Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improves as stock rises 39% After last week's 39% share price gain to NT$39.00, the stock trades at a trailing P/E ratio of 26.6x. Average trailing P/E is 27x in the Chemicals industry in Taiwan. Total loss to shareholders of 55% over the past three years. Buy Or Sell Opportunity • Mar 19
Now 44% overvalued Over the last 90 days, the stock has fallen 19% to NT$37.80. The fair value is estimated to be NT$26.32, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 13% over the last 3 years. Earnings per share has declined by 40%. 공시 • Mar 11
Kaofu Chemical Corporation, Annual General Meeting, May 26, 2026 Kaofu Chemical Corporation, Annual General Meeting, May 26, 2026, at 10:00 Taipei Standard Time. Location: no,385, feng jen rd., renwu district, kaohsiung city Taiwan New Risk • Mar 09
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 8.4% 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 have declined by 39% 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. Share price has been volatile over the past 3 months (8.4% average weekly change). Market cap is less than US$100m (NT$2.32b market cap, or US$72.8m). Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to NT$30.55, the stock trades at a trailing P/E ratio of 20.8x. Average trailing P/E is 22x in the Chemicals industry in Taiwan. Total loss to shareholders of 66% over the past three years. Board Change • Jan 05
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. No highly experienced directors. President & Director Chung-Hsi Lee was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. New Risk • Dec 16
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 6.3% 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 have declined by 39% 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. Share price has been volatile over the past 3 months (6.3% average weekly change). Reported Earnings • Nov 20
Third quarter 2025 earnings released: EPS: NT$0.42 (vs NT$0.28 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.42 (up from NT$0.28 in 3Q 2024). Revenue: NT$521.9m (down 24% from 3Q 2024). Net income: NT$30.5m (up 53% from 3Q 2024). Profit margin: 5.9% (up from 2.9% in 3Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Nov 18
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$54.50, the stock trades at a trailing P/E ratio of 52.9x. Average trailing P/E is 21x in the Chemicals industry in Taiwan. Total loss to shareholders of 15% over the past three years. New Risk • Sep 10
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: 2.6% Last year net profit margin: 4.3% 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: Major Risk Earnings have declined by 40% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (2.6% net profit margin). Board Change • Sep 04
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • Jun 20
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 25 July 2025. Payout ratio is a comfortable 63% but the company is paying out more than the cash it is generating. Trailing yield: 1.3%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (4.1%). Reported Earnings • Apr 10
Full year 2024 earnings released: EPS: NT$1.59 (vs NT$1.81 in FY 2023) Full year 2024 results: EPS: NT$1.59 (down from NT$1.81 in FY 2023). Revenue: NT$2.81b (down 6.4% from FY 2023). Net income: NT$115.8m (down 12% from FY 2023). Profit margin: 4.1% (down from 4.4% in FY 2023). The decrease in margin was driven by lower revenue. 공시 • Mar 14
Kaofu Chemical Corporation, Annual General Meeting, Jun 03, 2025 Kaofu Chemical Corporation, Annual General Meeting, Jun 03, 2025, at 10:00 Taipei Standard Time. Location: no,385, feng jen rd., renwu district, kaohsiung city Taiwan New Risk • Mar 01
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 159% Dividend per share is over 7x cash flows per share. Earnings have declined by 21% per year over the past 5 years. Minor Risk Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Upcoming Dividend • Sep 09
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 16 September 2024. Payment date: 15 November 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 2.7%. Lower than top quartile of Taiwanese dividend payers (4.4%). In line with average of industry peers (2.6%). New Risk • Aug 08
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. 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 Revenue has declined by 23% over the past year. Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. 공시 • Mar 07
Kaofu Chemical Corporation, Annual General Meeting, May 24, 2024 Kaofu Chemical Corporation, Annual General Meeting, May 24, 2024. New Risk • Feb 27
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. 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 Revenue has declined by 23% over the past year. Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Dividend is not well covered by cash flows (93% cash payout ratio). Buying Opportunity • Nov 28
Now 20% undervalued Over the last 90 days, the stock is up 3.8%. The fair value is estimated to be NT$136, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 23% over the last year. Earnings per share has declined by 40%. Buying Opportunity • Nov 09
Now 20% undervalued Over the last 90 days, the stock is up 26%. The fair value is estimated to be NT$137, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 23% over the last year. Earnings per share has declined by 40%. Reported Earnings • Aug 13
First half 2023 earnings released: EPS: NT$1.37 (vs NT$2.21 in 1H 2022) First half 2023 results: EPS: NT$1.37 (down from NT$2.21 in 1H 2022). Revenue: NT$1.52b (down 28% from 1H 2022). Net income: NT$82.3m (down 42% from 1H 2022). Profit margin: 5.4% (down from 6.7% in 1H 2022). The decrease in margin was driven by lower revenue. Upcoming Dividend • Aug 02
Upcoming dividend of NT$3.00 per share at 2.9% yield Eligible shareholders must have bought the stock before 09 August 2023. Payment date: 15 September 2023. Payout ratio is a comfortable 72% but the company is paying out more than the cash it is generating. Trailing yield: 2.9%. Lower than top quartile of Taiwanese dividend payers (5.4%). Lower than average of industry peers (3.7%). New Risk • Jun 15
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 149% Dividend yield: 5.6% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Revenue has declined by 6.4% over the past year. Minor Risks Less than 3 years of financial data is available. Dividend is not well covered by cash flows (149% cash payout ratio). Profit margins are more than 30% lower than last year (6.4% net profit margin).