Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$156, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 20x in the Chemicals industry in Taiwan. Total returns to shareholders of 31% over the past three years. Reported Earnings • May 13
First quarter 2026 earnings: EPS misses analyst expectations First quarter 2026 results: EPS: NT$1.00 (down from NT$1.10 in 1Q 2025). Revenue: NT$1.14b (down 2.0% from 1Q 2025). Net income: NT$101.6m (down 8.2% from 1Q 2025). Profit margin: 8.9% (in line with 1Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.8%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Price Target Changed • May 12
Price target increased by 7.8% to NT$194 Up from NT$180, the current price target is an average from 3 analysts. New target price is 38% above last closing price of NT$141. Stock is up 30% over the past year. The company is forecast to post earnings per share of NT$7.11 for next year compared to NT$3.70 last year. Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$167, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 15x in the Chemicals industry in Taiwan. Total returns to shareholders of 40% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$79.42 per share. Major Estimate Revision • Apr 18
Consensus EPS estimates increase by 13% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from NT$6.39 to NT$7.24. Revenue forecast steady at NT$5.22b. Net income forecast to grow 96% next year vs 51% growth forecast for Chemicals industry in Taiwan. Consensus price target up from NT$180 to NT$191. Share price rose 9.8% to NT$152 over the past week. Buy Or Sell Opportunity • Apr 16
Now 23% undervalued Over the last 90 days, the stock has risen 21% to NT$144. The fair value is estimated to be NT$187, 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 23%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 120% in the next 2 years. Buy Or Sell Opportunity • Mar 24
Now 22% undervalued Over the last 90 days, the stock has risen 33% to NT$145. The fair value is estimated to be NT$185, 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 23%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 120% in the next 2 years. Reported Earnings • Mar 13
Full year 2025 earnings released: EPS: NT$3.70 (vs NT$4.10 in FY 2024) Full year 2025 results: EPS: NT$3.70 (down from NT$4.10 in FY 2024). Revenue: NT$4.84b (down 9.2% from FY 2024). Net income: NT$372.3m (down 9.8% from FY 2024). Profit margin: 7.7% (in line with FY 2024). Revenue is forecast to grow 9.6% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. New Risk • Mar 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 7.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (105% payout ratio). Share price has been volatile over the past 3 months (7.6% average weekly change). Profit margins are more than 30% lower than last year (6.3% net profit margin). Buy Or Sell Opportunity • Mar 09
Now 24% undervalued Over the last 90 days, the stock has risen 40% to NT$139. The fair value is estimated to be NT$183, 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 33%. Revenue is forecast to decline by 3.1% in a year. Earnings are forecast to grow by 74% in the next year. Announcement • Feb 26
San Fu Chemical Co., Ltd., Annual General Meeting, Jun 12, 2026 San Fu Chemical Co., Ltd., Annual General Meeting, Jun 12, 2026, at 09:00 Taipei Standard Time. Location: 3 floor no,9, sec.1 nan ching e. rd., taipei city Taiwan Valuation Update With 7 Day Price Move • Feb 25
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$149, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 21x in the Chemicals industry in Taiwan. Total returns to shareholders of 27% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$64.80 per share. Reported Earnings • Nov 12
Third quarter 2025 earnings: EPS misses analyst expectations Third quarter 2025 results: EPS: NT$0.95 (up from NT$0.94 in 3Q 2024). Revenue: NT$1.18b (down 4.5% from 3Q 2024). Net income: NT$95.9m (up 1.4% from 3Q 2024). Profit margin: 8.1% (up from 7.7% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is expected to decline by 2.0% p.a. on average during the next 2 years, while revenues in the Chemicals industry in Taiwan are expected to grow by 5.6%. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. New Risk • Nov 12
New major risk - Revenue and earnings growth Earnings have declined by 6.1% per year over the past 5 years. 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 declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 105% Cash payout ratio: 145% Earnings have declined by 6.1% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (6.2% net profit margin). Price Target Changed • Oct 22
