New Risk • May 28
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 9.6% 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 7.8% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (9.6% average weekly change). Valuation Update With 7 Day Price Move • May 27
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to NT$32.70, the stock trades at a trailing P/E ratio of 41.5x. Average trailing P/E is 44x in the Semiconductor industry in Taiwan. Total returns to shareholders of 73% over the past three years. Reported Earnings • May 15
First quarter 2026 earnings released: EPS: NT$0.25 (vs NT$0.045 loss in 1Q 2025) First quarter 2026 results: EPS: NT$0.25 (up from NT$0.045 loss in 1Q 2025). Revenue: NT$216.3m (up 12% from 1Q 2025). Net income: NT$41.5m (up NT$49.0m from 1Q 2025). Profit margin: 19% (up from net loss in 1Q 2025). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$23.65, the stock trades at a trailing P/E ratio of 48x. Average trailing P/E is 44x in the Semiconductor industry in Taiwan. Total returns to shareholders of 34% over the past three years. Reported Earnings • Mar 12
Full year 2025 earnings released: EPS: NT$0.49 (vs NT$0.76 in FY 2024) Full year 2025 results: EPS: NT$0.49 (down from NT$0.76 in FY 2024). Revenue: NT$845.8m (up 12% from FY 2024). Net income: NT$81.9m (down 35% from FY 2024). Profit margin: 9.7% (down from 17% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Aankondiging • Mar 06
Rectron Limited, Annual General Meeting, May 22, 2026 Rectron Limited, Annual General Meeting, May 22, 2026, at 09:00 Taipei Standard Time. Location: 2 floor no,71, chung shan rd., tucheng district, new taipei city Taiwan New Risk • Nov 30
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 26% 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: Major Risk Earnings have declined by 1.4% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. New Risk • Nov 28
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 6.5% 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 1.4% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.5% average weekly change). Reported Earnings • Nov 15
Third quarter 2025 earnings released: EPS: NT$0.38 (vs NT$0.081 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.38 (up from NT$0.081 in 3Q 2024). Revenue: NT$224.4m (up 11% from 3Q 2024). Net income: NT$62.2m (up 364% from 3Q 2024). Profit margin: 28% (up from 6.6% in 3Q 2024). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$20.10, the stock trades at a trailing P/E ratio of 42.2x. Average trailing P/E is 33x in the Semiconductor industry in Taiwan. Total returns to shareholders of 54% over the past three years. Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: NT$0.07 (vs NT$0.19 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.07 (down from NT$0.19 in 2Q 2024). Revenue: NT$216.5m (up 6.4% from 2Q 2024). Net income: NT$11.4m (down 64% from 2Q 2024). Profit margin: 5.3% (down from 16% in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jun 10
Upcoming dividend of NT$0.58 per share Eligible shareholders must have bought the stock before 17 June 2025. Payment date: 11 July 2025. Payout ratio is on the higher end at 97% but the company is not cash flow positive. Trailing yield: 3.5%. Lower than top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (2.4%). Aankondiging • Jun 03
Rectron Limited Approves 2024 Cash Dividends Distribution, Payable on July 11, 2025 Rectron Limited at its meeting held on May 29, 2025, approved 2024 cash dividends distribution of TWD 0.58 per share. Payment date of common stock cash dividend distribution: July 11, 2025. Ex-rights (ex-dividend) trading date: June 17, 2025. Ex-rights (ex-dividend) record date: June 23, 2025. Reported Earnings • May 15
First quarter 2025 earnings released: NT$0.05 loss per share (vs NT$0.11 profit in 1Q 2024) First quarter 2025 results: NT$0.05 loss per share (down from NT$0.11 profit in 1Q 2024). Revenue: NT$193.5m (up 31% from 1Q 2024). Net loss: NT$7.55m (down 141% from profit in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Aankondiging • May 08
Rectron Limited to Report Q1, 2025 Results on May 14, 2025 Rectron Limited announced that they will report Q1, 2025 results on May 14, 2025 Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$17.20, the stock trades at a trailing P/E ratio of 22.8x. Average trailing P/E is 22x in the Semiconductor industry in Taiwan. Total returns to shareholders of 21% over the past three years. New Risk • Mar 31
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.30b (US$99.3m) 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: 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 (6.9% average weekly change). Market cap is less than US$100m (NT$3.30b market cap, or US$99.3m). Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$19.85, the stock trades at a trailing P/E ratio of 26.3x. Average trailing P/E is 26x in the Semiconductor industry in Taiwan. Total returns to shareholders of 37% over the past three years. New Risk • Mar 21
