New Risk • May 21
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 58% 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 (58% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (NT$1.63b market cap, or US$51.5m). Declared Dividend • Mar 11
Dividend of NT$1.20 announced Shareholders will receive a dividend of NT$1.20. Ex-date: 27th March 2026 Payment date: 24th April 2026 Dividend yield will be 4.4%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (56% earnings payout ratio) but not covered by cash flows (360% cash payout ratio). The dividend has increased by an average of 3.3% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 33% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 11
Third quarter 2025 earnings released: EPS: NT$0.63 (vs NT$0.59 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.63 (up from NT$0.59 in 3Q 2024). Revenue: NT$396.5m (up 4.0% from 3Q 2024). Net income: NT$44.5m (up 7.3% from 3Q 2024). Profit margin: 11% (in line with 3Q 2024). 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. Reported Earnings • Aug 13
Second quarter 2025 earnings released: EPS: NT$0.71 (vs NT$0.57 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.71 (up from NT$0.57 in 2Q 2024). Revenue: NT$382.7m (up 1.5% from 2Q 2024). Net income: NT$46.8m (up 25% from 2Q 2024). Profit margin: 12% (up from 9.9% in 2Q 2024). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • May 09
First quarter 2025 earnings released: EPS: NT$0.45 (vs NT$0.52 in 1Q 2024) First quarter 2025 results: EPS: NT$0.45 (down from NT$0.52 in 1Q 2024). Revenue: NT$349.9m (down 4.1% from 1Q 2024). Net income: NT$29.6m (down 14% from 1Q 2024). Profit margin: 8.4% (down from 9.5% in 1Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. 공시 • May 01
Bai Sha Technology Co., Ltd. to Report Q1, 2025 Results on May 08, 2025 Bai Sha Technology Co., Ltd. announced that they will report Q1, 2025 results on May 08, 2025 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$25.50, the stock trades at a trailing P/E ratio of 9.9x. Average trailing P/E is 17x in the Commercial Services industry in Taiwan. Total returns to shareholders of 88% over the past three years. 공시 • Mar 10
Bai Sha Technology Co., Ltd., Annual General Meeting, May 29, 2025 Bai Sha Technology Co., Ltd., Annual General Meeting, May 29, 2025. Location: no,286, yu hsien rd., taiping district, taichung city Taiwan Declared Dividend • Mar 10
Dividend of NT$1.50 announced Shareholders will receive a dividend of NT$1.50. Ex-date: 27th March 2025 Payment date: 24th April 2025 Dividend yield will be 4.4%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is well covered by both earnings (29% earnings payout ratio) and cash flows (23% 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 42% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. 공시 • Mar 01
Bai Sha Technology Co., Ltd. to Report Fiscal Year 2025 Results on Mar 07, 2025 Bai Sha Technology Co., Ltd. announced that they will report fiscal year 2025 results on Mar 07, 2025 Reported Earnings • Nov 10
Third quarter 2024 earnings released: EPS: NT$0.63 (vs NT$0.46 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.63 (up from NT$0.46 in 3Q 2023). Revenue: NT$381.1m (up 2.0% from 3Q 2023). Net income: NT$41.5m (up 37% from 3Q 2023). Profit margin: 11% (up from 8.1% in 3Q 2023). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 08
Second quarter 2024 earnings released: EPS: NT$0.62 (vs NT$0.29 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.62 (up from NT$0.29 in 2Q 2023). Revenue: NT$377.1m (up 3.0% from 2Q 2023). Net income: NT$37.4m (up 116% from 2Q 2023). Profit margin: 9.9% (up from 4.7% in 2Q 2023). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. 공시 • Jul 31
Bai Sha Technology Co., Ltd. to Report Q2, 2024 Results on Aug 07, 2024 Bai Sha Technology Co., Ltd. announced that they will report Q2, 2024 results on Aug 07, 2024 Buy Or Sell Opportunity • Jul 08
Now 20% undervalued Over the last 90 days, the stock has risen 13% to NT$28.10. The fair value is estimated to be NT$35.15, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has grown by 11%. Buy Or Sell Opportunity • Jul 01
Now 20% undervalued Over the last 90 days, the stock has risen 12% to NT$28.20. The fair value is estimated to be NT$35.26, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has grown by 11%. Buy Or Sell Opportunity • Jun 19
Now 20% undervalued Over the last 90 days, the stock has risen 14% to NT$28.15. The fair value is estimated to be NT$35.20, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has grown by 11%. New Risk • Jun 05
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Market cap is less than US$100m (NT$1.70b market cap, or US$52.6m). Buy Or Sell Opportunity • May 30
Now 21% undervalued Over the last 90 days, the stock has risen 21% to NT$28.20. The fair value is estimated to be NT$35.86, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has grown by 11%. Reported Earnings • May 09
First quarter 2024 earnings released: EPS: NT$0.58 (vs NT$0.12 in 1Q 2023) First quarter 2024 results: EPS: NT$0.58 (up from NT$0.12 in 1Q 2023). Revenue: NT$364.9m (up 13% from 1Q 2023). Net income: NT$34.6m (up 379% from 1Q 2023). Profit margin: 9.5% (up from 2.2% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. 공시 • May 03
Bai Sha Technology Co., Ltd. to Report Q1, 2024 Results on May 07, 2024 Bai Sha Technology Co., Ltd. announced that they will report Q1, 2024 results on May 07, 2024 Upcoming Dividend • Mar 20
Upcoming dividend of NT$0.80 per share Eligible shareholders must have bought the stock before 27 March 2024. Payment date: 24 April 2024. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Taiwanese dividend payers (4.8%). Lower than average of industry peers (3.6%). Reported Earnings • Mar 05
Full year 2023 earnings released: EPS: NT$1.81 (vs NT$2.22 in FY 2022) Full year 2023 results: EPS: NT$1.81 (down from NT$2.22 in FY 2022). Revenue: NT$1.48b (down 3.4% from FY 2022). Net income: NT$108.8m (down 18% from FY 2022). Profit margin: 7.3% (down from 8.7% in FY 2022). 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 whereas the company’s share price has increased by 22% per year. Declared Dividend • Mar 04
