Declared Dividend • May 27
Dividend increased to NT$5.24 Dividend of NT$5.24 is 41% higher than last year. Ex-date: 10th June 2026 Payment date: 2nd July 2026 Dividend yield will be 3.3%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (64% earnings payout ratio) but not adequately covered by cash flows (95% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 64% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$163, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 34x in the Machinery industry in Taiwan. Total returns to shareholders of 101% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$167 per share. Reported Earnings • May 12
First quarter 2026 earnings released: EPS: NT$2.36 (vs NT$1.73 in 1Q 2025) First quarter 2026 results: EPS: NT$2.36 (up from NT$1.73 in 1Q 2025). Revenue: NT$5.02b (up 21% from 1Q 2025). Net income: NT$649.0m (up 38% from 1Q 2025). Profit margin: 13% (up from 11% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$141, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 27x in the Machinery industry in Taiwan. Total returns to shareholders of 194% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$142 per share. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$158, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 37x in the Machinery industry in Taiwan. Total returns to shareholders of 255% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$144 per share. Announcement • Mar 06
Sunonwealth Electric Machine Industry Co., Ltd., Annual General Meeting, May 25, 2026 Sunonwealth Electric Machine Industry Co., Ltd., Annual General Meeting, May 25, 2026. Location: 9 floor no,266, ch`eng kung 1st rd., cianjin district, kaohsiung city Taiwan Reported Earnings • Mar 06
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: NT$7.94 (up from NT$5.46 in FY 2024). Revenue: NT$18.7b (up 28% from FY 2024). Net income: NT$2.17b (up 45% from FY 2024). Profit margin: 12% (up from 10% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.2%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 45% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 05
Sunonwealth Electric Machine Industry Co., Ltd. has filed a Follow-on Equity Offering in the amount of TWD 143.5 million. Sunonwealth Electric Machine Industry Co., Ltd. has filed a Follow-on Equity Offering in the amount of TWD 143.5 million.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 1,148,000
Price\Range: TWD 125 Major Estimate Revision • Nov 13
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$18.4b to NT$18.8b. EPS estimate increased from NT$7.26 to NT$8.03 per share. Net income forecast to grow 41% next year vs 54% growth forecast for Machinery industry in Taiwan. Consensus price target up from NT$146 to NT$194. Share price rose 19% to NT$183 over the past week. Reported Earnings • Nov 07
Third quarter 2025 earnings released: EPS: NT$2.55 (vs NT$1.28 in 3Q 2024) Third quarter 2025 results: EPS: NT$2.55 (up from NT$1.28 in 3Q 2024). Revenue: NT$4.93b (up 22% from 3Q 2024). Net income: NT$694.3m (up 99% from 3Q 2024). Profit margin: 14% (up from 8.7% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 56% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Nov 04
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 7.1% 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 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 (7.1% average weekly change). Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$166, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 29x in the Machinery industry in Taiwan. Total returns to shareholders of 295% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$99.77 per share. Buy Or Sell Opportunity • Oct 14
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 27% to NT$136. 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 grown by 4.2% over the last 3 years. Earnings per share has grown by 14%. Revenue is forecast to grow by 27% in 2 years. Earnings are forecast to grow by 64% in the next 2 years. Buy Or Sell Opportunity • Aug 18
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 33% to NT$138. The fair value is estimated to be NT$115, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.2% over the last 3 years. Earnings per share has grown by 14%. Revenue is forecast to grow by 27% in 2 years. Earnings are forecast to grow by 64% in the next 2 years. Price Target Changed • Aug 08
Price target increased by 15% to NT$140 Up from NT$122, the current price target is an average from 4 analysts. New target price is 6.5% above last closing price of NT$132. Stock is up 43% over the past year. The company is forecast to post earnings per share of NT$7.26 for next year compared to NT$5.46 last year. Buy Or Sell Opportunity • Jul 09
