Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$88.40, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Metals and Mining industry in Taiwan. Total returns to shareholders of 73% over the past three years. Reported Earnings • Aug 01
Second quarter 2026 earnings: EPS and revenues exceed analyst expectations Second quarter 2026 results: EPS: NT$2.41 (up from NT$1.51 in 2Q 2025). Revenue: NT$16.3b (up 3.8% from 2Q 2025). Net income: NT$1.76b (up 59% from 2Q 2025). Profit margin: 11% (up from 7.0% in 2Q 2025). Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) also surpassed analyst estimates by 34%. Revenue is forecast to grow 1.3% p.a. on average during the next 2 years, compared to a 5.4% growth forecast for the Metals and Mining industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 7% per year and the company’s share price has also increased by 7% per year. Reported Earnings • Apr 30
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: NT$1.00. Revenue: NT$13.6b (down 6.2% from 1Q 2025). Net income: NT$1.21b (up 11% from 1Q 2025). Profit margin: 8.9% (up from 7.5% in 1Q 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.0%. Earnings per share (EPS) also missed analyst estimates by 34%. Revenue is forecast to grow 2.1% p.a. on average during the next 2 years, compared to a 3.6% growth forecast for the Metals and Mining industry in Taiwan. Buy Or Sell Opportunity • Apr 10
Now 20% undervalued Over the last 90 days, the stock has risen 4.3% to NT$70.70. The fair value is estimated to be NT$88.39, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 6.2%. Revenue is forecast to grow by 1.2% in 2 years. Earnings are forecast to decline by 6.0% in the next 2 years. Upcoming Dividend • Mar 16
Upcoming dividend of NT$4.30 per share Eligible shareholders must have bought the stock before 20 March 2026. Payment date: 24 April 2026. Payout ratio is a comfortable 65% and this is well supported by cash flows. Trailing yield: 5.2%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (2.9%). Major Estimate Revision • Mar 05
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from NT$57.0b to NT$58.6b. EPS estimate increased from NT$5.70 to NT$6.42 per share. Net income forecast to shrink 0.7% next year vs 36% growth forecast for Metals and Mining industry in Taiwan . Consensus price target up from NT$72.00 to NT$77.33. Share price rose 9.9% to NT$80.70 over the past week. Price Target Changed • Mar 03
Price target increased by 7.4% to NT$77.33 Up from NT$72.00, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of NT$78.50. Stock is up 3.2% over the past year. The company is forecast to post earnings per share of NT$6.42 for next year compared to NT$6.47 last year. Declared Dividend • Mar 02
Dividend of NT$4.30 announced Shareholders will receive a dividend of NT$4.30. Ex-date: 20th March 2026 Payment date: 24th April 2026 Dividend yield will be 5.9%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by both earnings (65% earnings payout ratio) and cash flows (39% cash payout ratio). The dividend has increased by an average of 7.5% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 11% over the next 2 years. However, it would need to fall by 27% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Feb 27
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: NT$6.47 (up from NT$6.14 in FY 2024). Revenue: NT$57.9b (down 3.8% from FY 2024). Net income: NT$4.72b (up 5.4% from FY 2024). Profit margin: 8.2% (up from 7.4% in FY 2024). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 9.3%. Revenue is forecast to stay flat during the next 2 years compared to a 5.2% growth forecast for the Metals and Mining industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 6% per year and the company’s share price has also increased by 6% per year. Announcement • Jan 26
Tung Ho Steel Enterprise Corporation, Annual General Meeting, May 22, 2026 Tung Ho Steel Enterprise Corporation, Annual General Meeting, May 22, 2026, at 09:30 Taipei Standard Time. Location: no,22, p`ing ting, sihu township, miaoli county Taiwan Reported Earnings • Oct 29
Third quarter 2025 earnings: EPS exceeds analyst expectations Third quarter 2025 results: EPS: NT$1.54 (up from NT$1.48 in 3Q 2024). Revenue: NT$13.8b (down 6.9% from 3Q 2024). Net income: NT$1.13b (up 4.2% from 3Q 2024). Profit margin: 8.1% (up from 7.3% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 16%. Revenue is forecast to stay flat during the next 3 years compared to a 6.0% growth forecast for the Metals and Mining industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 7% per year. Reported Earnings • Jul 31
