Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 37% After last week's 37% share price gain to NT$125, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 9x in the Shipping industry in Taiwan. Total returns to shareholders of 197% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$167 per share. New Risk • Aug 17
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 are forecast to decline by an average of 32% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (94% cash payout ratio). Large one-off items impacting financial results. Reported Earnings • Aug 16
Second quarter 2026 earnings: EPS in line with analyst expectations despite revenue beat Second quarter 2026 results: EPS: NT$4.11 (up from NT$0.38 in 2Q 2025). Revenue: NT$42.9b (up 23% from 2Q 2025). Net income: NT$11.5b (up NT$10.5b from 2Q 2025). Profit margin: 27% (up from 3.1% in 2Q 2025). The increase in margin was primarily driven by higher revenue. Revenue exceeded analyst estimates by 3.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 3.3% p.a. on average during the next 2 years, compared to a 3.6% growth forecast for the Shipping industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jul 24
Price target decreased by 30% to NT$87.50 Down from NT$125, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$87.00. Stock is down 5.0% over the past year. The company is forecast to post earnings per share of NT$12.29 for next year compared to NT$11.21 last year. Upcoming Dividend • Jun 29
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 06 July 2026. Payment date: 31 July 2026. Payout ratio is a comfortable 29% but the company is paying out more than the cash it is generating. Trailing yield: 4.5%. Lower than top quartile of Taiwanese dividend payers (5.0%). Lower than average of industry peers (6.3%). Major Estimate Revision • Jun 26
Consensus EPS estimates increase by 14% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from NT$10.04 to NT$11.49. Revenue forecast unchanged at NT$146.2b. Net income forecast to grow 0.5% next year vs 9.5% growth forecast for Shipping industry in Taiwan. Consensus price target down from NT$133 to NT$127. Share price fell 4.7% to NT$76.60 over the past week. Declared Dividend • Jun 13
Dividend reduced to NT$3.00 Dividend of NT$3.00 is 14% lower than last year. Ex-date: 6th July 2026 Payment date: 31st July 2026 Dividend yield will be 3.5%, which is lower than the industry average of 32%. Sustainability & Growth Dividend is covered by earnings (29% earnings payout ratio) but not covered by cash flows (188% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 12% over the next year. However, it would need to fall by 68% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • May 16
First quarter 2026 earnings: EPS exceeds analyst expectations First quarter 2026 results: EPS: NT$2.00 (down from NT$3.11 in 1Q 2025). Revenue: NT$33.6b (down 9.3% from 1Q 2025). Net income: NT$7.67b (down 12% from 1Q 2025). Profit margin: 23% (in line with 1Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.7%. Revenue is forecast to grow 7.1% p.a. on average during the next 2 years, compared to a 4.2% growth forecast for the Shipping industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Price Target Changed • May 09
Price target increased by 8.0% to NT$88.00 Up from NT$81.50, the current price target is an average from 4 analysts. New target price is 15% above last closing price of NT$76.50. Stock is down 12% over the past year. The company is forecast to post earnings per share of NT$9.05 for next year compared to NT$11.21 last year. Major Estimate Revision • Mar 27
Consensus EPS estimates increase by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from NT$133.3b to NT$145.2b. EPS estimate increased from NT$7.56 to NT$8.95 per share. Net income forecast to shrink 12% next year vs 4.3% decline forecast for Shipping industry in Taiwan. Consensus price target down from NT$89.94 to NT$81.67. Share price fell 4.8% to NT$75.20 over the past week. Price Target Changed • Mar 21
Price target decreased by 8.8% to NT$73.00 Down from NT$80.00, the current price target is provided by 1 analyst. New target price is 7.6% below last closing price of NT$79.00. Stock is down 8.2% over the past year. The company is forecast to post earnings per share of NT$9.10 for next year compared to NT$11.21 last year. Reported Earnings • Mar 14
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: NT$11.21 (down from NT$16.90 in FY 2024). Revenue: NT$140.4b (down 13% from FY 2024). Net income: NT$31.5b (down 34% from FY 2024). Profit margin: 22% (down from 29% in FY 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 15%. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Annonce • Jan 23
Wan Hai Lines Ltd., Annual General Meeting, May 28, 2026 Wan Hai Lines Ltd., Annual General Meeting, May 28, 2026. Location: 2 floor no,399, jui kuang rd., neihu district, taipei city Taiwan Major Estimate Revision • Nov 21