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 43% to NT$105. The fair value is estimated to be NT$84.23, 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 grown by 20%. Revenue is forecast to grow by 28% in 2 years. Earnings are forecast to grow by 44% in the next 2 years. Buy Or Sell Opportunity • Jun 24
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at NT$102. The fair value is estimated to be NT$82.94, 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 grown by 20%. Revenue is forecast to grow by 28% in 2 years. Earnings are forecast to grow by 44% in the next 2 years. Upcoming Dividend • Jun 09
Upcoming dividend of NT$3.71 per share Eligible shareholders must have bought the stock before 16 June 2025. Payment date: 11 July 2025. Payout ratio is a comfortable 62% and the cash payout ratio is 75%. Trailing yield: 3.6%. Lower than top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (2.8%). Announcement • May 29
Sunonwealth Electric Machine Industry Co., Ltd. Announces Cash Dividend, Payable on 11 July 2025 Sunonwealth Electric Machine Industry Co., Ltd. announced Cash dividends for common shares are TWD 1,011,741,575 in total,with a cash dividend of TWD 3.71227270 per share. Ex-rights (ex-dividend) record date: June 22, 2025. Payment date of common stock cash dividend distribution: 11 July 2025. Ex-rights (ex-dividend) trading date: June 16, 2025. Buy Or Sell Opportunity • May 09
Now 21% overvalued The stock has been flat over the last 90 days, currently trading at NT$94.00. The fair value is estimated to be NT$77.56, 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 grown by 20%. Revenue is forecast to grow by 28% in 2 years. Earnings are forecast to grow by 44% in the next 2 years. Announcement • May 01
Sunonwealth Electric Machine Industry Co., Ltd. to Report Q1, 2025 Results on May 08, 2025 Sunonwealth Electric Machine Industry Co., Ltd. announced that they will report Q1, 2025 results on May 08, 2025 Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$81.20, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 20x in the Machinery industry in Taiwan. Total returns to shareholders of 125% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$66.19 per share. Buy Or Sell Opportunity • Apr 14
Now 23% overvalued Over the last 90 days, the stock has fallen 15% to NT$81.00. The fair value is estimated to be NT$66.04, 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 grown by 26%. Revenue is forecast to grow by 34% in 2 years. Earnings are forecast to grow by 71% in the next 2 years. New Risk • Apr 10
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 8.1% 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 (91% cash payout ratio). Share price has been volatile over the past 3 months (8.1% average weekly change). Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$87.90, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 25x in the Machinery industry in Taiwan. Total returns to shareholders of 126% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$65.20 per share. Announcement • Mar 07
Sunonwealth Electric Machine Industry Co., Ltd., Annual General Meeting, May 28, 2025 Sunonwealth Electric Machine Industry Co., Ltd., Annual General Meeting, May 28, 2025. Location: 9 floor no,266, ch`eng kung 1st rd., cianjin district, kaohsiung city Taiwan Reported Earnings • Mar 07
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: NT$5.46 (up from NT$5.16 in FY 2023). Revenue: NT$14.6b (up 13% from FY 2023). Net income: NT$1.49b (up 12% from FY 2023). Profit margin: 10% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.8%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Nov 22
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: Minor Risks 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 (6.4% average weekly change). Shareholders have been diluted in the past year (9.0% increase in shares outstanding). Reported Earnings • Nov 12
Third quarter 2024 earnings: EPS misses analyst expectations Third quarter 2024 results: EPS: NT$1.28 (down from NT$1.50 in 3Q 2023). Revenue: NT$4.03b (up 22% from 3Q 2023). Net income: NT$349.1m (down 9.6% from 3Q 2023). Profit margin: 8.7% (down from 12% 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 18%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 32% per year whereas the company’s share price has increased by 37% per year. Valuation Update With 7 Day Price Move • Oct 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$109, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 25x in the Machinery industry in Taiwan. Total returns to shareholders of 213% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$68.41 per share. Announcement • Oct 08
