Valuation Update With 7 Day Price Move • May 19
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥2,427, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 13% over the past three years. Reported Earnings • May 13
Full year 2026 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2026 results: EPS: JP¥86.47 (up from JP¥77.17 in FY 2025). Revenue: JP¥5.57b (down 5.5% from FY 2025). Net income: JP¥463.0m (up 8.4% from FY 2025). Profit margin: 8.3% (up from 7.2% in FY 2025). Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 8.0%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Annonce • May 12
TESEC Corporation, Annual General Meeting, Jun 26, 2026 TESEC Corporation, Annual General Meeting, Jun 26, 2026. Annonce • May 10
TESEC Corporation to Report Fiscal Year 2026 Results on May 12, 2026 TESEC Corporation announced that they will report fiscal year 2026 results on May 12, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥100.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 10 June 2026. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.0%). Reported Earnings • Jan 28
Third quarter 2026 earnings released: EPS: JP¥13.73 (vs JP¥52.34 in 3Q 2025) Third quarter 2026 results: EPS: JP¥13.73 (down from JP¥52.34 in 3Q 2025). Revenue: JP¥1.37b (down 18% from 3Q 2025). Net income: JP¥73.0m (down 75% from 3Q 2025). Profit margin: 5.3% (down from 18% in 3Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥2,775, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 15% over the past three years. Annonce • Jan 27
TESEC Corporation (TSE:6337) announces an Equity Buyback for 160,000 shares, representing 3.01% for ¥300 million. TESEC Corporation (TSE:6337) announces a share repurchase program. Under the program, the company will repurchase up to 160,000 shares, representing 3.01% of its issued share capital, for ¥300 million. The purpose of the program is to enhance shareholder returns, improve capital efficiency and to conduct agile management in response to changes in the business environment, The program is valid till March 31, 2026. As of December 31, 2025, there are 5,317,153 outstanding shares (excluding treasury stock) and 261,542 treasury shares. Annonce • Nov 29
TESEC Corporation to Report Q3, 2026 Results on Jan 27, 2026 TESEC Corporation announced that they will report Q3, 2026 results on Jan 27, 2026 Reported Earnings • Oct 30
Second quarter 2026 earnings released: EPS: JP¥37.11 (vs JP¥8.49 in 2Q 2025) Second quarter 2026 results: EPS: JP¥37.11 (up from JP¥8.49 in 2Q 2025). Revenue: JP¥1.56b (up 19% from 2Q 2025). Net income: JP¥200.0m (up 326% from 2Q 2025). Profit margin: 13% (up from 3.6% in 2Q 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 7.2% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Annonce • Sep 02
TESEC Corporation to Report Q2, 2026 Results on Oct 28, 2025 TESEC Corporation announced that they will report Q2, 2026 results on Oct 28, 2025 Reported Earnings • Jul 30
First quarter 2026 earnings released: EPS: JP¥2.57 (vs JP¥14.83 in 1Q 2025) First quarter 2026 results: EPS: JP¥2.57 (down from JP¥14.83 in 1Q 2025). Revenue: JP¥1.07b (down 17% from 1Q 2025). Net income: JP¥14.0m (down 83% from 1Q 2025). Profit margin: 1.3% (down from 6.3% in 1Q 2025). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Annonce • Jun 05
TESEC Corporation to Report Q1, 2026 Results on Jul 29, 2025 TESEC Corporation announced that they will report Q1, 2026 results on Jul 29, 2025 Reported Earnings • May 15
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥77.17 (down from JP¥272 in FY 2024). Revenue: JP¥5.89b (down 32% from FY 2024). Net income: JP¥427.0m (down 72% from FY 2024). Profit margin: 7.2% (down from 18% in FY 2024). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 3.4%. Earnings per share (EPS) missed analyst estimates by 22%. Revenue is forecast to grow 9.1% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Annonce • May 14
TESEC Corporation (TSE:6337) announces an Equity Buyback for 250,000 shares, representing 4.56% for ¥300 million. TESEC Corporation (TSE:6337) announces a share repurchase program. Under the program, the company will repurchase up to 250,000 shares, representing 4.56% of its issued share capital, for ¥300 million. The purpose of the program is to enhance shareholder returns and improve capital efficiency. The program is valid till October 24, 2025. As of March 31, 2025, there are 5,477,553 outstanding shares (excluding treasury stock) and 301,142 treasury shares. New Risk • May 14