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 6.2% 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: 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 (6.2% average weekly change). New Risk • Mar 20
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.4% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. 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. Reported Earnings • Mar 14
Full year 2024 earnings released: EPS: NT$0.75 (vs NT$0.52 in FY 2023) Full year 2024 results: EPS: NT$0.75 (up from NT$0.52 in FY 2023). Revenue: NT$757.5m (up 5.7% from FY 2023). Net income: NT$125.5m (up 45% from FY 2023). Profit margin: 17% (up from 12% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Aankondiging • Mar 13
Rectron Limited, Annual General Meeting, May 29, 2025 Rectron Limited, Annual General Meeting, May 29, 2025, at 09:00 Taipei Standard Time. Location: 2 floor no,71, chung shan rd., tucheng district, new taipei city Taiwan Aankondiging • Mar 04
Rectron Limited to Report Fiscal Year 2024 Results on Mar 11, 2025 Rectron Limited announced that they will report fiscal year 2024 results on Mar 11, 2025 Aankondiging • Jan 02
Rectron Limited Announces Change of Corporate Director Representative Rectron Limited announced change of corporate director representative of Rectron Ltd. Name of legal person: Juiye Enterprise Co. Ltd. Name of the previous position holder: Liu,Feng-Ching; Resume of the previous position holder: Rectron Director; Name of the new position holder: Liu,Nien-Fu; Resume of the new position holder: General Manager of Rectron Electronic Division. Reason for the change: Resignation of legal representative Effective date of the new appointment: January 01, 2025. New Risk • Nov 29
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 6.5% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 18
Third quarter 2024 earnings released: EPS: NT$0.08 (vs NT$0.16 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.08 (down from NT$0.16 in 3Q 2023). Revenue: NT$201.8m (up 5.7% from 3Q 2023). Net income: NT$13.4m (down 51% from 3Q 2023). Profit margin: 6.6% (down from 14% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Aankondiging • Nov 06
Rectron Limited to Report Q3, 2024 Results on Nov 13, 2024 Rectron Limited announced that they will report Q3, 2024 results on Nov 13, 2024 Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$0.19 (vs NT$0.25 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.19 (down from NT$0.25 in 2Q 2023). Revenue: NT$203.4m (down 5.1% from 2Q 2023). Net income: NT$31.8m (down 23% from 2Q 2023). Profit margin: 16% (down from 19% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Aankondiging • Aug 07
Rectron Limited to Report Q2, 2024 Results on Aug 14, 2024 Rectron Limited announced that they will report Q2, 2024 results on Aug 14, 2024 Declared Dividend • Jun 28
Dividend reduced to NT$0.31 Dividend of NT$0.31 is 61% lower than last year. Ex-date: 12th July 2024 Payment date: 31st July 2024 Dividend yield will be 1.7%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (54% earnings payout ratio) and cash flows (54% cash payout ratio). The dividend has decreased over the past 96 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 20% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Aankondiging • Jun 27
Rectron Limited Approves Cash Dividend for the Year 2023, Payable on July 31, 2024 Rectron Limited approved cash dividend of TWD 0.31 per share for the year 2023. Ex-rights (ex-dividend) trading date is July 12, 2024. Ex-rights (ex-dividend) record date is July 20, 2024. Payment date of cash dividend distribution is July 31, 2024. Date of the resolution by the board of directors or shareholders meeting or decision by the Company is June 26, 2024. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: NT$0.11 (vs NT$0.064 in 1Q 2023) First quarter 2024 results: EPS: NT$0.11 (up from NT$0.064 in 1Q 2023). Revenue: NT$147.3m (down 12% from 1Q 2023). Net income: NT$18.3m (up 72% from 1Q 2023). Profit margin: 12% (up from 6.3% in 1Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Reported Earnings • Mar 21
Full year 2023 earnings released: EPS: NT$0.52 (vs NT$1.06 in FY 2022) Full year 2023 results: EPS: NT$0.52 (down from NT$1.06 in FY 2022). Revenue: NT$716.5m (down 18% from FY 2022). Net income: NT$86.9m (down 51% from FY 2022). Profit margin: 12% (down from 20% in FY 2022). 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 fallen by 5% per year. Aankondiging • Mar 16