Price target decreased by 7.4% to NT$125 Down from NT$135, the current price target is provided by 1 analyst. New target price is 13% above last closing price of NT$111. Stock is down 19% over the past year. The company is forecast to post earnings per share of NT$3.68 for next year compared to NT$4.10 last year. Major Estimate Revision • Oct 14
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$5.17b to NT$4.75b. EPS estimate also fell from NT$4.55 per share to NT$3.56 per share. Net income forecast to grow 38% next year vs 37% growth forecast for Chemicals industry in Taiwan. Consensus price target of NT$135 unchanged from last update. Share price fell 4.4% to NT$119 over the past week. Reported Earnings • Aug 13
Second quarter 2025 earnings released: EPS: NT$0.34 (vs NT$1.10 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.34 (down from NT$1.10 in 2Q 2024). Revenue: NT$1.24b (up 3.5% from 2Q 2024). Net income: NT$34.5m (down 69% from 2Q 2024). Profit margin: 2.8% (down from 9.2% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.0% p.a. on average during the next 2 years, compared to a 3.6% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. New Risk • Aug 13
New major risk - Revenue and earnings growth Earnings have declined by 1.5% per year over the past 5 years. 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 declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. 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 have declined by 1.5% per year over the past 5 years. Minor Risk Dividend is not well covered by cash flows (204% cash payout ratio). Declared Dividend • Jun 11
Dividend of NT$3.50 announced Dividend of NT$3.50 is the same as last year. Ex-date: 27th June 2025 Payment date: 18th July 2025 Dividend yield will be 3.1%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (86% earnings payout ratio) but not covered by cash flows (204% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 23% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 04
First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2025 results: EPS: NT$1.10 (down from NT$1.11 in 1Q 2024). Revenue: NT$1.16b (up 2.8% from 1Q 2024). Net income: NT$110.7m (flat on 1Q 2024). Profit margin: 9.5% (in line with 1Q 2024). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) exceeded analyst estimates by 1.4%. Revenue is forecast to grow 3.2% p.a. on average during the next 2 years, compared to a 4.3% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • Apr 22
San Fu Chemical Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 San Fu Chemical Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Price Target Changed • Apr 11
Price target decreased by 11% to NT$129 Down from NT$146, the current price target is an average from 3 analysts. New target price is 37% above last closing price of NT$94.50. Stock is down 36% over the past year. The company is forecast to post earnings per share of NT$5.59 for next year compared to NT$4.10 last year. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$91.90, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 16x in the Chemicals industry in Taiwan. Total loss to shareholders of 45% over the past three years. Reported Earnings • Mar 14
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: NT$4.10 (down from NT$4.41 in FY 2023). Revenue: NT$5.32b (up 6.7% from FY 2023). Net income: NT$412.6m (down 7.2% from FY 2023). Profit margin: 7.7% (down from 8.9% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.5%. Revenue is forecast to grow 3.3% p.a. on average during the next 2 years, compared to a 5.1% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Announcement • Feb 27
San Fu Chemical Co., Ltd., Annual General Meeting, Jun 09, 2025 San Fu Chemical Co., Ltd., Annual General Meeting, Jun 09, 2025, at 09:00 Taipei Standard Time. Location: 3 floor no,9, sec.1 nan ching e. rd., taipei city Taiwan Announcement • Feb 19
San Fu Chemical Co., Ltd. to Report Q4, 2024 Results on Feb 26, 2025 San Fu Chemical Co., Ltd. announced that they will report Q4, 2024 results on Feb 26, 2025 New Risk • Dec 09
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (143% cash payout ratio). Share price has been volatile over the past 3 months (6.2% average weekly change). Buy Or Sell Opportunity • Nov 26
