New Risk • Aug 05
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 9.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 8.2% per year over the past 5 years. High level of non-cash earnings (30% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (9.4% average weekly change). Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$94.70, the stock trades at a trailing P/E ratio of 26.6x. Average trailing P/E is 26x in the Machinery industry in Taiwan. Total returns to shareholders of 59% over the past three years. Upcoming Dividend • Jul 08
Upcoming dividend of NT$2.28 per share Eligible shareholders must have bought the stock before 15 July 2026. Payment date: 13 August 2026. Payout ratio is a comfortable 62% but the company is not cash flow positive. Trailing yield: 1.8%. Lower than top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (1.6%). Declared Dividend • Jun 19
Dividend of NT$2.30 announced Shareholders will receive a dividend of NT$2.30. Ex-date: 15th July 2026 Payment date: 13th August 2026 Dividend yield will be 1.6%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (62% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 8.3% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 7.7% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • May 27
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$160, the stock trades at a trailing P/E ratio of 44.7x. Average trailing P/E is 30x in the Machinery industry in Taiwan. Total returns to shareholders of 255% over the past three years. New Risk • May 19
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 30% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. 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). Earnings have declined by 8.2% per year over the past 5 years. High level of non-cash earnings (30% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$129, the stock trades at a trailing P/E ratio of 42.8x. Average trailing P/E is 30x in the Machinery industry in Taiwan. Total returns to shareholders of 201% over the past three years. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$119, the stock trades at a trailing P/E ratio of 39.6x. Average trailing P/E is 28x in the Machinery industry in Taiwan. Total returns to shareholders of 149% over the past three years. Reported Earnings • Mar 24
Full year 2025 earnings released: EPS: NT$3.16 (vs NT$3.10 in FY 2024) Full year 2025 results: EPS: NT$3.16 (up from NT$3.10 in FY 2024). Revenue: NT$10.6b (up 29% from FY 2024). Net income: NT$418.4m (up 2.2% from FY 2024). Profit margin: 3.9% (down from 5.0% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Mar 13
Shenmao Technology Inc, Annual General Meeting, Jun 11, 2026 Shenmao Technology Inc, Annual General Meeting, Jun 11, 2026. Location: no,665, ta t`an n. rd., guanyin district, taoyuan city Taiwan Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$96.30, the stock trades at a trailing P/E ratio of 33.2x. Average trailing P/E is 26x in the Machinery industry in Taiwan. Total returns to shareholders of 128% over the past three years. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$105, the stock trades at a trailing P/E ratio of 36.2x. Average trailing P/E is 26x in the Machinery industry in Taiwan. Total returns to shareholders of 134% over the past three years. Valuation Update With 7 Day Price Move • Jan 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$122, the stock trades at a trailing P/E ratio of 41.9x. Average trailing P/E is 25x in the Machinery industry in Taiwan. Total returns to shareholders of 230% over the past three years. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$114, the stock trades at a trailing P/E ratio of 39.1x. Average trailing P/E is 24x in the Machinery industry in Taiwan. Total returns to shareholders of 226% over the past three years. New Risk • Nov 17
New major risk - Revenue and earnings growth Earnings have declined by 2.7% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 2.7% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: NT$1.19 (vs NT$0.95 in 3Q 2024) Third quarter 2025 results: EPS: NT$1.19 (up from NT$0.95 in 3Q 2024). Revenue: NT$2.87b (up 21% from 3Q 2024). Net income: NT$154.3m (up 23% from 3Q 2024). Profit margin: 5.4% (up from 5.3% in 3Q 2024). 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 37% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$144, the stock trades at a trailing P/E ratio of 49.9x. Average trailing P/E is 24x in the Machinery industry in Taiwan. Total returns to shareholders of 229% over the past three years. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment improves as stock rises 39% After last week's 39% share price gain to NT$107, the stock trades at a trailing P/E ratio of 36.9x. Average trailing P/E is 22x in the Machinery industry in Taiwan. Total returns to shareholders of 118% over the past three years. Reported Earnings • Aug 14
