Valuation Update With 7 Day Price Move • May 20
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$92.90, the stock trades at a trailing P/E ratio of 21.1x. Average trailing P/E is 19x in the Trade Distributors industry in Taiwan. Total returns to shareholders of 48% over the past three years. New Risk • May 15
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 9.7% 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 have declined by 16% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (145% cash payout ratio). Share price has been volatile over the past 3 months (9.7% average weekly change). Reported Earnings • May 14
First quarter 2026 earnings released: EPS: NT$1.00 (vs NT$0.94 in 1Q 2025) First quarter 2026 results: EPS: NT$1.00 (up from NT$0.94 in 1Q 2025). Revenue: NT$2.00b (up 13% from 1Q 2025). Net income: NT$88.7m (up 27% from 1Q 2025). Profit margin: 4.4% (up from 3.9% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$82.10, the stock trades at a trailing P/E ratio of 19.8x. Average trailing P/E is 18x in the Trade Distributors industry in Taiwan. Total returns to shareholders of 29% over the past three years. Reported Earnings • Mar 13
Full year 2025 earnings released: EPS: NT$4.15 (vs NT$4.09 in FY 2024) Full year 2025 results: EPS: NT$4.15 (up from NT$4.09 in FY 2024). Revenue: NT$7.36b (down 2.7% from FY 2024). Net income: NT$307.5m (up 1.4% from FY 2024). Profit margin: 4.2% (up from 4.0% in FY 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year and the company’s share price has also fallen by 5% per year. Annonce • Mar 04
Topco Technologies Corp., Annual General Meeting, May 25, 2026 Topco Technologies Corp., Annual General Meeting, May 25, 2026, at 10:00 Taipei Standard Time. Location: 2 floor no,100, tun hua n. rd., songshan district, taipei city Taiwan Reported Earnings • Nov 13
Third quarter 2025 earnings released: EPS: NT$1.18 (vs NT$1.15 in 3Q 2024) Third quarter 2025 results: EPS: NT$1.18 (up from NT$1.15 in 3Q 2024). Revenue: NT$1.83b (down 7.1% from 3Q 2024). Net income: NT$87.1m (up 2.1% from 3Q 2024). Profit margin: 4.7% (up from 4.3% in 3Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: NT$0.95 (vs NT$1.01 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.95 (down from NT$1.01 in 2Q 2024). Revenue: NT$1.92b (flat on 2Q 2024). Net income: NT$70.3m (down 6.1% from 2Q 2024). Profit margin: 3.7% (down from 3.9% in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Aug 12
Now 20% overvalued Over the last 90 days, the stock has fallen 4.3% to NT$61.90. The fair value is estimated to be NT$51.56, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 10% over the last 3 years. Earnings per share has declined by 31%. Upcoming Dividend • Jun 16
Upcoming dividend of NT$3.50 per share Eligible shareholders must have bought the stock before 23 June 2025. Payment date: 18 July 2025. Payout ratio is on the higher end at 83%, however this is supported by cash flows. Trailing yield: 5.5%. Within top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (4.0%). Declared Dividend • May 25
Dividend of NT$3.50 announced Shareholders will receive a dividend of NT$3.50. Ex-date: 23rd June 2025 Payment date: 18th July 2025 Dividend yield will be 5.4%, which is higher than the industry average of 5.0%. Sustainability & Growth Dividend is covered by both earnings (85% earnings payout ratio) and cash flows (59% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 5.0% to shift the payout ratio to a potentially unsustainable range, which is more than the 3.9% EPS decline seen over the last 5 years. Reported Earnings • May 14
First quarter 2025 earnings released: EPS: NT$0.94 (vs NT$0.84 in 1Q 2024) First quarter 2025 results: EPS: NT$0.94 (up from NT$0.84 in 1Q 2024). Revenue: NT$1.77b (flat on 1Q 2024). Net income: NT$69.6m (up 12% from 1Q 2024). Profit margin: 3.9% (up from 3.5% in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Annonce • Apr 24
Topco Technologies Corp. to Report Q1, 2025 Results on May 07, 2025 Topco Technologies Corp. announced that they will report Q1, 2025 results on May 07, 2025 Annonce • Apr 11
