Valuation Update With 7 Day Price Move • Jul 03
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$60.00, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 40x in the Aerospace & Defense industry in Asia. Total returns to shareholders of 9.3% over the past three years. Upcoming Dividend • Jul 01
Upcoming dividend of NT$0.78 per share Eligible shareholders must have bought the stock before 08 July 2026. Payment date: 06 August 2026. Payout ratio is on the higher end at 97%, however this is supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Taiwanese dividend payers (4.9%). Lower than average of industry peers (2.0%). Declared Dividend • May 29
Dividend reduced to NT$0.78 Dividend of NT$0.78 is 44% lower than last year. Ex-date: 8th July 2026 Payment date: 6th August 2026 Dividend yield will be 1.7%, which is lower than the industry average of 2.8%. Sustainability & Growth Dividend is not adequately covered by earnings (97% earnings payout ratio). However, it is covered by cash flows (67% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 7.8% to bring the payout ratio under control. EPS is expected to grow by 69% over the next year, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • May 05
First quarter 2026 earnings released: EPS: NT$0.28 (vs NT$0.25 in 1Q 2025) First quarter 2026 results: EPS: NT$0.28 (up from NT$0.25 in 1Q 2025). Revenue: NT$7.59b (flat on 1Q 2025). Net income: NT$260.7m (up 9.3% from 1Q 2025). Profit margin: 3.4% (up from 3.2% in 1Q 2025). Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Aerospace & Defense industry in Asia. Over the last 3 years on average, earnings per share has fallen by 34% 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. Reported Earnings • Mar 31
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: NT$0.78 (down from NT$2.30 in FY 2024). Revenue: NT$35.5b (down 9.9% from FY 2024). Net income: NT$733.1m (down 66% from FY 2024). Profit margin: 2.1% (down from 5.5% in FY 2024). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 3.5%. Earnings per share (EPS) also surpassed analyst estimates by 50%. Revenue is forecast to grow 9.7% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Aerospace & Defense industry in Asia. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Feb 26
Aerospace Industrial Development Corporation, Annual General Meeting, May 22, 2026 Aerospace Industrial Development Corporation, Annual General Meeting, May 22, 2026. Location: no,176 ln.20, chung chen, taichung city Taiwan Announcement • Jan 02
Aerospace Industrial Development Corporation Announces Institutional Director Changes, Effective January 1, 2026 Aerospace Industrial Development Corporation announced Institutional Director changes. Title and name of the previous position holder: Hsiao, Mu-Lai. Resume of the previous position holder: Chairman of AIDC Enterprise Unions. Title and name of the new position holder: Chuang, Hsiu-Mei and Chang, Kuo-Chang. Resume of the new position holder: Vice President of AIDC and Chairman of AIDC Kang-Shan Enterprise Unions. Reason for the change: Reassignment. Effective date of the new appointment: January 1, 2026. Major Estimate Revision • Dec 20
Consensus EPS estimates fall by 42% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$34.7b to NT$34.1b. EPS estimate also fell from NT$0.83 per share to NT$0.48 per share. Net income forecast to grow 86% next year vs 59% growth forecast for Aerospace & Defense industry in Taiwan. Consensus price target down from NT$54.00 to NT$52.00. Share price was steady at NT$50.80 over the past week. Valuation Update With 7 Day Price Move • Nov 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$55.40, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 37x in the Aerospace & Defense industry in Asia. Total returns to shareholders of 79% over the past three years. Reported Earnings • Nov 11
Third quarter 2025 earnings released: EPS: NT$0.21 (vs NT$0.26 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.21 (down from NT$0.26 in 3Q 2024). Revenue: NT$8.81b (up 2.0% from 3Q 2024). Net income: NT$193.1m (down 21% from 3Q 2024). Profit margin: 2.2% (down from 2.8% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Aerospace & Defense industry in Asia. 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 17% per year, which means it is well ahead of earnings. Price Target Changed • Oct 27
Price target increased by 10% to NT$54.00 Up from NT$49.08, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of NT$55.30. Stock is up 22% over the past year. The company is forecast to post earnings per share of NT$0.83 for next year compared to NT$2.30 last year. Major Estimate Revision • Oct 22
