Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$37.25, the stock trades at a trailing P/E ratio of 77.5x. Average trailing P/E is 27x in the Electronic industry in Taiwan. Total returns to shareholders of 24% over the past three years. New Risk • Apr 13
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 8.8% 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 251% Paying a dividend despite having no free cash flows. Earnings have declined by 28% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.8% average weekly change). Profit margins are more than 30% lower than last year (1.4% net profit margin). Market cap is less than US$100m (NT$1.27b market cap, or US$40.0m). Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$0.48 (vs NT$1.68 in FY 2024) Full year 2025 results: EPS: NT$0.48 (down from NT$1.68 in FY 2024). Revenue: NT$1.12b (up 10% from FY 2024). Net income: NT$15.5m (down 71% from FY 2024). Profit margin: 1.4% (down from 5.2% 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 19% 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
Arlitech Electronic Corp., Annual General Meeting, Jun 11, 2026 Arlitech Electronic Corp., Annual General Meeting, Jun 11, 2026. Location: no,88, min ch`uan rd., banciao 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 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: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 256% Cash payout ratio: 154% Earnings have declined by 24% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.6% net profit margin). Market cap is less than US$100m (NT$1.06b market cap, or US$33.6m). Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: NT$0.49 (vs NT$0.12 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.49 (up from NT$0.12 in 3Q 2024). Revenue: NT$290.8m (up 5.8% from 3Q 2024). Net income: NT$15.7m (up 307% from 3Q 2024). Profit margin: 5.4% (up from 1.4% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Oct 29
Now 20% undervalued Over the last 90 days, the stock has risen 32% to NT$36.95. The fair value is estimated to be NT$46.28, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.6% over the last 3 years. Earnings per share has declined by 22%. New Risk • Oct 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 7.1% 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 20% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (dividend per share is over 7x earnings per share). Share price has been volatile over the past 3 months (7.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Market cap is less than US$100m (NT$1.23b market cap, or US$40.3m). New Risk • Aug 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 221% 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 20% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (dividend per share is over 7x earnings per share). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Market cap is less than US$100m (NT$906.0m market cap, or US$30.2m). Upcoming Dividend • Aug 07
Upcoming dividend of NT$1.40 per share Eligible shareholders must have bought the stock before 14 August 2025. Payment date: 15 September 2025. Payout ratio is on the higher end at 86%, however this is supported by cash flows. Trailing yield: 5.0%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (2.8%). Declared Dividend • Jul 07
Dividend increased to NT$1.40 Dividend of NT$1.40 is 13% higher than last year. Ex-date: 14th August 2025 Payment date: 15th September 2025 Dividend yield will be 5.2%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by both earnings (86% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has increased by an average of 7.6% 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 decline by 4.1% to shift the payout ratio to a potentially unsustainable range, which is less than the 6.4% EPS decline seen over the last 5 years. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.45 (vs NT$0.51 in 1Q 2024) First quarter 2025 results: EPS: NT$0.45 (down from NT$0.51 in 1Q 2024). Revenue: NT$287.2m (up 25% from 1Q 2024). Net income: NT$14.5m (down 6.7% from 1Q 2024). Profit margin: 5.1% (down from 6.8% in 1Q 2024). The decrease in margin was driven by higher expenses. 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 6% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$24.05, the stock trades at a trailing P/E ratio of 14.7x. Average trailing P/E is 17x in the Electronic industry in Taiwan. Total loss to shareholders of 25% over the past three years. Reported Earnings • Mar 14
Full year 2024 earnings released: EPS: NT$1.68 (vs NT$1.19 in FY 2023) Full year 2024 results: EPS: NT$1.68 (up from NT$1.19 in FY 2023). Revenue: NT$1.02b (down 5.6% from FY 2023). Net income: NT$52.7m (up 45% from FY 2023). Profit margin: 5.2% (up from 3.4% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 29% 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. Aankondiging • Mar 07