Second quarter 2025 earnings: EPS exceeds analyst expectations Second quarter 2025 results: EPS: NT$1.51 (down from NT$1.59 in 2Q 2024). Revenue: NT$15.7b (up 1.6% from 2Q 2024). Net income: NT$1.10b (down 4.6% from 2Q 2024). Profit margin: 7.0% (down from 7.5% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.3%. Revenue is forecast to grow 1.2% p.a. on average during the next 2 years, compared to a 2.2% growth forecast for the Metals and Mining industry in Taiwan. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Price Target Changed • Jul 16
Price target decreased by 11% to NT$72.00 Down from NT$81.33, the current price target is an average from 3 analysts. New target price is 10% above last closing price of NT$65.30. Stock is down 7.6% over the past year. The company is forecast to post earnings per share of NT$5.90 for next year compared to NT$6.13 last year. Reported Earnings • Apr 30
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: NT$1.50 (down from NT$1.50 in 1Q 2024). Revenue: NT$14.5b (down 2.3% from 1Q 2024). Net income: NT$1.09b (flat on 1Q 2024). Profit margin: 7.5% (up from 7.4% in 1Q 2024). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 5.6%. Revenue is forecast to grow 2.7% p.a. on average during the next 2 years, compared to a 5.5% growth forecast for the Metals and Mining industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has increased by 1% per year. Announcement • Apr 18
Tung Ho Steel Enterprise Corporation to Report Q1, 2025 Results on Apr 25, 2025 Tung Ho Steel Enterprise Corporation announced that they will report Q1, 2025 results on Apr 25, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$63.70, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Metals and Mining industry in Taiwan. Total returns to shareholders of 9.4% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$90.36 per share. Buy Or Sell Opportunity • Mar 28
Now 20% undervalued Over the last 90 days, the stock has risen 2.9% to NT$71.20. The fair value is estimated to be NT$89.05, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 6.8%. Revenue is forecast to grow by 4.3% in 2 years. Earnings are forecast to grow by 0.03% in the next 2 years. New Risk • Mar 05
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.2% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Feb 27
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: NT$6.13 (down from NT$6.41 in FY 2023). Revenue: NT$60.2b (down 1.3% from FY 2023). Net income: NT$4.48b (down 4.2% from FY 2023). Profit margin: 7.4% (down from 7.7% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 1.2%. Revenue is forecast to stay flat during the next 2 years compared to a 4.3% growth forecast for the Metals and Mining industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Feb 26
Tung Ho Steel Enterprise Corporation, Annual General Meeting, May 20, 2025 Tung Ho Steel Enterprise Corporation, Annual General Meeting, May 20, 2025, at 09:30 Taipei Standard Time. Location: no,22, p`ing ting, sihu township, miaoli county Taiwan Announcement • Feb 18
Tung Ho Steel Enterprise Corporation to Report Q4, 2024 Results on Feb 25, 2025 Tung Ho Steel Enterprise Corporation announced that they will report Q4, 2024 results on Feb 25, 2025 Buy Or Sell Opportunity • Dec 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to NT$69.60. The fair value is estimated to be NT$87.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 10%. Revenue is forecast to decline by 1.1% in a year. Earnings are forecast to decline by 3.7% in the next year. Reported Earnings • Nov 01
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: NT$1.48 (down from NT$1.56 in 3Q 2023). Revenue: NT$14.9b (down 3.3% from 3Q 2023). Net income: NT$1.08b (down 5.4% from 3Q 2023). Profit margin: 7.3% (down from 7.4% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 2.6%. Revenue is forecast to stay flat during the next 2 years compared to a 3.4% growth forecast for the Metals and Mining industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Aug 05
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.8% to NT$70.60. The fair value is estimated to be NT$89.93, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.4% over the last 3 years. Earnings per share has declined by 12%. Revenue is forecast to decline by 2.4% in a year. Earnings are forecast to decline by 6.2% in the next year. Reported Earnings • Aug 04