Rectron Limited, Annual General Meeting, Jun 26, 2024 Rectron Limited, Annual General Meeting, Jun 26, 2024. Location: 2F, NO.71, Zhongshan Rd., Tucheng Dist., New Taipei City Taiwan Agenda: To consider 2023 Business Report; Audit Committee's Review Report on the 2023 Financial Statements; 2023 annual employees and directors remuneration report; 2023 Earnings Distribution-cash Dividend Report; 2023 Corporate Governance Report; and to discuss other matters. New Risk • Nov 23
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: 13% Last year net profit margin: 20% 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: Minor Risks Dividend is not well covered by earnings (123% payout ratio). Profit margins are more than 30% lower than last year (13% net profit margin). Market cap is less than US$100m (NT$3.06b market cap, or US$96.7m). Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: NT$0.25 (vs NT$0.34 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.25 (down from NT$0.34 in 2Q 2022). Revenue: NT$214.3m (flat on 2Q 2022). Net income: NT$41.4m (down 28% from 2Q 2022). Profit margin: 19% (down from 27% in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. New Risk • Jul 19
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.04b (US$98.0m) 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (NT$3.04b market cap, or US$98.0m). Upcoming Dividend • Jul 04
Upcoming dividend of NT$0.80 per share at 4.0% yield Eligible shareholders must have bought the stock before 11 July 2023. Payment date: 21 July 2023. Payout ratio is a comfortable 59% and this is well supported by cash flows. Trailing yield: 4.0%. Lower than top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (3.2%). Aankondiging • Jun 28
Rectron Limited Approves Cash Dividend, Payable on July 21, 2023 Rectron Limited approved cash dividend of TWD 0.8 per share for the year 2022. Ex-rights (ex-dividend) trading date is July 11, 2023. Ex-rights (ex-dividend) record date is July 17, 2023. Payment date of cash dividend distribution is July 21, 2023. Reported Earnings • Mar 29
Full year 2022 earnings released: EPS: NT$1.06 (vs NT$0.51 in FY 2021) Full year 2022 results: EPS: NT$1.06 (up from NT$0.51 in FY 2021). Revenue: NT$877.6m (up 18% from FY 2021). Net income: NT$176.1m (up 107% from FY 2021). Profit margin: 20% (up from 11% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$21.75, the stock trades at a trailing P/E ratio of 21.3x. Average trailing P/E is 15x in the Semiconductor industry in Taiwan. Total returns to shareholders of 379% over the past three years. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$0.33 (vs NT$0.20 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.33 (up from NT$0.20 in 3Q 2021). Revenue: NT$244.2m (up 20% from 3Q 2021). Net income: NT$55.5m (up 68% from 3Q 2021). Profit margin: 23% (up from 16% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
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. 10 experienced directors. No highly experienced directors. No independent directors (6 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. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improved over the past week After last week's 24% share price gain to NT$18.15, the stock trades at a trailing P/E ratio of 20.5x. Average trailing P/E is 11x in the Semiconductor industry in Taiwan. Total returns to shareholders of 145% over the past three years. Buying Opportunity • Sep 15
Now 21% undervalued Over the last 90 days, the stock is up 7.7%. The fair value is estimated to be NT$23.85, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 71%. Buying Opportunity • Aug 26
Now 21% undervalued Over the last 90 days, the stock is up 4.1%. The fair value is estimated to be NT$23.86, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 71%. Reported Earnings • Aug 19
Second quarter 2022 earnings released: EPS: NT$0.35 (vs NT$0.15 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.35 (up from NT$0.15 in 2Q 2021). Revenue: NT$213.6m (up 9.0% from 2Q 2021). Net income: NT$57.1m (up 125% from 2Q 2021). Profit margin: 27% (up from 13% in 2Q 2021). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 14
Upcoming dividend of NT$0.60 per share Eligible shareholders must have bought the stock before 21 July 2022. Payment date: 15 August 2022. Payout ratio is on the higher end at 86%, and the cash payout ratio is above 100%. Trailing yield: 3.8%. Lower than top quartile of Taiwanese dividend payers (6.8%). In line with average of industry peers (3.9%). Valuation Update With 7 Day Price Move • Jul 01
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$15.75, the stock trades at a trailing P/E ratio of 22.7x. Average trailing P/E is 13x in the Semiconductor industry in Taiwan. Total returns to shareholders of 101% over the past three years. Valuation Update With 7 Day Price Move • May 23
