Valuation Update With 7 Day Price Move • Jul 13
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$61.30, the stock trades at a trailing P/E ratio of 20.6x. Average trailing P/E is 49x in the Semiconductor industry in Taiwan. Total loss to shareholders of 6.5% over the past three years. Valuation Update With 7 Day Price Move • Jun 22
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$67.20, the stock trades at a trailing P/E ratio of 22.6x. Average trailing P/E is 48x in the Semiconductor industry in Taiwan. Total returns to shareholders of 8.9% over the past three years. Valuation Update With 7 Day Price Move • May 28
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$65.40, the stock trades at a trailing P/E ratio of 22.1x. Average trailing P/E is 44x in the Semiconductor industry in Taiwan. Total returns to shareholders of 8.1% over the past three years. Upcoming Dividend • May 15
Upcoming dividend of NT$2.80 per share Eligible shareholders must have bought the stock before 22 May 2026. Payment date: 22 June 2026. Payout ratio is on the higher end at 94% but the company is not cash flow positive. Trailing yield: 5.1%. Within top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (1.1%). Reported Earnings • May 13
First quarter 2026 earnings released: EPS: NT$0.19 (vs NT$0.64 in 1Q 2025) First quarter 2026 results: EPS: NT$0.19 (down from NT$0.64 in 1Q 2025). Revenue: NT$130.5m (down 33% from 1Q 2025). Net income: NT$15.2m (down 71% from 1Q 2025). Profit margin: 12% (down from 26% in 1Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 11
Full year 2025 earnings released: EPS: NT$3.42 (vs NT$2.45 in FY 2024) Full year 2025 results: EPS: NT$3.42 (up from NT$2.45 in FY 2024). Revenue: NT$1.06b (up 29% from FY 2024). Net income: NT$272.4m (up 39% from FY 2024). Profit margin: 26% (up from 24% in FY 2024). The increase in margin was driven by higher revenue. 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 5% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$72.50, the stock trades at a trailing P/E ratio of 24.1x. Average trailing P/E is 29x in the Semiconductor industry in Taiwan. Total returns to shareholders of 82% over the past three years. Reported Earnings • Nov 08
Third quarter 2025 earnings released: EPS: NT$1.12 (vs NT$0.52 in 3Q 2024) Third quarter 2025 results: EPS: NT$1.12 (up from NT$0.52 in 3Q 2024). Revenue: NT$301.6m (up 38% from 3Q 2024). Net income: NT$89.0m (up 115% from 3Q 2024). Profit margin: 30% (up from 19% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 19% per year. New Risk • Sep 18
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 Earnings have declined by 7.5% 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. Large one-off items impacting financial results. Buy Or Sell Opportunity • Sep 05
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 15% to NT$73.20. The fair value is estimated to be NT$60.78, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.8% over the last 3 years. Earnings per share has grown by 2.6%. Reported Earnings • Aug 17
Second quarter 2025 earnings released: EPS: NT$0.90 (vs NT$0.80 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.90 (up from NT$0.80 in 2Q 2024). Revenue: NT$316.6m (up 34% from 2Q 2024). Net income: NT$71.1m (up 11% from 2Q 2024). Profit margin: 23% (down from 27% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 7% per year. New Risk • May 25
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 Earnings have declined by 4.0% 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. Share price has been volatile over the past 3 months (9.1% average weekly change). Large one-off items impacting financial results. New Risk • May 16
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 8.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.0% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (111% payout ratio). Share price has been volatile over the past 3 months (8.9% average weekly change). New Risk • May 14
New major risk - Revenue and earnings growth Earnings have declined by 4.0% 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 4.0% per year over the past 5 years. Minor Risk Dividend is not well covered by earnings (111% payout ratio). Reported Earnings • May 14
First quarter 2025 earnings released: EPS: NT$0.64 (vs NT$0.79 in 1Q 2024) First quarter 2025 results: EPS: NT$0.64 (down from NT$0.79 in 1Q 2024). Revenue: NT$196.0m (down 7.1% from 1Q 2024). Net income: NT$51.4m (down 18% from 1Q 2024). Profit margin: 26% (down from 30% in 1Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 9% per year. Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$54.10, the stock trades at a trailing P/E ratio of 22.1x. Average trailing P/E is 23x in the Semiconductor industry in Taiwan. Total loss to shareholders of 8.5% over the past three years. Annonce • Apr 17
Champion Microelectronic Corporation to Report Q1, 2025 Results on Apr 24, 2025 Champion Microelectronic Corporation announced that they will report Q1, 2025 results on Apr 24, 2025 Buy Or Sell Opportunity • Apr 14
Now 22% overvalued Over the last 90 days, the stock has fallen 13% to NT$43.35. The fair value is estimated to be NT$35.40, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.2% over the last 3 years. Earnings per share has declined by 16%. New Risk • Apr 09