Second quarter 2024 earnings released: EPS: NT$1.59 (vs NT$1.49 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.59 (up from NT$1.49 in 2Q 2023). Revenue: NT$15.4b (down 1.5% from 2Q 2023). Net income: NT$1.16b (up 6.7% from 2Q 2023). Profit margin: 7.5% (up from 6.9% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue is expected to decline by 2.7% p.a. on average during the next 2 years, while revenues in the Metals and Mining industry in Taiwan are expected to grow by 4.9%. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Jul 23
Tung Ho Steel Enterprise Corporation to Report Q2, 2024 Results on Jul 30, 2024 Tung Ho Steel Enterprise Corporation announced that they will report Q2, 2024 results on Jul 30, 2024 New Risk • May 15
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 7.7% per year for the foreseeable future. Minor Risks High level of debt (43% net debt to equity). Dividend is not well covered by cash flows (102% cash payout ratio). Reported Earnings • May 03
First quarter 2024 earnings: EPS exceeds analyst expectations First quarter 2024 results: EPS: NT$1.50 (down from NT$1.55 in 1Q 2023). Revenue: NT$14.8b (up 9.0% from 1Q 2023). Net income: NT$1.10b (down 3.2% from 1Q 2023). Profit margin: 7.4% (down from 8.3% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.2%. Revenue is expected to decline by 2.7% p.a. on average during the next 2 years, while revenues in the Metals and Mining industry in Taiwan are expected to grow by 3.0%. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Apr 24
Tung Ho Steel Enterprise Corporation to Report Q1, 2024 Results on Apr 30, 2024 Tung Ho Steel Enterprise Corporation announced that they will report Q1, 2024 results on Apr 30, 2024 Price Target Changed • Mar 20
Price target increased by 7.4% to NT$79.75 Up from NT$74.25, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$76.90. Stock is up 25% over the past year. The company is forecast to post earnings per share of NT$6.26 for next year compared to NT$5.47 last year. Upcoming Dividend • Mar 15
Upcoming dividend of NT$4.20 per share Eligible shareholders must have bought the stock before 22 March 2024. Payment date: 26 April 2024. Payout ratio is a comfortable 60% and this is well supported by cash flows. Trailing yield: 5.5%. Within top quartile of Taiwanese dividend payers (4.8%). Higher than average of industry peers (2.8%). Declared Dividend • Feb 29
Dividend increased to NT$4.20 Dividend of NT$4.20 is 20% higher than last year. Ex-date: 22nd March 2024 Payment date: 26th April 2024 Dividend yield will be 5.4%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by both earnings (60% earnings payout ratio) and cash flows (40% cash payout ratio). The dividend has increased by an average of 3.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to remain steady over the next year, which should provide adequate earnings cover for the dividend. Announcement • Feb 27
Tung Ho Steel Enterprise Corporation, Annual General Meeting, May 24, 2024 Tung Ho Steel Enterprise Corporation, Annual General Meeting, May 24, 2024, at 09:30 Taipei Standard Time. Location: Miao-Li Factory of Tung Ho Steel Enterprise Corporation No.22, Pingding, Erhu Village, ShiHwu Township, Miaoli County 36842,Taiwan Miaoli County Taiwan Agenda: To consider Report on 2023 business report; to Report on auditing 2023 financial statements by Audit Committees ; to Report on 2023 earnings is cash dividends distribution; to Report on 2023 remuneration of distribution for employees and directors; to Report on 2023 payment of remuneration of directors; to Report on the communication condition between Audit Committees and the director of internal audit; to Report on 2023 materiality transaction for related party; and to consider other matter if any. Announcement • Feb 22
Tung Ho Steel Enterprise Corporation, Annual General Meeting, Apr 10, 2024 Tung Ho Steel Enterprise Corporation, Annual General Meeting, Apr 10, 2024. Location: 9F.,No.9,Sec.1,Chang'an E.Rd.,Zhongshan Dist., Taipei City Taiwan Agenda: To report on 2023 business report; to report on auditing 2023 financial statements by Supervisors; to report on 2023 remuneration of distribution for employees and directors; and to consider other matters. Price Target Changed • Jan 15
Price target increased by 7.6% to NT$74.25 Up from NT$69.00, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$70.90. Stock is up 29% over the past year. The company is forecast to post earnings per share of NT$6.22 for next year compared to NT$5.47 last year. Price Target Changed • Dec 08
Price target increased by 7.3% to NT$69.00 Up from NT$64.33, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$70.00. Stock is up 33% over the past year. The company is forecast to post earnings per share of NT$6.18 for next year compared to NT$5.47 last year. Reported Earnings • Nov 01