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 Japanese stocks, typically moving 7.7% 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 Risk Earnings are forecast to decline by an average of 15% per year for the foreseeable future. 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 (7.7% average weekly change). Market cap is less than US$100m (JP¥9.14b market cap, or US$62.6m). Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥1,645, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 14x in the Semiconductor industry in Japan. Total returns to shareholders of 2.1% over the past three years. Annonce • May 13
TESEC Corporation, Annual General Meeting, Jun 27, 2025 TESEC Corporation, Annual General Meeting, Jun 27, 2025. 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 Japanese stocks, typically moving 5.5% 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 Risk Earnings are forecast to decline by an average of 15% per year for the foreseeable future. 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 (5.5% average weekly change). Market cap is less than US$100m (JP¥6.55b market cap, or US$44.8m). Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,306, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 13x in the Semiconductor industry in Japan. Total loss to shareholders of 18% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥70.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 11 June 2025. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.8%). Annonce • Mar 15
TESEC Corporation to Report Fiscal Year 2025 Results on May 13, 2025 TESEC Corporation announced that they will report fiscal year 2025 results on May 13, 2025 Annonce • Feb 25
TESEC Corporation (TSE:6337) announces an Equity Buyback for 80,000 shares, representing 1.44% for ¥100 million. TESEC Corporation (TSE:6337) announces a share repurchase program. Under the program, the company will repurchase up to 80,000 shares, representing 1.44% of its issued share capital, for ¥100 million. The purpose of the program is to enhance shareholder returns and improve capital efficiency, and carry out flexible management that responds to changes in the corporate environment. The program is valid till March 31, 2025. As of September 30, 2024, the company had 5,539,353 issued shares (excluding treasury stock) and 239,342 shares in treasury. Reported Earnings • Jan 29
Third quarter 2025 earnings released: EPS: JP¥52.34 (vs JP¥52.14 in 3Q 2024) Third quarter 2025 results: EPS: JP¥52.34. Revenue: JP¥1.66b (down 24% from 3Q 2024). Net income: JP¥290.0m (flat on 3Q 2024). Profit margin: 18% (up from 13% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the Semiconductor industry in Japan. Annonce • Dec 11
TESEC Corporation to Report Q3, 2025 Results on Jan 28, 2025 TESEC Corporation announced that they will report Q3, 2025 results on Jan 28, 2025 New Risk • Nov 02
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.2% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (13% net profit margin). Market cap is less than US$100m (JP¥8.56b market cap, or US$56.0m). Reported Earnings • Oct 31
Second quarter 2025 earnings released: EPS: JP¥8.49 (vs JP¥44.76 in 2Q 2024) Second quarter 2025 results: EPS: JP¥8.49 (down from JP¥44.76 in 2Q 2024). Revenue: JP¥1.31b (down 26% from 2Q 2024). Net income: JP¥47.0m (down 81% from 2Q 2024). Profit margin: 3.6% (down from 14% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 13% per year, which means it is performing significantly worse than earnings. Annonce • Sep 20
TESEC Corporation to Report Q2, 2025 Results on Oct 29, 2024 TESEC Corporation announced that they will report Q2, 2025 results on Oct 29, 2024 Reported Earnings • Aug 01
First quarter 2025 earnings released: EPS: JP¥14.83 (vs JP¥90.83 in 1Q 2024) First quarter 2025 results: EPS: JP¥14.83 (down from JP¥90.83 in 1Q 2024). Revenue: JP¥1.29b (down 49% from 1Q 2024). Net income: JP¥82.0m (down 84% from 1Q 2024). Profit margin: 6.3% (down from 20% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. New Risk • Jul 31
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 Japanese stocks, typically moving 5.3% 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 (5.3% average weekly change). Profit margins are more than 30% lower than last year (18% net profit margin). Market cap is less than US$100m (JP¥9.63b market cap, or US$64.0m). Valuation Update With 7 Day Price Move • Jul 31
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥1,741, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 19x in the Semiconductor industry in Japan. Total loss to shareholders of 24% over the past three years. Annonce • Jun 20
TESEC Corporation to Report Q1, 2025 Results on Jul 30, 2024 TESEC Corporation announced that they will report Q1, 2025 results on Jul 30, 2024 New Risk • May 19
