Honor Seiki Co. Ltd. (7709) AI Stock Analysis

Honor Seiki Co. Ltd.

(TPEx:7709)

Select Model

Rating:60Neutral

Price Target:TWD 70.00▼(-4.37% Downside)

Action:initiatedcoverage

Date:11/09/26

Honor Seiki scores in the middle of the range. Its greatest strength is financial resilience: a near debt-free balance sheet (debt-to-equity of 0.10), equity funding roughly three-quarters of assets, and record free cash flow of NT$241.8 million. However, the business is in a cyclical downturn, with revenue down about a third, net income down ~47%, and ROE falling to 5.6%, which caps the financial score. Technicals are the main drag, as the shares trade below all key moving averages with negative MACD, though RSI and Stochastic readings suggest the selling may be approaching exhaustion. Valuation is reasonable rather than cheap at 17.9x earnings on depressed profits, with a 2.24% dividend yield offering some support. Earnings call and corporate event data were unavailable and excluded, with their weight redistributed to the remaining components.

Positive Factors

Conservative Balance SheetThe sharp reduction in leverage gives Honor Seiki greater financial flexibility through an industrial cycle. A stronger equity base and lower debt burden can support investment, reduce balance-sheet risk, and improve resilience if demand remains uneven over the coming quarters.

Negative Factors

Revenue ContractionRevenue contraction signals that current demand for Honor Seiki’s industrial machinery is below the prior year’s level. If weaker volumes persist, fixed operating costs may weigh on earnings and limit the company’s ability to sustain growth despite its improved margin profile.

Honor Seiki Co. Ltd. (7709) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.90B
Dividend Yield: 2.05%
Average Volume (3M): 142.09K
Price to Earnings (P/E): 19.6
Beta (1Y): 1.00
Revenue Growth: -20.49%
EPS Growth: 10.41%
Country: TW
Employees: 200
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Honor Seiki Co. Ltd. Business Overview & Revenue Model

Company Description

Honor Seiki Co. Ltd. specializes in providing computer numerical control (CNC) vertical lathes and comprehensive turnkey manufacturing solutions. Their diverse product portfolio includes vertical turning centers, vertical grinding machines, integrate...

Honor Seiki Co. Ltd. Financial Statement Overview

Summary

A conservative, cash-generative balance sheet (score 83) and improving cash conversion (score 78) outweigh weak earnings momentum (score 55). Debt was cut to NT$171.9 million, leaving debt-to-equity at just 0.10 with equity funding ~73% of assets, while free cash flow rose to a record NT$241.8 million and operating cash flow covers ~45% of total liabilities. Offsetting this, revenue fell roughly a third to NT$1.00 billion, net income dropped ~47% to NT$95.3 million, operating margin compressed to 10.4%, and ROE slipped to 5.6%. Gross margin reaching a six-year high of 27.9% shows pricing and mix discipline, but the sharp revenue swings typical of machine-tool makers keep earnings visibility low.

Income Statement

55Neutral

Balance Sheet

83Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Sep 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.03B	1.00B	1.46B	1.35B	1.01B	1.27B
Gross Profit	276.46M	279.39M	357.27M	323.99M	255.86M	209.62M
EBITDA	145.87M	143.15M	271.39M	227.97M	198.71M	121.30M
Net Income	146.31M	95.30M	179.06M	141.38M	123.52M	63.97M
Balance Sheet
Total Assets	2.79B	2.31B	2.27B	2.43B	2.62B	2.25B
Cash, Cash Equivalents and Short-Term Investments	872.19M	679.29M	492.33M	438.26M	551.14M	271.35M
Total Debt	544.01M	171.86M	357.40M	389.01M	520.10M	454.84M
Total Liabilities	1.09B	617.71M	822.00M	1.09B	1.30B	1.01B
Stockholders Equity	1.70B	1.69B	1.45B	1.34B	1.32B	1.24B
Cash Flow
Free Cash Flow	-121.83M	241.79M	162.72M	153.37M	243.30M	19.99M
Operating Cash Flow	-30.23M	271.91M	176.05M	168.68M	259.93M	47.19M
Investing Cash Flow	-262.81M	35.14M	-23.40M	57.30M	-136.76M	249.53M
Financing Cash Flow	295.38M	-47.76M	-106.37M	-264.58M	37.82M	-161.35M

Honor Seiki Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:7709 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:7704	76Outperform	TWD 2.70B	21.53	―	2.25%	5.79%	118.14%
TW:7709	60Neutral	TWD 2.86B	19.57	―	2.05%	-20.49%	10.41%
TW:3444	59Neutral	TWD 3.22B	37.09	―	2.52%	5.40%	-8.34%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4563	49Neutral	TWD 2.96B	-15.90	―	5.58%	-20.39%	-253.78%
TW:1530	43Neutral	TWD 2.68B	13.93	―	0.39%	1.34%	75.78%
TW:4562	32Underperform	TWD 2.63B	-44.00	―	―	-19.93%	13.97%

* General Sector Average

Performance Comparison

TW:7709 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:7709	Honor Seiki Co. Ltd.	73.20	36.28	98.25%
TW:1530	Awea Mechantronic Co. Ltd.	25.95	1.58	6.48%
TW:3444	Niching Industrial Corp.	71.50	18.27	34.32%
TW:4562	Ying Han Technology Co., Ltd.	30.05	-8.35	-21.74%
TW:4563	Quaser Machine Tools, Inc.	53.80	5.15	10.59%
TW:7704	Finesse Technology Co. Ltd.	80.00	36.15	82.45%

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

Honor Seiki Co. Ltd. AI Stock Analysis