Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$15.25, the stock trades at a trailing P/E ratio of 2.8x. Average trailing P/E is 14x in the Real Estate industry in Taiwan. Total loss to shareholders of 8.4% over the past three years. Upcoming Dividend • Jun 16
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 23 June 2026. Payment date: 16 July 2026. Payout ratio is a comfortable 37% but the company is not cash flow positive. Trailing yield: 12%. Within top quartile of Taiwanese dividend payers (4.8%). Higher than average of industry peers (5.5%). New Risk • May 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 61% 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 Risk High level of non-cash earnings (61% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (NT$1.77b market cap, or US$56.1m). New Risk • Apr 05
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 12% 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 Risk High level of non-cash earnings (56% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (NT$1.87b market cap, or US$58.5m). Reported Earnings • Mar 17
Full year 2025 earnings released: EPS: NT$6.03 (vs NT$0.47 loss in FY 2024) Full year 2025 results: EPS: NT$6.03 (up from NT$0.47 loss in FY 2024). Revenue: NT$1.34b (up 4.6% from FY 2024). Net income: NT$651.5m (up NT$698.2m from FY 2024). Profit margin: 49% (up from net loss in FY 2024). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Annonce • Jan 15
TRK Corporation, Annual General Meeting, May 28, 2026 TRK Corporation, Annual General Meeting, May 28, 2026. Location: 3 floor no,2-1, sec.1 chi nan rd., taipei city Taiwan Annonce • Jan 06
TRK Corporation Announces Change of Corporate Director Representative TRK Corporation announced a change in the representative of its corporate director. The previous position holder was Mr. Cheng Yuan-Cheng, who served as Director Representative of Sangon International Corporation. The new position holder is Mr. HSU CHUN CHI, who is the Deputy General Manager /Chief Consultant of TRK Corporation. The reason for the change is reassignment. The original term is from January 5, 2026 to May 25, 2028. The effective date of the new appointment is January 5, 2026. Name of legal person: Sangon International Co. Ltd. Reported Earnings • Nov 18
Third quarter 2025 earnings released: NT$0.18 loss per share (vs NT$0.067 loss in 3Q 2024) Third quarter 2025 results: NT$0.18 loss per share (further deteriorated from NT$0.067 loss in 3Q 2024). Revenue: NT$351.5m (up 5.3% from 3Q 2024). Net loss: NT$19.0m (loss widened 164% from 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Reported Earnings • Aug 15
Second quarter 2025 earnings released: NT$0.23 loss per share (vs NT$0.11 loss in 2Q 2024) Second quarter 2025 results: NT$0.23 loss per share (further deteriorated from NT$0.11 loss in 2Q 2024). Revenue: NT$332.8m (up 4.8% from 2Q 2024). Net loss: NT$24.8m (loss widened 140% from 2Q 2024). Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Annonce • May 27
TRK Corporation Approves Board Elections TRK Corporation at its AGM held on May 26, 2025, approved election of Sangong International Co. Ltd. Representative: CHENG,YUAN-CHENG as Director, Representative: LIN, YI-NAN.
The company approved WANG LIN-HUI and CHEN YANG LIN as Independent Directors. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.046 (vs NT$0.003 loss in 1Q 2024) First quarter 2025 results: EPS: NT$0.046 (up from NT$0.003 loss in 1Q 2024). Revenue: NT$342.4m (up 4.9% from 1Q 2024). Net income: NT$4.93m (up NT$5.21m from 1Q 2024). Profit margin: 1.4% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Annonce • May 06
TRK Corporation to Report Q1, 2025 Results on May 13, 2025 TRK Corporation announced that they will report Q1, 2025 results on May 13, 2025 Reported Earnings • Mar 20
Full year 2024 earnings released: NT$0.47 loss per share (vs NT$0.67 profit in FY 2023) Full year 2024 results: NT$0.47 loss per share (down from NT$0.67 profit in FY 2023). Revenue: NT$1.28b (down 3.4% from FY 2023). Net loss: NT$46.7m (down 178% from profit in FY 2023). Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Annonce • Mar 04
TRK Corporation to Report Fiscal Year 2024 Results on Mar 11, 2025 TRK Corporation announced that they will report fiscal year 2024 results on Mar 11, 2025 Annonce • Jan 16
TRK Corporation, Annual General Meeting, May 26, 2025 TRK Corporation, Annual General Meeting, May 26, 2025. Location: 3 floor no,2-1, sec.1 chi nan rd., taipei city Taiwan Reported Earnings • Nov 18
Third quarter 2024 earnings released: NT$0.07 loss per share (vs NT$0.48 profit in 3Q 2023) Third quarter 2024 results: NT$0.07 loss per share (down from NT$0.48 profit in 3Q 2023). Revenue: NT$333.9m (down 12% from 3Q 2023). Net loss: NT$7.19m (down 117% from profit in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Annonce • Nov 01
