New Risk • May 02
New major risk - Revenue and earnings growth Earnings have declined by 4.2% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.9x net interest cover). Earnings have declined by 4.2% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₱2.31b market cap, or US$37.7m). Buy Or Sell Opportunity • Apr 24
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 4.3% to ₱0.72. The fair value is estimated to be ₱0.60, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 16%. Reported Earnings • Apr 16
Full year 2025 earnings released: EPS: ₱0.13 (vs ₱0.15 in FY 2024) Full year 2025 results: EPS: ₱0.13 (down from ₱0.15 in FY 2024). Revenue: ₱12.9b (up 16% from FY 2024). Net income: ₱398.8m (down 17% from FY 2024). Profit margin: 3.1% (down from 4.3% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has fallen by 33% per year, which means it is performing significantly worse than earnings. Annonce • Mar 23
Upson International Corp., Annual General Meeting, May 25, 2026 Upson International Corp., Annual General Meeting, May 25, 2026, at 15:00 W. Australia Standard Time. Location: taguig Philippines Recent Insider Transactions • Oct 22
Chairman of the Board recently sold ₱180m worth of stock On the 15th of October, Lawrence Lee sold around 258m shares on-market at roughly ₱0.70 per share. This transaction amounted to 28% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Lawrence's only on-market trade for the last 12 months. New Risk • Aug 20
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 Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₱2.44b market cap, or US$42.6m). Reported Earnings • Aug 19
Second quarter 2025 earnings released: EPS: ₱0.02 (vs ₱0.026 in 2Q 2024) Second quarter 2025 results: EPS: ₱0.02 (down from ₱0.026 in 2Q 2024). Revenue: ₱2.95b (up 21% from 2Q 2024). Net income: ₱74.9m (down 6.4% from 2Q 2024). Profit margin: 2.5% (down from 3.3% in 2Q 2024). The decrease in margin was driven by higher expenses. Upcoming Dividend • Jun 02
Upcoming dividend of ₱0.06 per share Eligible shareholders must have bought the stock before 09 June 2025. Payment date: 25 June 2025. Payout ratio is a comfortable 43% but the company is not cash flow positive. Trailing yield: 16%. Within top quartile of Filipino dividend payers (6.3%). Higher than average of industry peers (2.3%). Reported Earnings • May 17
First quarter 2025 earnings released: EPS: ₱0.04 (vs ₱0.036 in 1Q 2024) First quarter 2025 results: EPS: ₱0.04 (up from ₱0.036 in 1Q 2024). Revenue: ₱3.11b (up 20% from 1Q 2024). Net income: ₱129.5m (up 15% from 1Q 2024). Profit margin: 4.2% (in line with 1Q 2024). New Risk • Apr 17
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 (26% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₱2.38b market cap, or US$41.8m). Reported Earnings • Apr 17
Full year 2024 earnings released: EPS: ₱0.15 (vs ₱0.16 in FY 2023) Full year 2024 results: EPS: ₱0.15. Revenue: ₱11.1b (up 11% from FY 2023). Net income: ₱481.5m (up 3.7% from FY 2023). Profit margin: 4.3% (down from 4.6% in FY 2023). The decrease in margin was driven by higher expenses. Annonce • Mar 21
Upson International Corp., Annual General Meeting, May 26, 2025 Upson International Corp., Annual General Meeting, May 26, 2025, at 15:00 W. Australia Standard Time. Location: taguig Philippines Reported Earnings • Nov 15
Third quarter 2024 earnings released: EPS: ₱0.06 (vs ₱0.059 in 3Q 2023) Third quarter 2024 results: EPS: ₱0.06 (up from ₱0.059 in 3Q 2023). Revenue: ₱3.22b (up 14% from 3Q 2023). Net income: ₱195.8m (up 6.8% from 3Q 2023). Profit margin: 6.1% (down from 6.5% in 3Q 2023). The decrease in margin was driven by higher expenses. Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: ₱0.03 (vs ₱0.03 in 2Q 2023) Second quarter 2024 results: EPS: ₱0.03 (in line with 2Q 2023). Revenue: ₱2.44b (up 15% from 2Q 2023). Net income: ₱80.0m (down 14% from 2Q 2023). Profit margin: 3.3% (down from 4.4% in 2Q 2023). The decrease in margin was driven by higher expenses. Annonce • May 30
Upson International Corp. Appoints Chun Bing G. Uy as Member of Nomination Committee Upson International Corp. at Board of directors meeting on May 27, 2024 approved the appointment of Chun Bing G. Uy as member of nomination committee. Composition of Board Committees: Audit Committee: Jose Vicente C. Bengzon III as Chairman, Marcos A. Legaspi as Member, Anthony Thomas C. Roxas, Jr. as Member, Raul M. Leopando as Member, Chun Bing G. Uy as Member - Corporate Governance Committee: Chun Bing G. Uy as Chairman, Jose Vicente C. Bengzon III as Member, Raul M. Leopando as Member - Risk Management Committee: Chun Bing G. Uy as Chairman, Raul M. Leopando as Member, Rolando O. Raval, Jr. as Member - Nomination Committee: Lawrence O. Lee as Chairman, Ricardo A. Lee as Member, William Lim as Membe,r Arlene Louisa T. Sy as Member, Chun Bing G. Uy as Member - Remuneration Committee: Lawrence O. Lee as Chairman, Ricardo A. Lee as Member, William Lim as Member, Arlene Louisa T. Sy as Member, Marcos A. Legaspi as Member. Reported Earnings • May 17
First quarter 2024 earnings released: EPS: ₱0.04 (vs ₱0.045 in 1Q 2023) First quarter 2024 results: EPS: ₱0.04 (down from ₱0.045 in 1Q 2023). Revenue: ₱2.60b (up 8.6% from 1Q 2023). Net income: ₱112.4m (flat on 1Q 2023). Profit margin: 4.3% (down from 4.7% in 1Q 2023). The decrease in margin was driven by higher expenses. Buy Or Sell Opportunity • Apr 26