Second quarter 2025 earnings released: EPS: NT$0.16 (vs NT$0.84 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.16 (down from NT$0.84 in 2Q 2024). Revenue: NT$2.50b (up 24% from 2Q 2024). Net income: NT$20.3m (down 82% from 2Q 2024). Profit margin: 0.8% (down from 5.5% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 07
Upcoming dividend of NT$2.25 per share Eligible shareholders must have bought the stock before 14 July 2025. Payment date: 13 August 2025. Payout ratio is a comfortable 63% but the company is not cash flow positive. Trailing yield: 3.9%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (2.9%). Annonce • Jun 20
Shenmao Technology Inc Approves Cash Dividend, Payable on August 13, 2025 On June 17, 2025, Shenmao Technology Inc. resolved on Ex dividend Cash dividend from earnings: TWD 290,594,643. Ex-rights (ex-dividend) trading date: July 14, 2025. Ex-rights (ex-dividend) record date: July 20,2025. Payment date of common stock cash dividend distribution: August 13, 2025. Declared Dividend • Jun 19
Dividend of NT$2.25 announced Shareholders will receive a dividend of NT$2.25. Ex-date: 14th July 2025 Payment date: 13th August 2025 Dividend yield will be 4.0%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (63% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 1.2% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 21% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Annonce • Jun 12
Shenmao Technology Inc Announces Board Changes SHENMAO Technology Inc. announced the election of directors and independent directors by the 2025 Shareholders' Meeting. The change occurred on June 11, 2025, due to the expiration of the term and full re-election. Title and name of the previous position holder: Independent director: Ching-Yang Lin; Independent director: Meng-Li Lin. Resume of the previous position holder: Independent director: Ching-Yang Lin, Consultant for the Finance and Taxation
Industry and Commerce Association; Independent director: Meng-Li Lin, Contract researcher/assistant engineering division of the Construction and Planning Agency, Ministry of the Interior. Original term from June 14,2022 to June 13, 2025. Title and name of the new position holder: Independent director: Cang-He Chen; Independent director: Tung-Han Chuang. Resume of the new position holder: Independent director: Cang-He Chen, Certified Accountant of Xinye United Certified Public Accountants; Independent director: Tung-Han Chuang, Associate Dean of College of Engineering, National Taiwan University. The effective date of the new appointment is June 11, 2025, and the term of the new directors is from June 11, 2025, to June 10, 2028. New Risk • May 22
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 (25% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$1.22 (vs NT$0.81 in 1Q 2024) First quarter 2025 results: EPS: NT$1.22 (up from NT$0.81 in 1Q 2024). Revenue: NT$2.32b (up 53% from 1Q 2024). Net income: NT$160.7m (up 50% from 1Q 2024). Profit margin: 6.9% (down from 7.1% in 1Q 2024). The decrease in margin was driven by higher expenses. 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 1% per year, which means it has not declined as severely as earnings. Annonce • Apr 29
Shenmao Technology Inc to Report Q1, 2025 Results on May 06, 2025 Shenmao Technology Inc announced that they will report Q1, 2025 results on May 06, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to NT$50.30, the stock trades at a trailing P/E ratio of 16.2x. Average trailing P/E is 17x in the Machinery industry in Taiwan. Total loss to shareholders of 24% over the past three years. Reported Earnings • Apr 01
Full year 2024 earnings released: EPS: NT$3.10 (vs NT$1.74 in FY 2023) Full year 2024 results: EPS: NT$3.10 (up from NT$1.74 in FY 2023). Revenue: NT$8.21b (up 34% from FY 2023). Net income: NT$409.2m (up 78% from FY 2023). Profit margin: 5.0% (up from 3.8% 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 41% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Annonce • Mar 22
Shenmao Technology Inc (TWSE:3305) completed the acquisition of Profound Material Technology Co., Ltd. from PhiChem Corporation (SZSE:300398). Shenmao Technology Inc (TWSE:3305) signed a letter of intent to acquire Profound Material Technology Co., Ltd. from PhiChem Corporation (SZSE:300398) for approximately CNY 230 million on September 27, 2024.
Profound Material Technology Co., Ltd. had reported total assets of CNY 127.176 million, total owner’s equity of CNY 99.815 million, revenue of CNY 99.6654 million, operating profit of CNY 13.1983 million and net profit of CNY 10.5306 million on December 31, 2023.
The transaction is subject to approval of offer by acquirer board. The deal has been approved by the board of Shenmao Technology Inc.
Transaction has been approved by PhiChem Corporation's Board of director's and is still subject to approval from PhiChem Corporation's shareholders.
As on January 6, 2025, PhiChem Corporation and Shenmao Technology signed the Share Purchase and Sale Agreement.
Transaction is expected to complete on March 20, 2025.