Consensus EPS estimates fall by 29% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$36.4b to NT$34.9b. EPS estimate also fell from NT$1.20 per share to NT$0.86 per share. Net income forecast to grow 62% next year vs 55% growth forecast for Aerospace & Defense industry in Taiwan. Consensus price target up from NT$49.08 to NT$50.80. Share price was steady at NT$56.10 over the past week. Price Target Changed • Oct 21
Price target increased by 8.4% to NT$50.80 Up from NT$46.88, the current price target is an average from 5 analysts. New target price is 9.1% below last closing price of NT$55.90. Stock is up 22% over the past year. The company is forecast to post earnings per share of NT$0.86 for next year compared to NT$2.30 last year. Major Estimate Revision • Sep 03
Consensus EPS estimates increase by 29% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$35.5b to NT$36.4b. EPS estimate increased from NT$0.937 to NT$1.20 per share. Net income forecast to grow 84% next year vs 55% growth forecast for Aerospace & Defense industry in Taiwan. Consensus price target up from NT$46.88 to NT$49.08. Share price rose 23% to NT$67.10 over the past week. New Risk • Sep 01
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 6.4% 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: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 161% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Profit margins are more than 30% lower than last year (2.3% net profit margin). Valuation Update With 7 Day Price Move • Aug 27
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$54.60, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 42x in the Aerospace & Defense industry in Asia. Total returns to shareholders of 66% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$88.23 per share. New Risk • Aug 21
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 199% The company is paying a dividend despite having no free cash flows. Dividend yield: 3.0% 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. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 199% Paying a dividend despite having no free cash flows. Minor Risk Profit margins are more than 30% lower than last year (2.3% net profit margin). Upcoming Dividend • Jul 02
Upcoming dividend of NT$1.38 per share Eligible shareholders must have bought the stock before 09 July 2025. Payment date: 07 August 2025. Payout ratio is on the higher end at 81% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Taiwanese dividend payers (5.3%). In line with average of industry peers (3.3%). Major Estimate Revision • Jun 27
Consensus revenue estimates fall by 14% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$40.7b to NT$34.9b. EPS estimate fell from NT$2.26 to NT$0.96 per share. Net income forecast to shrink 18% next year vs 39% growth forecast for Aerospace & Defense industry in Taiwan . Consensus price target broadly unchanged at NT$49.50. Share price was steady at NT$43.90 over the past week. Reported Earnings • May 31
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: NT$0.25 (down from NT$0.85 in 1Q 2024). Revenue: NT$7.54b (down 29% from 1Q 2024). Net income: NT$238.4m (down 70% from 1Q 2024). Profit margin: 3.2% (down from 7.6% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) also missed analyst estimates by 43%. Revenue is forecast to grow 4.6% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Aerospace & Defense industry in Asia. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Declared Dividend • May 29
Dividend reduced to NT$1.38 Dividend of NT$1.38 is 2.8% lower than last year. Ex-date: 9th July 2025 Payment date: 7th August 2025 Dividend yield will be 3.2%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is covered by earnings (81% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 4.5% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 22% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 23
Aerospace Industrial Development Corporation to Report Q1, 2025 Results on May 02, 2025 Aerospace Industrial Development Corporation announced that they will report Q1, 2025 results on May 02, 2025 New Risk • Apr 18
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (24% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Apr 18