Investor sentiment improved over the past week After last week's 15% share price gain to NT$19.10, the stock trades at a trailing P/E ratio of 27.5x. Average trailing P/E is 15x in the Semiconductor industry in Taiwan. Total returns to shareholders of 147% over the past three years. Reported Earnings • May 19
First quarter 2022 earnings released: EPS: NT$0.21 (vs NT$0.029 in 1Q 2021) First quarter 2022 results: EPS: NT$0.21 (up from NT$0.029 in 1Q 2021). Revenue: NT$196.5m (up 20% from 1Q 2021). Net income: NT$35.4m (up NT$30.6m from 1Q 2021). Profit margin: 18% (up from 2.9% in 1Q 2021). The increase in margin was driven by higher revenue. 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 28% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
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. 11 experienced directors. No highly experienced directors. No independent directors (7 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. Reported Earnings • Apr 03
Full year 2021 earnings released: EPS: NT$0.51 (vs NT$0.64 in FY 2020) Full year 2021 results: EPS: NT$0.51 (down from NT$0.64 in FY 2020). Revenue: NT$745.9m (down 1.8% from FY 2020). Net income: NT$85.0m (down 20% from FY 2020). Profit margin: 11% (down from 14% in FY 2020). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Aankondiging • Apr 02
Rectron Limited, Annual General Meeting, Jun 23, 2022 Rectron Limited, Annual General Meeting, Jun 23, 2022. Upcoming Dividend • Nov 23
Upcoming dividend of NT$0.30 per share Eligible shareholders must have bought the stock before 30 November 2021. Payment date: 27 December 2021. Trailing yield: 1.7%. Lower than top quartile of Taiwanese dividend payers (5.1%). Lower than average of industry peers (2.0%). Reported Earnings • Nov 17
Third quarter 2021 earnings released: EPS NT$0.20 (vs NT$0.21 in 3Q 2020) The company reported a poor third quarter result with weaker earnings and profit margins, although revenues were flat. Third quarter 2021 results: Revenue: NT$203.4m (flat on 3Q 2020). Net income: NT$32.9m (down 7.8% from 3Q 2020). Profit margin: 16% (down from 18% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 02
Investor sentiment improved over the past week After last week's 16% share price gain to NT$18.85, the stock trades at a trailing P/E ratio of 20.9x. Average trailing P/E is 22x in the Semiconductor industry in Taiwan. Total returns to shareholders of 181% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$0.15 (vs NT$0.009 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$196.0m (up 41% from 2Q 2020). Net income: NT$25.4m (up NT$23.8m from 2Q 2020). Profit margin: 13% (up from 1.1% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment improved over the past week After last week's 15% share price gain to NT$22.40, the stock trades at a trailing P/E ratio of 29.5x. Average trailing P/E is 24x in the Semiconductor industry in Taiwan. Total returns to shareholders of 135% over the past three years. Reported Earnings • May 16
First quarter 2021 earnings released: EPS NT$0.03 (vs NT$0.094 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$163.7m (up 66% from 1Q 2020). Net income: NT$4.80m (up NT$20.4m from 1Q 2020). Profit margin: 2.9% (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 increased by 75% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 12
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$18.35, the stock trades at a trailing P/E ratio of 28.9x. Average trailing P/E is 23x in the Semiconductor industry in Taiwan. Total returns to shareholders of 202% over the past three years. Reported Earnings • Apr 01
Full year 2020 earnings released: EPS NT$0.64 (vs NT$0.003 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$759.4m (up 52% from FY 2019). Net income: NT$105.6m (up NT$105.2m from FY 2019). Profit margin: 14% (up from 0.1% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 49% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Dec 14
New 90-day high: NT$20.70 The company is up 53% from its price of NT$13.55 on 15 September 2020. The Taiwanese market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 20% over the same period. Is New 90 Day High Low • Nov 23
New 90-day high: NT$20.50 The company is up 107% from its price of NT$9.90 on 25 August 2020. The Taiwanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 15% over the same period. Reported Earnings • Nov 16
Third quarter 2020 earnings released: EPS NT$0.21 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$202.7m (up 66% from 3Q 2019). Net income: NT$35.7m (up NT$32.9m from 3Q 2019). Profit margin: 18% (up from 2.3% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has increased by 52% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Oct 26
New 90-day high: NT$18.35 The company is up 107% from its price of NT$8.87 on 28 July 2020. The Taiwanese market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 5.0% over the same period.