Hocheng Corporation (1810) AI Stock Analysis

Hocheng Corporation

(TWSE:1810)

Select Model

Rating:49Neutral

Price Target:TWD 19.50▼(-5.80% Downside)

Action:initiatedcoverage

Date:11/09/26

Hocheng scores below average, held back primarily by deteriorating core profitability — multi-year revenue declines, a return to operating losses and a net margin of just 0.3% — and by a clearly bearish technical setup, with the shares trading under all major moving averages and a negative MACD. Partially offsetting these risks are a very strong balance sheet (debt-to-equity of 0.11 after cutting debt by more than 70% since 2020), a sharp rebound in operating and free cash flow, and an inexpensive 5.57 P/E with a small dividend. Deeply oversold momentum readings hint at scope for a short-term bounce, but a sustained re-rating likely requires a recovery in revenue and operating profit.

Positive Factors

Low leverageThe declining debt-to-equity ratio gives Hocheng a conservative capital structure and greater financial flexibility during a weaker earnings period. Low leverage can reduce financing pressure, preserve borrowing capacity, and allow the company to sustain operations or fund opportunities without excessive balance-sheet risk.

Negative Factors

Persistent revenue declineA multi-year revenue decline signals sustained pressure on Hocheng’s demand environment and limits the company’s ability to expand earnings through volume growth. Continued top-line contraction can reduce operating leverage, weaken market presence over time, and make fixed-cost absorption increasingly difficult.

Hocheng Corporation (1810) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.32B
Dividend Yield: 0.97%
Average Volume (3M): 3.25M
Price to Earnings (P/E): 5.7
Beta (1Y): 0.62
Revenue Growth: -7.35%
EPS Growth: 8334.19%
Country: TW
Employees: 3,100
Sector: General
Sector Strength: 55
Industry: Furnishings, Fixtures & Appliances

Hocheng Corporation Business Overview & Revenue Model

Company Description

Hocheng Corporation is an international provider of bathroom products, serving markets both in Taiwan and worldwide through its subsidiaries. Its extensive product portfolio encompasses a broad range of sanitary ceramics, including fixtures and their...

Hocheng Corporation Financial Statement Overview

Summary

A weak income statement dominates the picture: revenue has fallen from NT$5.31bn in 2021 to NT$4.56bn (-3.7% in the latest year), the company slipped back into an operating loss of roughly NT$49m, and net income of just NT$14m equates to a 0.3% margin with return on equity near zero. Offsetting this, the balance sheet is conservative — debt cut from NT$2.60bn (2020) to NT$741m, debt-to-equity of only 0.11, and equity funding about two-thirds of the NT$10.37bn asset base. Cash flow also rebounded strongly, with operating cash flow swinging to +NT$448m and free cash flow to +NT$355m, far above reported profit, though history shows wide year-to-year volatility. Stable gross margins near 25.8% indicate intact product economics, but operating expenses absorb nearly all gross profit, leaving no earnings cushion.

Income Statement

27Negative

Balance Sheet

71Positive

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.36B	4.56B	4.86B	4.87B	5.00B	5.31B
Gross Profit	1.04B	1.18B	1.21B	1.20B	1.31B	1.36B
EBITDA	-116.41M	143.41M	344.57M	355.48M	533.12M	2.27B
Net Income	1.10B	14.30M	58.42M	19.35M	157.29M	1.75B
Balance Sheet
Total Assets	10.76B	10.37B	10.44B	10.59B	9.86B	11.47B
Cash, Cash Equivalents and Short-Term Investments	996.57M	803.41M	1.40B	1.52B	983.66M	2.44B
Total Debt	698.93M	740.95M	927.21M	1.14B	1.71B	2.50B
Total Liabilities	2.17B	3.43B	3.54B	3.87B	3.36B	4.11B
Stockholders Equity	8.54B	6.87B	6.84B	6.67B	6.45B	7.26B
Cash Flow
Free Cash Flow	147.77M	354.95M	-299.45M	1.15B	-143.96M	116.82M
Operating Cash Flow	240.49M	448.07M	-180.81M	1.26B	105.13M	204.69M
Investing Cash Flow	68.12M	-340.41M	-132.22M	166.40M	-214.67M	1.83B
Financing Cash Flow	-240.06M	-243.05M	-296.40M	-735.18M	-1.41B	-900.51M

Hocheng Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1810 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2008	58Neutral	TWD 5.86B	47.87	―	3.23%	-3.73%	39.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2020	53Neutral	TWD 5.94B	10.58	―	8.18%	2.35%	1.68%
TW:1810	49Neutral	TWD 6.22B	5.74	―	0.97%	-7.35%	8334.19%
TW:1809	47Neutral	TWD 7.27B	226.93	―	0.56%	3.90%	-23.90%
TW:5531	39Underperform	TWD 5.87B	55.18	―	―	-72.62%	-9.86%
TW:1305	27Underperform	TWD 6.51B	-15.83	―	0.88%	-7.05%	63.06%

* General Sector Average

Performance Comparison

TW:1810 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1810	Hocheng Corporation	20.70	3.02	17.10%
TW:1305	China General Plastics Corporation	11.40	-0.26	-2.20%
TW:1809	China Glaze Co., Ltd.	44.50	24.63	123.90%
TW:2008	Kao Hsing Chang Iron & Steel Corporation	30.95	4.03	14.98%
TW:2020	Mayer Steel Pipe Corporation	22.00	0.51	2.36%
TW:5531	Shining Building Business Co. Ltd.	6.17	-3.02	-32.86%

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

Hocheng Corporation AI Stock Analysis