Buy Or Sell Opportunity • May 07
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 160% to NT$300. The fair value is estimated to be NT$249, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 23%. Revenue is forecast to grow by 72% in 2 years. Earnings are forecast to grow by 216% in the next 2 years. Reported Earnings • May 06
First quarter 2026 earnings released: EPS: NT$0.87 (vs NT$0.93 in 1Q 2025) First quarter 2026 results: EPS: NT$0.87 (down from NT$0.93 in 1Q 2025). Revenue: NT$9.14b (up 21% from 1Q 2025). Net income: NT$314.5m (down 6.6% from 1Q 2025). Profit margin: 3.4% (down from 4.4% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 63% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 02
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$170, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 18x in the Electronic industry in Taiwan. Total returns to shareholders of 137% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$114 per share. New Risk • Apr 01
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 11% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risk Dividend is not well covered by cash flows (149% cash payout ratio). New Risk • Mar 19
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 149% Dividend yield: 2.0% 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: Minor Risks Dividend is not well covered by cash flows (149% cash payout ratio). Share price has been volatile over the past 3 months (9.8% average weekly change). Buy Or Sell Opportunity • Mar 13
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 21% to NT$138. The fair value is estimated to be NT$113, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.1% over the last 3 years. Earnings per share has grown by 5.9%. Revenue is forecast to grow by 38% in 2 years. Earnings are forecast to grow by 106% in the next 2 years. Annonce • Mar 09
ITEQ Corporation, Annual General Meeting, May 27, 2026 ITEQ Corporation, Annual General Meeting, May 27, 2026, at 09:00 Taipei Standard Time. Location: no,17, ta lu ko rd., nei li li, singpu township, hsinchu county Taiwan Price Target Changed • Mar 08
Price target increased by 11% to NT$125 Up from NT$112, the current price target is an average from 9 analysts. New target price is approximately in line with last closing price of NT$128. Stock is up 73% over the past year. The company is forecast to post earnings per share of NT$6.49 for next year compared to NT$4.16 last year. Reported Earnings • Mar 08
Full year 2025 earnings released: EPS: NT$4.16 (vs NT$2.26 in FY 2024) Full year 2025 results: EPS: NT$4.16 (up from NT$2.26 in FY 2024). Revenue: NT$33.1b (up 13% from FY 2024). Net income: NT$1.51b (up 84% from FY 2024). Profit margin: 4.6% (up from 2.8% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 25
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$147, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 19x in the Electronic industry in Taiwan. Total returns to shareholders of 111% over the past three years. Valuation Update With 7 Day Price Move • Aug 20
Investor sentiment improves as stock rises 34% After last week's 34% share price gain to NT$135, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 121% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$80.59 per share. Price Target Changed • Aug 12
Price target increased by 7.4% to NT$90.63 Up from NT$84.41, the current price target is an average from 7 analysts. New target price is 9.4% below last closing price of NT$100.00. Stock is up 32% over the past year. The company is forecast to post earnings per share of NT$4.99 for next year compared to NT$2.26 last year. Buy Or Sell Opportunity • Aug 11
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 34% to NT$99.00. The fair value is estimated to be NT$79.18, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 35%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 80% in the next 2 years. Reported Earnings • Aug 09
Second quarter 2025 earnings: EPS exceeds analyst expectations Second quarter 2025 results: EPS: NT$1.16 (up from NT$0.55 in 2Q 2024). Revenue: NT$8.88b (up 17% from 2Q 2024). Net income: NT$420.4m (up 110% from 2Q 2024). Profit margin: 4.7% (up from 2.6% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.2%. Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Price Target Changed • Jul 15
Price target increased by 7.4% to NT$83.49 Up from NT$77.74, the current price target is an average from 8 analysts. New target price is 11% below last closing price of NT$93.80. Stock is down 15% over the past year. The company is forecast to post earnings per share of NT$4.67 for next year compared to NT$2.26 last year. Price Target Changed • Jun 26
Price target increased by 7.2% to NT$77.74 Up from NT$72.49, the current price target is an average from 8 analysts. New target price is 11% below last closing price of NT$87.30. Stock is down 24% over the past year. The company is forecast to post earnings per share of NT$4.57 for next year compared to NT$2.26 last year. Upcoming Dividend • Jun 26
Upcoming dividend of NT$1.80 per share Eligible shareholders must have bought the stock before 03 July 2025. Payment date: 08 August 2025. Payout ratio is a comfortable 65% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (3.2%). Declared Dividend • May 28