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.00b (US$91.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 111% Paying a dividend despite having no free cash flows. High level of non-cash earnings (41% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (7.7% average weekly change). Market cap is less than US$100m (NT$3.00b market cap, or US$91.0m). Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$41.70, the stock trades at a trailing P/E ratio of 17x. Average trailing P/E is 22x in the Semiconductor industry in Taiwan. Total loss to shareholders of 32% over the past three years. New Risk • Apr 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 6.6% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 111% Paying a dividend despite having no free cash flows. High level of non-cash earnings (41% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (6.6% average weekly change). Upcoming Dividend • Mar 25
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 01 April 2025. Payment date: 07 May 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 5.3%. Within top quartile of Taiwanese dividend payers (4.6%). Higher than average of industry peers (2.2%). Reported Earnings • Mar 15
Full year 2024 earnings released: EPS: NT$2.45 (vs NT$3.12 in FY 2023) Full year 2024 results: EPS: NT$2.45 (down from NT$3.12 in FY 2023). Revenue: NT$816.0m (down 24% from FY 2023). Net income: NT$195.8m (down 22% from FY 2023). Profit margin: 24% (in line with FY 2023). Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 11% per year. Declared Dividend • Feb 27
Dividend reduced to NT$2.00 Dividend of NT$2.00 is 33% lower than last year. Ex-date: 1st April 2025 Payment date: 7th May 2025 Dividend yield will be 3.4%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is not covered by earnings (111% earnings payout ratio) and 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 6.3% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 23% to bring the payout ratio under control, which is less than the 25% EPS growth achieved over the last 5 years. Annonce • Feb 18
Champion Microelectronic Corporation to Report Fiscal Year 2024 Results on Feb 25, 2025 Champion Microelectronic Corporation announced that they will report fiscal year 2024 results on Feb 25, 2025 Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$58.30, the stock trades at a trailing P/E ratio of 21.6x. Average trailing P/E is 29x in the Semiconductor industry in Taiwan. Total returns to shareholders of 3.7% over the past three years. Buy Or Sell Opportunity • Jan 17
Now 29% overvalued Over the last 90 days, the stock has fallen 19% to NT$55.00. The fair value is estimated to be NT$42.66, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 8.4% over the last 3 years. Earnings per share has declined by 22%. Valuation Update With 7 Day Price Move • Dec 09
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$55.10, the stock trades at a trailing P/E ratio of 20.4x. Average trailing P/E is 31x in the Semiconductor industry in Taiwan. Total loss to shareholders of 4.5% over the past three years. Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: NT$0.52 (vs NT$1.12 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.52 (down from NT$1.12 in 3Q 2023). Revenue: NT$218.0m (down 33% from 3Q 2023). Net income: NT$41.4m (down 54% from 3Q 2023). Profit margin: 19% (down from 28% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 22% 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. New Risk • Nov 08
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 6.4% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 91% Paying a dividend despite having no free cash flows. High level of non-cash earnings (71% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (6.4% average weekly change). Annonce • Oct 22
Champion Microelectronic Corporation to Report Q3, 2024 Results on Oct 29, 2024 Champion Microelectronic Corporation announced that they will report Q3, 2024 results on Oct 29, 2024 Valuation Update With 7 Day Price Move • Oct 11
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$63.40, the stock trades at a trailing P/E ratio of 19.2x. Average trailing P/E is 29x in the Semiconductor industry in Taiwan. Total returns to shareholders of 18% over the past three years. Valuation Update With 7 Day Price Move • Sep 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$58.80, the stock trades at a trailing P/E ratio of 17.8x. Average trailing P/E is 30x in the Semiconductor industry in Taiwan. Negligible returns to shareholders over past three years. Buy Or Sell Opportunity • Sep 09
Now 21% overvalued Over the last 90 days, the stock has fallen 17% to NT$50.00. The fair value is estimated to be NT$41.31, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has declined by 24%. Buy Or Sell Opportunity • Aug 12
Now 22% overvalued Over the last 90 days, the stock has fallen 19% to NT$50.20. The fair value is estimated to be NT$41.23, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has declined by 24%. Reported Earnings • Aug 10
Second quarter 2024 earnings released: EPS: NT$0.80 (vs NT$1.02 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.80 (down from NT$1.02 in 2Q 2023). Revenue: NT$235.9m (down 18% from 2Q 2023). Net income: NT$63.8m (down 21% from 2Q 2023). Profit margin: 27% (down from 28% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 24% 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. Annonce • Jul 19