Topco Technologies Corp. Announces Distribution of Dividend on Behalf of Subsidiary,Topco Investment Holding Inc Topco Technologies Corp. announced distribution of dividend on behalf of subsidiary,TOPCO INVESTMENT HOLDING INC. Type and monetary amount of dividend distribution: Cash Dividend RMB 31,000,000. Reported Earnings • Mar 18
Full year 2024 earnings released: EPS: NT$4.09 (vs NT$3.52 in FY 2023) Full year 2024 results: EPS: NT$4.09 (up from NT$3.52 in FY 2023). Revenue: NT$7.57b (up 8.0% from FY 2023). Net income: NT$303.2m (up 16% from FY 2023). Profit margin: 4.0% (up from 3.7% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Annonce • Mar 07
Topco Technologies Corp., Annual General Meeting, May 23, 2025 Topco Technologies Corp., Annual General Meeting, May 23, 2025, at 10:00 Taipei Standard Time. Location: 2 floor no,100, tun hua n. rd., songshan district, taipei city Taiwan Annonce • Feb 20
Topco Technologies Corp. to Report Fiscal Year 2024 Results on Mar 05, 2025 Topco Technologies Corp. announced that they will report fiscal year 2024 results at 2:30 PM, Taipei Standard Time on Mar 05, 2025 New Risk • Jan 02
New major risk - Revenue and earnings growth Earnings have declined by 6.6% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 6.6% per year over the past 5 years. Minor Risk Dividend is not well covered by cash flows (dividend per share is over 16x cash flows per share). Reported Earnings • Nov 18
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: NT$1.15 (up from NT$1.11 in 3Q 2023). Revenue: NT$1.97b (up 9.9% from 3Q 2023). Net income: NT$85.3m (up 3.9% from 3Q 2023). Profit margin: 4.3% (down from 4.6% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) also missed analyst estimates by 1.9%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 3.2% growth forecast for the Trade Distributors industry in Asia. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Annonce • Oct 24
Topco Technologies Corp. to Report Q3, 2024 Results on Nov 06, 2024 Topco Technologies Corp. announced that they will report Q3, 2024 results on Nov 06, 2024 Reported Earnings • Aug 13
Second quarter 2024 earnings: EPS exceeds analyst expectations Second quarter 2024 results: EPS: NT$1.01 (up from NT$0.77 in 2Q 2023). Revenue: NT$1.92b (up 13% from 2Q 2023). Net income: NT$74.8m (up 31% from 2Q 2023). Profit margin: 3.9% (up from 3.4% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.2%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 3.7% growth forecast for the Trade Distributors industry in Asia. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Annonce • Jul 27
Topco Technologies Corp. to Report Q2, 2024 Results on Aug 09, 2024 Topco Technologies Corp. announced that they will report Q2, 2024 results on Aug 09, 2024 Upcoming Dividend • Jun 21
Upcoming dividend of NT$3.10 per share Eligible shareholders must have bought the stock before 28 June 2024. Payment date: 26 July 2024. Payout ratio is on the higher end at 84%, and the cash payout ratio is above 100%. Trailing yield: 4.0%. Lower than top quartile of Taiwanese dividend payers (4.2%). Higher than average of industry peers (3.4%). Declared Dividend • Jun 03
Dividend of NT$3.10 announced Shareholders will receive a dividend of NT$3.10. Ex-date: 28th June 2024 Payment date: 26th July 2024 Dividend yield will be 3.9%, which is lower than the industry average of 5.0%. Sustainability & Growth Dividend is covered by earnings (84% earnings payout ratio) but not adequately covered by cash flows (96% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 16% over the next year, which should provide support to the dividend and adequate earnings cover. Annonce • Jun 01
Topco Technologies Corp. Announces Dividend, Payable on July 26, 2024 Topco Technologies Corp. announces monetary amount of dividend distribution is retained earning TWD 229,593,310, payable on July 26, 2024. Ex-rights (Ex-dividend) date June 28, 2024. Ex-rights (Ex-dividend) record date is July 6, 2024. Reported Earnings • May 19
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: NT$0.84 (up from NT$0.68 in 1Q 2023). Revenue: NT$1.76b (up 2.4% from 1Q 2023). Net income: NT$62.0m (up 23% from 1Q 2023). Profit margin: 3.5% (up from 2.9% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 22%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 3.5% growth forecast for the Trade Distributors industry in Asia. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Annonce • Apr 28