TRK Corporation to Report Q3, 2024 Final Results on Nov 08, 2024 TRK Corporation announced that they will report Q3, 2024 final results on Nov 08, 2024 New Risk • Sep 03
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 20% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Shareholders have been diluted in the past year (20% increase in shares outstanding). Market cap is less than US$100m (NT$1.94b market cap, or US$60.6m). Reported Earnings • Aug 17
Second quarter 2024 earnings released: NT$0.11 loss per share (vs NT$0.11 profit in 2Q 2023) Second quarter 2024 results: NT$0.11 loss per share (down from NT$0.11 profit in 2Q 2023). Revenue: NT$317.6m (down 2.0% from 2Q 2023). Net loss: NT$10.3m (down 207% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Annonce • Aug 10
TRK Corporation Appoints Chen Weihong as Chief Legal Officer TRK Corporation announced the board of directors has approved changes in important personnel. Type of personnel changed; chief sustainability officer. Name, title, and resume of the new position holder: Chen Weihong, Chief Legal Officer/Manager of Taroko Industrial. Effective date: August 08, 2024. Annonce • Aug 01
TRK Corporation to Report Q2, 2024 Results on Aug 08, 2024 TRK Corporation announced that they will report Q2, 2024 results on Aug 08, 2024 Reported Earnings • May 19
First quarter 2024 earnings released First quarter 2024 results: Revenue: NT$326.4m (up 5.0% from 1Q 2023). Net loss: NT$288.0k (down 102% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Annonce • May 03
TRK Corporation to Report Q1, 2024 Results on May 09, 2024 TRK Corporation announced that they will report Q1, 2024 results at 1:30 PM, Taipei Standard Time on May 09, 2024 Annonce • Apr 17
TRK Corporation announced a financing transaction TRK Corporation announced a private placement of not more than 20,000,000 common shares on April 15, 2024. The transaction has been approved by the board of directors of the company. New Risk • Apr 09
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 44% 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: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Share price has been volatile over the past 3 months (6.3% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (NT$1.65b market cap, or US$51.4m). Reported Earnings • Apr 02
Full year 2023 earnings released: EPS: NT$0.67 (vs NT$0.35 loss in FY 2022) Full year 2023 results: EPS: NT$0.67 (up from NT$0.35 loss in FY 2022). Revenue: NT$1.32b (up 20% from FY 2022). Net income: NT$60.2m (up NT$91.3m from FY 2022). Profit margin: 4.5% (up from net loss in FY 2022). The move to profitability 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 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$20.00, the stock trades at a trailing P/E ratio of 28.1x. Average trailing P/E is 19x in the Real Estate industry in Taiwan. Total returns to shareholders of 42% over the past three years. New Risk • Feb 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 5.4% 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 Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Share price has been volatile over the past 3 months (5.4% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (NT$1.91b market cap, or US$60.9m). Annonce • Jan 16
TRK Corporation, Annual General Meeting, May 31, 2024 TRK Corporation, Annual General Meeting, May 31, 2024. Location: National Taiwan University Alumni Association Room B, 3rd Floor, No. 2-1, Section 1, Jinan Road, Taipei City) Taiwan Agenda: To approve 2023 Business Report; to approve 2023 Audit Committee; to approve review report 2023; to approve The Company Annual Endorsement and Guarantee Report; to approve The company's cash capital increase in 2011 will improve the implementation of its operating plan; and to discuss other matters. New Risk • Dec 05
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% 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: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (NT$1.59b market cap, or US$50.4m). Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$19.70, the stock trades at a trailing P/E ratio of 29.4x. Average trailing P/E is 17x in the Real Estate industry in Taiwan. Total returns to shareholders of 20% over the past three years. New Risk • Aug 26
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 28% 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: Major Risk Interest payments are not well covered by earnings (1.4x net interest cover). Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (NT$1.49b market cap, or US$46.8m). New Risk • Aug 17
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.4x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.4x net interest cover). Minor Risk Market cap is less than US$100m (NT$1.46b market cap, or US$45.5m). Reported Earnings • Aug 17
