Heran Co. Ltd. (5283) AI Stock Analysis

Heran Co. Ltd.

(TWSE:5283)

Select Model

Rating:53Neutral

Price Target:TWD 50.00▲(3.52% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 53 reflects a company with a solid financial foundation but significant near-term challenges. The primary positive is the attractive valuation (P/E of 7.93) and a healthy balance sheet, which provide a margin of safety. However, these are heavily counterbalanced by extremely weak technical momentum, with the stock in a clear downtrend and deep in oversold territory. The declining profitability and poor cash conversion of earnings are also major concerns that prevent a higher score.

Positive Factors

Revenue recoveryThe return to double-digit revenue growth after the 2023 decline indicates renewed demand for Heran’s appliance offering and distribution reach. If maintained, stronger sales provide a broader base for fixed-cost absorption, reinvestment, and sustained profitability over the coming quarters.

Negative Factors

Margin compressionThe sustained decline in net and operating margins shows that revenue growth has not translated into the level of profitability achieved earlier. Lower earnings conversion reduces reinvestment capacity and leaves less room to absorb cost pressure while maintaining returns.

Heran Co. Ltd. (5283) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.88B
Dividend Yield: 0.77%
Average Volume (3M): 99.75K
Price to Earnings (P/E): 7.9
Beta (1Y): 0.29
Revenue Growth: 2.70%
EPS Growth: 14.92%
Country: TW
Employees: 7,511
Sector: General
Sector Strength: 55
Industry: Furnishings, Fixtures & Appliances

Heran Co. Ltd. Business Overview & Revenue Model

Company Description

Heran Co., Ltd. manufactures and sells home appliances in Taiwan. It offers household, light commercial, commercial, and other air conditioners; liquid crystal products, such as LCD monitors, LCD peripherals, and commercial peripherals; refrigerators...

Heran Co. Ltd. Financial Statement Overview

Summary

Financial performance is mixed. A strong balance sheet (Score: 68) with low leverage and consistent equity growth provides stability. However, this is offset by declining profitability and weak cash conversion, as seen in the Income Statement (Score: 42) and Cash Flow Statement (Score: 55). The overall picture is of a financially stable company facing operational headwinds.

Income Statement

42Neutral

Balance Sheet

68Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.43B	6.47B	6.42B	6.19B	6.84B	6.36B
Gross Profit	2.04B	2.14B	2.04B	2.08B	2.17B	2.31B
EBITDA	865.13M	882.64M	741.01M	810.42M	998.65M	1.05B
Net Income	569.39M	493.12M	467.50M	568.05M	745.24M	780.14M
Balance Sheet
Total Assets	9.44B	7.40B	6.69B	6.40B	5.94B	6.03B
Cash, Cash Equivalents and Short-Term Investments	1.32B	1.28B	947.92M	656.26M	1.29B	822.21M
Total Debt	2.42B	1.14B	889.80M	601.16M	104.41M	131.38M
Total Liabilities	4.41B	2.60B	2.33B	2.21B	1.73B	1.98B
Stockholders Equity	5.04B	4.80B	4.37B	4.19B	4.21B	4.04B
Cash Flow
Free Cash Flow	619.71M	465.21M	626.15M	557.48M	1.04B	-178.75M
Operating Cash Flow	648.78M	539.59M	740.32M	680.28M	1.12B	-135.93M
Investing Cash Flow	-931.23M	-408.33M	-215.60M	-1.04B	-44.40M	-28.29M
Financing Cash Flow	-310.81M	137.06M	-421.79M	-356.98M	-603.92M	-629.83M

Heran Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5283 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6143	68Neutral	TWD 5.94B	9.49	―	8.78%	8.15%	19.48%
TW:6117	62Neutral	TWD 5.59B	12.65	―	3.35%	13.66%	69.40%
TW:5474	57Neutral	TWD 5.00B	21.23	―	3.23%	17.43%	-6.13%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5283	53Neutral	TWD 4.91B	7.88	―	0.77%	2.70%	14.92%
TW:6281	52Neutral	TWD 4.92B	12.99	―	6.67%	-0.06%	2.03%
TW:2365	51Neutral	TWD 5.23B	46.15	―	1.28%	12.45%	59.79%

* General Sector Average

Performance Comparison

TW:5283 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5283	Heran Co. Ltd.	48.30	-4.10	-7.82%
TW:2365	KYE Systems Corp.	23.40	-10.54	-31.04%
TW:5474	Yuan High-Tech Development Co., Ltd.	124.00	-30.24	-19.60%
TW:6117	In Win Development Inc.	59.70	-15.29	-20.39%
TW:6143	Netronix, Inc.	68.30	-50.60	-42.56%
TW:6281	E-Life Corporation	49.50	-12.71	-20.43%

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

Heran Co. Ltd. AI Stock Analysis