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: NT$2.30 (down from NT$2.36 in FY 2023). Revenue: NT$39.3b (flat on FY 2023). Net income: NT$2.17b (down 2.6% from FY 2023). Profit margin: 5.5% (down from 5.7% in FY 2023). Revenue exceeded analyst estimates by 3.7%. Earnings per share (EPS) also surpassed analyst estimates by 4.4%. Revenue is forecast to grow 1.6% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Aerospace & Defense industry in Asia. 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 11% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$42.30, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 31x in the Aerospace & Defense industry in Asia. Total returns to shareholders of 45% over the past three years. New Risk • Apr 07
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 6.9% 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 High level of debt (102% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.9% average weekly change). Announcement • Mar 28
Aerospace Industrial Development Corporation Proposes Cash Dividend for the Year Ended December 31, 2024 Aerospace Industrial Development Corporation proposed dividend distribution for the year ended December 31, 2024. Appropriations of earnings in cash dividends to shareholders: TWD 1.38 per share; Total amount of cash distributed to shareholders: TWD 1,299,776,599. Announcement • Mar 20
Aerospace Industrial Development Corporation to Report Fiscal Year 2024 Results on Mar 27, 2025 Aerospace Industrial Development Corporation announced that they will report fiscal year 2024 results on Mar 27, 2025 Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$51.90, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 30x in the Aerospace & Defense industry in Asia. Total returns to shareholders of 84% over the past three years. Announcement • Feb 25
Aerospace Industrial Development Corporation, Annual General Meeting, May 22, 2025 Aerospace Industrial Development Corporation, Annual General Meeting, May 22, 2025. Location: no,176 ln.20, chung chen rd., shalu district, taichung city Taiwan Announcement • Feb 15
Aerospace Industrial Development Corporation to Report Fiscal Year 2024 Results on Feb 24, 2025 Aerospace Industrial Development Corporation announced that they will report fiscal year 2024 results at 12:00 PM, Taipei Standard Time on Feb 24, 2025 Price Target Changed • Nov 20
Price target decreased by 14% to NT$51.40 Down from NT$59.50, the current price target is an average from 5 analysts. New target price is 18% above last closing price of NT$43.45. Stock is down 14% over the past year. The company is forecast to post earnings per share of NT$2.19 for next year compared to NT$2.36 last year. Major Estimate Revision • Nov 16
Consensus EPS estimates fall by 20% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$40.0b to NT$38.0b. EPS estimate also fell from NT$2.84 per share to NT$2.28 per share. Net income forecast to grow 42% next year vs 45% growth forecast for Aerospace & Defense industry in Taiwan. Consensus price target down from NT$58.75 to NT$56.25. Share price fell 6.0% to NT$43.10 over the past week. Reported Earnings • Nov 09
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: NT$0.26 (down from NT$0.70 in 3Q 2023). Revenue: NT$8.64b (down 13% from 3Q 2023). Net income: NT$245.3m (down 63% from 3Q 2023). Profit margin: 2.8% (down from 6.6% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 8.5%. Earnings per share (EPS) also missed analyst estimates by 65%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 7.0% growth forecast for the Aerospace & Defense industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 14
Price target decreased by 9.1% to NT$59.67 Down from NT$65.67, the current price target is an average from 3 analysts. New target price is 23% above last closing price of NT$48.40. Stock is down 10% over the past year. The company is forecast to post earnings per share of NT$2.87 for next year compared to NT$2.36 last year. Reported Earnings • Aug 14
Second quarter 2024 earnings: EPS exceeds analyst expectations Second quarter 2024 results: EPS: NT$0.61 (down from NT$0.80 in 2Q 2023). Revenue: NT$8.80b (down 7.7% from 2Q 2023). Net income: NT$570.7m (down 24% from 2Q 2023). Profit margin: 6.5% (down from 7.9% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.4%. Revenue is forecast to grow 8.8% p.a. on average during the next 2 years, compared to a 7.6% growth forecast for the Aerospace & Defense industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Announcement • Aug 13