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 5.1% to NT$134. The fair value is estimated to be NT$111, however this is not to be taken as a sell 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 23%. Revenue is forecast to grow by 7.3% in a year. Earnings are forecast to grow by 19% in the next year. Reported Earnings • Nov 08
Third quarter 2024 earnings: EPS misses analyst expectations Third quarter 2024 results: EPS: NT$0.94 (down from NT$1.09 in 3Q 2023). Revenue: NT$1.23b (up 1.6% from 3Q 2023). Net income: NT$94.6m (down 14% from 3Q 2023). Profit margin: 7.7% (down from 9.1% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 16%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Announcement • Oct 31
San Fu Chemical Co., Ltd. to Report Q3, 2024 Results on Nov 06, 2024 San Fu Chemical Co., Ltd. announced that they will report Q3, 2024 results on Nov 06, 2024 Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$1.10 (vs NT$1.07 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.10 (up from NT$1.07 in 2Q 2023). Revenue: NT$1.20b (down 4.6% from 2Q 2023). Net income: NT$110.6m (up 2.6% from 2Q 2023). Profit margin: 9.2% (up from 8.6% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 4.8% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Announcement • Aug 07
San Fu Chemical Co., Ltd. Announces Change in President On August 6, 2024, the board of directors of San Fu Chemical Co., Ltd. approved change in president of the company. Name of the previous position holder is TSAI, Chieh-Jung. Resume of the previous position holder General Manager of SAN FU. Name of the new position holder: SU, Tien-Bao. Resume of the new position holder: Senior Vice General Manager of SAN FU. Reason for the change: Job relocation. Effective date of the new appointment is September 1, 2024. Price Target Changed • Jul 30
Price target increased by 16% to NT$189 Up from NT$164, the current price target is provided by 1 analyst. New target price is 49% above last closing price of NT$127. Stock is down 18% over the past year. The company is forecast to post earnings per share of NT$6.46 for next year compared to NT$4.41 last year. Announcement • Jul 27
San Fu Chemical Co., Ltd. to Report Q2, 2024 Results on Aug 06, 2024 San Fu Chemical Co., Ltd. announced that they will report Q2, 2024 results on Aug 06, 2024 Announcement • Jun 14
San Fu Chemical Co., Ltd. Approves Board Appointments San Fu Chemical Co., Ltd. at its Annual General Shareholders' Meeting held on June 12, 2024, approved the appointment of WU, Hsin-Hung, Hsieh, Yong-Fen and YANG, Hong-Chih as directors. Reported Earnings • May 08
First quarter 2024 earnings: EPS misses analyst expectations First quarter 2024 results: EPS: NT$1.10 (up from NT$0.95 in 1Q 2023). Revenue: NT$1.13b (down 5.7% from 1Q 2023). Net income: NT$111.2m (up 16% from 1Q 2023). Profit margin: 9.8% (up from 8.0% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 34% per year, which means it is well ahead of earnings. Announcement • Apr 25
San Fu Chemical Co., Ltd. to Report Q1, 2024 Results on May 02, 2024 San Fu Chemical Co., Ltd. announced that they will report Q1, 2024 results on May 02, 2024 Reported Earnings • Mar 14
Full year 2023 earnings: EPS in line with analyst expectations despite revenue beat Full year 2023 results: EPS: NT$4.41 (down from NT$8.43 in FY 2022). Revenue: NT$4.99b (down 11% from FY 2022). Net income: NT$444.5m (down 48% from FY 2022). Profit margin: 8.9% (down from 15% in FY 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 8.4% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 31% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 29
San Fu Chemical Co., Ltd., Annual General Meeting, Jun 12, 2024 San Fu Chemical Co., Ltd., Annual General Meeting, Jun 12, 2024. Location: 3F., No.9, Sec. 1, Nanjing E. Rd., Zhongshan Dist., Taipei Taiwan Agenda: To consider the 2023 Business Report; to consider Adoption of the proposal for distribution of 2023 dividends to shareholder; to consider Adoption of the proposal for distribution of 2023 Remuneration of Directors and Supervisors and Remuneration of Employees; to consider the Adoption of the proposal for applying to the International Financial Reporting Standards (IFRS) for adjustments to the Company; to consider the Adoption of the 2023 Business Report and Financial Statements; to consider the Adoption to the Proposal for Distribution of 2023 Profits; and to discuss other matters. Valuation Update With 7 Day Price Move • Feb 27
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$154, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 24x in the Chemicals industry in Taiwan. Total returns to shareholders of 178% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$65.97 per share. Announcement • Nov 07
