Buy Or Sell Opportunity • Aug 18
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 18% to NT$47.50. The fair value is estimated to be NT$59.94, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 32%. Reported Earnings • Aug 15
Second quarter 2026 earnings released: EPS: NT$1.08 (vs NT$0.017 in 2Q 2025) Second quarter 2026 results: EPS: NT$1.08 (up from NT$0.017 in 2Q 2025). Revenue: NT$2.36b (up 23% from 2Q 2025). Net income: NT$120.0m (up NT$118.1m from 2Q 2025). Profit margin: 5.1% (up from 0.1% in 2Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Reported Earnings • May 19
First quarter 2026 earnings released: NT$0.61 loss per share (vs NT$0.28 profit in 1Q 2025) First quarter 2026 results: NT$0.61 loss per share (down from NT$0.28 profit in 1Q 2025). Revenue: NT$1.60b (up 1.7% from 1Q 2025). Net loss: NT$67.0m (down 316% from profit in 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$56.60, the stock trades at a trailing P/E ratio of 13.3x. Average forward P/E is 21x in the Electronic industry in Taiwan. Total loss to shareholders of 26% over the past three years. Buy Or Sell Opportunity • May 13
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 8.2% to NT$55.30. The fair value is estimated to be NT$46.08, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 25%. Reported Earnings • Mar 25
Full year 2025 earnings released: EPS: NT$4.23 (vs NT$6.35 in FY 2024) Full year 2025 results: EPS: NT$4.23 (down from NT$6.35 in FY 2024). Revenue: NT$7.86b (flat on FY 2024). Net income: NT$464.8m (down 33% from FY 2024). Profit margin: 5.9% (down from 8.9% in FY 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 15% per year, which means it has not declined as severely as earnings. Price Target Changed • Mar 15
Price target decreased by 36% to NT$56.00 Down from NT$88.00, the current price target is provided by 1 analyst. New target price is 22% above last closing price of NT$45.90. Stock is down 47% over the past year. The company posted earnings per share of NT$6.35 last year. Aankondiging • Mar 11
Castles Technology Co., Ltd., Annual General Meeting, May 26, 2026 Castles Technology Co., Ltd., Annual General Meeting, May 26, 2026, at 10:00 Taipei Standard Time. Location: 2 floor no,213, sec.3 pei hsin rd., sindian district, new taipei city Taiwan Aankondiging • Feb 04
Castles Technology Co., Ltd. (TWSE:5258) acquired MT Bilgi Teknolojileri ve dis tic A S from MT Group. Castles Technology Co., Ltd. (TWSE:5258) acquired MT Bilgi Teknolojileri ve dis tic A S from MT Group on February 3, 2026.
Castles Technology Co., Ltd. (TWSE:5258) completed the acquisition of MT Bilgi Teknolojileri ve dis tic A S from MT Group on February 3, 2026. Reported Earnings • Nov 12
Third quarter 2025 earnings released: EPS: NT$1.27 (vs NT$1.53 in 3Q 2024) Third quarter 2025 results: EPS: NT$1.27 (down from NT$1.53 in 3Q 2024). Revenue: NT$2.06b (down 1.9% from 3Q 2024). Net income: NT$138.8m (down 17% from 3Q 2024). Profit margin: 6.8% (down from 8.0% in 3Q 2024). Revenue is forecast to grow 7.4% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. 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 2% per year, which means it is well ahead of earnings. Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: NT$0.02 (vs NT$1.39 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.02 (down from NT$1.39 in 2Q 2024). Revenue: NT$1.91b (up 1.5% from 2Q 2024). Net income: NT$1.87m (down 99% from 2Q 2024). Profit margin: 0.1% (down from 8.1% in 2Q 2024). The decrease in margin was driven by higher 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 10% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 31
Upcoming dividend of NT$2.52 per share Eligible shareholders must have bought the stock before 07 August 2025. Payment date: 04 September 2025. Payout ratio is a comfortable 50% but the company is not cash flow positive. Trailing yield: 3.5%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (2.9%). New Risk • Jun 18
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 8.9% 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 Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.9% average weekly change). Profit margins are more than 30% lower than last year (7.1% net profit margin). New Risk • May 14
