Fact based stock research
Huaku Development (TSEC:2548)

TW0002548005

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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.

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

Huaku Development stock research in summary

huaku.com.tw

ANALYSIS: With an Obermatt Combined Rank of 71 (better than 71% compared with investment alternatives), Huaku Development (Real Estate Development, Taiwan) shares have above-average financial characteristics compared with similar stocks. Shares of Huaku Development are a good value (attractively priced) with a consolidated Value Rank of 75 (better than 75% of alternatives), show above-average growth (Growth Rank of 61) but are riskily financed (Safety Rank of 42), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 71, is a buy recommendation based on Huaku Development's financial characteristics. As the company Huaku Development's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 75) and above-average growth (Obermatt Growth Rank of 61), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 42) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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	75
Growth Rank	61
Safety Rank	42
Combined Rank	71

Country	Taiwan
Industry	Real Estate Development
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: Huaku Development

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	83	62	71	75
GROWTH
GROWTH	55	59	61	61
SAFETY
SAFETY	87	81	65	42
SENTIMENT
SENTIMENT	84	96	98	^new
360° VIEW
360° VIEW	97	98	96	^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 Huaku Development is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	83	62	71	75
GROWTH
GROWTH	55	59	61	61
SAFETY
SAFETY	87	81	65	42
COMBINED
COMBINED	98	89	87	71

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 75 (better than 75% compared with alternatives) for 2025, Huaku Development shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Huaku Development. Price-to-Profit (also referred to as price-earnings, P/E) is 60 which means that the stock price compared with what market professionals expect for future profits is lower than for 60% of comparable companies, indicating a good value concerning Huaku Development'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 39, which means that the stock price is lower as regards to invested capital than for 39% of comparable investments. On the other hand, Price-to-Sales is less favorable than 58% of alternatives (only 42% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 2% 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 75, is a buy recommendation based on Huaku Development's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. 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 especially important 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)	59	33	40	42
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	81	49	70	60
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	49	45	34	39
DIVIDEND YIELD
DIVIDEND YIELD	94	84	93	98
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	83	62	71	75

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 61 (better than 61% compared with alternatives), Huaku Development 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 Huaku Development. Sales Growth has a rank of 100, which means that, currently, professionals expect the company to grow more than 100% of its competitors. Profit Growth with a rank of 81 is also above average. But Capital Growth has only a rank of 40, and Stock Returns with 9 are also below-average. Stock returns for Huaku Development have recently been below 91% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, 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 Huaku Development. 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	91	67	49	100
PROFIT GROWTH
PROFIT GROWTH	21	61	68	81
CAPITAL GROWTH
CAPITAL GROWTH	34	15	1	40
STOCK RETURNS
STOCK RETURNS	55	65	81	9
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	55	59	61	61

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 42 (better than 42% compared with alternatives), the company Huaku Development has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Huaku Development is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, 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 Huaku Development. Refinancing is at 70, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 70% of its competitors. Liquidity is also good at 63, meaning the company generates more profit to service its debt than 63% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 20, which means the company has an above-average debt-to-equity ratio. It has more debt than 80% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 42 (worse than 58% compared with alternatives), Huaku Development has a financing structure that is riskier 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 Huaku Development 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 Huaku Development 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	39	41	37	20
REFINANCING
REFINANCING	81	69	67	70
LIQUIDITY
LIQUIDITY	76	79	76	63
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	87	81	65	42

Last update of Safety Rank: 15-May-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Huaku Development 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	100	100	^new
OPINIONS CHANGE
OPINIONS CHANGE	92	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	100	86	80	^new
MARKET PULSE
MARKET PULSE	13	73	91	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	84	96	98	^new

Last update of Sentiment Rank: 15-May-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Huaku Development.
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