Shenmao Technology Inc (TWSE:3305) completed the acquisition of Profound Material Technology Co., Ltd. from PhiChem Corporation (SZSE:300398) on March 20, 2025. Annonce • Mar 13
Shenmao Technology Inc, Annual General Meeting, Jun 11, 2025 Shenmao Technology Inc, Annual General Meeting, Jun 11, 2025, at 09:00 Taipei Standard Time. Location: no,665, ta t`an n. rd., guanyin district, taoyuan city Taiwan Annonce • Mar 01
Shenmao Technology Inc to Report Fiscal Year 2024 Results on Mar 07, 2025 Shenmao Technology Inc announced that they will report fiscal year 2024 results on Mar 07, 2025 Reported Earnings • Nov 15
Third quarter 2024 earnings released: EPS: NT$0.95 (vs NT$0.58 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.95 (up from NT$0.58 in 3Q 2023). Revenue: NT$2.37b (up 44% from 3Q 2023). Net income: NT$125.4m (up 63% from 3Q 2023). Profit margin: 5.3% (up from 4.7% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Annonce • Nov 06
Shenmao Technology Inc. Announces Changes to Accounting Officer and Financial Officer Shenmao Technology Inc. announced changes to accounting officer and financial officer. Name, title, and resume of the previous position holder: (1)Ming-Chang Wu/Vice President/accounting officer, financial officer. Name, title, and resume of the new position holder: Chiu-Hua Fu/Director/financial officer. Type of change: Position adjustment. Reason for the change: It is for cooperate with the group's operational planning. Effective date is November 05, 2024. Annonce • Oct 26
Shenmao Technology Inc to Report Q3, 2024 Results on Nov 05, 2024 Shenmao Technology Inc announced that they will report Q3, 2024 results on Nov 05, 2024 Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: NT$0.84 (vs NT$0.69 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.84 (up from NT$0.69 in 2Q 2023). Revenue: NT$2.03b (up 32% from 2Q 2023). Net income: NT$110.5m (up 22% from 2Q 2023). Profit margin: 5.5% (down from 5.9% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$59.60, the stock trades at a trailing P/E ratio of 26.5x. Average trailing P/E is 18x in the Machinery industry in Taiwan. Total returns to shareholders of 33% over the past three years. Annonce • Jul 27
Shenmao Technology Inc to Report Q2, 2024 Results on Aug 05, 2024 Shenmao Technology Inc announced that they will report Q2, 2024 results on Aug 05, 2024 Upcoming Dividend • Jul 05
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 11 July 2024. Payment date: 09 August 2024. Payout ratio is on the higher end at 89%, however this is supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Taiwanese dividend payers (4.2%). In line with average of industry peers (2.4%). Declared Dividend • Jun 15
Dividend increased to NT$2.00 Dividend of NT$2.00 is 0.4% higher than last year. Ex-date: 11th July 2024 Payment date: 9th August 2024 Dividend yield will be 2.6%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (89% earnings payout ratio) and cash flows (51% cash payout ratio). The dividend has increased by an average of 1.0% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 21% over the last 5 years, which if continued should maintain adequate earnings cover for the dividend. Annonce • May 15
Shenmao Technology Inc announced a financing transaction Shenmao Technology Inc announced a private placement to issue Series 5 unsecured convertible bond on May 13, 2024. The transaction has been approved by shareholders and Chinese Securities Regulatory Commission. Reported Earnings • May 15
First quarter 2024 earnings released: EPS: NT$0.81 (vs NT$0.31 in 1Q 2023) First quarter 2024 results: EPS: NT$0.81 (up from NT$0.31 in 1Q 2023). Revenue: NT$1.51b (flat on 1Q 2023). Net income: NT$107.4m (up 162% from 1Q 2023). Profit margin: 7.1% (up from 2.7% in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Annonce • May 08
Shenmao Technology Inc to Report Q1, 2024 Results on May 09, 2024 Shenmao Technology Inc announced that they will report Q1, 2024 results on May 09, 2024 Reported Earnings • Mar 29
Full year 2023 earnings released: EPS: NT$1.74 (vs NT$4.04 in FY 2022) Full year 2023 results: EPS: NT$1.74 (down from NT$4.04 in FY 2022). Revenue: NT$6.12b (down 27% from FY 2022). Net income: NT$229.6m (down 57% from FY 2022). Profit margin: 3.8% (down from 6.3% 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 16% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Annonce • Mar 16
