New Risk • Mar 22
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 30% 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 (30% accrual ratio). Minor Risk Dividend is not well covered by cash flows (dividend per share is over 5x cash flows per share). 공지 • Mar 02
Kingwaytek Technology Co., Ltd., Annual General Meeting, May 22, 2026 Kingwaytek Technology Co., Ltd., Annual General Meeting, May 22, 2026. Location: 10 floor no,11, chung shan s. rd., jhongjheng district, taipei city Taiwan Reported Earnings • Mar 01
Full year 2025 earnings released: EPS: NT$1.52 (vs NT$1.47 in FY 2024) Full year 2025 results: EPS: NT$1.52 (up from NT$1.47 in FY 2024). Revenue: NT$547.0m (up 23% from FY 2024). Net income: NT$85.0m (up 3.5% from FY 2024). Profit margin: 16% (down from 19% 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 3% per year whereas the company’s share price has fallen by 2% per year. Reported Earnings • Nov 02
Third quarter 2025 earnings released: EPS: NT$0.22 (vs NT$0.40 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.22 (down from NT$0.40 in 3Q 2024). Revenue: NT$123.5m (down 11% from 3Q 2024). Net income: NT$12.3m (down 46% from 3Q 2024). Profit margin: 9.9% (down from 16% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 1% per year. New Risk • Aug 11
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 149% Cash payout ratio: 292% High level of non-cash earnings (21% accrual ratio). Reported Earnings • Aug 05
Second quarter 2025 earnings released: EPS: NT$0.31 (vs NT$0.35 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.31 (down from NT$0.35 in 2Q 2024). Revenue: NT$119.8m (up 34% from 2Q 2024). Net income: NT$17.3m (down 13% from 2Q 2024). Profit margin: 14% (down from 22% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 3% per year. New Risk • Jun 18
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 145% Dividend yield: 2.8% 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. This is currently the only risk that has been identified for the company. Upcoming Dividend • Jun 04
Upcoming dividend of NT$2.21 per share Eligible shareholders must have bought the stock before 11 June 2025. Payment date: 04 July 2025. Payout ratio and cash payout ratio are on the higher end at 78% and 78% respectively. Trailing yield: 1.4%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (2.8%). Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$90.40, the stock trades at a trailing P/E ratio of 59.4x. Average trailing P/E is 28x in the Software industry in Taiwan. Total returns to shareholders of 48% over the past three years. Reported Earnings • May 09
First quarter 2025 earnings released: EPS: NT$0.36 (vs NT$0.30 in 1Q 2024) First quarter 2025 results: EPS: NT$0.36 (up from NT$0.30 in 1Q 2024). Revenue: NT$133.8m (up 47% from 1Q 2024). Net income: NT$20.4m (up 22% from 1Q 2024). Profit margin: 15% (down from 18% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 7% per year. 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$62.60, the stock trades at a trailing P/E ratio of 42.9x. Average trailing P/E is 19x in the Software industry in Taiwan. Total loss to shareholders of 4.1% over the past three years. Reported Earnings • Mar 03
Full year 2024 earnings released: EPS: NT$1.47 (vs NT$1.09 in FY 2023) Full year 2024 results: EPS: NT$1.47 (up from NT$1.09 in FY 2023). Revenue: NT$444.2m (down 12% from FY 2023). Net income: NT$82.2m (up 35% from FY 2023). Profit margin: 19% (up from 12% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 4% per year. 공지 • Feb 26
Kingwaytek Technology Co., Ltd., Annual General Meeting, May 23, 2025 Kingwaytek Technology Co., Ltd., Annual General Meeting, May 23, 2025. Location: 10 floor no,11, chung shan s. rd., jhongjheng district, taipei city Taiwan Reported Earnings • Nov 01
Third quarter 2024 earnings released: EPS: NT$0.40 (vs NT$0.30 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.40 (up from NT$0.30 in 3Q 2023). Revenue: NT$138.8m (up 18% from 3Q 2023). Net income: NT$22.5m (up 34% from 3Q 2023). Profit margin: 16% (up from 14% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 07
Second quarter 2024 earnings released: EPS: NT$0.39 (vs NT$0.34 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.39 (up from NT$0.34 in 2Q 2023). Revenue: NT$89.2m (down 27% from 2Q 2023). Net income: NT$19.9m (up 4.8% from 2Q 2023). Profit margin: 22% (up from 15% in 2Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 25
Upcoming dividend of NT$0.96 per share Eligible shareholders must have bought the stock before 01 August 2024. Payment date: 06 September 2024. Payout ratio is on the higher end at 80%, however this is supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Taiwanese dividend payers (4.3%). Lower than average of industry peers (1.9%). Buy Or Sell Opportunity • Jun 05
Now 23% overvalued Over the last 90 days, the stock has fallen 1.1% to NT$77.80. The fair value is estimated to be NT$63.09, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 31%. Buy Or Sell Opportunity • Apr 12
Now 20% overvalued Over the last 90 days, the stock has fallen 5.7% to NT$76.50. The fair value is estimated to be NT$63.62, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 31%. Reported Earnings • Mar 12
Full year 2023 earnings released: EPS: NT$1.20 (vs NT$1.55 in FY 2022) Full year 2023 results: EPS: NT$1.20 (down from NT$1.55 in FY 2022). Revenue: NT$505.5m (up 5.1% from FY 2022). Net income: NT$60.9m (down 23% from FY 2022). Profit margin: 12% (down from 16% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. 공지 • Mar 05
Kingwaytek Technology Co., Ltd., Annual General Meeting, May 24, 2024 Kingwaytek Technology Co., Ltd., Annual General Meeting, May 24, 2024. Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: NT$0.33 (vs NT$0.50 in 3Q 2022) Third quarter 2023 results: EPS: NT$0.33 (down from NT$0.50 in 3Q 2022). Revenue: NT$117.7m (down 18% from 3Q 2022). Net income: NT$16.9m (down 33% from 3Q 2022). Profit margin: 14% (down from 18% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 29