Champion Microelectronic Corporation to Report Q2, 2024 Results on Jul 26, 2024 Champion Microelectronic Corporation announced that they will report Q2, 2024 results on Jul 26, 2024 Reported Earnings • May 12
First quarter 2024 earnings released: EPS: NT$0.78 (vs NT$0.38 in 1Q 2023) First quarter 2024 results: EPS: NT$0.78 (up from NT$0.38 in 1Q 2023). Revenue: NT$211.0m (up 16% from 1Q 2023). Net income: NT$62.7m (up 105% from 1Q 2023). Profit margin: 30% (up from 17% in 1Q 2023). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 26% 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 • Apr 29
Now 22% overvalued Over the last 90 days, the stock has fallen 14% to NT$61.90. The fair value is estimated to be NT$50.89, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 19% over the last 3 years. Earnings per share has declined by 26%. Annonce • Apr 25
Champion Microelectronic Corporation to Report Q1, 2024 Results on Apr 30, 2024 Champion Microelectronic Corporation announced that they will report Q1, 2024 results on Apr 30, 2024 Buy Or Sell Opportunity • Apr 17
Now 21% overvalued Over the last 90 days, the stock has fallen 16% to NT$61.40. The fair value is estimated to be NT$50.90, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 19% over the last 3 years. Earnings per share has declined by 26%. Upcoming Dividend • Mar 26
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 02 April 2024. Payment date: 07 May 2024. Payout ratio is on the higher end at 96%, however this is supported by cash flows. Trailing yield: 4.2%. Lower than top quartile of Taiwanese dividend payers (4.7%). Higher than average of industry peers (2.4%). Reported Earnings • Mar 13
Full year 2023 earnings released: EPS: NT$3.12 (vs NT$1.41 in FY 2022) Full year 2023 results: EPS: NT$3.12 (up from NT$1.41 in FY 2022). Revenue: NT$1.07b (up 98% from FY 2022). Net income: NT$249.4m (up 122% from FY 2022). Profit margin: 23% (up from 21% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 02
Third quarter 2023 earnings released: EPS: NT$1.12 (vs NT$0.077 in 3Q 2022) Third quarter 2023 results: EPS: NT$1.12 (up from NT$0.077 in 3Q 2022). Revenue: NT$324.6m (up 228% from 3Q 2022). Net income: NT$89.7m (up NT$83.5m from 3Q 2022). Profit margin: 28% (up from 6.2% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$89.50, the stock trades at a trailing P/E ratio of 64x. Average trailing P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 49% over the past three years. New Risk • Aug 01
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 6.2% 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: Minor Risks Share price has been volatile over the past 3 months (6.2% average weekly change). Profit margins are more than 30% lower than last year (17% net profit margin). Reported Earnings • Jul 29
Second quarter 2023 earnings released: EPS: NT$1.02 (vs NT$0.57 in 2Q 2022) Second quarter 2023 results: EPS: NT$1.02 (up from NT$0.57 in 2Q 2022). Revenue: NT$289.3m (up 81% from 2Q 2022). Net income: NT$81.1m (up 78% from 2Q 2022). Profit margin: 28% (in line with 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • Apr 19
Upcoming dividend of NT$1.00 per share at 1.7% yield Eligible shareholders must have bought the stock before 26 April 2023. Payment date: 26 May 2023. Payout ratio is a comfortable 71% but the company is paying out more than the cash it is generating. Trailing yield: 1.7%. Lower than top quartile of Taiwanese dividend payers (5.7%). Lower than average of industry peers (3.4%). Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$48.35, the stock trades at a trailing P/E ratio of 19.3x. Average trailing P/E is 13x in the Semiconductor industry in Taiwan. Total returns to shareholders of 15% over the past three years. Reported Earnings • Nov 02
Third quarter 2022 earnings released: EPS: NT$0.08 (vs NT$1.72 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.08 (down from NT$1.72 in 3Q 2021). Revenue: NT$99.0m (down 74% from 3Q 2021). Net income: NT$6.16m (down 96% from 3Q 2021). Profit margin: 6.2% (down from 36% 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 37% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Jul 31
Second quarter 2022 earnings released: EPS: NT$0.57 (vs NT$1.25 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.57 (down from NT$1.25 in 2Q 2021). Revenue: NT$160.0m (down 52% from 2Q 2021). Net income: NT$45.6m (down 54% from 2Q 2021). Profit margin: 28% (down from 30% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Upcoming Dividend • May 20
Upcoming dividend of NT$5.00 per share Eligible shareholders must have bought the stock before 27 May 2022. Payment date: 23 June 2022. Payout ratio is a comfortable 56% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Taiwanese dividend payers (6.1%). Higher than average of industry peers (3.0%). Reported Earnings • Apr 29
First quarter 2022 earnings released: EPS: NT$0.84 (vs NT$1.04 in 1Q 2021) First quarter 2022 results: EPS: NT$0.84 (down from NT$1.04 in 1Q 2021). Revenue: NT$197.8m (down 29% from 1Q 2021). Net income: NT$66.7m (down 19% from 1Q 2021). Profit margin: 34% (up from 30% in 1Q 2021). The increase in margin was driven by lower expenses. 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 9% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 20
