New Risk • Jun 06
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% 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 (25% accrual ratio). Minor Risks Dividend is not well covered by cash flows (140% cash payout ratio). Market cap is less than US$100m (NT$2.70b market cap, or US$85.4m). Reported Earnings • May 05
Full year 2025 earnings released: EPS: NT$6.09 (vs NT$6.59 in FY 2024) Full year 2025 results: EPS: NT$6.09 (down from NT$6.59 in FY 2024). Revenue: NT$1.20b (up 5.9% from FY 2024). Net income: NT$172.0m (down 5.9% from FY 2024). Profit margin: 14% (down from 16% 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 2% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Apr 20
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to NT$115. The fair value is estimated to be NT$145, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.0% over the last 3 years. Earnings per share has grown by 4.9%. Upcoming Dividend • Apr 17
Upcoming dividend of NT$5.30 per share Eligible shareholders must have bought the stock before 24 April 2026. Payment date: 15 May 2026. Trailing yield: 3.0%. Lower than top quartile of Taiwanese dividend payers (5.1%). Lower than average of industry peers (5.4%). Declared Dividend • Mar 28
Dividend of NT$5.30 announced Shareholders will receive a dividend of NT$5.30. Ex-date: 24th April 2026 Payment date: 15th May 2026 Dividend yield will be 4.7%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (62% earnings payout ratio) but not covered by cash flows (108% cash payout ratio). The dividend has increased by an average of 1.2% per year over the past 3 years. However, payments have been volatile during that time. Earnings per share has grown by 14% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Mar 27
Now 26% undervalued Over the last 90 days, the stock has risen 7.8% to NT$110. The fair value is estimated to be NT$148, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.0% over the last 3 years. Earnings per share has grown by 4.9%. New Risk • Mar 09
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.15b (US$98.7m) 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 Risk High level of non-cash earnings (29% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Dividend is not well covered by cash flows (108% cash payout ratio). Market cap is less than US$100m (NT$3.15b market cap, or US$98.7m). New Risk • Mar 02
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (29% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Dividend is not well covered by cash flows (108% cash payout ratio). Buy Or Sell Opportunity • Feb 24
Now 21% undervalued Over the last 90 days, the stock has risen 22% to NT$122. The fair value is estimated to be NT$155, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.0% over the last 3 years. Earnings per share has grown by 4.9%. お知らせ • Mar 17
ChainSea Information Integration Co.,Ltd., Annual General Meeting, May 30, 2024 ChainSea Information Integration Co.,Ltd., Annual General Meeting, May 30, 2024.