San Fu Chemical Co., Ltd. Appoints Chun Hsi Wu as Chief Information Security Officer San Fu Chemical Co., Ltd. announced the appointment of Chun Hsi Wu, Information Technology Team/Senior Manager as chief information security officer. Reason for the change: new replacement. Effective date: November 6, 2023. New Risk • Aug 10
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: 9.2% Last year net profit margin: 18% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 133% Cash payout ratio: 232% Minor Risk Profit margins are more than 30% lower than last year (9.2% net profit margin). Reported Earnings • Aug 09
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: NT$1.07 (down from NT$2.76 in 2Q 2022). Revenue: NT$1.26b (down 19% from 2Q 2022). Net income: NT$107.8m (down 61% from 2Q 2022). Profit margin: 8.6% (down from 18% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 7.4%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 27% per year. Price Target Changed • Aug 03
Price target increased by 38% to NT$152 Up from NT$110, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of NT$148. Stock is up 5.4% over the past year. The company is forecast to post earnings per share of NT$5.27 for next year compared to NT$8.43 last year. New Risk • Jul 04
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 96% Cash payout ratio: 248% Dividend yield: 4.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Upcoming Dividend • Jun 29
Upcoming dividend of NT$5.90 per share at 2.7% yield Eligible shareholders must have bought the stock before 06 July 2023. Payment date: 28 July 2023. Payout ratio is a comfortable 64% but the company is paying out more than the cash it is generating. Trailing yield: 2.7%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (3.6%). Reported Earnings • Mar 18
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: NT$8.43 (up from NT$6.69 in FY 2021). Revenue: NT$5.62b (up 18% from FY 2021). Net income: NT$849.4m (up 26% from FY 2021). Profit margin: 15% (up from 14% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) missed analyst estimates by 6.7%. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 2.0% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 40% per year whereas the company’s share price has increased by 44% per year. Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment improved over the past week After last week's 16% share price gain to NT$136, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 15x in the Chemicals industry in Taiwan. Total returns to shareholders of 253% over the past three years. Price Target Changed • Nov 16
Price target decreased to NT$133 Down from NT$165, the current price target is an average from 2 analysts. New target price is 12% above last closing price of NT$119. Stock is up 43% over the past year. The company is forecast to post earnings per share of NT$9.04 for next year compared to NT$6.69 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. 11 highly experienced directors. 2 independent directors (7 non-independent directors). Independent Director Dong-Ming Wu was the last independent director to join the board, commencing their role in 2013. 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 13
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: NT$1.62 (up from NT$1.55 in 3Q 2021). Revenue: NT$1.22b (up 3.2% from 3Q 2021). Net income: NT$163.4m (up 4.6% from 3Q 2021). Profit margin: 13% (in line with 3Q 2021). Revenue missed analyst estimates by 20%. Earnings per share (EPS) also missed analyst estimates by 28%. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, while revenues in the Chemicals industry in Taiwan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 41% per year whereas the company’s share price has increased by 40% per year. Major Estimate Revision • Nov 08
Consensus revenue estimates fall by 11% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from NT$6.24b to NT$5.56b. EPS estimate fell from NT$10.84 to NT$9.04 per share. Net income forecast to shrink 27% next year vs 2.2% growth forecast for Chemicals industry in Taiwan . Consensus price target down from NT$165 to NT$133. Share price rose 2.8% to NT$112 over the past week. Reported Earnings • Aug 09