Shenmao Technology Inc, Annual General Meeting, Jun 13, 2024 Shenmao Technology Inc, Annual General Meeting, Jun 13, 2024. Location: No.665, Datan N. Rd. Guanyin District, Taoyuan City Tao Yuan City Taiwan Agenda: To consider the Company's 2023 Business Report; to consider audit Committee's Review Report on the 2023 Financial Statements; to consider 2023 Employee and Director Remuneration Distribution Status Report; to consider 2023 the issuance of unsecured corporate bonds; to consider Adoption of the 2023 Business Report and Financial Statements; to consider adoption of the Proposal for Distribution of 2023 Profits; and to consider other matters. New Risk • Nov 25
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 457% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (160% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.6% net profit margin). New Risk • Aug 18
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 269,294% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (184% payout ratio). Share price has been volatile over the past 3 months (7.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.2% net profit margin). Valuation Update With 7 Day Price Move • Jul 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$60.50, the stock trades at a trailing P/E ratio of 42.5x. Average trailing P/E is 17x in the Machinery industry in Taiwan. Total returns to shareholders of 232% over the past three years. Upcoming Dividend • Jun 29
Upcoming dividend of NT$1.99 per share at 3.9% yield Eligible shareholders must have bought the stock before 06 July 2023. Payment date: 27 July 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.9%. Lower than top quartile of Taiwanese dividend payers (5.5%). Higher than average of industry peers (3.1%). Valuation Update With 7 Day Price Move • Apr 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$55.60, the stock trades at a trailing P/E ratio of 13.8x. Average trailing P/E is 14x in the Machinery industry in Taiwan. Total returns to shareholders of 241% over the past three years. Reported Earnings • Mar 30
Full year 2022 earnings released: EPS: NT$4.04 (vs NT$4.92 in FY 2021) Full year 2022 results: EPS: NT$4.04 (down from NT$4.92 in FY 2021). Revenue: NT$8.42b (up 1.8% from FY 2021). Net income: NT$530.8m (down 13% from FY 2021). Profit margin: 6.3% (down from 7.4% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$49.45, the stock trades at a trailing P/E ratio of 8.8x. Average trailing P/E is 12x in the Machinery industry in Taiwan. Total returns to shareholders of 146% over the past three years. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$0.42 (vs NT$1.51 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.42 (down from NT$1.51 in 3Q 2021). Revenue: NT$1.93b (down 13% from 3Q 2021). Net income: NT$54.6m (down 70% from 3Q 2021). Profit margin: 2.8% (down from 8.3% 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 62% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: NT$0.42 (vs NT$1.51 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.42 (down from NT$1.51 in 3Q 2021). Revenue: NT$1.93b (down 13% from 3Q 2021). Net income: NT$54.6m (down 70% from 3Q 2021). Profit margin: 2.8% (down from 8.3% 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 62% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$35.50, the stock trades at a trailing P/E ratio of 5.5x. Average trailing P/E is 12x in the Machinery industry in Taiwan. Total returns to shareholders of 78% over the past three years. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$1.03 (vs NT$1.21 in 2Q 2021) Second quarter 2022 results: EPS: NT$1.03 (down from NT$1.21 in 2Q 2021). Revenue: NT$2.26b (up 24% from 2Q 2021). Net income: NT$135.1m (down 6.5% from 2Q 2021). Profit margin: 6.0% (down from 7.9% 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 68% per year but the company’s share price has only increased by 36% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 30
Upcoming dividend of NT$2.50 per share Eligible shareholders must have bought the stock before 07 July 2022. Payment date: 29 July 2022. Payout ratio is a comfortable 37% but the company is not cash flow positive. Trailing yield: 4.6%. Lower than top quartile of Taiwanese dividend payers (6.4%). Higher than average of industry peers (3.2%). Valuation Update With 7 Day Price Move • Jun 22
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$55.50, the stock trades at a trailing P/E ratio of 8.5x. Average trailing P/E is 14x in the Machinery industry in Taiwan. Total returns to shareholders of 202% over the past three years. Reported Earnings • May 17
First quarter 2022 earnings released: EPS: NT$2.87 (vs NT$1.04 in 1Q 2021) First quarter 2022 results: EPS: NT$2.87 (up from NT$1.04 in 1Q 2021). Revenue: NT$2.60b (up 52% from 1Q 2021). Net income: NT$384.6m (up 215% from 1Q 2021). Profit margin: 15% (up from 7.1% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 67% 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 • Mar 28