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 26% to ₱1.02. The fair value is estimated to be ₱1.29, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has declined by 4.7%. Buy Or Sell Opportunity • Apr 03
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 37% to ₱1.01. The fair value is estimated to be ₱1.28, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has declined by 4.7%. Reported Earnings • Mar 26
Full year 2023 earnings released: EPS: ₱0.16 (vs ₱0.21 in FY 2022) Full year 2023 results: EPS: ₱0.16 (down from ₱0.21 in FY 2022). Revenue: ₱10.0b (up 5.8% from FY 2022). Net income: ₱464.2m (down 14% from FY 2022). Profit margin: 4.6% (down from 5.7% in FY 2022). The decrease in margin was driven by higher expenses. Annonce • Mar 22
Upson International Corp., Annual General Meeting, May 27, 2024 Upson International Corp., Annual General Meeting, May 27, 2024, at 15:00 Singapore Standard Time. Location: 23/F Capital House Tower 1, 9th Avenue corner 34h street, Bonifacio Global city, Taguig City Philippines Agenda: To consider call to order;to consider certification of notice and quorum;to consider approval of the minutes of previous meeting held July 12, 2023;to consider annual report and audited financial statements for the period ended December 31, 2023;to consider ratification of acts of the board of directors and the management;to consider election of directors, including independent directors, for the ensuring year;to consider appointment of external auditor;to consider amendment of the articles of incorporation;to consider amendment of the bylaws; and to consider other matters. Buy Or Sell Opportunity • Mar 14
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 40% to ₱1.00. The fair value is estimated to be ₱1.29, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years, while earnings per share has been flat. Upcoming Dividend • Mar 05
Upcoming dividend of ₱0.06 per share Eligible shareholders must have bought the stock before 12 March 2024. Payment date: 27 March 2024. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 7.8%. Within top quartile of Filipino dividend payers (5.8%). Higher than average of industry peers (2.4%). Annonce • Feb 29
Upson International Corp. Approves the Cash Dividend, Payable on March 27, 2024 Upson International Corp. informed, that during its meeting held on Feb. 28, 2024, the Board of Directors of the Company has approved the declaration of cash dividend amounting to PHP 187,500,078.00 or PHP 0.06 per share from the Corporation's Unrestricted Retained Earnings as of December 31, 2023. The said dividend is payable on March 27, 2024 to stockholders of record as of March 13, 2024. New Risk • Jan 19
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 Filipino 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: Major Risk High level of non-cash earnings (41% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.9% average weekly change). Market cap is less than US$100m (₱4.66b market cap, or US$83.1m). Reported Earnings • Nov 15
Third quarter 2023 earnings released: EPS: ₱0.06 (vs ₱0.07 in 3Q 2022) Third quarter 2023 results: EPS: ₱0.06. Revenue: ₱2.83b (up 1.5% from 3Q 2022). Net income: ₱183.3m (up 3.1% from 3Q 2022). Profit margin: 6.5% (up from 6.4% in 3Q 2022). The increase in margin was driven by higher revenue. New Risk • Aug 22
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₱5.63b (US$99.9m) 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 Dividend is not well covered by earnings (104% payout ratio). Market cap is less than US$100m (₱5.63b market cap, or US$99.9m). Reported Earnings • Aug 14
Second quarter 2023 earnings released Second quarter 2023 results: EPS: ₱0.03. Net income: ₱92.8m (up ₱92.8m from 2Q 2022). New Risk • Jul 24
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 219% Dividend yield: 4.1% 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 Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). High level of non-cash earnings (24% accrual ratio). Minor Risks Dividend is not well covered by cash flows (219% cash payout ratio). Share price has been volatile over the past 3 months (7.5% average weekly change). Annonce • Jul 13
Upson International Corp. Board Approves Cash Dividend Payable on August 22, 2023 During its meeting held July 12, 2023, the Board of Directors of Upson International Corp. has approved the declaration of cash dividends amounting to PHP 138,000,000.00 or PHP 0.04416 per share from the Corporation's Unappropriated Retained Earnings as of December 31, 2022. The said dividends is payable on August 22, 2023 to stockholders of record as of July 26, 2023. Recent Insider Transactions • May 11
Chairman of the Board recently bought ₱18m worth of stock On the 3rd of May, Lawrence Lee bought around 8m shares on-market at roughly ₱2.40 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth ₱150m. Lawrence has been a buyer over the last 12 months, purchasing a net total of ₱168m worth in shares. Recent Insider Transactions • Apr 12
Chairman of the Board recently bought ₱150m worth of stock On the 3rd of April, Lawrence Lee bought around 63m shares on-market at roughly ₱2.40 per share. This transaction amounted to 7.3% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Lawrence's only on-market trade for the last 12 months. Board Change • Apr 04
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 Chun Bing Uy was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Board Change • Mar 17
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 Chun Bing Uy was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. 