Dividend increased to NT$1.80 Dividend of NT$1.80 is 20% higher than last year. Ex-date: 3rd July 2025 Payment date: 8th August 2025 Dividend yield will be 2.1%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by both earnings (80% earnings payout ratio) and cash flows (42% cash payout ratio). The dividend has increased by an average of 4.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 100% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Annonce • May 27
ITEQ Corporation Announces Cash Dividend, Payable on August 8, 2025 ITEQ Corporation announced cash dividends to common share holders of TWD 653,322,992 (TWD 1.8/share). Ex-rights (ex-dividend) trading date is July 3, 2025. Ex-rights (ex-dividend) record date is July 9, 2025. Payment date of common stock cash dividend distribution is August 8, 2025. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$89.30, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the Electronic industry in Taiwan. Total loss to shareholders of 4.0% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$62.82 per share. Buy Or Sell Opportunity • May 08
Now 22% overvalued Over the last 90 days, the stock has fallen 1.4% to NT$71.00. The fair value is estimated to be NT$58.26, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 3.9% over the last 3 years. Earnings per share has declined by 52%. Revenue is forecast to grow by 20% in 2 years. Earnings are forecast to grow by 85% in the next 2 years. Buy Or Sell Opportunity • Apr 10
Now 32% overvalued Over the last 90 days, the stock has fallen 27% to NT$52.90. The fair value is estimated to be NT$40.21, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 7.1% over the last 3 years. Earnings per share has declined by 59%. Revenue is forecast to grow by 22% in 2 years. Earnings are forecast to grow by 137% in the next 2 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 6.4% 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: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.4% average weekly change). Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$62.90, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the Electronic industry in Taiwan. Total loss to shareholders of 41% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$40.32 per share. Annonce • Mar 11
ITEQ Corporation, Annual General Meeting, May 26, 2025 ITEQ Corporation, Annual General Meeting, May 26, 2025, at 09:00 Taipei Standard Time. Location: no,17, ta lu ko rd., nei li li, singpu township, hsinchu county Taiwan Reported Earnings • Mar 08
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: NT$2.26 (up from NT$1.86 in FY 2023). Revenue: NT$29.4b (up 17% from FY 2023). Net income: NT$821.8m (up 22% from FY 2023). Profit margin: 2.8% (up from 2.7% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 23%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Annonce • Mar 01
ITEQ Corporation to Report Fiscal Year 2024 Results on Mar 07, 2025 ITEQ Corporation announced that they will report fiscal year 2024 results on Mar 07, 2025 Price Target Changed • Dec 27
Price target decreased by 7.3% to NT$86.47 Down from NT$93.29, the current price target is an average from 7 analysts. New target price is 8.4% above last closing price of NT$79.80. Stock is down 5.9% over the past year. The company is forecast to post earnings per share of NT$3.18 for next year compared to NT$1.86 last year. Reported Earnings • Nov 07
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: NT$0.69 (up from NT$0.65 in 3Q 2023). Revenue: NT$7.96b (up 20% from 3Q 2023). Net income: NT$249.2m (up 6.2% from 3Q 2023). Profit margin: 3.1% (down from 3.5% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 21%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Annonce • Oct 29
ITEQ Corporation to Report Q3, 2024 Results on Nov 05, 2024 ITEQ Corporation announced that they will report Q3, 2024 results on Nov 05, 2024 Reported Earnings • Aug 08
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: NT$0.55 (up from NT$0.12 in 2Q 2023). Revenue: NT$7.60b (up 40% from 2Q 2023). Net income: NT$200.2m (up 382% from 2Q 2023). Profit margin: 2.6% (up from 0.8% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) missed analyst estimates by 47%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Annonce • Aug 07
ITEQ Corporation Announces Changes to the Nominating Committee ITEQ Corporation announced changes to the nominating committee. Resume of the previous position holder: Po-Chiao Chou, Independent director of ITEQ CORP., Zhao-Rong Yang, Independent director of ITEQ CORP., Xiu-Zong Liang, Independent director of ITEQ CORP., Chin-Tsai Chen, Chairman of ITEQ CORP., Hsin-Hui Tsai, Directors & General Manager of ITEQ CORP. Resume of the new position holder: Po-Chiao Chou, Independent director of ITEQ CORP., Cheng-En Ko, Independent director of ITEQ CORP., Zhao-Rong Yang, Independent director of ITEQ CORP., Chin-Tsai Chen,Chairman of ITEQ CORP. Hsin-Hui Tsai, Directors & General Manager of ITEQ CORP. Original term: December 26, 2023 to July 1, 2024. Effective date of the new member: August 6, 2024. Major Estimate Revision • Aug 07
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$30.4b to NT$30.1b. EPS estimate also fell from NT$4.36 per share to NT$3.75 per share. Net income forecast to grow 72% next year vs 21% growth forecast for Electronic industry in Taiwan. Consensus price target down from NT$118 to NT$103. Share price fell 19% to NT$73.90 over the past week. Price Target Changed • Aug 06