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: NT$1.56 (up from NT$0.74 in 3Q 2022). Revenue: NT$15.4b (up 6.0% from 3Q 2022). Net income: NT$1.14b (up 110% from 3Q 2022). Profit margin: 7.4% (up from 3.7% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.3%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to stay flat during the next 3 years compared to a 4.4% growth forecast for the Metals and Mining industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. New Risk • Aug 02
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 6.2% Last year net profit margin: 8.9% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.1% per year for the foreseeable future. Minor Risks High level of debt (57% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (6.2% net profit margin). Reported Earnings • Aug 02
Second quarter 2023 earnings: EPS in line with analyst expectations despite revenue beat Second quarter 2023 results: EPS: NT$1.49 (down from NT$1.83 in 2Q 2022). Revenue: NT$15.8b (down 2.5% from 2Q 2022). Net income: NT$1.09b (down 19% from 2Q 2022). Profit margin: 6.9% (down from 8.2% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 5.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is expected to decline by 1.0% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Taiwan are expected to grow by 2.4%. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Jun 03
Price target increased by 10% to NT$64.00 Up from NT$58.00, the current price target is an average from 2 analysts. New target price is 14% above last closing price of NT$56.20. Stock is down 15% over the past year. The company is forecast to post earnings per share of NT$5.21 for next year compared to NT$5.47 last year. Major Estimate Revision • May 18
Consensus EPS estimates increase by 22%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from NT$58.3b to NT$56.3b. EPS estimate rose from NT$4.26 to NT$5.21. Net income forecast to shrink 4.7% next year vs 2.2% growth forecast for Metals and Mining industry in Taiwan . Consensus price target up from NT$58.00 to NT$59.67. Share price was steady at NT$58.30 over the past week. Upcoming Dividend • Mar 23
Upcoming dividend of NT$3.50 per share at 5.7% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 04 May 2023. Payout ratio is a comfortable 64% but the company is paying out more than the cash it is generating. Trailing yield: 5.7%. Lower than top quartile of Taiwanese dividend payers (6.0%). Higher than average of industry peers (3.8%). Reported Earnings • Feb 24
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: NT$5.47 (down from NT$8.09 in FY 2021). Revenue: NT$60.0b (up 2.0% from FY 2021). Net income: NT$3.99b (down 32% from FY 2021). Profit margin: 6.7% (down from 10.0% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.3%. Revenue is forecast to stay flat during the next 2 years compared to a 2.2% decline forecast for the Metals and Mining industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Announcement • Jan 06
Tung Ho Steel Enterprise Corporation, Annual General Meeting, May 30, 2023 Tung Ho Steel Enterprise Corporation, Annual General Meeting, May 30, 2023, at 09:30 Taipei Standard Time. Location: Miao-Li Factory of Tung Ho Steel Enterprise Corporation, No.22, Pingding, Erhu Village, ShiHwu Township, Miaoli County 36842 Miaoli County Taiwan Agenda: To consider report on 2022 business report; to consider Report on auditing 2022 financial statements by Audit Committees; to consider report on 2022 earnings is cash dividends distribution; to consider report on 2022 remuneration of distribution for employees and directors; to consider report on 2022 payment of remuneration of directors; to consider report on the communication condition between Audit Committees and the director of internal audit; to consider Report on amendments to the rules of Procedure for Board of Directors Meetings; and to consider other matters. Major Estimate Revision • Dec 31
Consensus EPS estimates fall by 19% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from NT$61.8b to NT$59.6b. EPS estimate also fell from NT$6.21 per share to NT$5.03 per share. Net income forecast to shrink 31% next year vs 10% decline forecast for Metals and Mining industry in Taiwan. Consensus price target broadly unchanged at NT$56.00. Share price was steady at NT$52.70 over the past week. Price Target Changed • Dec 15
Price target decreased to NT$56.33 Down from NT$61.75, the current price target is an average from 3 analysts. New target price is 8.3% above last closing price of NT$52.00. Stock is down 17% over the past year. The company is forecast to post earnings per share of NT$6.21 for next year compared to NT$8.09 last year. Price Target Changed • Nov 16