Consensus EPS estimates increase by 32% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$139.5b to NT$140.9b. EPS estimate increased from NT$7.43 to NT$9.79 per share. Net income forecast to shrink 33% next year vs 27% decline forecast for Shipping industry in Taiwan. Consensus price target up from NT$80.00 to NT$84.33. Share price fell 3.4% to NT$79.70 over the past week. Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: NT$4.15 (vs NT$6.57 in 3Q 2024) Third quarter 2025 results: EPS: NT$4.15 (down from NT$6.57 in 3Q 2024). Revenue: NT$35.0b (down 36% from 3Q 2024). Net income: NT$11.6b (down 37% from 3Q 2024). Profit margin: 33% (in line with 3Q 2024). Revenue is expected to fall by 8.0% p.a. on average during the next 2 years compared to a 9.0% decline forecast for the Shipping 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 5% per year, which means it is well ahead of earnings. Price Target Changed • Aug 23
Price target decreased by 34% to NT$80.00 Down from NT$122, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of NT$84.10. Stock is up 5.8% over the past year. The company is forecast to post earnings per share of NT$7.07 for next year compared to NT$16.89 last year. Reported Earnings • Aug 15
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: NT$0.38 (down from NT$4.12 in 2Q 2024). Revenue: NT$34.9b (down 8.7% from 2Q 2024). Net income: NT$1.08b (down 91% from 2Q 2024). Profit margin: 3.1% (down from 30% in 2Q 2024). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 5.9%. Earnings per share (EPS) also missed analyst estimates by 39%. Revenue is expected to fall by 17% p.a. on average during the next 2 years compared to a 11% decline forecast for the Shipping industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 56% 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. Upcoming Dividend • Jun 17
Upcoming dividend of NT$3.50 per share Eligible shareholders must have bought the stock before 24 June 2025. Payment date: 23 July 2025. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (9.5%). Declared Dividend • May 31
Dividend increased to NT$3.50 Dividend of NT$3.50 is 133% higher than last year. Ex-date: 24th June 2025 Payment date: 23rd July 2025 Dividend yield will be 3.2%, which is lower than the industry average of 32%. Sustainability & Growth Dividend is well covered by both earnings (19% earnings payout ratio) and cash flows (27% cash payout ratio). The dividend has increased by an average of 24% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 54% over the next year. However, it would need to fall by 79% to increase the payout ratio to a potentially unsustainable range. Annonce • May 30
Wan Hai Lines Ltd. Announces Cash Dividends, Payable on 23, 2025 Wan Hai Lines Ltd. announced Cash dividends of TWD 9,821,512,026 (TWD 3.5 per share). Ex-rights (ex-dividend) trading date is June 24, 2025. Ex-rights (ex-dividend) record date is June 30, 2025. Payment date of common stock cash dividend distribution is July 23, 2025. Valuation Update With 7 Day Price Move • May 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$115, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 13x in the Shipping industry in Taiwan. Negligible returns to shareholders over past three years. Price Target Changed • May 17
Price target increased by 9.7% to NT$97.67 Up from NT$89.00, the current price target is an average from 3 analysts. New target price is 12% below last closing price of NT$111. Stock is up 59% over the past year. The company is forecast to post earnings per share of NT$9.32 for next year compared to NT$16.89 last year. Reported Earnings • May 15
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: NT$3.11 (up from NT$1.65 in 1Q 2024). Revenue: NT$37.1b (up 34% from 1Q 2024). Net income: NT$8.73b (up 89% from 1Q 2024). Profit margin: 24% (up from 17% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Revenue is expected to fall by 15% p.a. on average during the next 2 years compared to a 11% decline forecast for the Shipping industry in Taiwan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 60 percentage points per year, which is a significant difference in performance. Annonce • May 06
Wan Hai Lines Ltd. to Report Q1, 2025 Results on May 13, 2025 Wan Hai Lines Ltd. announced that they will report Q1, 2025 results on May 13, 2025 New Risk • Apr 14
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 are forecast to decline by an average of 35% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (8.9% average weekly change). 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$67.80, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 11x in the Shipping industry in Taiwan. Total loss to shareholders of 38% over the past three years. New Risk • Mar 27
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 37% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 are forecast to decline by an average of 37% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Major Estimate Revision • Mar 26
Consensus revenue estimates increase by 14% The consensus outlook for revenues in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$124.4b to NT$142.1b. EPS estimate increased from NT$8.24 to NT$9.01 per share. Net income forecast to shrink 51% next year vs 35% decline forecast for Shipping industry in Taiwan. Consensus price target up from NT$71.33 to NT$80.70. Share price fell 5.3% to NT$83.30 over the past week. Reported Earnings • Mar 14