Investor sentiment improved over the past week After last week's 17% share price gain to NT$81.50, the stock trades at a trailing P/E ratio of 21.4x. Average trailing P/E is 16x in the Machinery industry in Taiwan. Total returns to shareholders of 365% over the past three years. Annonce • Mar 23
Shenmao Technology Inc, Annual General Meeting, Jun 14, 2022 Shenmao Technology Inc, Annual General Meeting, Jun 14, 2022. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$1.51 (vs NT$0.59 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$2.21b (up 47% from 3Q 2020). Net income: NT$184.5m (up 166% from 3Q 2020). Profit margin: 8.3% (up from 4.6% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 62% per year and the company’s share price has also increased by 62% per year. Valuation Update With 7 Day Price Move • Oct 29
Investor sentiment improved over the past week After last week's 19% share price gain to NT$70.70, the stock trades at a trailing P/E ratio of 22.8x. Average trailing P/E is 17x in the Machinery industry in Taiwan. Total returns to shareholders of 300% over the past three years. Reported Earnings • Aug 12
Second quarter 2021 earnings released: EPS NT$1.21 (vs NT$0.31 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$1.82b (up 46% from 2Q 2020). Net income: NT$144.6m (up 290% from 2Q 2020). Profit margin: 7.9% (up from 3.0% in 2Q 2020). The increase in margin was driven by higher revenue. 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 30% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 05
Upcoming dividend of NT$1.36 per share Eligible shareholders must have bought the stock before 12 August 2021. Payment date: 08 September 2021. Trailing yield: 2.7%. Lower than top quartile of Taiwanese dividend payers (4.9%). In line with average of industry peers (2.6%). Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment improved over the past week After last week's 17% share price gain to NT$58.50, the stock trades at a trailing P/E ratio of 23.8x. Average trailing P/E is 19x in the Machinery industry in Taiwan. Total returns to shareholders of 199% over the past three years. Reported Earnings • May 14
First quarter 2021 earnings released: EPS NT$1.04 (vs NT$0.097 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$1.71b (up 76% from 1Q 2020). Net income: NT$122.0m (up NT$110.5m from 1Q 2020). Profit margin: 7.1% (up from 1.2% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 12
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$38.00, the stock trades at a trailing P/E ratio of 25.1x. Average trailing P/E is 19x in the Machinery industry in Taiwan. Total returns to shareholders of 90% over the past three years. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment improved over the past week After last week's 19% share price gain to NT$48.15, the stock trades at a trailing P/E ratio of 31.9x. Average trailing P/E is 20x in the Machinery industry in Taiwan. Total returns to shareholders of 123% over the past three years. Reported Earnings • Mar 31
Full year 2020 earnings released: EPS NT$1.51 (vs NT$1.43 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$5.28b (up 1.1% from FY 2019). Net income: NT$178.3m (up 5.3% from FY 2019). Profit margin: 3.4% (up from 3.2% in FY 2019). Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Annonce • Mar 19
Shenmao Technology Inc, Annual General Meeting, Jun 10, 2021 Shenmao Technology Inc, Annual General Meeting, Jun 10, 2021. Valuation Update With 7 Day Price Move • Feb 18
Investor sentiment improved over the past week After last week's 21% share price gain to NT$36.90, the stock is trading at a trailing P/E ratio of 36.5x, up from the previous P/E ratio of 30.2x. This compares to an average P/E of 18x in the Machinery industry in Taiwan. Total returns to shareholders over the past three years are 66%. Is New 90 Day High Low • Feb 17
New 90-day high: NT$33.55 The company is up 33% from its price of NT$25.25 on 19 November 2020. The Taiwanese market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 13% over the same period. Is New 90 Day High Low • Dec 29
New 90-day high: NT$31.45 The company is up 30% from its price of NT$24.20 on 30 September 2020. The Taiwanese market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 19% over the same period. Is New 90 Day High Low • Dec 06
New 90-day high: NT$28.60 The company is up 5.0% from its price of NT$27.20 on 07 September 2020. The Taiwanese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 7.0% over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS NT$0.59 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: NT$1.51b (up 13% from 3Q 2019). Net income: NT$69.3m (down 17% from 3Q 2019). Profit margin: 4.6% (down from 6.3% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. 