Price target decreased to NT$63.00 Down from NT$68.67, the current price target is an average from 4 analysts. New target price is 23% above last closing price of NT$51.30. Stock is down 19% over the past year. The company is forecast to post earnings per share of NT$6.64 for next year compared to NT$8.09 last year. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 9 highly experienced directors. 3 independent directors (7 non-independent directors). Independent Director Der-Ming Liu was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 09
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: NT$0.74 (down from NT$1.95 in 3Q 2021). Revenue: NT$14.5b (flat on 3Q 2021). Net income: NT$542.5m (down 61% from 3Q 2021). Profit margin: 3.7% (down from 9.7% in 3Q 2021). Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) also missed analyst estimates by 45%. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 3.8% decline forecast for the Metals and Mining industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 06
Second quarter 2022 earnings: EPS exceeds analyst expectations Second quarter 2022 results: EPS: NT$1.83 (down from NT$2.06 in 2Q 2021). Revenue: NT$16.2b (up 8.6% from 2Q 2021). Net income: NT$1.33b (down 11% from 2Q 2021). Profit margin: 8.2% (down from 10% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.7%. Over the next year,revenue is forecast to stay flat, in line with the revenue forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jul 21
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from NT$66.1b to NT$63.8b. EPS estimate also fell from NT$7.72 per share to NT$6.82 per share. Net income forecast to shrink 16% next year vs 0.9% growth forecast for Metals and Mining industry in Taiwan . Consensus price target down from NT$75.25 to NT$68.67. Share price was steady at NT$49.40 over the past week. Valuation Update With 7 Day Price Move • Jun 21
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$58.30, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 11x in the Metals and Mining industry in Taiwan. Total returns to shareholders of 129% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$100 per share. Reported Earnings • May 07
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: NT$1.76 (down from NT$2.06 in 1Q 2021). Revenue: NT$15.2b (up 18% from 1Q 2021). Net income: NT$1.28b (down 13% from 1Q 2021). Profit margin: 8.5% (down from 12% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.9%. Over the next year, revenue is forecast to grow 3.7%, compared to a 8.9% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 5 highly experienced directors. 3 independent directors (8 non-independent directors). Independent Director Der-Ming Liu was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Buying Opportunity • Mar 23
Now 21% undervalued Over the last 90 days, the stock is up 18%. The fair value is estimated to be NT$102, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.9% per annum over the last 3 years. Earnings per share has grown by 65% per annum over the last 3 years. Upcoming Dividend • Mar 18
Upcoming dividend of NT$6.40 per share Eligible shareholders must have bought the stock before 25 March 2022. Payment date: 29 April 2022. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 8.0%. Within top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (6.2%). Reported Earnings • Mar 12
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: NT$5.95 (up from NT$5.25 in FY 2020). Revenue: NT$58.8b (up 37% from FY 2020). Net income: NT$5.91b (up 66% from FY 2020). Profit margin: 10.0% (up from 8.3% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 19%. Over the next year, revenue is forecast to grow 5.4%, compared to a 4.9% growth forecast for the mining industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 36% per year, which means it is significantly lagging earnings growth. Price Target Changed • Mar 10
Price target decreased to NT$71.50 Down from NT$79.13, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$72.30. Stock is up 21% over the past year. The company is forecast to post earnings per share of NT$7.16 for next year compared to NT$5.25 last year. Major Estimate Revision • Mar 10
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from NT$8.05 to NT$7.16. Revenue forecast unchanged from NT$58.4b at last update. Net income forecast to shrink 1.4% next year vs 8.3% growth forecast for Metals and Mining industry in Taiwan . Consensus price target down from NT$79.13 to NT$71.50. Share price was steady at NT$72.30 over the past week. Upcoming Dividend • Nov 18