Sunonwealth Electric Unveils Innovative Liquid Cooling Solutions for High-Performance Applications At the 2024 OCP Global Summit in San Jose Sunonwealth Electric announced that they will showcase their breakthrough liquid cooling technology and thermal solutions for the first time at the 2024 OCP Global Summit, taking place from October 15-17 in San Jose, USA. This Summit is a landmark event for global CSP and server supply chains, as well as a premier platform for members of the Open IT Ecosystem to share market insights, discuss standardized and modularized design and technical services, and demonstrate advanced technology for large-scale data centers. The theme of this year's OCP Global Summit, "From Ideas to Impact," underscores the organization's commitment to fostering innovation that leads to tangible, real-world solutions. At SUNON Booth #C35, they will showcase a range of novel liquid cooling modules and systems that exemplify pioneering approach to thermal technology. One highlight will be theirAdvanced Air-Liquid Cooling (AALC) with sidecar, which seamlessly integrates both liquid-cooled and air-cooled designs ? including a fan wall, PSU, HRU, and RPU ? into a single cabinet. This solution connects to an AI server rack, offering significant heat dissipation, operational efficiency, and stability during high-performance computing tasks, making it ideal for CPU-bound, data-intensive, and I/O-bound applications. Furthermore, the AALC is a cost-effective solution that meets the demands of global server development and sustainability by combining existing air-cooled systems with new liquid-cooled systems, all without requiring the replacement of existing infrastructure or air conditioning equipment. In addition, SUNON will display a variety of Immersion Fans for Single-phase Immersion Cooling. They worked together with clients to achieve an in-system temperature reduction of 17?. They will feature a dynamic display of theirTwo-Phase Liquid Cooling Module for Workstation. This module efficiently dissipate heat from CPUs and GPUs, enabling continuous 24/7 operation at optimal temperatures. Its non-pump design reduces noise and energy consumption, while its highly reliable cooling system and low GWP coolant selection minimize the risk of leaks, crashes, or failures. Alongside these innovations, SUNON will also display a variety of efficient cooling fans (ranging from 40mm to 200mm), heatsink modules for both general-purpose and application-specific CPUs, open-loop cold plates, and water pumps tailored to client needs. SUNON aims to expand its liquid cooling portfolio and offer comprehensive liquid-to-air design services to help global clients manage rapidly evolving IT infrastructures. Reported Earnings • Aug 09
Second quarter 2024 earnings released: EPS: NT$1.39 (vs NT$1.72 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.39 (down from NT$1.72 in 2Q 2023). Revenue: NT$3.68b (up 12% from 2Q 2023). Net income: NT$379.1m (down 12% from 2Q 2023). Profit margin: 10% (down from 13% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 37% per year whereas the company’s share price has increased by 35% per year. Price Target Changed • Aug 08
Price target decreased by 12% to NT$138 Down from NT$156, the current price target is an average from 4 analysts. New target price is 46% above last closing price of NT$94.40. Stock is down 24% over the past year. The company is forecast to post earnings per share of NT$6.50 for next year compared to NT$5.16 last year. Announcement • Aug 02
Sunonwealth Electric Machine Industry Co., Ltd. to Report Q2, 2024 Results on Aug 08, 2024 Sunonwealth Electric Machine Industry Co., Ltd. announced that they will report Q2, 2024 results on Aug 08, 2024 Buy Or Sell Opportunity • Jul 23
Now 22% overvalued Over the last 90 days, the stock has fallen 11% to NT$101. The fair value is estimated to be NT$82.98, 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 grown by 35%. Revenue is forecast to grow by 39% in 2 years. Earnings are forecast to grow by 71% in the next 2 years. Declared Dividend • Jun 19
Dividend increased to NT$3.50 Dividend of NT$3.50 is 35% higher than last year. Ex-date: 3rd July 2024 Payment date: 26th July 2024 Dividend yield will be 3.1%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (67% earnings payout ratio) and cash flows (42% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 26% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 04
