Fact based stock research
Chong Hong Construction (TSEC:5534)

TW0005534002

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Chong Hong Construction stock research in summary

chonghong.com.tw

ANALYSIS: With an Obermatt Combined Rank of 60 (better than 60% compared with investment alternatives), Chong Hong Construction (Real Estate: Diversified Operations, Taiwan) shares have above-average financial characteristics compared with similar stocks. Shares of Chong Hong Construction are low in value (priced high) with a consolidated Value Rank of 7 (worse than 93% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 94, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 60, is a buy recommendation based on Chong Hong Construction's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Chong Hong Construction exhibits low value (Obermatt Value Rank of 7), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 94) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	7
Growth Rank	65
Safety Rank	94
Combined Rank	60

Country	Taiwan
Industry	Real Estate: Diversified Operations
Index	FTSE Taiwan
Size class	Medium

15-May-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Chong Hong Construction

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	57	55	69	7
GROWTH
GROWTH	5	43	99	65
SAFETY
SAFETY	98	96	94	94
SENTIMENT
SENTIMENT	100	52	32	^new
360° VIEW
360° VIEW	80	79	92	^new

Most recent update of the stock research: 15-May-2025. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Chong Hong Construction is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	57	55	69	7
GROWTH
GROWTH	5	43	99	65
SAFETY
SAFETY	98	96	94	94
COMBINED
COMBINED	55	78	100	60

Last update of combined financial performance: 15-May-2025. Stock analysis on combined financial performance: The higher the rank of Chong Hong Construction the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 7 (worse than 93% compared with alternatives), Chong Hong Construction shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Chong Hong Construction. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 59, which means that the stock price compared with what market professionals expect for future profits is lower than for 59% of comparable companies, indicating a good value concerning Chong Hong Construction's profit levels. But Price-to-Sales is 36 which means that the stock price compared with what market professionals expect for future profits is higher than for 64% of comparable companies, indicating a low value concerning Chong Hong Construction's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 16 and for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 7, is a sell recommendation based on Chong Hong Construction's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Chong Hong Construction is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	35	38	49	36
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	41	66	86	59
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	42	28	18	16
DIVIDEND YIELD
DIVIDEND YIELD	100	94	95	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	57	55	69	7

Last update of Value Rank: 15-May-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Chong Hong Construction; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), Chong Hong Construction shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Chong Hong Construction. Sales Growth has a rank of 92, which means that, currently, professionals expect the company to grow more than 92% of its competitors. Profit Growth with a rank of 84 is also above average. But Capital Growth has only a rank of 23, and Stock Returns with 15 are also below-average. Stock returns for Chong Hong Construction have recently been below 85% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Chong Hong Construction. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	4	100	81	92
PROFIT GROWTH
PROFIT GROWTH	1	6	34	84
CAPITAL GROWTH
CAPITAL GROWTH	63	1	90	23
STOCK RETURNS
STOCK RETURNS	23	63	83	15
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	5	43	99	65

Last update of Growth Rank: 15-May-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Chong Hong Construction.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 94 (better than 94% compared with alternatives) for 2025, the company Chong Hong Construction has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Chong Hong Construction is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Chong Hong Construction. Refinancing is at 74, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 74% of its competitors. Liquidity is also good at 94, meaning the company generates more profit to service its debt than 94% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 39, which means the company has an above-average debt-to-equity ratio. It has more debt than 61% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 94 (better than 94% compared with alternatives), Chong Hong Construction has a financing structure that is significantly safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Chong Hong Construction could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Chong Hong Construction and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	54	32	33	39
REFINANCING
REFINANCING	77	83	72	74
LIQUIDITY
LIQUIDITY	100	98	96	94
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	98	96	94	94

Last update of Safety Rank: 15-May-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Chong Hong Construction and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	91	14	^new
OPINIONS CHANGE
OPINIONS CHANGE	99	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	90	31	79	^new
MARKET PULSE
MARKET PULSE	67	35	56	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	100	52	32	^new

Last update of Sentiment Rank: 30-Jan-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Chong Hong Construction.
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