Aerospace Industrial Development Corporation Announces Change of Compensation Committee Aerospace Industrial Development Corporation announced change of compensation committee of the 10th term of Board of Directors. Name of the previous position holder: Chan, Chia-Chang, Vice President of Tunghai University and Professor of Department of Finance Executive Director, Chen, Yin-Chin, Associate Professor, Department of Financial and Economic Law, Chung Yuan Christian University and Li-Jen Lien, Attorney-at-Law at Li-Jen Lien Law Firm. Name of the new position holder: Chan, Chia-Chang, Vice President of Tunghai University and Professor of Department of Finance Executive Director, Chen, Yin-Chin, Associate Professor, Department of Financial and Economic Law, Chung Yuan Christian University and Wang, Yi-Shen, Managing Attorney of Hong Der Law Firm. Reason for the change:New appointment of compensation committee of the 10th term of Board of Directors. Effective date of the new member: August 12, 2024. Announcement • Jul 25
Aerospace Industrial Development Corporation to Report Q2, 2024 Results on Aug 02, 2024 Aerospace Industrial Development Corporation announced that they will report Q2, 2024 results on Aug 02, 2024 Upcoming Dividend • Jul 03
Upcoming dividend of NT$1.42 per share Eligible shareholders must have bought the stock before 10 July 2024. Payment date: 08 August 2024. Payout ratio is a comfortable 54% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (3.1%). Declared Dividend • Jun 13
Dividend increased to NT$1.42 Dividend of NT$1.42 is 31% higher than last year. Ex-date: 10th July 2024 Payment date: 8th August 2024 Dividend yield will be 2.7%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (54% earnings payout ratio) and cash flows (32% cash payout ratio). The dividend has increased by an average of 5.4% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 16% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 13
Aerospace Industrial Development Corporation Approves Cash Dividend for the Year 2023, Payable on August 08, 2024 Aerospace Industrial Development Corporation approved cash dividend of TWD 1.42 per share for the year 2023. Total amount of cash distributed to shareholders was TWD 1,337,451,283. Ex-rights (ex-dividend) trading date: July 10, 2024; Ex-rights (ex-dividend) record date: July 16, 2024 and Payment date of common stock cash dividend distribution: August 08, 2024. Reported Earnings • May 18
First quarter 2024 earnings: EPS exceeds analyst expectations First quarter 2024 results: EPS: NT$0.85 (up from NT$0.58 in 1Q 2023). Revenue: NT$10.6b (up 6.4% from 1Q 2023). Net income: NT$804.2m (up 48% from 1Q 2023). Profit margin: 7.6% (up from 5.5% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.9%. Revenue is forecast to grow 6.6% p.a. on average during the next 2 years, compared to a 7.6% growth forecast for the Aerospace & Defense industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Apr 09
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to NT$57.40. The fair value is estimated to be NT$47.20, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has grown by 66%. Revenue is forecast to grow by 12% in 2 years. Earnings are forecast to grow by 48% in the next 2 years. Reported Earnings • Mar 29
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: NT$2.36 (up from NT$1.73 in FY 2022). Revenue: NT$39.1b (up 29% from FY 2022). Net income: NT$2.23b (up 37% from FY 2022). Profit margin: 5.7% (up from 5.4% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.2%. Revenue is forecast to grow 5.8% p.a. on average during the next 2 years, compared to a 7.9% growth forecast for the Aerospace & Defense industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Mar 27
Aerospace Industrial Development Corporation Proposes Cash Dividend for the Year 2023 Aerospace Industrial Development Corporation proposed cash dividend of TWD 1.42 per share for the year 2023. Total amount of cash distributed to shareholders was TWD 1,337,451,283. Announcement • Feb 28
Aerospace Industrial Development Corporation, Annual General Meeting, May 27, 2024 Aerospace Industrial Development Corporation, Annual General Meeting, May 27, 2024. Location: No. 176, Ln. 20, Jhongzhen Rd., Shalu District Taichung City Taiwan Agenda: To consider 2023 Annual Business Report; to 2023 Final Account and Audit Committee Report; to 2023 Distribution of Compensation Payable to Employees as well as to Directors and Supervisors; and to consider other matters. Price Target Changed • Nov 20
Price target decreased by 7.7% to NT$63.24 Down from NT$68.52, the current price target is an average from 5 analysts. New target price is 24% above last closing price of NT$51.20. Stock is up 66% over the past year. The company is forecast to post earnings per share of NT$2.61 for next year compared to NT$1.73 last year. Reported Earnings • Nov 08