Dividend of NT$0.80 announced Shareholders will receive a dividend of NT$0.80. Ex-date: 27th March 2024 Payment date: 24th April 2024 Dividend yield will be 3.1%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is not covered by earnings (122% earnings payout ratio) nor is it adequately covered by cash flows (100% 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. The company's earnings per share (EPS) would need to grow by 35% to bring the payout ratio under control, which is more than the 12% EPS growth achieved over the last 5 years. Buy Or Sell Opportunity • Mar 04
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 19% to NT$25.70. The fair value is estimated to be NT$20.83, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Earnings per share has grown by 26%. Reported Earnings • Aug 09
Second quarter 2023 earnings released: EPS: NT$0.29 (vs NT$0.51 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.29 (down from NT$0.51 in 2Q 2022). Revenue: NT$366.2m (down 1.0% from 2Q 2022). Net income: NT$17.3m (down 44% from 2Q 2022). Profit margin: 4.7% (down from 8.3% in 2Q 2022). The decrease in margin was primarily driven by higher 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 22% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 22
Upcoming dividend of NT$2.00 per share at 8.4% yield Eligible shareholders must have bought the stock before 29 March 2023. Payment date: 27 April 2023. Payout ratio is on the higher end at 90%, however this is supported by cash flows. Trailing yield: 8.4%. Within top quartile of Taiwanese dividend payers (6.0%). Higher than average of industry peers (4.8%). Reported Earnings • Feb 24
Full year 2022 earnings released: EPS: NT$2.22 (vs NT$1.96 in FY 2021) Full year 2022 results: EPS: NT$2.22 (up from NT$1.96 in FY 2021). Revenue: NT$1.54b (up 14% from FY 2021). Net income: NT$133.1m (up 13% from FY 2021). Profit margin: 8.7% (down from 8.8% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 17
Upcoming dividend of NT$1.73 per share Eligible shareholders must have bought the stock before 24 March 2022. Payment date: 21 April 2022. Payout ratio is on the higher end at 87%, however this is supported by cash flows. Trailing yield: 8.6%. Within top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (4.6%). Reported Earnings • Mar 01
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: NT$1.96 (up from NT$0.76 in FY 2020). Revenue: NT$1.35b (up 7.4% from FY 2020). Net income: NT$117.9m (up 156% from FY 2020). Profit margin: 8.8% (up from 3.7% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. 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 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment improved over the past week After last week's 17% share price gain to NT$19.80, the stock trades at a trailing P/E ratio of 14.1x. Average trailing P/E is 21x in the Commercial Services industry in Taiwan. Total returns to shareholders of 92% over the past three years. Reported Earnings • Nov 04
Third quarter 2021 earnings released: EPS NT$0.24 (vs NT$0.26 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$321.5m (down 4.7% from 3Q 2020). Net income: NT$14.5m (down 6.8% from 3Q 2020). Profit margin: 4.5% (down from 4.6% 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 21% 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 • Aug 10
Second quarter 2021 earnings released: EPS NT$0.27 (vs NT$0.026 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$328.3m (up 20% from 2Q 2020). Net income: NT$16.1m (up NT$17.7m from 2Q 2020). Profit margin: 4.9% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 2% per year. Reported Earnings • May 09
First quarter 2021 earnings released: EPS NT$0.25 (vs NT$0.10 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$311.6m (up 18% from 1Q 2020). Net income: NT$14.8m (up NT$21.4m 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 fallen by 23% 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 • Mar 24
Upcoming dividend of NT$0.67 per share Eligible shareholders must have bought the stock before 31 March 2021. Payment date: 29 April 2021. Trailing yield: 4.8%. Lower than top quartile of Taiwanese dividend payers (4.9%). In line with average of industry peers (4.9%). 공시 • Mar 17
Bai Sha Technology Co., Ltd., Annual General Meeting, Jun 04, 2021 Bai Sha Technology Co., Ltd., Annual General Meeting, Jun 04, 2021. Reported Earnings • Mar 09
Full year 2020 earnings released: EPS NT$0.75 (vs NT$0.46 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$1.25b (down 4.9% from FY 2019). Net income: NT$46.1m (up 59% from FY 2019). Profit margin: 3.7% (up from 2.2% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 18
New 90-day high: NT$13.15 The company is up 20% from its price of NT$10.95 on 20 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is down 2.0% over the same period. Is New 90 Day High Low • Feb 03
New 90-day high: NT$12.25 The company is up 13% from its price of NT$10.85 on 05 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Commercial Services industry, which is down 1.0% over the same period. Is New 90 Day High Low • Jan 05
New 90-day high: NT$12.15 The company is up 10.0% from its price of NT$11.00 on 08 October 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Commercial Services industry, which is up 3.0% over the same period. Is New 90 Day High Low • Dec 03
New 90-day high: NT$11.55 The company is up 5.0% from its price of NT$11.00 on 04 September 2020. The Taiwanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Commercial Services industry, which is up 1.0% over the same period. Reported Earnings • Nov 08
Third quarter 2020 earnings released: EPS NT$0.26 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$337.5m (up 8.7% from 3Q 2019). Net income: NT$15.6m (up 212% from 3Q 2019). Profit margin: 4.6% (up from 1.6% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings.