Song Ho Industrial Co., Ltd. (5016) AI Stock Analysis

Song Ho Industrial Co., Ltd.

(TPEx:5016)

Select Model

Rating:51Neutral

Price Target:TWD 25.00▲(0.00% Upside)

Action:initiatedcoverage

Date:11/09/26

Song Ho Industrial scores in the lower-middle range. The dominant factor is weak financial performance: flat revenue near NT$2 billion, broad margin compression, profits down roughly 70% from the 2021 peak, and sharply lower operating and free cash flow. This is partly offset by a conservatively financed balance sheet with falling debt and a majority equity-funded asset base, which gives the company staying power through the cyclical downturn. Technicals add to the caution, with the price trading below all major moving averages and momentum indicators pointing lower. Valuation is the brightest spot — a modest 12.5x P/E and a 4.0% dividend yield offer some support — but with earnings power still contracting, the stock looks more like a value-with-risk holding than a growth opportunity until steel demand and pricing recover.

Positive Factors

Improving LeverageThe decline in debt-to-equity indicates that Song Ho has strengthened its capital structure and reduced balance-sheet pressure from earlier years. This provides greater resilience through industrial cycles and preserves more flexibility to maintain operations or pursue opportunities over the next several quarters.

Negative Factors

Margin CompressionThe substantial decline in gross and net margins shows that Song Ho’s earnings power has weakened materially from its earlier peak. Persistently lower profitability reduces the cash available from each unit of revenue and leaves less buffer to absorb cost pressure or weaker industrial demand.

Song Ho Industrial Co., Ltd. (5016) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.24B
Dividend Yield: 4.00%
Average Volume (3M): 66.84K
Price to Earnings (P/E): 12.7
Beta (1Y): 0.05
Revenue Growth: 1.85%
EPS Growth: 18.76%
Country: TW
Employees: 371
Sector: General
Sector Strength: 55
Industry: Steel

Song Ho Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Song Ho Industrial Co., Ltd., together with its subsidiaries, manufactures and sells various steel products in Taiwan, Japan, Thailand, Mainland China, Vietnam, and internationally. The company offers hard drawn steel, roping, spring, spoke, flat, an...

Song Ho Industrial Co., Ltd. Financial Statement Overview

Summary

A mixed picture led by a solid balance sheet but weak earnings momentum. Debt has been cut from roughly NT$1.07 billion to NT$772 million and debt-to-equity has fallen to about 0.52, with equity funding roughly 58% of assets — a defensive position for a cyclical steel producer. However, revenue has been flat near NT$2 billion for three years after a 30%-plus fall from the 2021 peak, margins have compressed at every level (gross from ~16% to ~9.7%, net from ~8.0% to ~3.6%), and net income is down nearly 70% from the peak. Cash generation is still positive but deteriorating, with operating cash flow falling to roughly NT$127 million and free cash flow down about 46% to NT$68 million, leaving a thin buffer for dividends or growth spending. Return on equity of around 5% reflects a business operating near the bottom of its profitability cycle.

Income Statement

38Negative

Balance Sheet

66Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.11B	2.05B	2.03B	2.01B	2.53B	2.94B
Gross Profit	234.40M	199.45M	211.75M	164.00M	276.96M	470.33M
EBITDA	169.69M	153.75M	189.26M	144.16M	206.43M	381.40M
Net Income	97.52M	74.35M	84.69M	46.12M	100.30M	235.52M
Balance Sheet
Total Assets	2.66B	2.55B	2.56B	2.65B	2.81B	2.90B
Cash, Cash Equivalents and Short-Term Investments	495.13M	443.66M	475.31M	491.81M	426.59M	371.13M
Total Debt	801.40M	772.40M	775.00M	922.00M	1.07B	1.02B
Total Liabilities	1.15B	1.05B	1.06B	1.20B	1.34B	1.37B
Stockholders Equity	1.50B	1.49B	1.49B	1.44B	1.47B	1.52B
Cash Flow
Free Cash Flow	177.65M	67.57M	194.29M	279.28M	125.76M	24.33M
Operating Cash Flow	227.34M	127.12M	239.55M	332.36M	158.83M	76.05M
Investing Cash Flow	-36.90M	-104.11M	-59.13M	-51.14M	-42.01M	-37.32M
Financing Cash Flow	-84.55M	-61.58M	-213.75M	-208.96M	-87.43M	-7.51M

Song Ho Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5016 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2235	64Neutral	TWD 1.02B	21.04	―	5.28%	-7.77%	4.84%
TW:4584	61Neutral	TWD 1.07B	20.93	―	5.59%	-16.79%	-50.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2063	53Neutral	TWD 1.16B	12.13	―	2.27%	-11.29%	-12.54%
TW:2947	51Neutral	TWD 1.29B	17.86	―	3.67%	6.50%	13.15%
TW:5016	51Neutral	TWD 1.24B	12.69	―	4.00%	1.85%	18.76%
TW:5015	44Neutral	TWD 1.30B	13.64	―	2.34%	-19.41%	67.34%

* General Sector Average

Performance Comparison

TW:5016 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5016	Song Ho Industrial Co., Ltd.	25.00	1.14	4.76%
TW:2063	Sheh Kai Precision Co., Ltd.	22.00	-0.66	-2.92%
TW:2235	I Yuan Precision Industrial Co. Ltd.	28.40	-3.86	-11.96%
TW:2947	Zhen Yu Hardware Co., Ltd.	54.50	-19.79	-26.63%
TW:4584	Jufan Industrial Co., Ltd.	35.80	-12.63	-26.08%
TW:5015	Rodex Fasteners Corp.	21.40	-5.68	-20.98%

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

Song Ho Industrial Co., Ltd. AI Stock Analysis