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: 18% Last year net profit margin: 26% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 4.9% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (18% net profit margin). Market cap is less than US$100m (JP¥12.0b market cap, or US$76.8m). Reported Earnings • May 19
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥272 (down from JP¥400 in FY 2023). Revenue: JP¥8.62b (down 1.4% from FY 2023). Net income: JP¥1.52b (down 33% from FY 2023). Profit margin: 18% (down from 26% in FY 2023). The decrease in margin was primarily driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 16%. Revenue is forecast to grow 7.9% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Annonce • May 17
TESEC Corporation, Annual General Meeting, Jun 27, 2024 TESEC Corporation, Annual General Meeting, Jun 27, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 10 June 2024. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (0.9%). 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 Japanese stocks, typically moving 5.8% 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 Risk Earnings are forecast to decline by an average of 10% per year for the foreseeable future. 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 (5.8% average weekly change). Market cap is less than US$100m (JP¥12.8b market cap, or US$87.6m). Annonce • Mar 02
TESEC Corporation to Report Fiscal Year 2024 Results on May 14, 2024 TESEC Corporation announced that they will report fiscal year 2024 results on May 14, 2024 Reported Earnings • Feb 02
Third quarter 2024 earnings released: EPS: JP¥52.14 (vs JP¥59.79 in 3Q 2023) Third quarter 2024 results: EPS: JP¥52.14 (down from JP¥59.79 in 3Q 2023). Revenue: JP¥2.19b (down 2.4% from 3Q 2023). Net income: JP¥291.0m (down 14% from 3Q 2023). Profit margin: 13% (down from 15% in 3Q 2023). Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. New Risk • Jan 31
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 12% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 12% per year for the foreseeable future. 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 (6.5% average weekly change). Profit margins are more than 30% lower than last year (20% net profit margin). Market cap is less than US$100m (JP¥13.9b market cap, or US$94.0m). Annonce • Dec 10
TESEC Corporation to Report Q3, 2024 Results on Jan 30, 2024 TESEC Corporation announced that they will report Q3, 2024 results on Jan 30, 2024 Reported Earnings • Nov 02
Second quarter 2024 earnings released: EPS: JP¥44.75 (vs JP¥151 in 2Q 2023) Second quarter 2024 results: EPS: JP¥44.75 (down from JP¥151 in 2Q 2023). Revenue: JP¥1.77b (down 36% from 2Q 2023). Net income: JP¥250.0m (down 71% from 2Q 2023). Profit margin: 14% (down from 31% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 46% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥2,216, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 15x in the Semiconductor industry in Japan. Total returns to shareholders of 231% over the past three years. New Risk • Oct 26
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.7b (US$98.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. 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 (5.5% average weekly change). Market cap is less than US$100m (JP¥14.7b market cap, or US$98.0m). Annonce • Sep 30
TESEC Corporation to Report Q2, 2024 Results on Oct 31, 2023 TESEC Corporation announced that they will report Q2, 2024 results on Oct 31, 2023 Buying Opportunity • Aug 16
Now 21% undervalued Over the last 90 days, the stock is up 30%. The fair value is estimated to be JP¥3,850, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 14% in 2 years. Earnings is forecast to decline by 21% in the next 2 years. New Risk • Jul 27
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 Japanese stocks, typically moving 8.3% 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 (8.3% average weekly change). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Jul 26
First quarter 2024 earnings released: EPS: JP¥90.81 (vs JP¥82.51 in 1Q 2023) First quarter 2024 results: EPS: JP¥90.81 (up from JP¥82.51 in 1Q 2023). Revenue: JP¥2.51b (up 55% from 1Q 2023). Net income: JP¥507.0m (up 8.8% from 1Q 2023). Profit margin: 20% (down from 29% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 61% per year, which means it is significantly lagging earnings growth. Annonce • Jun 02
TESEC Corporation to Report Q1, 2024 Results on Jul 25, 2023 TESEC Corporation announced that they will report Q1, 2024 results on Jul 25, 2023 Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,476, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Semiconductor industry in Japan. Total returns to shareholders of 200% over the past three years. Reported Earnings • May 10
