New Risk • Aug 18
New major risk - Revenue and earnings growth Earnings have declined by 26% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 105% Paying a dividend despite having no free cash flows. Earnings have declined by 26% per year over the past 5 years. High level of non-cash earnings (37% accrual ratio). Minor Risk Market cap is less than US$100m (NT$2.44b market cap, or US$76.4m). Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$55.00, the stock trades at a trailing P/E ratio of 43.7x. Average trailing P/E is 26x in the Machinery industry in Taiwan. Valuation Update With 7 Day Price Move • Jul 13
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$67.10, the stock trades at a trailing P/E ratio of 53.3x. Average trailing P/E is 28x in the Machinery industry in Taiwan. New Risk • Jun 29
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.13b (US$98.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (14% average weekly change). High level of non-cash earnings (48% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (NT$3.13b market cap, or US$98.0m). Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to NT$80.90, the stock trades at a trailing P/E ratio of 64.3x. Average trailing P/E is 29x in the Machinery industry in Taiwan. New Risk • Jun 09
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 48% 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 Share price has been highly volatile over the past 3 months (17% average weekly change). High level of non-cash earnings (48% accrual ratio). Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$95.60, the stock trades at a trailing P/E ratio of 65.7x. Average trailing P/E is 28x in the Machinery industry in Taiwan. お知らせ • Apr 08
Advanced Material Systems Corporation, Annual General Meeting, Jun 25, 2026 Advanced Material Systems Corporation, Annual General Meeting, Jun 25, 2026, at 10:00 Taipei Standard Time. Location: no,123, yuan ou rd., hsin chuang li, puzih city, chiayi county Taiwan Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$99.00, the stock trades at a trailing P/E ratio of 68.1x. Average trailing P/E is 26x in the Machinery industry in Taiwan.