Topco Technologies Corp. to Report Q1, 2024 Results on May 09, 2024 Topco Technologies Corp. announced that they will report Q1, 2024 results on May 09, 2024 Reported Earnings • Mar 16
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: NT$3.52 (down from NT$6.30 in FY 2022). Revenue: NT$7.00b (down 20% from FY 2022). Net income: NT$260.8m (down 44% from FY 2022). Profit margin: 3.7% (down from 5.4% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 4.6%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 3.1% growth forecast for the Trade Distributors industry in Asia. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Buy Or Sell Opportunity • Feb 20
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 4.3% to NT$72.90. The fair value is estimated to be NT$60.70, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 9.2%. Revenue is forecast to grow by 20% in 2 years. Earnings are forecast to grow by 70% in the next 2 years. Reported Earnings • Aug 13
Second quarter 2023 earnings released: EPS: NT$0.77 (vs NT$2.02 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.77 (down from NT$2.02 in 2Q 2022). Revenue: NT$1.70b (down 29% from 2Q 2022). Net income: NT$57.0m (down 62% from 2Q 2022). Profit margin: 3.4% (down from 6.3% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 3% per year. Upcoming Dividend • Jun 22
Upcoming dividend of NT$4.41 per share at 6.0% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 26 July 2023. Payout ratio is on the higher end at 92%, however this is supported by cash flows. Trailing yield: 6.0%. Within top quartile of Taiwanese dividend payers (5.5%). Higher than average of industry peers (4.9%). Reported Earnings • Mar 19
Full year 2022 earnings released: EPS: NT$6.30 (vs NT$8.04 in FY 2021) Full year 2022 results: EPS: NT$6.30 (down from NT$8.04 in FY 2021). Revenue: NT$8.70b (down 7.7% from FY 2021). Net income: NT$466.4m (down 22% from FY 2021). Profit margin: 5.4% (down from 6.3% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 4 experienced directors. 7 highly experienced directors. 4 independent directors (8 non-independent directors). Independent Director Frank Lee was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 11
Third quarter 2022 earnings released: EPS: NT$1.58 (vs NT$2.12 in 3Q 2021) Third quarter 2022 results: EPS: NT$1.58 (down from NT$2.12 in 3Q 2021). Revenue: NT$2.16b (down 13% from 3Q 2021). Net income: NT$116.9m (down 26% from 3Q 2021). Profit margin: 5.4% (down from 6.4% in 3Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 06
Second quarter 2022 earnings released: EPS: NT$2.02 (vs NT$1.92 in 2Q 2021) Second quarter 2022 results: EPS: NT$2.02 (up from NT$1.92 in 2Q 2021). Revenue: NT$2.38b (up 6.7% from 2Q 2021). Net income: NT$149.7m (up 5.3% from 2Q 2021). Profit margin: 6.3% (down from 6.4% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 09
Upcoming dividend of NT$6.00 per share Eligible shareholders must have bought the stock before 16 June 2022. Payment date: 08 July 2022. Payout ratio is a comfortable 72% but the company is paying out more than the cash it is generating. Trailing yield: 7.1%. Within top quartile of Taiwanese dividend payers (6.0%). Higher than average of industry peers (5.4%). Annonce • Jun 02
Topco Technologies Corp. Announces Board Appointments Topco Technologies Corp. announced establish the audit committee: Name of the new position holder: Independent Director, Meng-Shiou Lee; Independent Director, Ming-Hui Kuo; Independent Director, Shou-Lu Chang. Annonce • Jun 01
Topco Technologies Corp. Announces Dividend, Payable on July 8, 2022 Topco Technologies Corp. announced dividend of $6.0 per share. Ex-rights (Ex-dividend) date: June 16, 2022. Last date before book closure: June 18, 2022. Payment date of cash dividend distribution: July 8, 2022. Reported Earnings • May 13