Second quarter 2022 earnings: Revenues and EPS in line with analyst expectations Second quarter 2022 results: EPS: NT$2.76 (up from NT$1.14 in 2Q 2021). Revenue: NT$1.55b (up 56% from 2Q 2021). Net income: NT$277.8m (up 142% from 2Q 2021). Profit margin: 18% (up from 12% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is forecast to grow 6.0% compared to a 1.5% decline forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has increased by 47% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$147, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Chemicals industry in Taiwan. Total returns to shareholders of 261% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$247 per share. Upcoming Dividend • Jun 28
Upcoming dividend of NT$5.00 per share Eligible shareholders must have bought the stock before 05 July 2022. Payment date: 29 July 2022. Payout ratio is a comfortable 22% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of Taiwanese dividend payers (6.3%). Lower than average of industry peers (6.8%). Announcement • Jun 18
San Fu Chemical Co., Ltd. Announces Cash Dividend, Payable on July 29, 2022 San Fu Chemical Co., Ltd. announced the total amount of cash dividend from earnings is TWD 302,118,000, and the distribution of cash is TWD 3 per share. The expected distribution date is on July 29, 2022. Ex-rights (ex-dividend) record date is July 11, 2022 and Ex-rights (ex-dividend) trading date is July 5, 2022. Buying Opportunity • Jun 16
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 3.3%. The fair value is estimated to be NT$233, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has grown by 24%. Revenue is forecast to grow by 31% in a year. Earnings is forecast to grow by 28% in the next year. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment improved over the past week After last week's 21% share price gain to NT$227, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 13x in the Chemicals industry in Taiwan. Total returns to shareholders of 475% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$230 per share. Buying Opportunity • May 20
Now 21% undervalued Over the last 90 days, the stock is up 19%. The fair value is estimated to be NT$230, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has grown by 24%. Revenue is forecast to grow by 31% in a year. Earnings is forecast to grow by 28% in the next year. Reported Earnings • May 17
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: NT$3.24 (up from NT$1.00 in 1Q 2021). Revenue: NT$1.65b (up 70% from 1Q 2021). Net income: NT$326.7m (up 224% from 1Q 2021). Profit margin: 20% (up from 10% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 17%. Over the next year, revenue is forecast to grow 31% compared to a 3.2% decline forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has increased by 61% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Apr 27
Price target increased to NT$255 Up from NT$110, the current price target is provided by 1 analyst. New target price is 47% above last closing price of NT$173. Stock is up 153% over the past year. The company posted earnings per share of NT$6.69 last year. Board Change • Apr 27
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. 11 highly experienced directors. 2 independent directors (7 non-independent directors). Independent Director Dong-Ming Wu was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improved over the past week After last week's 21% share price gain to NT$184, the stock trades at a trailing P/E ratio of 27.5x. Average forward P/E is 12x in the Chemicals industry in Taiwan. Total returns to shareholders of 358% over the past three years. Reported Earnings • Mar 13
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: EPS: NT$6.69 (up from NT$4.36 in FY 2020). Revenue: NT$4.78b (up 25% from FY 2020). Net income: NT$673.6m (up 69% from FY 2020). Profit margin: 14% (up from 11% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 9.5%. Over the next year, revenue is forecast to grow 2.8% while the industry in Taiwan is not expected to grow. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 48% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 26
San Fu Chemical Co., Ltd., Annual General Meeting, Jun 17, 2022 San Fu Chemical Co., Ltd., Annual General Meeting, Jun 17, 2022. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improved over the past week After last week's 16% share price gain to NT$152, the stock trades at a trailing P/E ratio of 32.7x. Average forward P/E is 11x in the Chemicals industry in Taiwan. Total returns to shareholders of 307% over the past three years. Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$134, the stock trades at a trailing P/E ratio of 28.9x. Average forward P/E is 11x in the Chemicals industry in Taiwan. Total returns to shareholders of 293% over the past three years. Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment improved over the past week After last week's 18% share price gain to NT$123, the stock trades at a trailing P/E ratio of 26.5x. Average forward P/E is 11x in the Chemicals industry in Taiwan. Total returns to shareholders of 267% over the past three years. Reported Earnings • Nov 11