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: NT$16.89 (up from NT$2.07 loss in FY 2023). Revenue: NT$161.8b (up 61% from FY 2023). Net income: NT$47.4b (up NT$53.2b from FY 2023). Profit margin: 29% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 7.9%. Earnings per share (EPS) missed analyst estimates by 3.7%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 56 percentage points per year, which is a significant difference in performance. Annonce • Mar 04
Wan Hai Lines Ltd. to Report Q4, 2024 Results on Mar 11, 2025 Wan Hai Lines Ltd. announced that they will report Q4, 2024 results on Mar 11, 2025 Annonce • Jan 20
Wan Hai Lines Ltd., Annual General Meeting, May 29, 2025 Wan Hai Lines Ltd., Annual General Meeting, May 29, 2025. Location: 2 floor no,12, chou tzu st., neihu district, taipei city Taiwan New Risk • Nov 15
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 34% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 are forecast to decline by an average of 34% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (8.0% average weekly change). Reported Earnings • Nov 15
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: EPS: NT$6.57 (up from NT$0.91 in 3Q 2023). Revenue: NT$54.5b (up 118% from 3Q 2023). Net income: NT$18.4b (up NT$15.9b from 3Q 2023). Profit margin: 34% (up from 10% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) missed analyst estimates by 1.6%. Revenue is forecast to decline by 14% p.a. on average during the next 2 years, while revenues in the Shipping industry in Taiwan are expected to remain flat. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. New Risk • Nov 02
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 8.8% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Oct 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$83.00, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 9x in the Shipping industry in Taiwan. Total loss to shareholders of 26% over the past three years. Valuation Update With 7 Day Price Move • Sep 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$90.70, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 8x in the Shipping industry in Taiwan. Total loss to shareholders of 38% over the past three years. Major Estimate Revision • Sep 03
Consensus EPS estimates increase by 29% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$152.9b to NT$166.1b. EPS estimate increased from NT$13.55 to NT$17.52 per share. Net income forecast to grow 86% next year vs 20% growth forecast for Shipping industry in Taiwan. Consensus price target of NT$71.33 unchanged from last update. Share price was steady at NT$79.50 over the past week. Reported Earnings • Aug 15
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: NT$4.12 (up from NT$0.83 loss in 2Q 2023). Revenue: NT$38.2b (up 56% from 2Q 2023). Net income: NT$11.6b (up NT$13.9b from 2Q 2023). Profit margin: 30% (up from net loss in 2Q 2023). Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) also surpassed analyst estimates by 32%. Revenue is forecast to decline by 2.9% p.a. on average during the next 2 years, while revenues in the Shipping industry in Taiwan are expected to remain flat. 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 22% per year, which means it has not declined as severely as earnings. Annonce • Aug 03
Wan Hai Lines Ltd. to Report Q2, 2024 Results on Aug 12, 2024 Wan Hai Lines Ltd. announced that they will report Q2, 2024 results on Aug 12, 2024 Price Target Changed • Jul 13
Price target decreased by 16% to NT$71.33 Down from NT$85.25, the current price target is an average from 3 analysts. New target price is 6.6% below last closing price of NT$76.40. Stock is up 52% over the past year. The company is forecast to post earnings per share of NT$11.59 next year compared to a net loss per share of NT$2.07 last year. Major Estimate Revision • Jul 13
Consensus revenue estimates increase by 11% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$138.1b to NT$152.9b. EPS estimate increased from NT$9.64 to NT$11.59 per share. Net income forecast to grow 2,544% next year vs 106% growth forecast for Shipping industry in Taiwan. Consensus price target down from NT$85.25 to NT$71.33. Share price fell 8.7% to NT$76.40 over the past week. Upcoming Dividend • Jun 06
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 13 June 2024. Payment date: 12 July 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 1.5%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (3.4%). Price Target Changed • May 25
Price target increased by 74% to NT$75.00 Up from NT$43.00, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of NT$74.90. Stock is up 27% over the past year. The company is forecast to post earnings per share of NT$9.85 next year compared to a net loss per share of NT$2.07 last year. Major Estimate Revision • May 25
Consensus revenue estimates increase by 26% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$105.6b to NT$132.8b. EPS estimate increased from NT$1.75 to NT$9.85 per share. Net income forecast to grow 2,150% next year vs 58% growth forecast for Shipping industry in Taiwan. Consensus price target of NT$75.00 unchanged from last update. Share price rose 7.0% to NT$74.90 over the past week. New Risk • May 16