Price target decreased by 16% to NT$103 Down from NT$122, the current price target is an average from 8 analysts. New target price is 35% above last closing price of NT$76.50. Stock is up 1.1% over the past year. The company is forecast to post earnings per share of NT$4.05 for next year compared to NT$1.86 last year. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$76.50, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 15x in the Electronic industry in Taiwan. Total loss to shareholders of 35% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$57.51 per share. New Risk • Aug 02
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.7% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. 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: 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 (7.1% average weekly change). Annonce • Jul 30
ITEQ Corporation to Report Q2, 2024 Results on Aug 06, 2024 ITEQ Corporation announced that they will report Q2, 2024 results on Aug 06, 2024 Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$135, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 18x in the Electronic industry in Taiwan. Total returns to shareholders of 7.4% over the past three years. Upcoming Dividend • Jul 04
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 11 July 2024. Payment date: 07 August 2024. Payout ratio is a comfortable 72% and the cash payout ratio is 93%. Trailing yield: 1.2%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (2.6%). Board Change • Jun 08
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Wei-Lung Chen was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Declared Dividend • Jun 01
Dividend reduced to NT$1.50 Dividend of NT$1.50 is 50% lower than last year. Ex-date: 11th July 2024 Payment date: 7th August 2024 Dividend yield will be 1.4%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by both earnings (72% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 180% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • May 14
Consensus EPS estimates fall by 19% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from NT$5.13 to NT$4.16 per share. Revenue forecast steady at NT$29.8b. Net income forecast to grow 142% next year vs 33% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$106 to NT$116. Share price was steady at NT$105 over the past week. Price Target Changed • May 10
Price target increased by 10% to NT$116 Up from NT$106, the current price target is an average from 7 analysts. New target price is 6.3% above last closing price of NT$110. Stock is up 70% over the past year. The company is forecast to post earnings per share of NT$4.15 for next year compared to NT$1.86 last year. Reported Earnings • May 08
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: NT$0.42 (up from NT$0.20 in 1Q 2023). Revenue: NT$6.15b (down 1.7% from 1Q 2023). Net income: NT$153.6m (up 108% from 1Q 2023). Profit margin: 2.5% (up from 1.2% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 47%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Annonce • Apr 28
ITEQ Corporation to Report Q1, 2024 Results on May 06, 2024 ITEQ Corporation announced that they will report Q1, 2024 results on May 06, 2024 Price Target Changed • Apr 03
Price target increased by 9.3% to NT$104 Up from NT$95.13, the current price target is an average from 7 analysts. New target price is 11% below last closing price of NT$117. Stock is up 49% over the past year. The company is forecast to post earnings per share of NT$5.00 for next year compared to NT$1.86 last year. New Risk • Apr 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 6.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.1% average weekly change). Profit margins are more than 30% lower than last year (2.7% net profit margin). Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$98.30, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total loss to shareholders of 15% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$47.87 per share. Reported Earnings • Mar 05
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: NT$1.86 (down from NT$4.94 in FY 2022). Revenue: NT$25.1b (down 14% from FY 2022). Net income: NT$676.6m (down 64% from FY 2022). Profit margin: 2.7% (down from 6.4% in FY 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.5%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. 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. Annonce • Feb 28
ITEQ Corporation, Annual General Meeting, May 30, 2024 ITEQ Corporation, Annual General Meeting, May 30, 2024. Location: No. 17, Daluge Rd., Xinpu Township, Hsinchu County Taiwan Agenda: To consider 2023 Business Report; to consider Amendment Report of the Audit Committee Review on 2022 Annual Earnings Distribution Statement; to consider 2023 Report on the Review of the Financial Statement from the Audit Committee; to consider 2023 Report on the Distribution of Remuneration for Employees and Directors; to consider Status of distribution for cash dividend of 2023 earnings; to consider 2023 Report on the Remuneration Received by Directors; and to consider other matters. Annonce • Feb 03
