Valuation Update With 7 Day Price Move • Jul 20
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to NT$32.60, the stock trades at a trailing P/E ratio of 13x. Average trailing P/E is 18x in the Entertainment industry in Taiwan. Total loss to shareholders of 56% over the past three years. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment deteriorates as stock falls 33% After last week's 33% share price decline to NT$35.30, the stock trades at a trailing P/E ratio of 14.1x. Average trailing P/E is 20x in the Entertainment industry in Taiwan. Total loss to shareholders of 51% over the past three years. New Risk • Jun 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 6.0% 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 24% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.0% average weekly change). Profit margins are more than 30% lower than last year (5.2% net profit margin). Market cap is less than US$100m (NT$631.5m market cap, or US$20.6m). Reported Earnings • Apr 22
Full year 2022 earnings released: EPS: NT$2.51 (vs NT$7.34 in FY 2021) Full year 2022 results: EPS: NT$2.51 (down from NT$7.34 in FY 2021). Revenue: NT$586.1m (down 46% from FY 2021). Net income: NT$30.3m (down 66% from FY 2021). Profit margin: 5.2% (down from 8.2% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Board Change • Nov 16
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. 4 experienced directors. 4 highly experienced directors. Supervisor Zhi Shao was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Aug 16
First half 2022 earnings released: EPS: NT$4.25 (vs NT$8.10 in 1H 2021) First half 2022 results: EPS: NT$4.25 (down from NT$8.10 in 1H 2021). Revenue: NT$322.9m (down 50% from 1H 2021). Net income: NT$51.4m (down 48% from 1H 2021). Profit margin: 16% (in line with 1H 2021). Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 11
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 18 July 2022. Payment date: 12 August 2022. The company last paid an ordinary dividend in April 2016. The average dividend yield among industry peers is 6.4%. 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. 5 experienced directors. 4 highly experienced directors. 3 independent directors (4 non-independent directors). Supervisor Zhi Shao was the last director to join the board, commencing their role in 2014. 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 • Aug 18
First half 2021 earnings released: EPS NT$8.10 (vs NT$2.21 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: NT$645.7m (up 84% from 1H 2020). Net income: NT$97.8m (up 267% from 1H 2020). Profit margin: 15% (up from 7.6% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Reported Earnings • Apr 25
Full year 2020 earnings released: EPS NT$0.22 (vs NT$0.96 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$837.0m (up 1.8% from FY 2019). Net income: NT$2.64m (up NT$14.3m from FY 2019). Profit margin: 0.3% (up from net loss in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 109 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Jan 14
New 90-day low: NT$66.40 The company is down 16% from its price of NT$78.70 on 16 October 2020. The Taiwanese market is up 22% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 9.0% over the same period. Is New 90 Day High Low • Dec 30
New 90-day low: NT$68.60 The company is down 12% from its price of NT$78.00 on 30 September 2020. The Taiwanese market is up 15% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 1.0% over the same period.