited
162,875NT$14.6m0%0.03%
0.053%
DBX Advisors LLC
146,139NT$13.1m7.35%no data
0.044%
RAM Active Investments S.A.
120,380NT$10.8m-21%0.04%
0.041%
Eaton Vance Management
114,000NT$10.2m0%no data
0.035%
Geode Capital Management, LLC
97,171NT$8.7m0.08%no data

Company Information

Huaku Development Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Huaku Development Co., Ltd.
  • Ticker: 2548
  • Exchange: TWSE
  • Founded: 1989
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Implied Market Cap: NT$24.814b
  • Shares outstanding: 276.64m
  • Website: https://www.huaku.com.tw

Location

  • Huaku Development Co., Ltd.
  • No. 456, Xinyi Road
  • 7th Floor
  • Taipei
  • Taiwan


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2548TWSE (Taiwan Stock Exchange)YesCommon StockTWTWDJul 2000

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.