ITEQ Corporation Announces Executive Changes ITEQ Corporation announced the appointment of Eddie Peng as Corporate Governance Officer, February 2, 2024. Eddie Peng is Financial Div. Senior Manager. The Company announced the resignation of Alex Chou as Corporate Governance Officer, February 2, 2024. Alex Chou is Financial Div. Senior Director. Annonce • Dec 27
ITEQ Corporation Resolves to Establish the Nominating Committee and the Appointment of its Members ITEQ Corporation announced that the Board of Directors resolved to establish the Nominating Committee and the appointment of its members. Name of the new position holder: Po-Chiao Chou, Zhao-Rong Yang, Xiu-Zong Liang, Chin-Tsai Chen, Hsin-Hui Tsai. Resume of the new position holder: Po-Chiao Chou,Independent director of ITEQ CORP. Zhao-Rong Yang,Independent director of ITEQ CORP. Xiu-Zong Liang,Independent director of ITEQ CORP. Chin-Tsai Chen,Chairman of ITEQ CORP. Hsin-Hui Tsai,Directors & General Manager of ITEQ CORP. Reason for the change: The Board of Directors resolved to establish the Nominating Committee on December 26, 2023. Effective date of the new member: December 26, 2023. The tenure of the Nominating Committee is the same as Board of Directors. Major Estimate Revision • Nov 21
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from NT$1.68 to NT$1.85. Revenue forecast steady at NT$25.6b. Net income forecast to grow 101% next year vs 20% growth forecast for Electronic industry in Taiwan. Consensus price target broadly unchanged at NT$85.63. Share price rose 4.4% to NT$90.60 over the past week. Reported Earnings • Nov 02
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: NT$0.65 (down from NT$0.74 in 3Q 2022). Revenue: NT$6.64b (up 4.6% from 3Q 2022). Net income: NT$234.6m (down 15% from 3Q 2022). Profit margin: 3.5% (down from 4.4% in 3Q 2022). Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) also surpassed analyst estimates by 7.0%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. New Risk • Oct 20
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 7.9% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.9% average weekly change). Minor Risks Dividend is not well covered by earnings (151% payout ratio). Profit margins are more than 30% lower than last year (2.9% net profit margin). Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$79.00, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 18x in the Electronic industry in Taiwan. Total loss to shareholders of 29% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$34.47 per share. Price Target Changed • Aug 30
Price target increased by 8.6% to NT$75.85 Up from NT$69.83, the current price target is an average from 7 analysts. New target price is 21% below last closing price of NT$96.40. Stock is up 42% over the past year. The company is forecast to post earnings per share of NT$1.61 for next year compared to NT$4.94 last year. Major Estimate Revision • Aug 09
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$25.2b to NT$24.2b. EPS estimate also fell from NT$2.04 per share to NT$1.79 per share. Net income forecast to grow 54% next year vs 0.8% decline forecast for Electronic industry in Taiwan. Consensus price target of NT$72.28 unchanged from last update. Share price was steady at NT$75.70 over the past week. New Risk • Aug 02
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 91% 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 (151% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.9% net profit margin). Reported Earnings • Aug 02
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: NT$0.11 (down from NT$1.14 in 2Q 2022). Revenue: NT$5.43b (down 29% from 2Q 2022). Net income: NT$41.6m (down 90% from 2Q 2022). Profit margin: 0.8% (down from 5.7% in 2Q 2022). Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) also missed analyst estimates by 64%. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jul 03
Upcoming dividend of NT$3.00 per share at 4.3% yield Eligible shareholders must have bought the stock before 10 July 2023. Payment date: 04 August 2023. Payout ratio is on the higher end at 99%, however this is supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (4.2%). Reported Earnings • Jul 02
First quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2023 results: EPS: NT$0.20 (down from NT$2.11 in 1Q 2022). Revenue: NT$6.26b (down 24% from 1Q 2022). Net income: NT$74.0m (down 91% from 1Q 2022). Profit margin: 1.2% (down from 9.8% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) missed analyst estimates by 58%. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Annonce • May 31
ITEQ Corporation Approves Cash Dividend, Payable on August 4, 2023 ITEQ Corporation announced at shareholder meeting held on May 30, 2023, approved cash dividend of TWD 1,088,871,654 (TWD 3.0 per share). Ex-rights (ex-dividend) trading date is July 10, 2023. Ex-rights (ex-dividend) record date is July 16, 2023. Payment date of cash dividend distribution is August 4, 2023. Major Estimate Revision • May 10
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$27.7b to NT$26.7b. EPS estimate also fell from NT$3.85 per share to NT$3.27 per share. Net income forecast to shrink 46% next year vs 11% decline forecast for Electronic industry in Taiwan. Consensus price target down from NT$74.00 to NT$69.70. Share price fell 6.0% to NT$65.50 over the past week. Price Target Changed • Apr 28
