Huaku Development Co Ltd

Huaku Development Co Ltd has a debt-to-equity ratio of 1.02, indicating a balanced capital structure with moderate leverage. However, the company's liquidity is rated as medium, and its operating cash flow is negative at -2,664,592,000 TWD, suggesting potential short-term liquidity constraints. The current ratio of 1.68 implies the company can cover its short-term liabilities with its current assets, but the absence of cash and equivalents raises concerns about immediate liquidity.

In terms of profitability, the company's return on equity (ROE) is 1.5%, and its return on assets (ROA) is 0.59%, both of which are below the industry median for real estate firms. This suggests that the company is underperforming in terms of capital efficiency and asset utilization. The operating margin is 25.0% (432,940,000 TWD / 1,735,822,000 TWD), which is relatively strong but not sufficient to offset the weak ROE and ROA.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no geographic diversification reported. This lack of diversification increases exposure to regional economic downturns and regulatory changes in the local real estate market. The absence of segment-specific revenue breakdowns in the input data limits further analysis of geographic or product diversification.

Looking ahead, the company's growth trajectory is uncertain. Analysts have provided a mean price target of 150.00 TWD, with a mean recommendation of 1.67 (leaning toward "buy"), but no specific revenue growth projections are available in the input data. The company's free cash flow of 249,000,000 TWD and capital expenditure of -41,954,000 TWD suggest limited reinvestment in growth opportunities.

The risk assessment indicates a low dilution risk, with no near-term pressure for equity issuance. However, the company's net cash position is negative after subtracting total debt, which could necessitate future financing. The risk of dilution remains low for now, but the company's liquidity risk is moderate due to the negative operating cash flow and lack of cash reserves.

Recent events, including analyst estimates and price targets, suggest a cautiously optimistic outlook from the market. However, the lack of recent filings or transcripts in the input data limits the ability to assess management commentary or strategic shifts.

Analysts project 19% upside to a consensus target price of TWD 150, maintaining a buy recommendation.

Net income surged 132.8% year-over-year to TWD 3.24 billion in the latest fiscal period.

Free cash flow improved dramatically by 304.1% year-over-year, reaching TWD 1.53 billion in the latest period.

Huaku faces high credit risk and its debt-to-equity ratio of 1.02 is double the cohort median.

Cash conversion is in the bottom quartile of its cohort, indicating poor efficiency in generating cash.

Long-term debt increased to TWD 26.8 billion in FY-1, reflecting significant leverage accumulation.

The company carries a medium liquidity risk flag, suggesting potential challenges in meeting short-term obligations.

Revenue TWD 4.21B, +36 624,4% YoY; Operating income +803,0% YoY.

• ▍Revenue TWD 4.21B, +36 624,4% YoY
• ▍Operating income +803,0% YoY
• ▍Net income +671,1% YoY
• ▍Free cash flow +530,3% YoY
• ▍Net margin 17.3%

Revenue TWD 13.38B, +29 049,3% YoY; Operating income +2 903,3% YoY.

• ▍Revenue TWD 13.38B, +29 049,3% YoY
• ▍Operating income +2 903,3% YoY
• ▍Net income +2 119,9% YoY
• ▍Free cash flow +2 131,2% YoY
• ▍Net margin 19.9%

Revenue TWD 2.84B, −47,7% YoY; Operating income −72,5% YoY.

• ▍Revenue TWD 2.84B, −47,7% YoY
• ▍Operating income −72,5% YoY
• ▍Net income −73,4% YoY
• ▍Free cash flow +145,7% YoY
• ▍Net margin 12.4%

Revenue TWD 2.02B, +16,2% YoY; Operating income +0,1% YoY.

• ▍Revenue TWD 2.02B, +16,2% YoY
• ▍Operating income +0,1% YoY
• ▍Net income +26,3% YoY
• ▍Free cash flow +37,5% YoY
• ▍Net margin 17.8%

Revenue TWD 11.5M; Operating income -TWD 123.8M.

• ▍Revenue TWD 11.5M
• ▍Operating income -TWD 123.8M
• ▍Net margin -1111.9%

Revenue TWD 45.9M; Operating income -TWD 114.7M.

• ▍Revenue TWD 45.9M
• ▍Operating income -TWD 114.7M
• ▍Net margin -287.0%

Revenue TWD 1.74B; Operating income TWD 432.9M.

• ▍Revenue TWD 1.74B
• ▍Operating income TWD 432.9M
• ▍Net margin 16.4%

Revenue TWD 18.24B, +152,9% YoY; Operating income +109,6% YoY.

• ▍Revenue TWD 18.24B, +152,9% YoY
• ▍Operating income +109,6% YoY
• ▍Net income +132,8% YoY
• ▍Free cash flow +304,1% YoY
• ▍Net margin 17.8%

Revenue TWD 7.21B, −54,4% YoY; Operating income −56,3% YoY.

• ▍Revenue TWD 7.21B, −54,4% YoY
• ▍Operating income −56,3% YoY
• ▍Net income −61,1% YoY
• ▍Free cash flow −149,4% YoY
• ▍Net margin 19.3%

Revenue TWD 15.80B, +6,4% YoY; Operating income +16,9% YoY.

• ▍Revenue TWD 15.80B, +6,4% YoY
• ▍Operating income +16,9% YoY
• ▍Net income +21,1% YoY
• ▍Free cash flow +70,0% YoY
• ▍Net margin 22.7%

Revenue TWD 14.85B, +9,6% YoY; Operating income +5,3% YoY.

• ▍Revenue TWD 14.85B, +9,6% YoY
• ▍Operating income +5,3% YoY
• ▍Net income +1,3% YoY
• ▍Free cash flow −10,5% YoY
• ▍Net margin 19.9%

Revenue TWD 13.55B; Operating income TWD 3.53B.

• ▍Revenue TWD 13.55B
• ▍Operating income TWD 3.53B
• ▍Net margin 21.6%