Full year 2023 earnings: EPS in line with expectations, revenues disappoint Full year 2023 results: EPS: JP¥400 (up from JP¥305 in FY 2022). Revenue: JP¥8.74b (up 16% from FY 2022). Net income: JP¥2.26b (up 31% from FY 2022). Profit margin: 26% (up from 23% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥100.00 per share at 2.6% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 09 June 2023. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.2%). Reported Earnings • Feb 01
Third quarter 2023 earnings released: EPS: JP¥59.78 (vs JP¥73.83 in 3Q 2022) Third quarter 2023 results: EPS: JP¥59.78 (down from JP¥73.83 in 3Q 2022). Revenue: JP¥2.24b (up 27% from 3Q 2022). Net income: JP¥338.0m (down 19% from 3Q 2022). Profit margin: 15% (down from 24% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 103% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 26
Investor sentiment deteriorated over the past week After last week's 15% share price decline to JP¥2,837, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 8x in the Semiconductor industry in Japan. Total returns to shareholders of 129% over the past three years. Annonce • Nov 30
TESEC Corporation to Report Q3, 2023 Results on Jan 31, 2023 TESEC Corporation announced that they will report Q3, 2023 results on Jan 31, 2023 Annonce • Nov 16
TESEC Corporation (TSE:6337) announces an Equity Buyback for 150,000 shares, representing 2.65% for ¥230 million. TESEC Corporation (TSE:6337) announces a share repurchase program. Under the program, the company will repurchase up to 150,000 shares, representing 2.65% of its issued share capital, for total worth of ¥230 million worth of its shares. The purpose of the program is to implement a flexible capital policy that responds to changes in the corporate environment. The program is valid till March 31, 2023. As of September 30, 2022, the company has 5,659,795 shares in issue and 118,900 shares in treasury. Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥151 (vs JP¥54.89 in 2Q 2022) Second quarter 2023 results: EPS: JP¥151 (up from JP¥54.89 in 2Q 2022). Revenue: JP¥2.75b (up 62% from 2Q 2022). Net income: JP¥855.0m (up 176% from 2Q 2022). Profit margin: 31% (up from 18% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. No independent directors (8 non-independent directors). Director Koichi Watanabe was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Oct 27
Second quarter 2023 earnings released: EPS: JP¥151 (vs JP¥54.89 in 2Q 2022) Second quarter 2023 results: EPS: JP¥151 (up from JP¥54.89 in 2Q 2022). Revenue: JP¥2.75b (up 62% from 2Q 2022). Net income: JP¥855.0m (up 176% from 2Q 2022). Profit margin: 31% (up from 18% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 26
Investor sentiment improved over the past week After last week's 29% share price gain to JP¥2,120, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Semiconductor industry in Japan. Total returns to shareholders of 99% over the past three years. Annonce • Aug 31
TESEC Corporation to Report Q2, 2023 Results on Oct 25, 2022 TESEC Corporation announced that they will report Q2, 2023 results on Oct 25, 2022 Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment deteriorated over the past week After last week's 17% share price decline to JP¥1,772, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 9x in the Semiconductor industry in Japan. Total returns to shareholders of 92% over the past three years. Reported Earnings • Jul 27
First quarter 2023 earnings released: EPS: JP¥82.50 (vs JP¥63.56 in 1Q 2022) First quarter 2023 results: EPS: JP¥82.50 (up from JP¥63.56 in 1Q 2022). Revenue: JP¥1.62b (down 12% from 1Q 2022). Net income: JP¥466.0m (up 30% from 1Q 2022). Profit margin: 29% (up from 20% in 1Q 2022). The increase in margin was driven by lower expenses. Over the next year, revenue is forecast to grow 23%, compared to a 26% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Annonce • Jun 05
TESEC Corporation to Report Q1, 2023 Results on Jul 26, 2022 TESEC Corporation announced that they will report Q1, 2023 results on Jul 26, 2022 Annonce • May 12
TESEC Corporation, Annual General Meeting, Jun 29, 2022 TESEC Corporation, Annual General Meeting, Jun 29, 2022. Reported Earnings • May 11
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥305 (up from JP¥51.35 loss in FY 2021). Revenue: JP¥7.51b (up 118% from FY 2021). Net income: JP¥1.72b (up JP¥2.01b from FY 2021). Profit margin: 23% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 7.3%. Earnings per share (EPS) also surpassed analyst estimates by 23%. Over the next year, revenue is forecast to grow 13%, compared to a 22% growth forecast for the industry in Japan. 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 26% per year. Board Change • Apr 27
