Her Chee Industrial Co., Ltd. (8937) AI Stock Analysis

Her Chee Industrial Co., Ltd.

(TPEx:8937)

Select Model

Rating:39Underperform

Price Target:TWD 22.00▼(-8.14% Downside)

Action:initiatedcoverage

Date:11/09/26

Her Chee Industrial scores near the bottom of the range. The dominant factor is deteriorating financial performance: shrinking revenue, negative gross and operating margins, and severe cash burn (free cash flow of NT$-3.34 billion) that makes the company reliant on external funding. A recently strengthened, low-leverage balance sheet (debt-to-equity of 0.21) buys time but is currently funding assets that generate no return. Technicals reinforce the caution, with the price below all key moving averages and a negative MACD. Valuation adds little support given a 176.5 P/E and a negligible dividend yield. This is a high-risk turnaround situation where execution on revenue and margin recovery is essential.

Positive Factors

Moderate LeverageThe improved debt-to-equity ratio indicates that leverage is not currently excessive and provides some balance-sheet flexibility. Lower debt exposure can preserve capacity to manage operating volatility, support essential investment, and reduce the pressure of financing obligations during weaker earnings periods.

Negative Factors

Sharp Profitability DeteriorationThe 2025 shift to deeply negative gross, operating, and net margins indicates substantial pressure on pricing, costs, and operating leverage. Because the decline followed several years of volatile earnings, it raises concern that prior profitability was not durable and that recovery may require meaningful operational improvement.

Her Chee Industrial Co., Ltd. (8937) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.28B
Dividend Yield: 0.10%
Average Volume (3M): 247.01K
Price to Earnings (P/E): 184.2
Beta (1Y): 0.54
Revenue Growth: 333.14%
EPS Growth: ―
Country: TW
Employees: 83
Sector: General
Sector Strength: 55
Industry: Auto - Recreational Vehicles

Her Chee Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Founded in 1976 and based in Chiayi, Taiwan, Her Chee Industrial Co., Ltd. specializes in the production and sale of a wide array of specialized vehicles, marketed primarily under their ADLY moto brand. Their comprehensive product range features all-...

Her Chee Industrial Co., Ltd. Financial Statement Overview

Summary

Fundamentals are very weak. Revenue has collapsed roughly 77% over five years to NT$65.7 million, and the company is now selling below cost (gross margin -58.3%), with an operating loss of NT$157.2 million and a net loss of NT$74.0 million (net margin -112.7%). Cash generation is the biggest red flag: operating cash flow was NT$-211.5 million in 2025 and free cash flow swung to NT$-3.34 billion amid a massive capital-spending program, leaving the business dependent on external funding. The sole offset is a fortified balance sheet — equity tripled to NT$2.63 billion, debt is modest at NT$564.5 million and debt-to-equity improved to 0.21 — but returns on that enlarged capital base are negative (ROE -2.8%), and there is no evidence yet that the investment is producing sales or profit.

Income Statement

16Very Negative

Balance Sheet

56Neutral

Cash Flow

9Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	428.84M	65.67M	131.89M	159.95M	212.09M	126.17M
Gross Profit	67.91M	-38.26M	1.32M	19.40M	37.05M	-13.81M
EBITDA	-98.35M	-138.23M	59.64M	77.87M	45.98M	-54.93M
Net Income	15.03M	-73.98M	32.80M	51.79M	4.70M	-57.27M
Balance Sheet
Total Assets	6.04B	4.74B	1.56B	1.42B	1.39B	985.95M
Cash, Cash Equivalents and Short-Term Investments	290.87M	472.65M	276.99M	456.61M	416.07M	299.67M
Total Debt	1.32B	564.53M	513.68M	558.36M	519.83M	234.97M
Total Liabilities	3.27B	2.09B	560.12M	650.43M	659.92M	295.79M
Stockholders Equity	2.38B	2.63B	969.17M	732.86M	694.80M	689.24M
Cash Flow
Free Cash Flow	-4.56B	-3.34B	-382.46M	-52.98M	-76.05M	-88.78M
Operating Cash Flow	-272.46M	-211.47M	-35.77M	11.65M	68.10M	-82.23M
Investing Cash Flow	-3.90B	-2.91B	-273.91M	-60.85M	-122.53M	-121.82M
Financing Cash Flow	3.13B	3.19B	161.82M	44.06M	231.26M	65.78M

Her Chee Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8937 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6279	64Neutral	TWD 11.90B	8.56	―	5.50%	12.67%	15.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3162	50Neutral	TWD 11.07B	100.76	―	1.20%	26.04%	-69.67%
TW:1563	47Neutral	TWD 11.11B	35.87	―	7.68%	3.41%	-22.42%
TW:8937	39Underperform	TWD 10.58B	184.23	―	0.10%	333.14%	―
TW:2231	34Underperform	TWD 10.66B	-87.60	―	0.64%	-20.55%	-146.86%
TW:1536	33Underperform	TWD 10.59B	-19.77	―	―	-4.17%	-15.31%

* General Sector Average

Performance Comparison

TW:8937 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8937	Her Chee Industrial Co., Ltd.	23.95	-15.55	-39.37%
TW:1536	Hota Industrial Manufacturing Co., Ltd.	37.95	-21.45	-36.11%
TW:1563	SuperAlloy Industrial Co., Ltd.	67.30	12.42	22.63%
TW:2231	CUB Elecparts, Inc.	78.40	-22.60	-22.38%
TW:3162	United Alloy-Tech Company Ltd	71.90	16.20	29.07%
TW:6279	Hu Lane Associate, Inc.	100.00	-24.37	-19.59%

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

Her Chee Industrial Co., Ltd. AI Stock Analysis