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.7% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings are forecast to decline by an average of 2.7% per year for the foreseeable future. High level of non-cash earnings (28% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (0.9% net profit margin). Reported Earnings • May 16
First quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2024 results: EPS: NT$1.65 (up from NT$0.76 loss in 1Q 2023). Revenue: NT$27.6b (up 8.1% from 1Q 2023). Net income: NT$4.62b (up NT$6.74b from 1Q 2023). Profit margin: 17% (up from net loss in 1Q 2023). The move to profitability was primarily driven by lower expenses. Revenue missed analyst estimates by 6.8%. Earnings per share (EPS) exceeded analyst estimates by 45%. Revenue is forecast to grow 2.5% p.a. on average during the next 2 years, while revenues in the Shipping industry in Taiwan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 16
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: NT$2.07 loss per share (down from NT$33.17 profit in FY 2022). Revenue: NT$100.2b (down 61% from FY 2022). Net loss: NT$5.80b (down 106% from profit in FY 2022). Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) missed analyst estimates. 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 6% per year, which means it is well ahead of earnings. Annonce • Jan 19
Wan Hai Lines Ltd., Annual General Meeting, May 28, 2024 Wan Hai Lines Ltd., Annual General Meeting, May 28, 2024. Location: 2F., No.16, Sec. 4, Zhongshan N. Rd., Shilin Dist., Taipei City 111, Taiwan (R.O.C.) Taipei City Taiwan Agenda: To discuss 2023 operating report; to discuss Audit Committee review report on the 2023 financial statements; to discuss Unsecured Bonds report; to discuss Recognize 2023 financial statements & operating report; to discuss the proposal for distributing 2023 profits; and to discuss other matters. Price Target Changed • Nov 28
Price target decreased by 20% to NT$43.00 Down from NT$53.50, the current price target is provided by 1 analyst. New target price is 8.5% below last closing price of NT$47.00. Stock is down 37% over the past year. The company is forecast to post a net loss per share of NT$3.89 compared to earnings per share of NT$33.17 last year. Major Estimate Revision • Nov 21
Consensus EPS estimates fall by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$105.2b to NT$97.8b. Losses expected to increase from NT$3.35 per share to NT$3.89. Shipping industry in Taiwan expected to see average net income decline 9.3% next year. Consensus price target broadly unchanged at NT$54.50. Share price was steady at NT$46.55 over the past week. Reported Earnings • Nov 16
Third quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2023 results: EPS: NT$0.90 (down from NT$7.97 in 3Q 2022). Revenue: NT$25.0b (down 61% from 3Q 2022). Net income: NT$2.54b (down 89% from 3Q 2022). Profit margin: 10% (down from 35% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 11%. Earnings per share (EPS) exceeded analyst estimates. Revenue is expected to fall by 6.8% p.a. on average during the next 2 years compared to a 16% decline forecast for the Shipping industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 17% per year. New Risk • Nov 15
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 147% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 147% per year for the foreseeable future. High level of non-cash earnings (21% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (12% net profit margin). Major Estimate Revision • Aug 21
Consensus revenue estimates decrease by 10%, EPS upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from NT$112.6b to NT$100.9b. EPS estimate increased from -NT$3.91 to -NT$2.28 per share. Shipping industry in Taiwan expected to see average net income decline 72% next year. Consensus price target broadly unchanged at NT$53.50. Share price was steady at NT$49.30 over the past week. New Risk • Aug 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 151% per year for the foreseeable future. High level of non-cash earnings (24% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (12% net profit margin). Reported Earnings • Aug 17
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: NT$0.83 loss per share (down from NT$10.74 profit in 2Q 2022). Revenue: NT$24.5b (down 67% from 2Q 2022). Net loss: NT$2.34b (down 108% from profit in 2Q 2022). Revenue missed analyst estimates by 15%. Earnings per share (EPS) exceeded analyst estimates by 42%. Revenue is expected to fall by 22% p.a. on average during the next 2 years compared to a 22% decline forecast for the Shipping industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 41% per year whereas the company’s share price has increased by 44% per year. Upcoming Dividend • Jun 26
Upcoming dividend of NT$5.00 per share at 8.3% yield Eligible shareholders must have bought the stock before 03 July 2023. Payment date: 25 July 2023. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 8.3%. Within top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (29%). Annonce • Jun 11
