ShareHope Medicine Co., Ltd. (8403) AI Stock Analysis

ShareHope Medicine Co., Ltd.

(TPEx:8403)

Select Model

Rating:49Neutral

Price Target:TWD 17.50▼(-5.66% Downside)

Action:initiatedcoverage

Date:11/09/26

ShareHope Medicine scores below average, driven mainly by deteriorating profitability: flat revenue combined with a gross margin that has more than halved since 2020, an operating margin under 2%, a ~29% drop in net income and ROE of only 4%, plus growing reliance on non-operating income. Technicals add to the caution, with the price trading below all key moving averages and a negative MACD, although extremely oversold RSI and Stochastic readings hint at potential short-term stabilization. Partially offsetting these risks are a solid balance sheet with three consecutive years of debt reduction, improving operating and free cash flow that exceed reported profits, a moderate 15.4x P/E and a 3.38% dividend yield. Until gross margins stabilize, the stock's defensive balance sheet and income appeal are unlikely to fully offset the earnings decline.

Positive Factors

Revenue Re-accelerationThe sharp improvement in top-line growth indicates stronger recent demand and expanding commercial activity. If maintained, this momentum can support greater operating scale, improve market reach, and provide a foundation for rebuilding earnings despite current margin pressure.

Negative Factors

Margin CompressionMaterial declines in gross and operating margins show that recent revenue growth is carrying weaker economics. Persistent cost pressure or pricing competition could limit the benefit of expansion, reduce operating leverage, and keep future earnings growth disproportionately dependent on further volume gains.

ShareHope Medicine Co., Ltd. (8403) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.53B
Dividend Yield: 3.23%
Average Volume (3M): 85.11K
Price to Earnings (P/E): 15.4
Beta (1Y): 0.25
Revenue Growth: 6.25%
EPS Growth: 14.37%
Country: TW
Employees: 118
Sector: General
Sector Strength: 55
Industry: Medical - Distribution

ShareHope Medicine Co., Ltd. Business Overview & Revenue Model

Company Description

ShareHope Medicine Co., Ltd., a company based in Taiwan, delivers a wide array of integrated healthcare solutions. Its operations encompass health management and administrative services, the provision of skilled medical professionals for staffing nee...

ShareHope Medicine Co., Ltd. Financial Statement Overview

Summary

A weak earnings profile dominates: revenue has plateaued near NT$4.3–4.4 billion while gross margin collapsed from 28.8% (2020) to 13.2% (2025) and operating margin fell to just 1.9%, pushing net income down ~29% and ROE to 4.1%. Earnings quality is also a concern, as net profit now exceeds operating profit, implying reliance on non-operating income (Income Statement score 38). Offsetting strengths are a reasonably conservative balance sheet — debt reduced for a third straight year to NT$1.80 billion, debt-to-equity improved to 0.52x, equity funding ~52% of assets (score 60) — and improving cash generation, with operating cash flow up ~37% to NT$364 million and free cash flow up to NT$232 million (score 63). The investment case hinges on a gross margin turnaround rather than further cost or balance-sheet management.

Income Statement

38Negative

Balance Sheet

60Neutral

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.50B	4.36B	4.33B	3.87B	4.14B	3.85B
Gross Profit	689.73M	573.78M	714.40M	726.38M	983.91M	833.96M
EBITDA	382.45M	349.13M	539.82M	485.07M	685.25M	592.51M
Net Income	167.43M	141.73M	200.10M	124.56M	293.95M	232.66M
Balance Sheet
Total Assets	6.54B	6.62B	7.10B	7.45B	7.38B	6.11B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.58B	1.49B	1.43B	1.55B	1.57B
Total Debt	1.77B	1.80B	2.01B	2.18B	2.11B	1.31B
Total Liabilities	2.84B	2.78B	3.12B	3.49B	3.28B	2.23B
Stockholders Equity	3.30B	3.44B	3.56B	3.49B	3.42B	3.15B
Cash Flow
Free Cash Flow	331.62M	232.32M	173.65M	-20.07M	-641.58M	207.84M
Operating Cash Flow	412.08M	364.13M	266.68M	257.13M	642.47M	360.10M
Investing Cash Flow	-176.44M	-121.07M	35.11M	-227.60M	-1.37B	-320.71M
Financing Cash Flow	-273.58M	-359.88M	-227.22M	-180.39M	706.28M	-163.41M

ShareHope Medicine Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8403 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8432	85Outperform	TWD 2.36B	11.34	―	4.24%	20.56%	67.85%
TW:1780	71Outperform	TWD 2.59B	8.03	―	5.27%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8403	49Neutral	TWD 2.55B	15.42	―	3.23%	6.25%	14.37%
TW:1762	40Underperform	TWD 2.39B	-33.39	―	0.62%	-20.25%	81.66%

* General Sector Average

Performance Comparison

TW:8403 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8403	ShareHope Medicine Co., Ltd.	18.55	-4.91	-20.92%
TW:1762	Chunghwa Chemical Synthesis & Biotech Co., Ltd. Class A	31.05	6.15	24.70%
TW:1780	Allied Biotech Corp	23.70	6.00	33.88%
TW:6932	Merdury Biopharmaceutical Corporation	5.49	-4.76	-46.44%
TW:7860	Teh Seng Pharmaceutical Mfg Co Ltd	71.20	-4.61	-6.08%
TW:8432	TSH Biopharm Corp. Ltd.	61.50	9.01	17.17%

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

ShareHope Medicine Co., Ltd. AI Stock Analysis