Upcoming dividend of NT$3.30 per share Eligible shareholders must have bought the stock before 25 November 2021. Payment date: 10 December 2021. Trailing yield: 3.9%. Lower than top quartile of Taiwanese dividend payers (5.1%). Higher than average of industry peers (1.7%). Price Target Changed • Nov 17
Price target decreased to NT$53.33 Down from NT$57.75, the current price target is an average from 3 analysts. New target price is 25% above last closing price of NT$42.55. Stock is up 35% over the past year. The company is forecast to post earnings per share of NT$5.45 for next year compared to NT$3.52 last year. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$1.30 (vs NT$0.79 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$14.5b (up 39% from 3Q 2020). Net income: NT$1.40b (up 76% from 3Q 2020). Profit margin: 9.7% (up from 7.6% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Price Target Changed • Sep 17
Price target decreased to NT$58.25 Down from NT$64.33, the current price target is an average from 2 analysts. New target price is 36% above last closing price of NT$42.80. Stock is up 45% over the past year. Price Target Changed • Aug 25
Price target increased to NT$64.33 Up from NT$60.10, the current price target is an average from 3 analysts. New target price is 50% above last closing price of NT$42.95. Stock is up 68% over the past year. Reported Earnings • Aug 15
Second quarter 2021 earnings released: EPS NT$1.38 (vs NT$0.70 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$14.9b (up 48% from 2Q 2020). Net income: NT$1.50b (up 112% from 2Q 2020). Profit margin: 10% (up from 7.0% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment improved over the past week After last week's 16% share price gain to NT$57.30, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Metals and Mining industry in Taiwan. Total returns to shareholders of 205% over the past three years. Upcoming Dividend • Jun 18
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 25 June 2021. Payment date: 22 July 2021. Trailing yield: 3.5%. Lower than top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$47.05, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 9x in the Metals and Mining industry in Taiwan. Total returns to shareholders of 128% over the past three years. Reported Earnings • May 13
First quarter 2021 earnings released: EPS NT$1.38 (vs NT$0.48 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$12.9b (up 34% from 1Q 2020). Net income: NT$1.48b (up 208% from 1Q 2020). Profit margin: 12% (up from 5.0% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improved over the past week After last week's 17% share price gain to NT$52.20, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 15x in the Metals and Mining industry in Taiwan. Total returns to shareholders of 149% over the past three years. Major Estimate Revision • Mar 31
Consensus EPS estimates increase to NT$4.05 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from NT$48.2b to NT$51.8b. EPS estimate increased from NT$3.61 to NT$4.05 per share. Net income forecast to grow 23% next year vs 29% growth forecast for Metals and Mining industry in Taiwan. Consensus price target up from NT$42.10 to NT$46.60. Share price rose 12% to NT$44.55 over the past week. Price Target Changed • Mar 30
Price target increased to NT$46.60 Up from NT$42.10, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of NT$45.10. Stock is up 109% over the past year. Reported Earnings • Mar 24
Full year 2020 earnings released: EPS NT$3.52 (vs NT$1.56 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: NT$42.9b (down 4.5% from FY 2019). Net income: NT$3.56b (up 127% from FY 2019). Profit margin: 8.3% (up from 3.5% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Mar 04
New 90-day high: NT$38.30 The company is up 15% from its price of NT$33.20 on 04 December 2020. The Taiwanese market is also up 15% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Metals and Mining industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$42.30 per share. Price Target Changed • Dec 22
Price target raised to NT$40.00 Up from NT$35.00, the current price target is an average from 4 analysts. The new target price is 7.0% above the current share price of NT$37.40. As of last close, the stock is up 63% over the past year. Is New 90 Day High Low • Dec 14
New 90-day high: NT$33.95 The company is up 13% from its price of NT$30.00 on 15 September 2020. The Taiwanese market is up 11% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Metals and Mining industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$40.99 per share. 
