Bon Fame Co., Ltd. (8433) AI Stock Analysis

Bon Fame Co., Ltd.

(TPEx:8433)

Select Model

Rating:52Neutral

Price Target:TWD 49.00▼(-0.31% Downside)

Action:initiatedcoverage

Date:11/09/26

Bon Fame scores in the below-average range, weighed down primarily by a sharp deterioration in earnings and cash generation: revenue declined for the first time since 2020, margins compressed across the board, net profit fell roughly two-thirds, and free cash flow turned negative. Technicals reinforce the caution, with the price below all key moving averages and a negative MACD confirming a sustained downtrend. Offsetting these risks are a conservative balance sheet — leverage reduced to 0.55 debt-to-equity with equity funding about half of assets — and a deeply discounted valuation at 6.8x earnings with an 8.6% dividend yield, though that payout's durability is questionable while free cash flow is negative. The stock is a potential value and income candidate, but only once margin and cash-conversion stabilization becomes evident.

Positive Factors

Improving Balance-Sheet LeverageLower debt relative to equity indicates improving balance-sheet resilience and provides greater flexibility to manage operating volatility. For a retailer, the healthier leverage profile can support ongoing operations and reduce financial risk, even as profitability remains under pressure.

Negative Factors

Sharp Margin CompressionThe substantial decline in gross and net margins reduces current earnings power and indicates that revenue is producing less profit than before. Unless costs, pricing pressure, or operating expenses improve, the weaker margin structure could limit durable returns and constrain reinvestment.

Bon Fame Co., Ltd. (8433) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.68B
Dividend Yield: 8.55%
Average Volume (3M): 20.22K
Price to Earnings (P/E): 7.7
Beta (1Y): 0.17
Revenue Growth: 9.23%
EPS Growth: 66.23%
Country: TW
Employees: 80
Sector: General
Sector Strength: 55
Industry: Specialty Retail

Bon Fame Co., Ltd. Business Overview & Revenue Model

Company Description

Bon Fame Co., Ltd. is a Taiwanese enterprise primarily engaged in the fashion sector. The company provides a wide array of products, spanning from various fashion accessories like hair items, jewelry, and bags, to beauty and personal care essentials,...

Bon Fame Co., Ltd. Financial Statement Overview

Summary

A mixed picture dominated by operational deterioration. The income statement (45) shows the first revenue decline since 2020 alongside severe margin compression — gross margin down to 23.3%, operating margin halved to 10.2%, and net income down roughly 67% to NT$173 million. Cash flow (36) is the weakest area: operating cash flow collapsed from NT$568 million to NT$121 million and free cash flow turned negative at -NT$52 million, indicating poor conversion of profit into cash. The balance sheet (64) is the clear offset, with equity funding about half of the NT$4.80 billion asset base, debt reduced to NT$1.31 billion and debt-to-equity improved to 0.55; however, return on equity fell from 20.4% to 7.2%, showing weak asset productivity. Overall: financially sound but operationally under pressure.

Income Statement

45Neutral

Balance Sheet

64Positive

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.69B	3.48B	3.61B	3.47B	3.14B	2.82B
Gross Profit	812.89M	811.69M	963.07M	963.65M	782.45M	608.90M
EBITDA	495.65M	440.72M	781.30M	715.93M	631.23M	318.77M
Net Income	396.28M	172.70M	529.75M	489.94M	503.53M	208.55M
Balance Sheet
Total Assets	4.63B	4.80B	5.34B	4.57B	3.91B	3.30B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.28B	2.04B	1.83B	1.42B	905.57M
Total Debt	1.27B	1.31B	1.61B	1.42B	1.19B	982.14M
Total Liabilities	2.26B	2.41B	2.74B	2.35B	2.00B	1.79B
Stockholders Equity	2.37B	2.39B	2.60B	2.22B	1.92B	1.51B
Cash Flow
Free Cash Flow	252.12M	-52.17M	418.08M	468.49M	576.54M	-145.08M
Operating Cash Flow	350.33M	121.02M	567.88M	525.46M	594.02M	-122.96M
Investing Cash Flow	-183.22M	-143.52M	-331.23M	-190.97M	-237.39M	-30.18M
Financing Cash Flow	-886.24M	-641.47M	-24.12M	86.77M	181.66M	48.88M

Bon Fame Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8433 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2916	73Outperform	TWD 2.57B	9.90	―	9.14%	0.95%	-8.03%
TW:6754	68Neutral	TWD 2.64B	12.08	―	8.75%	-18.18%	-27.48%
TW:1435	55Neutral	TWD 2.74B	-25.03	―	―	-24.87%	-105.68%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8433	52Neutral	TWD 2.68B	7.66	―	8.55%	9.23%	66.23%
TW:1463	50Neutral	TWD 2.81B	-21.13	―	0.74%	-81.10%	-120.98%
TW:1473	50Neutral	TWD 2.45B	717.95	―	2.98%	-12.48%	-98.35%

* General Sector Average

Performance Comparison

TW:8433 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8433	Bon Fame Co., Ltd.	49.15	-0.50	-1.00%
TW:1435	Chung Fu Tex-International Corp.	19.00	-6.85	-26.50%
TW:1463	CS Group Investment Holding Limited	17.10	-1.32	-7.16%
TW:1473	Tainan Enterprises Co., Ltd.	16.80	-8.24	-32.90%
TW:2916	Munsin Garment Corporation	39.40	-6.62	-14.39%
TW:6754	Rich Honour International Designs Co., Ltd.	40.00	-2.80	-6.54%

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

Bon Fame Co., Ltd. AI Stock Analysis