Buy Or Sell Opportunity • Jun 27
Now 21% undervalued Over the last 90 days, the stock has risen 3.2% to NT$36.95. The fair value is estimated to be NT$46.53, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.1% over the last 3 years. Earnings per share has grown by 21%. Reported Earnings • May 20
First quarter 2026 earnings released: EPS: NT$0.90 (vs NT$1.15 in 1Q 2025) First quarter 2026 results: EPS: NT$0.90 (down from NT$1.15 in 1Q 2025). Revenue: NT$976.4m (flat on 1Q 2025). Net income: NT$47.0m (down 12% from 1Q 2025). Profit margin: 4.8% (down from 5.5% in 1Q 2025). Revenue is forecast to grow 5.3% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Electrical industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$3.49 (vs NT$2.62 in FY 2024) Full year 2025 results: EPS: NT$3.49 (up from NT$2.62 in FY 2024). Revenue: NT$3.85b (down 5.9% from FY 2024). Net income: NT$165.0m (up 35% from FY 2024). Profit margin: 4.3% (up from 3.0% in FY 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.7% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Electrical industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Annonce • Mar 05
WFE Technology Corporation, Annual General Meeting, May 27, 2026 WFE Technology Corporation, Annual General Meeting, May 27, 2026. Location: 5 floor no,16, k`o yuan 2nd rd., hsi tun district, taichung city Taiwan Reported Earnings • Nov 18
Third quarter 2025 earnings released: EPS: NT$0.83 (vs NT$1.06 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.83 (down from NT$1.06 in 3Q 2024). Revenue: NT$949.8m (down 6.3% from 3Q 2024). Net income: NT$38.6m (down 22% from 3Q 2024). Profit margin: 4.1% (down from 4.9% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Electrical industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Sep 01
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$45.00, the stock trades at a trailing P/E ratio of 12.6x. Average trailing P/E is 24x in the Electrical industry in Taiwan. Total returns to shareholders of 41% over the past three years. Reported Earnings • Aug 14
Second quarter 2025 earnings released: EPS: NT$0.87 (vs NT$1.05 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.87 (down from NT$1.05 in 2Q 2024). Revenue: NT$994.5m (down 11% from 2Q 2024). Net income: NT$40.4m (down 17% from 2Q 2024). Profit margin: 4.1% (down from 4.4% in 2Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Annonce • Aug 08
WFE Technology Corporation has filed a Follow-on Equity Offering in the amount of TWD 58.5 million. WFE Technology Corporation has filed a Follow-on Equity Offering in the amount of TWD 58.5 million.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 1,671,429
Price\Range: TWD 35 New Risk • Aug 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.1% 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: Major Risk Earnings have declined by 11% per year over the past 5 years. Minor Risks High level of debt (52% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.1% average weekly change). Market cap is less than US$100m (NT$2.02b market cap, or US$67.8m). Declared Dividend • Jul 02
Dividend increased to NT$2.50 Dividend of NT$2.50 is 150% higher than last year. Ex-date: 17th July 2025 Payment date: 11th August 2025 Dividend yield will be 6.0%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is covered by both earnings (53% earnings payout ratio) and cash flows (30% cash payout ratio). The dividend has increased by an average of 6.4% per year over the past 7 years. However, payments have been volatile during that time. Earnings per share has grown by 5.7% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • May 28
First quarter 2025 earnings released: EPS: NT$1.15 (vs NT$0.01 in 1Q 2024) First quarter 2025 results: EPS: NT$1.15 (up from NT$0.01 in 1Q 2024). Revenue: NT$973.3m (up 1.7% from 1Q 2024). Net income: NT$53.7m (up NT$53.3m from 1Q 2024). Profit margin: 5.5% (up from 0% in 1Q 2024). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 35% 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. Buy Or Sell Opportunity • May 16
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 30% to NT$39.40. The fair value is estimated to be NT$32.74, 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 48%. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$38.00, the stock trades at a trailing P/E ratio of 14.5x. Average trailing P/E is 19x in the Electrical industry in Taiwan. Total returns to shareholders of 9.2% over the past three years. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$29.50, the stock trades at a trailing P/E ratio of 11.3x. Average trailing P/E is 20x in the Electrical industry in Taiwan. Total loss to shareholders of 20% over the past three years. Reported Earnings • Mar 08
Full year 2024 earnings released: EPS: NT$2.62 (vs NT$0.75 in FY 2023) Full year 2024 results: EPS: NT$2.62 (up from NT$0.75 in FY 2023). Revenue: NT$4.09b (up 1.5% from FY 2023). Net income: NT$122.1m (up 249% from FY 2023). Profit margin: 3.0% (up from 0.9% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 48% 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 • Mar 03
WFE Technology Corporation, Annual General Meeting, May 23, 2025 WFE Technology Corporation, Annual General Meeting, May 23, 2025. Location: 5 floor no,16, k`o yuan 2nd rd., hsi tun district, taichung city Taiwan New Risk • Feb 28
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.4x net interest cover). Earnings have declined by 4.8% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Dividend is not well covered by earnings (92% payout ratio). Profit margins are more than 30% lower than last year (1.2% net profit margin). Market cap is less than US$100m (NT$1.49b market cap, or US$45.3m). New Risk • Aug 17
New major risk - Revenue and earnings growth Earnings have declined by 4.8% 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 (2.4x net interest cover). Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 4.8% per year over the past 5 years. 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 (1.2% net profit margin). Market cap is less than US$100m (NT$1.42b market cap, or US$44.2m). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$29.35, the stock trades at a trailing P/E ratio of 39.2x. Average trailing P/E is 28x in the Electrical industry in Taiwan. Total loss to shareholders of 16% over the past three years. Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to NT$40.00, the stock trades at a trailing P/E ratio of 53.4x. Average trailing P/E is 31x in the Electrical industry in Taiwan. Total returns to shareholders of 27% over the past three years. Upcoming Dividend • Jul 05