No independent directors There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 2 highly experienced directors. No independent directors (8 non-independent directors). Director Koichi Watanabe was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Annonce • Apr 08
TESEC Corporation to Report Fiscal Year 2022 Results on May 10, 2022 TESEC Corporation announced that they will report fiscal year 2022 results on May 10, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 10 June 2022. Payout ratio is a comfortable 4.6% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.9%). Reported Earnings • Jan 26
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥73.82 (up from JP¥4.43 loss in 3Q 2021). Revenue: JP¥1.77b (up 93% from 3Q 2021). Net income: JP¥417.0m (up JP¥442.0m from 3Q 2021). Profit margin: 24% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Reported Earnings • Oct 27
Second quarter 2022 earnings released: EPS JP¥54.88 (vs JP¥30.28 loss in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥1.70b (up 71% from 2Q 2021). Net income: JP¥310.0m (up JP¥481.0m from 2Q 2021). Profit margin: 18% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 87 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Oct 19
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥2,778, the stock trades at a trailing P/E ratio of 52.7x. Average trailing P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 100% over the past three years. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment improved over the past week After last week's 20% share price gain to JP¥2,676, the stock trades at a trailing P/E ratio of 50.7x. Average trailing P/E is 23x in the Semiconductor industry in Japan. Total returns to shareholders of 73% over the past three years. Reported Earnings • Jul 28
First quarter 2022 earnings released: EPS JP¥63.56 (vs JP¥40.55 loss in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥1.83b (up 362% from 1Q 2021). Net income: JP¥359.0m (up JP¥588.0m from 1Q 2021). Profit margin: 20% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 108 percentage points per year, which is a significant difference in performance. Reported Earnings • May 14
Full year 2021 earnings released: JP¥51.34 loss per share (vs JP¥29.75 loss in FY 2020) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2021 results: Revenue: JP¥3.45b (down 17% from FY 2020). Net loss: JP¥290.0m (loss widened 73% from FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 115 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 10 June 2021. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.4%). Is New 90 Day High Low • Feb 12
New 90-day high: JP¥1,339 The company is up 82% from its price of JP¥734 on 13 November 2020. The Japanese market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 32% over the same period. Reported Earnings • Jan 28
Third quarter 2021 earnings released: JP¥4.43 loss per share (vs JP¥9.74 loss in 3Q 2020) The company reported a decent third quarter result with reduced losses and improved control over expenses, although revenues were weaker. Third quarter 2021 results: Revenue: JP¥916.0m (down 3.3% from 3Q 2020). Net loss: JP¥25.0m (loss narrowed 55% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 90% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Jan 08
New 90-day high: JP¥988 The company is up 28% from its price of JP¥773 on 09 October 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Semiconductor industry, which is up 34% over the same period. Is New 90 Day High Low • Dec 02
New 90-day high: JP¥931 The company is up 32% from its price of JP¥707 on 03 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Semiconductor industry, which is up 34% over the same period. Reported Earnings • Nov 12
Second quarter 2021 earnings released: JP¥30.28 loss per share The company reported a poor second quarter result with weaker earnings, revenues and control over expenses. Second quarter 2021 results: Revenue: JP¥996.0m (down 8.5% from 2Q 2020). Net loss: JP¥171.0m (down 221% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 68% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Reported Earnings • Oct 28
First half earnings released Over the last 12 months the company has reported total losses of JP¥629.0m, with earnings decreasing by JP¥965.1m from the prior year. Total revenue was JP¥3.48b over the last 12 months, down 38% from the prior year.