Hey-Song Corp. (1234) AI Stock Analysis

Hey-Song Corp.

(TWSE:1234)

Select Model

Rating:54Neutral

Price Target:TWD 33.00▲(3.45% Upside)

Action:initiatedcoverage

Date:11/09/26

Hey-Song scores in the lower-middle range, held back primarily by a sharp deterioration in cash generation — operating cash flow has collapsed to NT$244m and free cash flow turned negative for the first time — alongside two consecutive years of revenue decline and a dramatic compression in operating and EBITDA margins. Offsetting this is an exceptionally conservative balance sheet with debt-to-equity of only 0.11 and ~79% equity funding, plus stable ~28% gross margins, which give the company ample room to absorb a soft patch. Technicals reinforce caution, with the price trading below all major moving averages and negative MACD momentum. A 5.16% dividend yield and very low beta offer defensive appeal, but a 19.5x P/E looks full given weak returns on equity and earnings increasingly reliant on non-operating income. Investors should look for stabilisation in operating profitability and cash conversion before the risk/reward improves.

Positive Factors

Conservative balance sheetLow leverage and stable equity provide financial flexibility through an operating slowdown. The company is less dependent on borrowing to sustain operations or fund investment, which supports resilience and preserves capacity for future capital allocation.

Negative Factors

Severe revenue contractionThe sharp 2025 revenue contraction signals a material deterioration in demand, distribution, or business execution rather than ordinary quarterly volatility. A smaller revenue base can reduce operating leverage, weaken negotiating scale, and make a durable earnings recovery more difficult.

Hey-Song Corp. (1234) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 12.82B
Dividend Yield: 5.17%
Average Volume (3M): 98.18K
Price to Earnings (P/E): 19.5
Beta (1Y): 0.08
Revenue Growth: -7.77%
EPS Growth: -27.50%
Country: TW
Employees: 20,419
Sector: General
Sector Strength: 55
Industry: Beverages - Non-Alcoholic

Hey-Song Corp. Business Overview & Revenue Model

Company Description

Hey Song Corporation manufactures and sells beverages and alcoholic beverages under its own brands, provides OEM and sales services for other well-known brands in Taiwan. The company offers carbonated drinks under the HeySong Sarsaparilla, C&C, and H...

Hey-Song Corp. Financial Statement Overview

Summary

A tale of two halves. The balance sheet is a genuine fortress (score 80): equity funds ~79% of assets, debt-to-equity is just 0.11, and equity has compounded steadily since 2020, leaving minimal solvency risk. The income statement (score 54) is mixed — gross margin is impressively stable near 28%, but revenue has declined two years running to NT$9.51bn and operating profit collapsed from NT$694m to NT$416m, with EBITDA margin halving to 6.3%. Net income exceeding operating profit signals a lower-quality earnings mix reliant on non-operating income. Cash flow is the clear weak spot (score 33): operating cash flow has fallen every year to just NT$244m, free cash flow turned negative at NT$132m, and cash conversion dropped to roughly 0.3x net income. ROE of ~4%-5% underscores poor capital efficiency on a large asset base.

Income Statement

54Neutral

Balance Sheet

80Positive

Cash Flow

33Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.25B	9.51B	10.25B	10.58B	9.56B	9.22B
Gross Profit	2.66B	2.66B	3.05B	2.97B	2.68B	2.56B
EBITDA	1.01B	595.97M	1.56B	1.53B	1.46B	1.37B
Net Income	658.83M	804.35M	947.40M	948.45M	886.13M	796.81M
Balance Sheet
Total Assets	24.36B	23.93B	23.69B	22.76B	22.76B	22.79B
Cash, Cash Equivalents and Short-Term Investments	1.72B	1.52B	1.59B	1.61B	1.50B	1.51B
Total Debt	1.94B	2.04B	1.63B	773.44M	1.04B	1.22B
Total Liabilities	5.92B	5.08B	4.85B	4.11B	4.41B	4.64B
Stockholders Equity	18.44B	18.85B	18.83B	18.65B	18.35B	18.14B
Cash Flow
Free Cash Flow	265.06M	-131.85M	64.41M	1.03B	592.25M	872.08M
Operating Cash Flow	559.15M	244.19M	772.27M	1.29B	813.24M	1.10B
Investing Cash Flow	-443.57M	-8.29M	-981.86M	185.47M	-218.20M	-650.51M
Financing Cash Flow	-187.39M	-383.75M	64.69M	-993.28M	-852.87M	-494.63M

Hey-Song Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1234 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1707	73Outperform	TWD 11.75B	10.96	―	7.62%	-5.38%	-12.85%
TW:3218	73Outperform	TWD 10.68B	9.40	―	6.15%	0.24%	28.93%
TW:2753	72Outperform	TWD 12.39B	12.75	―	6.19%	7.94%	16.15%
TW:8462	68Neutral	TWD 12.09B	12.67	―	4.97%	19.42%	56.90%
TW:8436	62Neutral	TWD 10.68B	10.48	―	6.58%	-3.82%	2.23%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1234	54Neutral	TWD 12.84B	19.45	―	5.17%	-7.77%	-27.50%

* General Sector Average

Performance Comparison

TW:1234 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1234	Hey-Song Corp.	31.90	-3.64	-10.24%
TW:1707	Grape King Bio Ltd.	78.70	-43.39	-35.54%
TW:2753	Bafang Yunji International Co., Ltd.	177.00	-3.53	-1.95%
TW:3218	Universal Vision Biotechnology Co., Ltd.	126.00	-20.80	-14.17%
TW:8436	TCI Co., Ltd.	91.40	-24.30	-21.00%
TW:8462	Power Wind Health Industry Incorporated	146.50	-1.64	-1.11%

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

Hey-Song Corp. AI Stock Analysis