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: NT$5.03 (up from NT$3.03 in FY 2020). Revenue: NT$1.30b (up 21% from FY 2020). Net income: NT$401.2m (up 67% from FY 2020). Profit margin: 31% (up from 22% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.6%. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Annonce • Feb 19
Champion Microelectronic Corporation, Annual General Meeting, May 27, 2022 Champion Microelectronic Corporation, Annual General Meeting, May 27, 2022. Location: 2F,No.1,Industrial East 2nd Road, Hsinchu Science Park Hsinchu Taiwan Agenda: To consider 2021 business report; to consider supervisor review 2021 report; to consider and report 2021 directors' and employees' remuneration; to consider and report 2021 earnings distribution; to consider and acknowledge the 2021 business report and financial statements; to consider and acknowledge the 2021 earnings distribution; to consider and discuss amendments to the Company's ”Corporate charter”; to consider and discuss amendments to the Company's ”Procedures for Asset Acquisition & Disposal”; to consider and discuss the amendments to the Company's ”Operating Procedures of Fund Lending”; to consider and discuss amendments to the Company's ”Procedures for Endorsements & Guarantees”; to consider and elect new directors; and to consider and approve the lifting of non-competition. Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment improved over the past week After last week's 15% share price gain to NT$78.00, the stock trades at a trailing P/E ratio of 15.4x. Average trailing P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 100% over the past three years. Reported Earnings • Oct 29
Third quarter 2021 earnings released: EPS NT$1.72 (vs NT$0.92 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$379.0m (up 21% from 3Q 2020). Net income: NT$137.0m (up 86% from 3Q 2020). Profit margin: 36% (up from 24% 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 59% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 29
Second quarter 2021 earnings released: EPS NT$1.38 (vs NT$0.60 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$335.3m (up 38% from 2Q 2020). Net income: NT$99.9m (up 130% from 2Q 2020). Profit margin: 30% (up from 18% 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 49% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 23
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 30 July 2021. Payment date: 24 August 2021. Trailing yield: 3.4%. Lower than top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (2.2%). Valuation Update With 7 Day Price Move • May 17
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$66.00, the stock trades at a trailing P/E ratio of 16.8x. Average trailing P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 39% over the past three years. Reported Earnings • Apr 24
First quarter 2021 earnings released: EPS NT$1.14 (vs NT$0.55 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$279.0m (up 78% from 1Q 2020). Net income: NT$82.7m (up 112% from 1Q 2020). Profit margin: 30% (up from 25% 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 39% 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 • Feb 26
Full year 2020 earnings released: EPS NT$3.34 (vs NT$1.28 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$1.07b (up 56% from FY 2019). Net income: NT$239.8m (up 158% from FY 2019). Profit margin: 22% (up from 14% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Annonce • Feb 25
Champion Microelectronic Corporation, Annual General Meeting, May 18, 2021 Champion Microelectronic Corporation, Annual General Meeting, May 18, 2021. Location: 2F,No.2,Hsin-Ann Rd., Hsinchu Science Hsinchu City Taiwan Agenda: To consider the company's 2020 business report and financial statements; to consider the proposal for distribution of 2020 earnings; to consider the proposal of cash dividends from capital surplus; and to consider other matters. Valuation Update With 7 Day Price Move • Dec 28
Investor sentiment improved over the past week After last week's 15% share price gain to NT$88.10, the stock is trading at a trailing P/E ratio of 33.1x, up from the previous P/E ratio of 28.8x. This compares to an average P/E of 26x in the Semiconductor industry in Taiwan. Total returns to shareholders over the past three years are 116%. Is New 90 Day High Low • Dec 23
New 90-day high: NT$85.30 The company is up 31% from its price of NT$65.10 on 24 September 2020. The Taiwanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 20% over the same period. Is New 90 Day High Low • Dec 08
New 90-day high: NT$77.00 The company is up 8.0% from its price of NT$71.50 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 Semiconductor industry, which is up 22% over the same period. Is New 90 Day High Low • Nov 16
New 90-day high: NT$76.40 The company is up 1.0% from its price of NT$75.90 on 18 August 2020. The Taiwanese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 5.0% over the same period. Reported Earnings • Oct 29
Third quarter earnings released Over the last 12 months the company has reported total profits of NT$191.5m, up 171% from the prior year. Total revenue was NT$934.8m over the last 12 months, up 57% from the prior year. Is New 90 Day High Low • Sep 24
New 90-day low: NT$68.50 The company is down 13% from its price of NT$79.15 on 24 June 2020. The Taiwanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 26% over the same period.