Wan Hai Lines Ltd. Declares Dividend for 2022, Payable on July 25, 2023 Wan Hai Lines Ltd. declared dividend distribution of TWD 5 per share to the shareholders, total amount of TWD 14,030,731,465. Ex-rights (ex-dividend) trading date is July 03, 2023; ex-rights (ex-dividend) record date is July 09, 2023 and Payment date of cash dividend distribution July 25, 2023. Price Target Changed • Apr 18
Price target decreased by 20% to NT$50.00 Down from NT$62.50, the current price target is provided by 1 analyst. New target price is 28% below last closing price of NT$69.00. Stock is down 49% over the past year. The company is forecast to post earnings per share of NT$0.64 for next year compared to NT$33.17 last year. Major Estimate Revision • Mar 24
Consensus EPS estimates fall by 20% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$129.6b to NT$126.8b. EPS estimate also fell from NT$14.65 per share to NT$11.65 per share. Net income forecast to shrink 65% next year vs 51% decline forecast for Shipping industry in Taiwan. Consensus price target down from NT$62.50 to NT$61.00. Share price rose 2.2% to NT$70.50 over the past week. Reported Earnings • Mar 16
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: NT$33.17 (down from NT$36.83 in FY 2021). Revenue: NT$259.0b (up 14% from FY 2021). Net income: NT$93.1b (down 9.9% from FY 2021). Profit margin: 36% (down from 45% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 7.3%. Revenue is expected to fall by 41% p.a. on average during the next 2 years compared to a 36% decline forecast for the Shipping industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has increased by 94% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Jan 19
Wan Hai Lines Ltd., Annual General Meeting, May 30, 2023 Wan Hai Lines Ltd., Annual General Meeting, May 30, 2023. Location: 2F., No.16, Sec. 4, Zhongshan N. Rd., Shilin Dist. Taipei City Taiwan Agenda: To consider 2022 employees' and directors' compensation report, to consider 2022 operating report, to consider Audit Committee's review report on the 2022 financial statements, to consider Unsecured Bonds report, to consider and recognize 2022 financial statements & operating report, to consider and recognize the proposal for distributing 2022 profits, to consider amendments to the Articles of Incorporation, to consider amendments to the Rules of Procedure for Shareholders Meetings; and to consider any other matters. Price Target Changed • Jan 03
Price target decreased to NT$62.50 Down from NT$96.58, the current price target is an average from 2 analysts. New target price is 22% below last closing price of NT$80.10. Stock is down 51% over the past year. The company is forecast to post earnings per share of NT$35.66 for next year compared to NT$36.83 last year. Reported Earnings • Nov 16
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: NT$7.97 (down from NT$12.67 in 3Q 2021). Revenue: NT$63.8b (down 9.8% from 3Q 2021). Net income: NT$22.4b (down 37% from 3Q 2021). Profit margin: 35% (down from 50% in 3Q 2021). The decrease in margin was primarily driven by higher expenses. Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) missed analyst estimates by 3.8%. Revenue is expected to fall by 34% p.a. on average during the next 3 years compared to a 36% decline forecast for the Shipping industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 73% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 1 experienced director. 8 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Director Yi-Sheng Tseng was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: NT$7.97 (down from NT$12.67 in 3Q 2021). Revenue: NT$63.8b (down 9.8% from 3Q 2021). Net income: NT$22.4b (down 37% from 3Q 2021). Profit margin: 35% (down from 50% in 3Q 2021). The decrease in margin was primarily driven by higher expenses. Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) missed analyst estimates by 3.8%. Revenue is expected to fall by 34% p.a. on average during the next 3 years compared to a 35% decline forecast for the Shipping industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 73% per year, which means it is significantly lagging earnings growth. Price Target Changed • Sep 15
Price target decreased to NT$109 Down from NT$132, the current price target is an average from 2 analysts. New target price is 35% above last closing price of NT$80.70. Stock is down 54% over the past year. The company is forecast to post earnings per share of NT$39.70 for next year compared to NT$36.83 last year. Reported Earnings • Aug 13
Second quarter 2022 earnings: EPS misses analyst expectations Second quarter 2022 results: EPS: NT$10.74 (up from NT$6.77 in 2Q 2021). Revenue: NT$75.1b (up 56% from 2Q 2021). Net income: NT$30.1b (up 59% from 2Q 2021). Profit margin: 40% (in line with 2Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%. Over the next year, revenue is expected to shrink by 21% compared to a 1.5% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 113% per year but the company’s share price has only increased by 89% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 19
Investor sentiment improved over the past week After last week's 17% share price gain to NT$131, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 4x in the Shipping industry in Asia. Total returns to shareholders of 668% over the past three years. Upcoming Dividend • Jul 13