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: NT$1.19 (up from NT$1.11 in 1Q 2023). Revenue: NT$3.06b (flat on 1Q 2023). Net income: NT$326.5m (up 17% from 1Q 2023). Profit margin: 11% (up from 9.0% in 1Q 2023). Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) also missed analyst estimates by 7.0%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 35% per year whereas the company’s share price has increased by 32% per year. Announcement • Apr 26
Sunonwealth Electric Machine Industry Co., Ltd. to Report Q1, 2024 Results on May 03, 2024 Sunonwealth Electric Machine Industry Co., Ltd. announced that they will report Q1, 2024 results on May 03, 2024 Buy Or Sell Opportunity • Apr 24
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 4.1% to NT$114. The fair value is estimated to be NT$92.26, 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 grown by 31%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. Announcement • Mar 08
Sunonwealth Electric Machine Industry Co., Ltd., Annual General Meeting, Jun 14, 2024 Sunonwealth Electric Machine Industry Co., Ltd., Annual General Meeting, Jun 14, 2024. Location: 9F, No. 266, Chenggong 1st Rd Qianjin Dist., Kaohsiung City Kaohsiung City Taiwan Agenda: To consider the Company's 2023 Business Report; to consider 2023 Audit Committee's Report; to consider report on the distribution of remuneration for employees and Directors in 2023; to consider Report on the status of endorsements and guarantees; to consider report on the issuance of the third domestic unsecured conversion corporate bonds issued by the Company; to consider ratification of 2023 earnings distribution proposal; and to consider other matters. Reported Earnings • Mar 08
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: NT$5.16 (up from NT$4.34 in FY 2022). Revenue: NT$12.9b (down 8.2% from FY 2022). Net income: NT$1.33b (up 23% from FY 2022). Profit margin: 10% (up from 7.7% in FY 2022). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.6%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 31% per year whereas the company’s share price has increased by 33% per year. Announcement • Mar 08
Sunonwealth Electric Machine Industry Co., Ltd. Announces Dividend for the Year Ended December 31, 2023 Sunonwealth Electric Machine Industry Co., Ltd. announced cash dividend of TWD 3.50 per share for the year ended December 31, 2023. Total amount of cash distributed to shareholders of TWD 957,052,842. New Risk • Feb 02
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 7.3% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.3% average weekly change). Minor Risk Shareholders have been diluted in the past year (8.6% increase in shares outstanding). Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$135, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 26x in the Machinery industry in Taiwan. Total returns to shareholders of 177% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$67.31 per share. New Risk • Nov 29
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 8.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks 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). Shareholders have been diluted in the past year (8.6% increase in shares outstanding). Price Target Changed • Nov 07
Price target decreased by 11% to NT$134 Down from NT$151, the current price target is an average from 5 analysts. New target price is 38% above last closing price of NT$97.50. Stock is up 117% over the past year. The company is forecast to post earnings per share of NT$5.80 for next year compared to NT$4.34 last year. Reported Earnings • Nov 03
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: NT$1.49 (up from NT$1.42 in 3Q 2022). Revenue: NT$3.29b (down 10% from 3Q 2022). Net income: NT$386.0m (up 8.4% from 3Q 2022). Profit margin: 12% (up from 9.7% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 4.5%. Earnings per share (EPS) also missed analyst estimates by 6.6%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$151, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 22x in the Machinery 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$82.17 per share. Reported Earnings • Aug 05
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: NT$1.72 (up from NT$1.20 in 2Q 2022). Revenue: NT$3.28b (down 5.8% from 2Q 2022). Net income: NT$431.6m (up 44% from 2Q 2022). Profit margin: 13% (up from 8.6% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.3%. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Jul 15