Arlitech Electronic Corp., Annual General Meeting, Jun 19, 2025 Arlitech Electronic Corp., Annual General Meeting, Jun 19, 2025. Location: no,79, hsin pei ta tao, sinjhuang district, new taipei city Taiwan New Risk • Aug 22
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.4% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 8.4% 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. Shareholders have been diluted in the past year (5.4% increase in shares outstanding). Market cap is less than US$100m (NT$1.14b market cap, or US$35.6m). Upcoming Dividend • Aug 19
Upcoming dividend of NT$1.24 per share Eligible shareholders must have bought the stock before 26 August 2024. Payment date: 25 September 2024. Payout ratio is on the higher end at 77%, however this is supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Taiwanese dividend payers (4.4%). Higher than average of industry peers (2.8%). Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$0.63 (vs NT$0.46 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.63 (up from NT$0.46 in 2Q 2023). Revenue: NT$266.4m (flat on 2Q 2023). Net income: NT$19.2m (up 38% from 2Q 2023). Profit margin: 7.2% (up from 5.3% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: NT$0.51 (vs NT$0.16 in 1Q 2023) First quarter 2024 results: EPS: NT$0.51 (up from NT$0.16 in 1Q 2023). Revenue: NT$230.1m (down 7.0% from 1Q 2023). Net income: NT$15.6m (up 215% from 1Q 2023). Profit margin: 6.8% (up from 2.0% 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 40% 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. Reported Earnings • Mar 20
Full year 2023 earnings released: EPS: NT$1.19 (vs NT$1.50 in FY 2022) Full year 2023 results: EPS: NT$1.19 (down from NT$1.50 in FY 2022). Revenue: NT$1.08b (down 3.0% from FY 2022). Net income: NT$36.4m (down 21% from FY 2022). Profit margin: 3.4% (down from 4.1% in FY 2022). The decrease in margin was driven by lower revenue. 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 5% per year, which means it has not declined as severely as earnings. Aankondiging • Mar 14
Arlitech Electronic Corp., Annual General Meeting, Jun 13, 2024 Arlitech Electronic Corp., Annual General Meeting, Jun 13, 2024. New Risk • Nov 18
New major risk - Revenue and earnings growth Earnings have declined by 3.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 122% Paying a dividend despite having no free cash flows. Earnings have declined by 3.8% per year over the past 5 years. High level of non-cash earnings (46% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (5.9% average weekly change). Profit margins are more than 30% lower than last year (3.5% net profit margin). Market cap is less than US$100m (NT$1.14b market cap, or US$36.0m). New Risk • Nov 01
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 5.9% 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 Dividend is not well covered by earnings (162% payout ratio). Share price has been volatile over the past 3 months (5.9% average weekly change). Profit margins are more than 30% lower than last year (2.9% net profit margin). Market cap is less than US$100m (NT$1.18b market cap, or US$36.2m). Reported Earnings • Aug 13
Second quarter 2023 earnings released: EPS: NT$0.46 (vs NT$0.44 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.46 (up from NT$0.44 in 2Q 2022). Revenue: NT$265.7m (down 5.9% from 2Q 2022). Net income: NT$14.0m (up 2.8% from 2Q 2022). Profit margin: 5.3% (up from 4.8% in 2Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 10
Upcoming dividend of NT$1.50 per share at 4.3% yield Eligible shareholders must have bought the stock before 17 July 2023. Payment date: 15 August 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 4.3%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (4.3%). Reported Earnings • Mar 28
Full year 2022 earnings released: EPS: NT$1.50 (vs NT$2.91 in FY 2021) Full year 2022 results: EPS: NT$1.50 (down from NT$2.91 in FY 2021). Revenue: NT$1.11b (down 18% from FY 2021). Net income: NT$45.9m (down 48% from FY 2021). Profit margin: 4.1% (down from 6.5% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improved over the past week After last week's 15% share price gain to NT$35.35, the stock trades at a trailing P/E ratio of 15.3x. Average trailing P/E is 11x in the Electronic industry in Taiwan. Total returns to shareholders of 27% over the past three years. 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. 6 experienced directors. No highly experienced 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: Insufficient board refreshment. Reported Earnings • Nov 12
Third quarter 2022 earnings released: EPS: NT$0.59 (vs NT$0.71 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.59 (down from NT$0.71 in 3Q 2021). Revenue: NT$237.9m (down 30% from 3Q 2021). Net income: NT$18.0m (down 17% from 3Q 2021). Profit margin: 7.6% (up from 6.4% in 3Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$27.50, the stock trades at a trailing P/E ratio of 11.3x. Average trailing P/E is 11x in the Electronic industry in Taiwan. Total returns to shareholders of 19% over the past three years. Reported Earnings • Aug 11