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: NT$0.70 (up from NT$0.61 in 3Q 2022). Revenue: NT$9.98b (up 22% from 3Q 2022). Net income: NT$659.7m (up 15% from 3Q 2022). Profit margin: 6.6% (down from 7.0% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) missed analyst estimates by 7.9%. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Aerospace & Defense industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Announcement • Sep 01
Aerospace Industrial Development Corporation Announces Executive Changes Aerospace Industrial Development Corporation announced chief internal auditor position adjustment. Name, title, and resume of the previous position holder: Fuh-chi Lin, Chief Audit Executive of Auditing Department. Name, title, and resume of the new position holder: Ing-fuh Kuo, Director of Manufacturing Department. Type of the change is retirement. The new chief internal auditor is approved by the board meeting on August 31, 2023. Effective date is October 01, 2023. Announcement • Aug 19
Aerospace Industrial Development Corporation Announces Resignation of Shieu, Fuh-Sheng as Institutional Director Aerospace Industrial Development Corporation announced resignation of Shieu, Fuh-Sheng, the representative of the company's institutional director and the change of one-third of the directors. Price Target Changed • Aug 09
Price target increased by 8.6% to NT$66.15 Up from NT$60.90, the current price target is an average from 4 analysts. New target price is 13% above last closing price of NT$58.30. Stock is up 59% over the past year. The company is forecast to post earnings per share of NT$2.78 for next year compared to NT$1.73 last year. Reported Earnings • Aug 08
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: EPS: NT$0.80 (up from NT$0.64 in 2Q 2022). Revenue: NT$9.54b (up 30% from 2Q 2022). Net income: NT$753.7m (up 26% from 2Q 2022). Profit margin: 7.9% (down from 8.1% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) exceeded analyst estimates by 11%. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Aerospace & Defense industry in Asia. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. New Risk • Jul 18
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.0% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risk Paying a dividend despite having no free cash flows. Upcoming Dividend • Jul 04
Upcoming dividend of NT$1.08 per share at 1.8% yield Eligible shareholders must have bought the stock before 11 July 2023. Payment date: 09 August 2023. Payout ratio is a comfortable 52% but the company is not cash flow positive. Trailing yield: 1.8%. Lower than top quartile of Taiwanese dividend payers (5.4%). Lower than average of industry peers (2.4%). Reported Earnings • Jun 13
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: NT$0.58 (up from NT$0.21 in 1Q 2022). Revenue: NT$9.94b (up 72% from 1Q 2022). Net income: NT$543.7m (up 168% from 1Q 2022). Profit margin: 5.5% (up from 3.5% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.7%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Aerospace & Defense industry in Asia. Over the last 3 years on average, earnings per share has increased by 28% per year whereas the company’s share price has increased by 24% per year. Announcement • May 31
Aerospace Industrial Development Corporation Approves Cash Dividend for the Year 2022 Aerospace Industrial Development Corporation approved the proposal for the distribution of 2022 profits by cash dividends of TWD 1.08, at the AGM held on May 30, 2023. Price Target Changed • May 03
Price target increased by 18% to NT$51.20 Up from NT$43.33, the current price target is an average from 3 analysts. New target price is 13% below last closing price of NT$58.70. Stock is up 82% over the past year. The company is forecast to post earnings per share of NT$2.52 for next year compared to NT$1.73 last year. Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$48.15, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 27x in the Aerospace & Defense industry in Asia. Total returns to shareholders of 80% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$26.72 per share. Reported Earnings • Mar 29
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: NT$1.73 (up from NT$0.59 in FY 2021). Revenue: NT$30.2b (up 27% from FY 2021). Net income: NT$1.63b (up 192% from FY 2021). Profit margin: 5.4% (up from 2.4% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.0%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Aerospace & Defense industry in Asia. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 8 non-independent directors. Independent Director Li-Jen Lien was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 09