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: 7.1% Last year net profit margin: 11% 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 Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (7.1% net profit margin). Reported Earnings • May 14
First quarter 2025 earnings released: EPS: NT$0.28 (vs NT$1.66 in 1Q 2024) First quarter 2025 results: EPS: NT$0.28 (down from NT$1.66 in 1Q 2024). Revenue: NT$1.58b (down 7.9% from 1Q 2024). Net income: NT$31.1m (down 83% from 1Q 2024). Profit margin: 2.0% (down from 11% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Aankondiging • May 03
Castles Technology Co., Ltd. to Report Q1, 2025 Results on May 12, 2025 Castles Technology Co., Ltd. announced that they will report Q1, 2025 results on May 12, 2025 Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$72.20, the stock trades at a trailing P/E ratio of 11.4x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 130% over the past three years. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$65.60, the stock trades at a trailing P/E ratio of 10.3x. Average forward P/E is 13x in the Electronic industry in Taiwan. Total returns to shareholders of 102% over the past three years. New Risk • Mar 28
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 3.0% 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 High level of non-cash earnings (22% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Mar 19
Full year 2024 earnings released: EPS: NT$6.35 (vs NT$8.24 in FY 2023) Full year 2024 results: EPS: NT$6.35 (down from NT$8.24 in FY 2023). Revenue: NT$7.83b (down 2.7% from FY 2023). Net income: NT$695.2m (down 23% from FY 2023). Profit margin: 8.9% (down from 11% in FY 2023). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Aankondiging • Mar 12
Castles Technology Co., Ltd., Annual General Meeting, Jun 17, 2025 Castles Technology Co., Ltd., Annual General Meeting, Jun 17, 2025. Location: 2 floor no,213, sec.3 pei hsin rd., sindian district, new taipei city Taiwan Aankondiging • Mar 04
Castles Technology Co., Ltd. to Report Q4, 2024 Results on Mar 11, 2025 Castles Technology Co., Ltd. announced that they will report Q4, 2024 results at 9:00 AM, Taipei Standard Time on Mar 11, 2025 Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: NT$1.53 (vs NT$2.33 in 3Q 2023) Third quarter 2024 results: EPS: NT$1.53 (down from NT$2.33 in 3Q 2023). Revenue: NT$2.09b (flat on 3Q 2023). Net income: NT$168.0m (down 34% from 3Q 2023). Profit margin: 8.0% (down from 12% in 3Q 2023). Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Nov 12
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 6.6% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Nov 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$94.50, the stock trades at a trailing P/E ratio of 12.6x. Average forward P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 248% over the past three years. Aankondiging • Nov 02
Castles Technology Co., Ltd. to Report Q3, 2024 Results on Nov 11, 2024 Castles Technology Co., Ltd. announced that they will report Q3, 2024 results on Nov 11, 2024 Aankondiging • Sep 27
Castles Technology Co., Ltd. Announces Retirement of Wen Jeh Fong as Chief Strategy Officer, Effective September 30, 2024 Castles Technology Co., Ltd. announced the retirement of Wen Jeh Fong as Chief Strategy Officer. Effective date: September 30, 2024. Upcoming Dividend • Sep 17
Upcoming dividend of NT$1.20 per share Eligible shareholders must have bought the stock before 24 September 2024. Payment date: 29 October 2024. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of Taiwanese dividend payers (4.3%). Lower than average of industry peers (2.8%). Reported Earnings • Aug 15
Second quarter 2024 earnings released: EPS: NT$1.46 (vs NT$1.91 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.46 (down from NT$1.91 in 2Q 2023). Revenue: NT$1.89b (down 4.2% from 2Q 2023). Net income: NT$152.6m (down 23% from 2Q 2023). Profit margin: 8.1% (down from 10% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has increased by 85% per year, which means it is tracking significantly ahead of earnings growth. Aankondiging • Aug 10
