Honey Hope Honesty Enterprise Co., Ltd. (8043) AI Stock Analysis

Honey Hope Honesty Enterprise Co., Ltd.

(TPEx:8043)

Select Model

Rating:43Neutral

Price Target:TWD 84.00▼(-14.55% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is weighed down primarily by poor cash generation — nearly NT$560 million of negative operating and free cash flow alongside a five-fold jump in debt — which signals that reported profits are not converting into cash. Thin operating margins near breakeven and low returns on equity further limit earnings quality, even though revenue growth of 11.3% and improving gross margins are encouraging and the equity-heavy balance sheet provides a near-term cushion. Technicals reinforce the caution, with the stock trading well below all key moving averages amid strong bearish momentum. Valuation at 22x earnings with only a 1.0% yield leaves little margin of safety given the underlying fundamentals.

Positive Factors

Revenue RecoveryThe 2025 revenue rebound indicates renewed business activity after two weaker years and provides a foundation for continued recovery. If growth persists, greater scale could support operating leverage, strengthen market participation, and improve the company’s ability to absorb fixed costs.

Negative Factors

Thin Gross MarginsVery thin gross and net margins leave limited room to absorb cost increases, execution issues, or weaker demand. They also constrain reinvestment and make earnings more sensitive to small changes in revenue or expenses, reducing the durability and predictability of profitability.

Honey Hope Honesty Enterprise Co., Ltd. (8043) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 7.67B
Dividend Yield: 0.92%
Average Volume (3M): 3.26M
Price to Earnings (P/E): 23.9
Beta (1Y): 1.51
Revenue Growth: 51.66%
EPS Growth: 8845.09%
Country: TW
Employees: 82
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Honey Hope Honesty Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Honey Hope Honesty Enterprise Co.,Ltd, established in 1989 and headquartered in Taipei, Taiwan, is engaged in the global commerce of electronic passive components. Its product offerings encompass items such as multilayer capacitors, chip inductors, c...

Honey Hope Honesty Enterprise Co., Ltd. Financial Statement Overview

Summary

Financial quality is weak overall. The income statement (46) shows a return to growth with revenue up 11.3% to NT$5.43 billion and gross margin recovering to 5.6%, but operating margin is razor-thin at 0.7% and a large share of the NT$133.5 million net income appears to come from non-operating items, lowering earnings quality. Cash flow (22) is the biggest concern: operating cash flow was negative NT$559.7 million and free cash flow negative NT$561.9 million, a sharp deterioration year over year, with profits failing to convert into cash. The balance sheet (67) is the offsetting strength — equity funds roughly 60% of assets and debt-to-equity is a modest 0.22 — but total debt rose nearly five-fold to NT$602.8 million and ROE remains low at 4.8%, suggesting the equity cushion is being drawn on rather than built upon.

Income Statement

46Neutral

Balance Sheet

67Positive

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.82B	5.43B	4.69B	4.89B	5.85B	6.15B
Gross Profit	475.99M	305.13M	209.69M	135.75M	253.01M	326.83M
EBITDA	233.88M	61.74M	156.19M	2.21M	217.34M	189.59M
Net Income	330.34M	133.51M	121.38M	-19.06M	150.88M	140.15M
Balance Sheet
Total Assets	5.68B	4.59B	4.19B	3.84B	4.48B	5.20B
Cash, Cash Equivalents and Short-Term Investments	993.94M	1.06B	1.03B	920.31M	547.23M	726.41M
Total Debt	1.13B	602.84M	126.53M	13.71M	10.47M	154.05M
Total Liabilities	2.84B	1.83B	1.49B	1.32B	1.84B	2.67B
Stockholders Equity	2.84B	2.76B	2.70B	2.52B	2.64B	2.54B
Cash Flow
Free Cash Flow	-1.18B	-561.88M	-248.01M	598.77M	165.10M	-91.98M
Operating Cash Flow	-1.17B	-559.69M	-237.38M	610.24M	174.21M	-87.66M
Investing Cash Flow	-325.00K	127.33M	297.30M	-397.99M	-98.23M	148.48M
Financing Cash Flow	929.92M	406.55M	116.35M	-91.16M	-224.69M	-133.89M

Honey Hope Honesty Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8043 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5403	77Outperform	TWD 6.87B	10.69	―	7.37%	2.60%	-2.42%
TW:6227	63Neutral	TWD 8.26B	8.47	―	4.11%	47.32%	96.76%
TW:3479	59Neutral	TWD 7.72B	14.47	―	4.38%	10.71%	1.91%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2450	53Neutral	TWD 7.11B	15.22	―	5.60%	16.30%	14.23%
TW:8043	43Neutral	TWD 7.51B	23.89	―	0.92%	51.66%	8845.09%
TW:5498	38Underperform	TWD 9.03B	95.67	―	0.49%	64.47%	―

* General Sector Average

Performance Comparison

TW:8043 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8043	Honey Hope Honesty Enterprise Co., Ltd.	98.30	40.28	69.42%
TW:2450	Senao International Co. Ltd.	27.70	0.01	0.03%
TW:3479	Avalue Technology Inc.	105.50	0.91	0.87%
TW:5403	Dimerco Data System Corporation	88.20	-22.16	-20.08%
TW:5498	Key Ware Electronics Co., Ltd.	51.30	24.63	92.37%
TW:6227	Macnica Galaxy Inc.	109.50	22.92	26.47%

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

Honey Hope Honesty Enterprise Co., Ltd. AI Stock Analysis