Price target increased by 16% to NT$95.20 Up from NT$81.80, the current price target is an average from 5 analysts. New target price is 5.7% below last closing price of NT$101. Stock is up 201% over the past year. The company is forecast to post earnings per share of NT$5.36 for next year compared to NT$4.34 last year. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$108, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 27x in the Machinery industry in Taiwan. Total returns to shareholders of 132% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$68.36 per share. Upcoming Dividend • Jun 28
Upcoming dividend of NT$2.60 per share at 2.9% yield Eligible shareholders must have bought the stock before 05 July 2023. Payment date: 27 July 2023. Payout ratio is a comfortable 54% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (3.1%). Announcement • Jun 14
Sunonwealth Electric Machine Industry Co., Ltd. Approves Cash Dividend, Payable on July 27, 2023 Sunonwealth Electric Machine Industry Co., Ltd. approved cash dividend of TWD 2.60 per share. Total amount of cash distributed to shareholders of TWD 652,417,303. Ex-rights (ex-dividend) record date: July 11, 2023. Payment date of cash dividend distribution: July 27, 2023. Ex-rights (ex-dividend) trading date is July 5, 2023. Major Estimate Revision • May 25
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from NT$4.83 to NT$5.35. Revenue forecast steady at NT$14.2b. Net income forecast to grow 14% next year vs 17% growth forecast for Machinery industry in Taiwan. Consensus price target up from NT$62.50 to NT$74.75. Share price rose 20% to NT$81.50 over the past week. Reported Earnings • May 06
First quarter 2023 earnings: EPS exceeds analyst expectations First quarter 2023 results: EPS: NT$1.11 (up from NT$0.61 in 1Q 2022). Revenue: NT$3.08b (down 1.5% from 1Q 2022). Net income: NT$278.0m (up 82% from 1Q 2022). Profit margin: 9.0% (up from 4.9% in 1Q 2022). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 63%. Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 10% per year. Valuation Update With 7 Day Price Move • May 05
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$61.60, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 16x in the Machinery industry in Taiwan. Total returns to shareholders of 52% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$46.78 per share. Price Target Changed • May 04
Price target increased by 8.6% to NT$56.75 Up from NT$52.25, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$56.00. Stock is up 49% over the past year. The company is forecast to post earnings per share of NT$4.03 for next year compared to NT$4.34 last year. Reported Earnings • Mar 11
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: NT$4.34 (up from NT$1.71 in FY 2021). Revenue: NT$14.1b (up 3.7% from FY 2021). Net income: NT$1.09b (up 154% from FY 2021). Profit margin: 7.7% (up from 3.2% in FY 2021). The increase in margin was primarily driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.2%. Revenue is forecast to grow 8.9% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 11% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. Independent Director Kuang-Chih Huang was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Nov 10
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from NT$3.53 to NT$4.43. Revenue forecast steady at NT$14.1b. Net income forecast to grow 9.6% next year vs 9.6% growth forecast for Machinery industry in Taiwan. Consensus price target up from NT$48.50 to NT$50.50. Share price rose 7.3% to NT$45.05 over the past week. Reported Earnings • Nov 04
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: NT$1.42 (up from NT$0.35 in 3Q 2021). Revenue: NT$3.66b (up 5.3% from 3Q 2021). Net income: NT$356.0m (up 301% from 3Q 2021). Profit margin: 9.7% (up from 2.5% in 3Q 2021). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 49%. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has remained flat. Reported Earnings • Aug 06
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: NT$1.20 (up from NT$0.30 in 2Q 2021). Revenue: NT$3.48b (up 4.7% from 2Q 2021). Net income: NT$300.3m (up 304% from 2Q 2021). Profit margin: 8.6% (up from 2.2% in 2Q 2021). The increase in margin was primarily driven by higher revenue. Revenue exceeded analyst estimates by 3.8%. Earnings per share (EPS) also surpassed analyst estimates by 64%. Over the next year, revenue is forecast to grow 10%, compared to a 10% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment improved over the past week After last week's 15% share price gain to NT$38.65, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Machinery industry in Taiwan. Total returns to shareholders of 25% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$24.33 per share. Upcoming Dividend • Jun 21