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: NT$2.17 (up from NT$1.88 in 1Q 2021). Revenue: NT$2.37b (up 7.0% from 1Q 2021). Net income: NT$160.8m (up 15% from 1Q 2021). Profit margin: 6.8% (up from 6.3% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) exceeded analyst estimates by 7.6%. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 4 experienced directors. 7 highly experienced directors. 2 independent directors (8 non-independent directors). Independent Director Meng-Shiou Lee was the last independent director to join the board, commencing their role in 2020. 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 17
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: NT$8.04 (up from NT$5.32 in FY 2020). Revenue: NT$9.43b (up 19% from FY 2020). Net income: NT$595.4m (up 51% from FY 2020). Profit margin: 6.3% (up from 5.0% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) exceeded analyst estimates by 7.6%. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 6% per year. Reported Earnings • Nov 10
Third quarter 2021 earnings released: EPS NT$2.12 (vs NT$1.39 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$2.47b (up 18% from 3Q 2020). Net income: NT$157.1m (up 53% from 3Q 2020). Profit margin: 6.4% (up from 4.9% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Reported Earnings • Aug 11
Second quarter 2021 earnings released: EPS NT$1.92 (vs NT$1.28 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$2.23b (up 18% from 2Q 2020). Net income: NT$142.1m (up 50% from 2Q 2020). Profit margin: 6.4% (up from 5.0% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jul 13
Upcoming dividend of NT$4.30 per share Eligible shareholders must have bought the stock before 20 July 2021. Payment date: 09 August 2021. Trailing yield: 5.4%. Within top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (3.9%). Reported Earnings • May 14
First quarter 2021 earnings released: EPS NT$1.88 (vs NT$1.14 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$2.21b (up 26% from 1Q 2020). Net income: NT$139.5m (up 66% from 1Q 2020). Profit margin: 6.3% (up from 4.8% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 10% 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. Reported Earnings • Mar 17
Full year 2020 earnings released: EPS NT$5.32 (vs NT$5.10 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$7.91b (up 1.8% from FY 2019). Net income: NT$394.2m (up 4.9% from FY 2019). Profit margin: 5.0% (up from 4.8% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Annonce • Mar 10
Topco Technologies Corp., Annual General Meeting, May 28, 2021 Topco Technologies Corp., Annual General Meeting, May 28, 2021. Location: 14F.,N0.102,SEC.4,CIVIC BLVD.,DA-AN DISTRICT Taipei City Taiwan Agenda: To consider 2020 business report; to supervisor's review report; to 2020 report on distribution of remuneration of employee; to accept 2020 business report and financial statements; to amendment to the articles of incorporation; to amendment to the rules of procedure for shareholder meetings; and to consider other matter. Is New 90 Day High Low • Mar 09
New 90-day high: NT$73.00 The company is up 8.0% from its price of NT$67.80 on 09 December 2020. The Taiwanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Trade Distributors industry, which is flat over the same period. Is New 90 Day High Low • Dec 08
New 90-day high: NT$67.80 The company is up 8.0% from its price of NT$62.90 on 09 September 2020. The Taiwanese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Trade Distributors industry, which is up 9.0% over the same period. Is New 90 Day High Low • Nov 05
New 90-day high: NT$64.20 The company is up 1.0% from its price of NT$63.80 on 07 August 2020. The Taiwanese market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Trade Distributors industry, which is down 2.0% over the same period. Reported Earnings • Nov 05
Third quarter 2020 earnings released: EPS NT$1.39 The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2020 results: Revenue: NT$2.10b (up 1.2% from 3Q 2019). Net income: NT$102.9m (up 2.1% from 3Q 2019). Profit margin: 4.9% (in line with 3Q 2019). Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Sep 22
New 90-day low: NT$62.50 The company is down 2.0% from its price of NT$63.60 on 24 June 2020. The Taiwanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Trade Distributors industry, which is also down 2.0% over the same period.