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 11 July 2024. Payment date: 05 August 2024. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Taiwanese dividend payers (4.2%). Higher than average of industry peers (2.2%). Reported Earnings • Apr 25
Full year 2023 earnings released: EPS: NT$0.75 (vs NT$4.01 in FY 2022) Full year 2023 results: EPS: NT$0.75 (down from NT$4.01 in FY 2022). Revenue: NT$4.03b (down 7.0% from FY 2022). Net income: NT$35.0m (down 79% from FY 2022). Profit margin: 0.9% (down from 3.9% in FY 2022). The decrease in margin was driven by lower revenue. 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 5% per year, which means it has not declined as severely as earnings. Annonce • Mar 08
WFE Technology Corporation, Annual General Meeting, May 31, 2024 WFE Technology Corporation, Annual General Meeting, May 31, 2024. New Risk • Mar 01
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. 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 Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.0% net profit margin). Market cap is less than US$100m (NT$1.40b market cap, or US$44.2m). Upcoming Dividend • Aug 24
Upcoming dividend of NT$1.20 per share at 3.5% yield Eligible shareholders must have bought the stock before 31 August 2023. Payment date: 20 October 2023. Payout ratio is a comfortable 39% but the company is not cash flow positive. Trailing yield: 3.5%. Lower than top quartile of Taiwanese dividend payers (5.6%). In line with average of industry peers (3.3%). New Risk • Aug 18
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: 3.0% Last year net profit margin: 4.2% 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 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. Profit margins are more than 30% lower than last year (3.0% net profit margin). Shareholders have been diluted in the past year (13% increase in shares outstanding). Market cap is less than US$100m (NT$1.42b market cap, or US$44.5m). Reported Earnings • Apr 26
Full year 2022 earnings released: EPS: NT$4.21 (vs NT$5.91 in FY 2021) Full year 2022 results: EPS: NT$4.21 (down from NT$5.91 in FY 2021). Revenue: NT$4.34b (down 1.7% from FY 2021). Net income: NT$167.2m (down 28% from FY 2021). Profit margin: 3.9% (down from 5.3% in FY 2021). Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 19% per year. Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improved over the past week After last week's 21% share price gain to NT$36.40, the stock trades at a trailing P/E ratio of 8.4x. Average trailing P/E is 14x in the Electrical industry in Taiwan. Total returns to shareholders of 57% over the past three years. Reported Earnings • Jul 11
First quarter 2022 earnings released: EPS: NT$0.83 (vs NT$1.35 in 1Q 2021) First quarter 2022 results: EPS: NT$0.83 (down from NT$1.35 in 1Q 2021). Revenue: NT$839.3m (down 24% from 1Q 2021). Net income: NT$32.7m (down 39% from 1Q 2021). Profit margin: 3.9% (down from 4.8% in 1Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 05
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 12 July 2022. Payment date: 04 August 2022. Payout ratio is a comfortable 32% and the cash payout ratio is 99%. Trailing yield: 3.8%. Lower than top quartile of Taiwanese dividend payers (6.7%). In line with average of industry peers (3.8%). Reported Earnings • Apr 08
Full year 2021 earnings released: EPS: NT$6.21 (vs NT$3.33 in FY 2020) Full year 2021 results: EPS: NT$6.21 (up from NT$3.33 in FY 2020). Revenue: NT$4.41b (up 23% from FY 2020). Net income: NT$233.3m (up 90% from FY 2020). Profit margin: 5.3% (up from 3.4% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Annonce • Mar 06
WFE Technology Corporation, Annual General Meeting, May 17, 2022 WFE Technology Corporation, Annual General Meeting, May 17, 2022. Reported Earnings • Aug 13
First half 2021 earnings released: EPS NT$3.71 (vs NT$1.23 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: NT$2.28b (up 46% from 1H 2020). Net income: NT$132.9m (up 208% from 1H 2020). Profit margin: 5.8% (up from 2.8% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 27
Full year 2020 earnings released: EPS NT$3.49 (vs NT$3.13 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: NT$3.60b (up 11% from FY 2019). Net income: NT$122.9m (up 9.8% from FY 2019). Profit margin: 3.4% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment improved over the past week After last week's 30% share price gain to NT$41.50, the stock is trading at a trailing P/E ratio of 12x, up from the previous P/E ratio of 9.2x. This compares to an average P/E of 17x in the Electrical industry in Taiwan. Total returns to shareholders over the past three years are 20%. Is New 90 Day High Low • Feb 18
New 90-day high: NT$31.75 The company is up 21% from its price of NT$26.25 on 19 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electrical industry, which is up 10.0% over the same period. Is New 90 Day High Low • Jan 19
New 90-day high: NT$31.55 The company is up 21% from its price of NT$26.00 on 21 October 2020. The Taiwanese market is up 20% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electrical industry, which is up 10.0% over the same period. Is New 90 Day High Low • Dec 28
New 90-day high: NT$28.20 The company is up 3.0% from its price of NT$27.40 on 30 September 2020. The Taiwanese market is up 15% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 10.0% over the same period. Is New 90 Day High Low • Oct 21
New 90-day low: NT$26.00 The company is down 12% from its price of NT$29.55 on 23 July 2020. The Taiwanese market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 10.0% over the same period. Is New 90 Day High Low • Sep 21
New 90-day low: NT$27.55 The company is down 5.0% from its price of NT$28.90 on 23 June 2020. The Taiwanese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 15% over the same period.