Upcoming dividend of NT$1.20 per share Eligible shareholders must have bought the stock before 28 June 2022. Payment date: 21 July 2022. Payout ratio is a comfortable 61% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Taiwanese dividend payers (6.3%). In line with average of industry peers (3.4%). Reported Earnings • May 06
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: NT$0.61 (up from NT$0.37 in 1Q 2021). Revenue: NT$3.12b (up 3.1% from 1Q 2021). Net income: NT$153.1m (up 65% from 1Q 2021). Profit margin: 4.9% (up from 3.1% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.8%. Earnings per share (EPS) exceeded analyst estimates by 45%. Over the next year, revenue is forecast to grow 9.1%, compared to a 15% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. 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. 3 experienced directors. 5 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Director Chun-Hao Xin was the last independent director to join the board, commencing their role in 2015. 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 • Mar 11
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: NT$1.71 (down from NT$3.39 in FY 2020). Revenue: NT$13.6b (up 6.1% from FY 2020). Net income: NT$429.3m (down 50% from FY 2020). Profit margin: 3.2% (down from 6.7% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.0%. Over the next year, revenue is forecast to grow 13%, compared to a 13% growth forecast for the 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 5% per year, which means it is well ahead of earnings. Price Target Changed • Jan 21
Price target increased to NT$53.75 Up from NT$45.25, the current price target is an average from 4 analysts. New target price is 20% above last closing price of NT$44.65. Stock is down 16% over the past year. The company is forecast to post earnings per share of NT$1.63 for next year compared to NT$3.39 last year. Price Target Changed • Jan 19
Price target increased to NT$48.25 Up from NT$44.25, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$47.20. Stock is down 8.2% over the past year. The company is forecast to post earnings per share of NT$1.53 for next year compared to NT$3.39 last year. Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improved over the past week After last week's 15% share price gain to NT$44.50, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 14x in the Machinery industry in Taiwan. Total returns to shareholders of 45% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$87.71 per share. Reported Earnings • Nov 07
Third quarter 2021 earnings released: EPS NT$0.35 (vs NT$0.93 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$3.48b (down 1.5% from 3Q 2020). Net income: NT$88.7m (down 62% from 3Q 2020). Profit margin: 2.5% (down from 6.6% in 3Q 2020). The decrease in margin was primarily driven by higher expenses. 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 6% per year. Reported Earnings • Aug 03
Second quarter 2021 earnings released: EPS NT$0.30 (vs NT$1.48 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$3.33b (down 7.7% from 2Q 2020). Net income: NT$74.3m (down 80% from 2Q 2020). Profit margin: 2.2% (down from 10% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Major Estimate Revision • Aug 03
Consensus EPS estimates fall to NT$1.61 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from NT$14.3b to NT$13.5b. EPS estimate also fell from NT$2.67 to NT$1.61. Net income forecast to shrink 37% next year vs 20% growth forecast for Machinery industry in Taiwan . Consensus price target down from NT$48.00 to NT$47.00. Share price fell 3.7% to NT$42.60 over the past week. Price Target Changed • Jul 16
Price target decreased to NT$48.00 Down from NT$53.00, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of NT$47.30. Stock is down 5.6% over the past year. Upcoming Dividend • Jul 14
Upcoming dividend of NT$2.40 per share Eligible shareholders must have bought the stock before 21 July 2021. Payment date: 19 August 2021. Trailing yield: 5.0%. Within top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (2.4%). Major Estimate Revision • Jun 25
Consensus EPS estimates fall to NT$2.67 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from NT$14.7b to NT$14.5b. EPS estimate also fell from NT$3.11 to NT$2.67. Net income forecast to shrink 10% next year vs 20% growth forecast for Machinery industry in Taiwan . Consensus price target down from NT$53.00 to NT$50.00. Share price fell 2.2% to NT$45.50 over the past week. Price Target Changed • May 14
Price target decreased to NT$53.00 Down from NT$59.20, the current price target is an average from 4 analysts. New target price is 25% above last closing price of NT$42.30. Stock is down 15% over the past year.