Second quarter 2023 earnings released: EPS: NT$0.11 (vs NT$0.77 loss in 2Q 2022) Second quarter 2023 results: EPS: NT$0.11 (up from NT$0.77 loss in 2Q 2022). Revenue: NT$324.1m (up 44% from 2Q 2022). Net income: NT$9.67m (up NT$77.8m from 2Q 2022). Profit margin: 3.0% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 30
Full year 2022 earnings released: NT$0.35 loss per share (vs NT$2.05 loss in FY 2021) Full year 2022 results: NT$0.35 loss per share (improved from NT$2.05 loss in FY 2021). Revenue: NT$1.11b (up 42% from FY 2021). Net loss: NT$31.2m (loss narrowed 79% from FY 2021). Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Mar 09
Now 20% undervalued Over the last 90 days, the stock is up 67%. The fair value is estimated to be NT$25.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 11% over the last 3 years. Earnings per share has grown by 61%. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$0.45 (vs NT$0.64 loss in 3Q 2021) Third quarter 2022 results: EPS: NT$0.45 (up from NT$0.64 loss in 3Q 2021). Revenue: NT$327.7m (up 118% from 3Q 2021). Net income: NT$39.5m (up NT$86.6m from 3Q 2021). Profit margin: 12% (up from net loss in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: NT$0.45 (vs NT$0.64 loss in 3Q 2021) Third quarter 2022 results: EPS: NT$0.45 (up from NT$0.64 loss in 3Q 2021). Revenue: NT$327.7m (up 118% from 3Q 2021). Net income: NT$39.5m (up NT$86.6m from 3Q 2021). Profit margin: 12% (up from net loss in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 15
Second quarter 2022 earnings released: NT$0.77 loss per share (vs NT$1.07 loss in 2Q 2021) Second quarter 2022 results: NT$0.77 loss per share (up from NT$1.07 loss in 2Q 2021). Revenue: NT$224.7m (up 65% from 2Q 2021). Net loss: NT$68.1m (loss narrowed 13% from 2Q 2021). Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 03
Full year 2021 earnings released: NT$2.05 loss per share (vs NT$0.001 profit in FY 2020) Full year 2021 results: NT$2.05 loss per share (down from NT$0.001 profit in FY 2020). Revenue: NT$778.1m (down 33% from FY 2020). Net loss: NT$151.3m (down NT$151.3m from profit in FY 2020). Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 15
Third quarter 2021 earnings released: NT$0.64 loss per share (vs NT$0.65 profit in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and control over costs. Third quarter 2021 results: Revenue: NT$150.6m (down 52% from 3Q 2020). Net loss: NT$47.1m (down 197% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 13
Second quarter 2021 earnings released: NT$1.07 loss per share (vs NT$0.38 loss in 2Q 2020) The company reported a poor second quarter result with increased losses, weaker revenues and weaker control over costs. Second quarter 2021 results: Revenue: NT$135.9m (down 48% from 2Q 2020). Net loss: NT$78.3m (loss widened 178% from 2Q 2020). Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 24
Investor sentiment improved over the past week After last week's 18% share price gain to NT$13.95, the stock trades at a trailing P/E ratio of 77.5x. Average trailing P/E is 12x in the Real Estate industry in Taiwan. Total loss to shareholders of 25% over the past three years. Reported Earnings • May 17
First quarter 2021 earnings released: NT$0.08 loss per share (vs NT$0.26 loss in 1Q 2020) The company reported a decent first quarter result with reduced losses and improved control over expenses, although revenues were weaker. First quarter 2021 results: Revenue: NT$233.0m (down 28% from 1Q 2020). Net loss: NT$6.21m (loss narrowed 69% from 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 19% per year. Is New 90 Day High Low • Mar 15
New 90-day high: NT$16.25 The company is up 9.0% from a price of NT$14.95 on 15 December 2020. Underperformed the Taiwanese market, which is up 14% over the last 90 days. Exceeded the Real Estate industry, which is up 6.0% over the same period. Is New 90 Day High Low • Jan 06
New 90-day low: NT$13.45 The company is down 29% from its price of NT$19.00 on 08 October 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Real Estate industry, which is up 5.0% over the same period. Is New 90 Day High Low • Dec 10
New 90-day low: NT$15.85 The company is down 25% from its price of NT$21.00 on 09 September 2020. The Taiwanese market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Real Estate industry, which is up 2.0% over the same period. Is New 90 Day High Low • Nov 17
New 90-day low: NT$16.15 The company is down 16% from its price of NT$19.12 on 19 August 2020. The Taiwanese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Real Estate industry, which is up 3.0% over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS NT$0.65 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$312.2m (up 1.1% from 3Q 2019). Net income: NT$48.5m (up NT$100.5m from 3Q 2019). Profit margin: 16% (up from net loss in 3Q 2019). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. 