Second quarter 2023 earnings released: EPS: NT$0.37 (vs NT$0.43 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.37 (down from NT$0.43 in 2Q 2022). Revenue: NT$122.8m (up 11% from 2Q 2022). Net income: NT$18.9m (down 13% from 2Q 2022). Profit margin: 15% (down from 20% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 27
Upcoming dividend of NT$1.24 per share at 1.2% yield Eligible shareholders must have bought the stock before 04 July 2023. Payment date: 11 August 2023. Payout ratio is a comfortable 70% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (2.5%). Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$96.90, the stock trades at a trailing P/E ratio of 56.8x. Average trailing P/E is 17x in the Software industry in Taiwan. Total returns to shareholders of 61% over the past three years. Reported Earnings • Mar 18
Full year 2022 earnings released Full year 2022 results: Revenue: NT$481.1m (up 40% from FY 2021). Net income: NT$78.9m (up 71% from FY 2021). Profit margin: 16% (up from 13% in FY 2021). The increase in margin was driven by higher revenue. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Executive VP & Director Cheng Zhong Huang was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 06
Third quarter 2022 earnings released: EPS: NT$0.55 (vs NT$0.048 loss in 3Q 2021) Third quarter 2022 results: EPS: NT$0.55 (up from NT$0.048 loss in 3Q 2021). Revenue: NT$142.8m (up 76% from 3Q 2021). Net income: NT$25.3m (up NT$27.5m from 3Q 2021). Profit margin: 18% (up from net loss in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 01
Second quarter 2022 earnings released: EPS: NT$0.47 (vs NT$0.44 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.47 (up from NT$0.44 in 2Q 2021). Revenue: NT$111.0m (up 22% from 2Q 2021). Net income: NT$21.8m (up 7.7% from 2Q 2021). Profit margin: 20% (down from 22% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jun 28
Upcoming dividend of NT$0.88 per share Eligible shareholders must have bought the stock before 05 July 2022. Payment date: 08 August 2022. Payout ratio is a comfortable 72% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Taiwanese dividend payers (6.3%). Lower than average of industry peers (2.9%). Reported Earnings • May 02
First quarter 2022 earnings released: EPS: NT$0.35 (vs NT$0.22 in 1Q 2021) First quarter 2022 results: EPS: NT$0.35 (up from NT$0.22 in 1Q 2021). Revenue: NT$109.1m (up 17% from 1Q 2021). Net income: NT$14.6m (up 60% from 1Q 2021). Profit margin: 13% (up from 9.8% in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Executive VP & Director Cheng Zhong Huang was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 01
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: NT$1.09 (up from NT$0.13 in FY 2020). Revenue: NT$343.6m (up 25% from FY 2020). Net income: NT$46.0m (up NT$40.6m from FY 2020). Profit margin: 13% (up from 2.0% 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 6% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 31
Third quarter 2021 earnings released: NT$0.05 loss per share (vs NT$0.12 loss in 3Q 2020) The company reported a solid third quarter result with reduced losses, improved revenues and improved control over expenses. Third quarter 2021 results: Revenue: NT$81.0m (up 32% from 3Q 2020). Net loss: NT$2.22m (loss narrowed 57% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 08
Upcoming dividend of NT$0.13 per share Eligible shareholders must have bought the stock before 15 September 2021. Payment date: 27 October 2021. Trailing yield: 0.1%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (3.6%). Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS NT$0.53 (vs NT$0.27 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$90.7m (up 81% from 2Q 2020). Net income: NT$20.2m (up NT$30.4m from 2Q 2020). Profit margin: 22% (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 fallen by 48% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. 공지 • Mar 10
Kingwaytek Technology Co., Ltd., Annual General Meeting, May 28, 2021 Kingwaytek Technology Co., Ltd., Annual General Meeting, May 28, 2021. Reported Earnings • Mar 09
Full year 2020 earnings released: EPS NT$0.14 (vs NT$0.072 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$274.8m (up 7.7% from FY 2019). Net income: NT$5.41m (up 101% from FY 2019). Profit margin: 2.0% (up from 1.1% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 72% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 23
New 90-day high: NT$90.40 The company is up 12% from its price of NT$80.60 on 25 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is up 2.0% over the same period. Is New 90 Day High Low • Jan 07
New 90-day high: NT$84.70 The company is up 5.0% from its price of NT$80.90 on 08 October 2020. The Taiwanese market is up 16% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is up 1.0% over the same period. Reported Earnings • Nov 07
Third quarter 2020 earnings released: NT$0.14 loss per share The company reported a solid third quarter result with reduced losses and improved revenues and control over expenses. Third quarter 2020 results: Revenue: NT$61.2m (up 31% from 3Q 2019). Net loss: NT$5.23m (loss narrowed 53% from 3Q 2019). Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has only fallen by 30% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Oct 23
New 90-day low: NT$77.30 The company is down 10.0% from its price of NT$85.64 on 24 July 2020. The Taiwanese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is down 9.0% over the same period. Is New 90 Day High Low • Sep 25
New 90-day low: NT$78.20 The company is down 1.0% from its price of NT$78.82 on 24 June 2020. The Taiwanese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is down 6.0% over the same period.