Price target decreased by 15% to NT$74.00 Down from NT$87.20, the current price target is an average from 5 analysts. New target price is 5.9% above last closing price of NT$69.90. Stock is down 33% over the past year. The company is forecast to post earnings per share of NT$3.85 for next year compared to NT$4.94 last year. Major Estimate Revision • Apr 15
Consensus revenue estimates increase by 10% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from NT$24.7b to NT$27.3b. EPS estimate unchanged from NT$3.02 at last update. Electronic industry in Taiwan expected to see average net income decline 7.3% next year. Consensus price target of NT$87.20 unchanged from last update. Share price was steady at NT$77.90 over the past week. Major Estimate Revision • Mar 20
Consensus EPS estimates fall by 39% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$31.1b to NT$30.6b. EPS estimate also fell from NT$4.97 per share to NT$3.02 per share. Net income forecast to shrink 41% next year vs 0.2% growth forecast for Electronic industry in Taiwan . Consensus price target of NT$87.20 unchanged from last update. Share price was steady at NT$75.10 over the past week. Reported Earnings • Mar 18
Full year 2022 earnings: EPS in line with expectations, revenues disappoint Full year 2022 results: EPS: NT$4.94 (down from NT$9.00 in FY 2021). Revenue: NT$29.1b (down 10% from FY 2021). Net income: NT$1.86b (down 41% from FY 2021). Profit margin: 6.4% (down from 9.7% in FY 2021). Revenue missed analyst estimates by 4.2%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Price Target Changed • Mar 10
Price target increased by 7.9% to NT$87.20 Up from NT$80.83, the current price target is an average from 5 analysts. New target price is 17% above last closing price of NT$74.30. Stock is down 38% over the past year. The company is forecast to post earnings per share of NT$4.94 for next year compared to NT$9.00 last year. Price Target Changed • Dec 19
Price target decreased to NT$67.00 Down from NT$75.40, the current price target is an average from 4 analysts. New target price is 9.5% below last closing price of NT$74.00. Stock is down 42% over the past year. The company is forecast to post earnings per share of NT$5.08 for next year compared to NT$9.00 last year. Reported Earnings • Nov 04
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: NT$0.74 (down from NT$2.40 in 3Q 2021). Revenue: NT$6.35b (down 29% from 3Q 2021). Net income: NT$277.4m (down 67% from 3Q 2021). Profit margin: 4.4% (down from 9.4% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) also missed analyst estimates by 3.1%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Nov 02
Investor sentiment improved over the past week After last week's 17% share price gain to NT$61.20, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 9x in the Electronic industry in Taiwan. Total loss to shareholders of 52% over the past three years. Price Target Changed • Oct 26
Price target decreased to NT$74.00 Down from NT$84.67, the current price target is an average from 5 analysts. New target price is 41% above last closing price of NT$52.50. Stock is down 59% over the past year. The company is forecast to post earnings per share of NT$5.96 for next year compared to NT$9.00 last year. Price Target Changed • Sep 15
Price target decreased to NT$84.67 Down from NT$93.00, the current price target is an average from 6 analysts. New target price is 22% above last closing price of NT$69.40. Stock is down 54% over the past year. The company is forecast to post earnings per share of NT$6.43 for next year compared to NT$9.00 last year. Annonce • Aug 24
ITEQ Corporation Announces Executive Changes ITEQ Corporation announced change of the company's corporate governance officer. Name, title, and resume of the previous position holder: James Huang/Financial Div., Director. Name, title, and resume of the new position holder: Alex Chou/General Manager Office, Head of Group Administration & Resource/Financial Div., Senior Director. Effective date is August 23, 2022. Major Estimate Revision • Aug 09
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from NT$34.5b to NT$30.4b. EPS estimate increased from NT$7.04 to NT$7.51 per share. Net income forecast to shrink 16% next year vs 8.1% growth forecast for Electronic industry in Taiwan . Consensus price target down from NT$105 to NT$93.33. Share price fell 8.5% to NT$63.70 over the past week. Price Target Changed • Aug 05
Price target decreased to NT$93.33 Down from NT$105, the current price target is an average from 6 analysts. New target price is 52% above last closing price of NT$61.40. Stock is down 55% over the past year. The company is forecast to post earnings per share of NT$7.51 for next year compared to NT$9.00 last year. Reported Earnings • Aug 04
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: NT$1.14 (down from NT$2.58 in 2Q 2021). Revenue: NT$7.65b (down 6.4% from 2Q 2021). Net income: NT$434.7m (down 50% from 2Q 2021). Profit margin: 5.7% (down from 11% in 2Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.6%. Earnings per share (EPS) also missed analyst estimates by 8.0%. Over the next year, revenue is forecast to grow 2.1%, compared to a 8.7% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings.