New Risk • May 15
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 5.5% Last year net profit margin: 7.8% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. 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. Profit margins are more than 30% lower than last year (5.5% net profit margin). Market cap is less than US$100m (NT$2.15b market cap, or US$68.2m). Reported Earnings • May 15
First quarter 2026 earnings released: EPS: NT$0.19 (vs NT$0.34 in 1Q 2025) First quarter 2026 results: EPS: NT$0.19 (down from NT$0.34 in 1Q 2025). Revenue: NT$871.1m (up 13% from 1Q 2025). Net income: NT$39.1m (down 44% from 1Q 2025). Profit margin: 4.5% (down from 9.1% in 1Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 2% per year. New Risk • Apr 05
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 55% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (55% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (NT$2.23b market cap, or US$69.8m). Reported Earnings • Mar 12
Full year 2025 earnings released: EPS: NT$1.10 (vs NT$0.98 in FY 2024) Full year 2025 results: EPS: NT$1.10 (up from NT$0.98 in FY 2024). Revenue: NT$3.42b (up 29% from FY 2024). Net income: NT$224.2m (up 12% from FY 2024). Profit margin: 6.6% (down from 7.5% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 2% per year. Annuncio • Mar 12
Apex Science & Engineering Corp., Annual General Meeting, Jun 09, 2026 Apex Science & Engineering Corp., Annual General Meeting, Jun 09, 2026, at 09:00 Taipei Standard Time. Location: 4 floor no,112, hsin min st., jhonghe district, new taipei city Taiwan New Risk • Nov 29
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 47% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 7.4% per year over the past 5 years. Minor Risks High level of debt (47% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (NT$2.34b market cap, or US$74.4m). Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: NT$0.29 (vs NT$0.24 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.29 (up from NT$0.24 in 3Q 2024). Revenue: NT$731.6m (up 27% from 3Q 2024). Net income: NT$58.5m (up 18% from 3Q 2024). Profit margin: 8.0% (down from 8.6% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 5% per year and the company’s share price has also increased by 5% per year. New Risk • Sep 12
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 13% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Earnings have declined by 11% 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. Market cap is less than US$100m (NT$2.34b market cap, or US$77.2m). Reported Earnings • Aug 17
Second quarter 2025 earnings released: EPS: NT$0.32 (vs NT$0.21 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.32 (up from NT$0.21 in 2Q 2024). Revenue: NT$1.14b (up 53% from 2Q 2024). Net income: NT$65.8m (up 51% from 2Q 2024). Profit margin: 5.7% (down from 5.8% 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 9% per year whereas the company’s share price has increased by 6% per year. Declared Dividend • Aug 15
Dividend of NT$0.50 announced Shareholders will receive a dividend of NT$0.50. Ex-date: 29th August 2025 Payment date: 24th September 2025 Dividend yield will be 4.1%, which is lower than the industry average of 4.7%. Sustainability & Growth Dividend is well covered by both earnings (48% earnings payout ratio) and cash flows (6% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 4.1% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • May 31
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 91% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 11% per year over the past 5 years. Minor Risks High level of debt (91% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (NT$2.65b market cap, or US$88.4m). Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.34 (vs NT$0.27 in 1Q 2024) First quarter 2025 results: EPS: NT$0.34 (up from NT$0.27 in 1Q 2024). Revenue: NT$768.2m (up 10% from 1Q 2024). Net income: NT$70.2m (up 26% from 1Q 2024). Profit margin: 9.1% (up from 8.0% in 1Q 2024). The increase in margin was driven by higher revenue. 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 10% per year. Annuncio • May 07
Apex Science & Engineering Corp. to Report Q1, 2025 Results on May 14, 2025 Apex Science & Engineering Corp. announced that they will report Q1, 2025 results on May 14, 2025 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$9.99, the stock trades at a trailing P/E ratio of 10.2x. Average trailing P/E is 16x in the Construction industry in Taiwan. Total returns to shareholders of 9.2% over the past three years. Reported Earnings • Mar 19
Full year 2024 earnings released: EPS: NT$0.98 (vs NT$1.02 in FY 2023) Full year 2024 results: EPS: NT$0.98 (down from NT$1.02 in FY 2023). Revenue: NT$2.66b (down 24% from FY 2023). Net income: NT$199.7m (down 2.5% from FY 2023). Profit margin: 7.5% (up from 5.9% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Annuncio • Mar 14
Apex Science & Engineering Corp., Annual General Meeting, Jun 11, 2025 Apex Science & Engineering Corp., Annual General Meeting, Jun 11, 2025, at 09:00 Taipei Standard Time. Location: 9 floor no,504, yun shan rd., jhonghe district, new taipei city Taiwan Annuncio • Mar 05
Apex Science & Engineering Corp. to Report Fiscal Year 2024 Results on Mar 12, 2025 Apex Science & Engineering Corp. announced that they will report fiscal year 2024 results on Mar 12, 2025 Reported Earnings • Nov 19
Third quarter 2024 earnings released: EPS: NT$0.24 (vs NT$0.21 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.24 (up from NT$0.21 in 3Q 2023). Revenue: NT$578.2m (down 27% from 3Q 2023). Net income: NT$49.6m (up 16% from 3Q 2023). Profit margin: 8.6% (up from 5.4% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 19
Upcoming dividend of NT$0.40 per share Eligible shareholders must have bought the stock before 23 August 2024. Payment date: 19 September 2024. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Taiwanese dividend payers (4.4%). Lower than average of industry peers (3.6%). Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$0.22 (vs NT$0.29 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.22 (down from NT$0.29 in 2Q 2023). Revenue: NT$747.0m (down 21% from 2Q 2023). Net income: NT$43.5m (down 24% from 2Q 2023). Profit margin: 5.8% (down from 6.1% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Declared Dividend • Aug 09
Dividend of NT$0.40 announced Shareholders will receive a dividend of NT$0.40. Ex-date: 23rd August 2024 Payment date: 19th September 2024 Dividend yield will be 3.0%, which is lower than the industry average of 4.7%. Sustainability & Growth Dividend is well covered by both earnings (38% earnings payout ratio) and cash flows (5% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 15% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Annuncio • Jul 31
Apex Science & Engineering Corp. to Report Q2, 2024 Results on Aug 07, 2024 Apex Science & Engineering Corp. announced that they will report Q2, 2024 results on Aug 07, 2024 Annuncio • May 02
Apex Science & Engineering Corp. to Report Q1, 2024 Results on May 09, 2024 Apex Science & Engineering Corp. announced that they will report Q1, 2024 results on May 09, 2024 New Risk • Mar 22
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.4% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (3.4% increase in shares outstanding). Market cap is less than US$100m (NT$2.55b market cap, or US$79.9m). Reported Earnings • Mar 17
Full year 2023 earnings released: EPS: NT$1.04 (vs NT$1.03 in FY 2022) Full year 2023 results: EPS: NT$1.04. Revenue: NT$3.48b (up 18% from FY 2022). Net income: NT$204.8m (down 1.0% from FY 2022). Profit margin: 5.9% (down from 7.0% in FY 2022). The decrease in margin was driven by higher expenses. Annuncio • Mar 15
Apex Science & Engineering Corp., Annual General Meeting, Jun 13, 2024 Apex Science & Engineering Corp., Annual General Meeting, Jun 13, 2024. Location: 9F,NO.504 Yuanshan Road Zhonghe District New Taipei City Taiwan Agenda: To consider 2023 Business Report; to consider 2023 Audit Committee Review Report; to consider 2023 Remuneration Distribution to Employees and Directors; and to discuss other matters. New Risk • Nov 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 30% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (30% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (NT$2.19b market cap, or US$68.6m). New Risk • Aug 26
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (NT$2.40b market cap, or US$75.4m). Upcoming Dividend • Aug 21
Upcoming dividend of NT$0.40 per share at 3.2% yield Eligible shareholders must have bought the stock before 28 August 2023. Payment date: 20 September 2023. Payout ratio is a comfortable 35% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Taiwanese dividend payers (5.6%). Lower than average of industry peers (5.5%). New Risk • Aug 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 23% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (23% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (NT$2.40b market cap, or US$75.1m). Annuncio • Aug 11
Apex Science & Engineering Corp. Announces the Appointment of Wang Wei-Cheng as Member to the Remuneration Committee Apex Science & Engineering Corp. announced the appointment of Wang Wei-Cheng as member to the Remuneration Committee. Resume of the new position holder: Consultant of Fareast Land Development Co. Ltd. Reason for the change: add a new member to the Remuneration Committee. Effective date of the new member: August 10, 2023. Annuncio • Jun 28
Apex Science & Engineering Corp. Appoints Wang Wei-Cheng as an Additional Independent Director Apex Science & Engineering Corp. announced the election result of an additional independent director. Title and name of the new position holder: Wang Wei-Cheng. The tenure of the new appointment is from June 26, 2023, to July 19, 2024. The effective date of the new appointment is on June 26, 2023. Reported Earnings • Mar 19
Full year 2022 earnings released: EPS: NT$1.05 (vs NT$0.52 in FY 2021) Full year 2022 results: EPS: NT$1.05 (up from NT$0.52 in FY 2021). Revenue: NT$2.95b (down 18% from FY 2021). Net income: NT$206.9m (up 101% from FY 2021). Profit margin: 7.0% (up from 2.8% in FY 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$0.27 (vs NT$0.015 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.27 (up from NT$0.015 in 3Q 2021). Revenue: NT$647.9m (down 15% from 3Q 2021). Net income: NT$53.4m (up NT$50.4m from 3Q 2021). Profit margin: 8.2% (up from 0.4% in 3Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 8% per year. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Independent Director Nai-Hua Wu was the last independent director to join the board, commencing their role in 2015. 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 released: EPS: NT$0.27 (vs NT$0.015 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.27 (up from NT$0.015 in 3Q 2021). Revenue: NT$647.9m (down 15% from 3Q 2021). Net income: NT$53.4m (up NT$50.4m from 3Q 2021). Profit margin: 8.2% (up from 0.4% in 3Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year and the company’s share price has also fallen by 6% per year. Upcoming Dividend • Sep 22
Upcoming dividend of NT$0.25 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 21 October 2022. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (5.7%). Annuncio • Sep 16
Apex Science & Engineering Corp. Revises Cash Dividend Apex Science & Engineering Corp. announced the resolution by the Company’s board of directors for the ex-dividend record date of cash dividends and revise the distribution ratio per share. Type and monetary amount of dividend distribution: Original: Cash dividends TWD 56,547,139 (TWD 0.25 per share) of common stock. Revised: Cash dividends TWD 56,547,139 (TWD 0.25223026 per share) of common stock. Ex-rights (ex-dividend) trading date is September 29, 2022. Ex-rights (ex-dividend) record date is October 05, 2022. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$0.22 (vs NT$0.16 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.22 (up from NT$0.16 in 2Q 2021). Revenue: NT$661.4m (down 48% from 2Q 2021). Net income: NT$43.5m (up 39% from 2Q 2021). Profit margin: 6.6% (up from 2.5% in 2Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 16
First quarter 2022 earnings released: EPS: NT$0.24 (vs NT$0.20 in 1Q 2021) First quarter 2022 results: EPS: NT$0.24 (up from NT$0.20 in 1Q 2021). Revenue: NT$713.6m (down 13% from 1Q 2021). Net income: NT$47.9m (up 21% from 1Q 2021). Profit margin: 6.7% (up from 4.8% 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 39% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Independent Director Nai-Hua Wu was the last independent director to join the board, commencing their role in 2015. 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 • Mar 31
Full year 2021 earnings released: EPS: NT$0.52 (vs NT$1.59 in FY 2020) Full year 2021 results: EPS: NT$0.52 (down from NT$1.59 in FY 2020). Revenue: NT$3.61b (down 31% from FY 2020). Net income: NT$102.7m (down 68% from FY 2020). Profit margin: 2.8% (down from 6.0% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Feb 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.6%. The fair value is estimated to be NT$12.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 42% per annum over the last 3 years. Earnings per share has grown by 67% per annum over the last 3 years. Buying Opportunity • Jan 21
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 1.4%. The fair value is estimated to be NT$13.07, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 42% per annum over the last 3 years. Earnings per share has grown by 67% per annum over the last 3 years. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.02 (vs NT$0.70 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$764.3m (down 54% from 3Q 2020). Net income: NT$3.00m (down 98% from 3Q 2020). Profit margin: 0.4% (down from 8.3% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 20
Upcoming dividend of NT$0.80 per share Eligible shareholders must have bought the stock before 27 August 2021. Payment date: 17 September 2021. Trailing yield: 6.8%. Within top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (5.1%). Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$0.16 (vs NT$0.84 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$1.27b (down 32% from 2Q 2020). Net income: NT$31.3m (down 81% from 2Q 2020). Profit margin: 2.5% (down from 9.0% in 2Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$0.20 (vs NT$0.072 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$821.0m (up 43% from 1Q 2020). Net income: NT$39.6m (up NT$54.0m from 1Q 2020). Profit margin: 4.8% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 31
Full year 2020 earnings released: EPS NT$1.59 (vs NT$0.88 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: NT$5.22b (down 7.2% from FY 2019). Net income: NT$315.7m (up 80% from FY 2019). Profit margin: 6.0% (up from 3.1% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Mar 11
New 90-day high: NT$13.55 The company is up 8.0% from its price of NT$12.50 on 11 December 2020. The Taiwanese market is up 11% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Construction industry, which is up 6.0% over the same period. Valuation Update With 7 Day Price Move • Dec 01
Market bids up stock over the past week After last week's 25% share price gain to NT$14.90, the stock is trading at a trailing P/E ratio of 5.7x, up from the previous P/E ratio of 4.6x. This compares to an average P/E of 16x in the Construction industry in Taiwan. Total returns to shareholders over the past three years are 96%. Is New 90 Day High Low • Nov 30
New 90-day high: NT$13.55 The company is up 9.0% from its price of NT$12.40 on 01 September 2020. The Taiwanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Construction industry, which is up 8.0% over the same period. Reported Earnings • Nov 16
Third quarter 2020 earnings released: EPS NT$0.70 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$1.66b (up 337% from 3Q 2019). Net income: NT$138.6m (up NT$152.1m from 3Q 2019). Profit margin: 8.3% (up from net loss in 3Q 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Sep 24
New 90-day low: NT$10.95 The company is down 8.0% from its price of NT$11.85 on 24 June 2020. The Taiwanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is up 7.0% over the same period.