Third quarter 2021 earnings released: EPS NT$1.55 (vs NT$1.33 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$1.18b (up 11% from 3Q 2020). Net income: NT$156.2m (up 29% from 3Q 2020). Profit margin: 13% (up from 11% 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 4% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Sep 14
Investor sentiment improved over the past week After last week's 19% share price gain to NT$72.00, the stock trades at a trailing P/E ratio of 16.1x. Average forward P/E is 12x in the Chemicals industry in Taiwan. Total returns to shareholders of 77% over the past three years. Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS NT$1.14 (vs NT$1.03 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$990.2m (up 5.3% from 2Q 2020). Net income: NT$114.9m (up 23% from 2Q 2020). Profit margin: 12% (up from 9.9% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 14
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 21 July 2021. Payment date: 06 August 2021. Trailing yield: 4.6%. Lower than top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (2.8%). Reported Earnings • May 08
First quarter 2021 earnings released: EPS NT$1.00 (vs NT$1.00 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were flat. First quarter 2021 results: Revenue: NT$969.8m (up 7.7% from 1Q 2020). Net income: NT$100.8m (up 11% from 1Q 2020). Profit margin: 10% (in line with 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Reported Earnings • Mar 31
Full year 2020 earnings released: EPS NT$4.36 (vs NT$3.58 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$3.82b (down 3.0% from FY 2019). Net income: NT$399.5m (up 23% from FY 2019). Profit margin: 11% (up from 8.2% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Feb 27
San Fu Chemical Co., Ltd., Annual General Meeting, Jun 16, 2021 San Fu Chemical Co., Ltd., Annual General Meeting, Jun 16, 2021. Location: 3F., No.9, Sec. 1, Nanjing E. Rd., Zhongshan Dist. Tai Pei Taiwan Agenda: To consider the 2020 business report; to consider the supervisors review of the 2020 financial statements; to consider the 2020 cash dividend distribution report; to consider the amount of remuneration paid to directors, supervisors and employees in 2020; to consider the amend the rules of procedure of the board of directors; to consider the amend the procedures and conduct guideline for integrity operation; to consider the 2020 business report and financial statements; to consider the earnings distribution in 2020; to approve the proposal of cash dividend distribution from the capital reserve; to consider the amend the company's articles of incorporation; to consider the amend the company's procedures for the acquisition and disposal of assets; to amend the company's procedures for the election of the board of directors and supervisors; and to consider the other matters. Announcement • Feb 02
San Fu Chemical Co., Ltd. Announces Executive Changes San Fu Chemical Co., Ltd. announced retirement of Yao-Ming Wang, Vice President as Research and Development Officer of the company with effect from February 1, 2021 and appointed Dr. Tian-Bao Su (Vice President) as Research and Development Officer of the company. Is New 90 Day High Low • Jan 26
New 90-day low: NT$59.80 The company is down 14% from its price of NT$69.40 on 28 October 2020. The Taiwanese market is up 23% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 12% over the same period. Is New 90 Day High Low • Jan 07
New 90-day low: NT$64.40 The company is down 5.0% from its price of NT$67.70 on 08 October 2020. The Taiwanese market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 15% over the same period. Is New 90 Day High Low • Nov 18
New 90-day high: NT$72.70 The company is up 9.0% from its price of NT$66.80 on 20 August 2020. The Taiwanese market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 7.0% over the same period. Reported Earnings • Nov 07
Third quarter 2020 earnings released: EPS NT$1.33 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$1.06b (up 3.1% from 3Q 2019). Net income: NT$120.7m (up 49% from 3Q 2019). Profit margin: 11% (up from 7.8% in 3Q 2019). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. 