Upcoming dividend of NT$10.50 per share Eligible shareholders must have bought the stock before 20 July 2022. Payment date: 18 August 2022. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 9.3%. Within top quartile of Taiwanese dividend payers (6.9%). Lower than average of industry peers (18%). Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$131, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 4x in the Shipping industry in Asia. Total returns to shareholders of 764% over the past three years. Price Target Changed • Jun 07
Price target decreased to NT$175 Down from NT$195, the current price target is an average from 2 analysts. New target price is 9.9% above last closing price of NT$159. Stock is up 6.0% over the past year. The company is forecast to post earnings per share of NT$53.85 for next year compared to NT$42.35 last year. Reported Earnings • May 17
First quarter 2022 earnings: EPS in line with expectations, revenues disappoint First quarter 2022 results: EPS: NT$16.64 (up from NT$6.02 in 1Q 2021). Revenue: NT$80.5b (up 109% from 1Q 2021). Net income: NT$40.6b (up 176% from 1Q 2021). Profit margin: 50% (up from 38% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 121% per year but the company’s share price has only increased by 108% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target increased to NT$230 Up from NT$205, the current price target is provided by 1 analyst. New target price is 60% above last closing price of NT$144. Stock is up 71% over the past year. The company is forecast to post earnings per share of NT$45.11 for next year compared to NT$42.35 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Director Yi-Sheng Tseng was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 17
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: NT$42.35 (up from NT$4.64 in FY 2020). Revenue: NT$228.0b (up 179% from FY 2020). Net income: NT$103.3b (up NT$92.0b from FY 2020). Profit margin: 45% (up from 14% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 2.9%. Over the next year, revenue is expected to shrink by 6.0% compared to a 25% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 125% per year whereas the company’s share price has increased by 126% per year. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improved over the past week After last week's 17% share price gain to NT$172, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 5x in the Shipping industry in Taiwan. Total returns to shareholders of 1,176% over the past three years. Annonce • Jan 30
Wan Hai Lines Ltd., Annual General Meeting, May 26, 2022 Wan Hai Lines Ltd., Annual General Meeting, May 26, 2022. Location: 2F., No.16, Sec. 4, Zhongshan N. Rd., Shilin Dist Taipei City 111, Taiwan Taipei Taiwan Agenda: To discuss operating report; to Recognize 2021 financial statements & operating report; and to Recognize the proposal for distributing 2021 profits. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$14.57 (vs NT$0.74 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$70.7b (up 260% from 3Q 2020). Net income: NT$35.5b (up NT$33.8b from 3Q 2020). Profit margin: 50% (up from 9.1% 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 124% per year whereas the company’s share price has increased by 123% per year. Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment deteriorated over the past week After last week's 20% share price decline to NT$166, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 5x in the Shipping industry in Taiwan. Total returns to shareholders of 1,117% over the past three years. Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment deteriorated over the past week After last week's 20% share price decline to NT$208, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 10x in the Shipping industry in Asia. Total returns to shareholders of 1,199% over the past three years. Upcoming Dividend • Aug 31
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 07 September 2021. Payment date: 29 September 2021. Trailing yield: 0.4%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (1.2%). Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improved over the past week After last week's 15% share price gain to NT$248, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 10x in the Shipping industry in Asia. Total returns to shareholders of 1,476% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$8.56 (vs NT$0.76 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$48.0b (up 195% from 2Q 2020). Net income: NT$19.0b (up NT$17.3b from 2Q 2020). Profit margin: 40% (up from 10% 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 112% per year but the company’s share price has increased by 136% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$240, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 10x in the Shipping industry in Asia. Total returns to shareholders of 1,430% over the past three years. Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improved over the past week After last week's 35% share price gain to NT$336, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 11x in the Shipping industry in Asia. Total returns to shareholders of 2,106% over the past three years. 