Second quarter 2022 earnings released: EPS: NT$0.44 (vs NT$0.93 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.44 (down from NT$0.93 in 2Q 2021). Revenue: NT$282.3m (down 26% from 2Q 2021). Net income: NT$13.6m (down 52% from 2Q 2021). Profit margin: 4.8% (down from 7.3% in 2Q 2021). The decrease in margin was driven by lower revenue. 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 7% per year. Upcoming Dividend • Aug 10
Upcoming dividend of NT$1.60 per share Eligible shareholders must have bought the stock before 17 August 2022. Payment date: 15 September 2022. Payout ratio is a comfortable 55% but the company is not cash flow positive. Trailing yield: 5.3%. Lower than top quartile of Taiwanese dividend payers (6.6%). Higher than average of industry peers (4.6%). Valuation Update With 7 Day Price Move • Jul 07
Investor sentiment improved over the past week After last week's 18% share price gain to NT$32.05, the stock trades at a trailing P/E ratio of 11.1x. Average trailing P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 48% over the past three years. Reported Earnings • May 11
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: NT$0.75 (vs NT$0.75 in 1Q 2021). Revenue: NT$358.2m (up 17% from 1Q 2021). Net income: NT$23.0m (up 2.4% from 1Q 2021). Profit margin: 6.4% (down from 7.3% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 9.8%. Earnings per share (EPS) also surpassed analyst estimates by 7.0%. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 12% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 27
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. 6 experienced directors. No highly experienced 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: Insufficient board refreshment. Reported Earnings • Nov 10
Third quarter 2021 earnings released: EPS NT$0.71 (vs NT$0.95 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: NT$340.6m (up 12% from 3Q 2020). Net income: NT$21.7m (down 11% from 3Q 2020). Profit margin: 6.4% (down from 8.0% in 3Q 2020). 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 but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Aug 26
Upcoming dividend of NT$1.57 per share Eligible shareholders must have bought the stock before 02 September 2021. Payment date: 29 September 2021. Trailing yield: 4.0%. Lower than top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (3.2%). Reported Earnings • Aug 12
Second quarter 2021 earnings released: EPS NT$0.93 (vs NT$0.95 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: NT$382.3m (up 40% from 2Q 2020). Net income: NT$28.0m (up 21% from 2Q 2020). Profit margin: 7.3% (down from 8.5% in 2Q 2020). 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 11% per year. Valuation Update With 7 Day Price Move • May 23
Investor sentiment improved over the past week After last week's 17% share price gain to NT$38.50, the stock trades at a trailing P/E ratio of 12x. Average trailing P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 82% over the past three years. Reported Earnings • May 17
First quarter 2021 earnings released: EPS NT$0.75 (vs NT$0.41 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$305.9m (up 34% from 1Q 2020). Net income: NT$22.4m (up 136% from 1Q 2020). Profit margin: 7.3% (up from 4.2% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improved over the past week After last week's 17% share price gain to NT$45.85, the stock trades at a trailing P/E ratio of 15.8x. Average trailing P/E is 20x in the Electronic industry in Taiwan. Total returns to shareholders of 161% over the past three years. Reported Earnings • Mar 31
Full year 2020 earnings released: EPS NT$2.91 (vs NT$2.36 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$1.10b (up 19% from FY 2019). Net income: NT$74.9m (up 44% from FY 2019). Profit margin: 6.8% (up from 5.7% 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 21% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Feb 24
New 90-day high: NT$40.20 The company is up 6.0% from its price of NT$37.90 on 26 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 27% over the same period. Is New 90 Day High Low • Jan 11
New 90-day high: NT$39.75 The company is up 8.0% from its price of NT$36.75 on 14 October 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 24% over the same period. Is New 90 Day High Low • Dec 04
New 90-day high: NT$39.60 The company is up 2.0% from its price of NT$38.80 on 04 September 2020. The Taiwanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 8.0% over the same period. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS NT$0.95 The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2020 results: Revenue: NT$303.2m (up 28% from 3Q 2019). Net income: NT$24.3m (up 24% from 3Q 2019). Profit margin: 8.0% (down from 8.3% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 25% per year.