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: NT$0.61 (up from NT$0.25 in 3Q 2021). Revenue: NT$8.16b (up 43% from 3Q 2021). Net income: NT$571.6m (up 147% from 3Q 2021). Profit margin: 7.0% (up from 4.1% in 3Q 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 1.7%. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Aerospace & Defense industry in Asia. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Reported Earnings • Aug 07
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: NT$0.63 (up from NT$0.43 in 2Q 2021). Revenue: NT$7.36b (up 23% from 2Q 2021). Net income: NT$599.3m (up 48% from 2Q 2021). Profit margin: 8.1% (up from 6.8% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 8.6%. Earnings per share (EPS) also surpassed analyst estimates by 50%. Over the next year, revenue is forecast to grow 27%, compared to a 24% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Aug 06
Aerospace Industrial Development Corporation Announces Change of Senior Vice President Aerospace Industrial Development Corporation announced change of senior vice president. Name, title, and resume of the previous position holder: Gary Lo, AIDC senior vice president. Name, title, and resume of the new position holder: Chia-Yu Wei, AIDC special assistant. Effective date of this change is August 5, 2022. Announcement • Jul 09
Aerospace Industrial Development Corporation Announces Board Changes Aerospace Industrial Development Corporation announced Cheng, Jung-Feng, Deputy Chief of Staff of the General Staff Headquarters to board of directors replacing Mei, Chia-Shu, Commander of the ROC Navy. Upcoming Dividend • Jul 05
Upcoming dividend of NT$0.35 per share Eligible shareholders must have bought the stock before 12 July 2022. Payment date: 04 August 2022. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (2.0%). Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$31.75, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 29x in the Aerospace & Defense industry in Asia. Total returns to shareholders of 2.5% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$27.03 per share. Announcement • May 28
Aerospace Industrial Development Corporation Approves Cash Dividend for the Year 2021 Aerospace Industrial Development Corporation announced that at its shareholders meeting held on May 27, 2022, shareholders approved the cash dividend of TWD 0.35 per share. Reported Earnings • May 11
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: NT$0.22 (up from NT$0.28 loss in 1Q 2021). Revenue: NT$5.77b (up 24% from 1Q 2021). Net income: NT$202.9m (up NT$467.8m from 1Q 2021). Profit margin: 3.5% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.2%. Over the next year, revenue is forecast to grow 29%, compared to a 24% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 7 non-independent directors. Independent Director Li-Jen Lien was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Apr 15
Investor sentiment improved over the past week After last week's 15% share price gain to NT$33.75, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 29x in the Aerospace & Defense industry in Asia. Total returns to shareholders of 17% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$28.44 per share. Reported Earnings • Mar 30
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: NT$0.59 (up from NT$0.42 in FY 2020). Revenue: NT$23.7b (up 13% from FY 2020). Net income: NT$558.0m (up 41% from FY 2020). Profit margin: 2.4% (up from 1.9% 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 9.2%. Over the next year, revenue is forecast to grow 28%, compared to a 25% growth forecast for the industry in Taiwan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 60 percentage points per year, which is a significant difference in performance. Announcement • Mar 29
Aerospace Industrial Development Corporation Proposes Cash Dividend for the Year 2021 Aerospace Industrial Development Corporation announced that the board of directors proposed appropriations of earnings in cash dividends to shareholders of TWD 0.35 per share for the year 2021. Total amount of cash distributed to shareholders is TWD 329,653,485. Major Estimate Revision • Dec 02
Consensus EPS estimates fall to NT$0.65 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from NT$24.0b to NT$23.6b. EPS estimate also fell from NT$0.79 to NT$0.65. Net income forecast to grow 221% next year vs 37% growth forecast for Aerospace & Defense industry in Taiwan. Consensus price target of NT$44.50 unchanged from last update. Share price fell 4.4% to NT$29.05 over the past week. Reported Earnings • Nov 07
Third quarter 2021 earnings released: EPS NT$0.24 (vs NT$0.012 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$5.69b (up 17% from 3Q 2020). Net income: NT$231.6m (up NT$242.8m from 3Q 2020). Profit margin: 4.1% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Executive Departure • Sep 21
Director Yan-Pu Shiu has left the company On the 16th of September, Yan-Pu Shiu's tenure as Director ended after less than a year in the role. We don't have any record of a personal shareholding under Yan-Pu's name. A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 3.00 years. Upcoming Dividend • Aug 27
Upcoming dividend of NT$0.20 per share Eligible shareholders must have bought the stock before 03 September 2021. Payment date: 30 September 2021. Trailing yield: 0.7%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (1.2%). Major Estimate Revision • Aug 09
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from NT$0.93 to NT$0.45. Revenue forecast unchanged from NT$24.0b at last update. Net income forecast to grow 317% next year vs 29% growth forecast for Aerospace & Defense industry in Taiwan. Consensus price target of NT$40.67 unchanged from last update. Share price fell 2.9% to NT$30.00 over the past week. Major Estimate Revision • Aug 07
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate increased from NT$0.93 to NT$1.16. Revenue forecast unchanged at NT$24.2b. Net income forecast to grow 1,459% next year vs 29% growth forecast for Aerospace & Defense industry in Taiwan. Consensus price target of NT$40.67 unchanged from last update. Share price was steady at NT$29.80 over the past week. Major Estimate Revision • Jul 31
Consensus EPS estimates increase to NT$1.16 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from NT$23.7b to NT$24.2b. EPS estimate increased from NT$0.93 to NT$1.16 per share. Net income forecast to grow 1,459% next year vs 29% growth forecast for Aerospace & Defense industry in Taiwan. Consensus price target up from NT$33.00 to NT$40.67. Share price was steady at NT$29.80 over the past week. Price Target Changed • Jul 31
Price target increased to NT$40.67 Up from NT$33.00, the current price target is an average from 3 analysts. New target price is 36% above last closing price of NT$29.80. Stock is up 12% over the past year. Major Estimate Revision • Jul 15
Consensus EPS estimates increase to NT$0.93 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from NT$23.2b to NT$23.7b. EPS estimate increased from NT$0.48 to NT$0.93 per share. Net income forecast to grow 1,285% next year vs 29% growth forecast for Aerospace & Defense industry in Taiwan. Consensus price target of NT$33.00 unchanged from last update. Share price was steady at NT$28.65 over the past week. Reported Earnings • May 09
First quarter 2021 earnings released: NT$0.28 loss per share (vs NT$0.057 profit in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and control over costs. First quarter 2021 results: Revenue: NT$4.66b (down 17% from 1Q 2020). Net loss: NT$264.9m (down NT$318.2m from profit in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 42% 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. Major Estimate Revision • Apr 01
Consensus EPS estimates fall to NT$0.81 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from NT$25.1b to NT$23.7b. EPS estimate also fell from NT$1.66 to NT$0.81. Net income forecast to grow 94% next year vs 23% growth forecast for Aerospace & Defense industry in Taiwan. Consensus price target broadly unchanged at NT$34.05. Share price was steady at NT$28.80 over the past week. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS NT$0.42 (vs NT$1.99 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$21.0b (down 26% from FY 2019). Net income: NT$395.9m (down 79% from FY 2019). Profit margin: 1.9% (down from 6.6% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 26% 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 • Feb 27
Aerospace Industrial Development Corporation, Annual General Meeting, May 28, 2021 Aerospace Industrial Development Corporation, Annual General Meeting, May 28, 2021. Location: 176 Ln 20, Jhongzhen Rd., Shalu District Taichung City Taiwan Agenda: To consider reporting items of 2020 Annual Business Report, 2020 Final Account and Audit Committee Report, 2020 Distribution of Compensation Payable to Employees as well as to Directors and Supervisors; to consider matters for Ratification: 2020 Annual Business Report and Financial Report; Distribution of 2020 profits; to consider the amendment of the Articles of Incorporation of AIDC; and to consider matters for Discussion.