Castles Technology Co., Ltd. Approves Establishment of the Sustainable Development Committee On August 8, 2024, the board of directors of Castles Technology Co., Ltd. approved the establishment of the Sustainable Development Committee. Name of the new position holder: Hsi-Hsun Gong. Hsin-Kai Kung. Jiunn-Jen Chen .Resume of the new position holder: Hsi-Hsun Gong:Chairperson and President, COS Engineering Co., Ltd. Hsin-Kai Kung:Independent Director, JSW Pacific Corporation. Jiunn-Jen Chen:Director, O-Bank. Effective date of the new member: August 8, 2024. Aankondiging • Aug 01
Castles Technology Co., Ltd. to Report Q2, 2024 Results on Aug 08, 2024 Castles Technology Co., Ltd. announced that they will report Q2, 2024 results on Aug 08, 2024 Aankondiging • Jun 19
Castles Technology Co., Ltd. Announces Board Changes Castles Technology Co., Ltd. announced board changes. Title and name of the previous position holder: Director: Shih-Chin Chuang, Director: Kun-Ming Lee. Resume of the previous position holder: Shih-Chin Chuang: CPA, Morton CPA & Co. and Director: Kun-Ming Lee: CPA, K & B CPAs Firm. Title and name of the new position holder: Director: Wen-Jeh Fong and Director: Chia-Hua Huang. Resume of the new position holder: Director: Wen-Jeh Fong: CSO, Castles Technology Co., Ltd. and Director: Chia-Hua Huang: COO, Castles Technology Co., Ltd. Reason for the change: Tenure expired. Effective date of the new appointment: June 18, 2024. Reported Earnings • May 12
First quarter 2024 earnings released: EPS: NT$1.75 (vs NT$2.08 in 1Q 2023) First quarter 2024 results: EPS: NT$1.75 (down from NT$2.08 in 1Q 2023). Revenue: NT$1.71b (flat on 1Q 2023). Net income: NT$181.9m (down 16% from 1Q 2023). Profit margin: 11% (down from 13% in 1Q 2023). Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has increased by 88% per year, which means it is tracking significantly ahead of earnings growth. Aankondiging • May 01
Castles Technology Co., Ltd. to Report Q1, 2024 Results on May 07, 2024 Castles Technology Co., Ltd. announced that they will report Q1, 2024 results on May 07, 2024 Reported Earnings • Mar 16
Full year 2023 earnings released: EPS: NT$8.65 (vs NT$7.80 in FY 2022) Full year 2023 results: EPS: NT$8.65 (up from NT$7.80 in FY 2022). Revenue: NT$8.05b (up 8.7% from FY 2022). Net income: NT$899.2m (up 18% from FY 2022). Profit margin: 11% (in line with FY 2022). Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has increased by 87% per year, which means it is tracking significantly ahead of earnings growth. Aankondiging • Mar 13
Castles Technology Co., Ltd., Annual General Meeting, Jun 18, 2024 Castles Technology Co., Ltd., Annual General Meeting, Jun 18, 2024. Location: 2F, No213, Sec.3, Beixin Rd., Xindian Dist Taipei Silicon Valley International Conference Center New Taipei City Taiwan Agenda: To consider business report of 2023; to consider audit committee's review of the 2023 annual final accounting books and statements; to consider compensation distribution for employees and directors of 2023; to consider amend the company's board meeting rules report; to consider business report and financial statements for the year 2023; to consider profit distribution proposal for the year 2023; to consider proposal to increase capital by profit distribution and issue new shares; to consider elect directors of the board; to consider proposal to lift restrictions on new directors' competition; and to consider other issues. Aankondiging • Nov 10
Castles Technology Co., Ltd. Appoints Chen,Shu-Jiang as Chief Information Security Officer Castles Technology Co., Ltd. announced the appointment of Chen,Shu-Jiang as Chief Information Security Officer of the company. Effective date is November 9, 2023. Aankondiging • Sep 29
Castles Technology Co., Ltd., Annual General Meeting, Sep 27, 2023 Castles Technology Co., Ltd., Annual General Meeting, Sep 27, 2023. Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$124, the stock trades at a trailing P/E ratio of 13.7x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 490% over the past three years. Reported Earnings • Aug 18
Second quarter 2023 earnings released: EPS: NT$2.00 (vs NT$1.65 in 2Q 2022) Second quarter 2023 results: EPS: NT$2.00 (up from NT$1.65 in 2Q 2022). Revenue: NT$1.97b (up 23% from 2Q 2022). Net income: NT$198.4m (up 35% from 2Q 2022). Profit margin: 10% (in line with 2Q 2022). Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has increased by 71% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$101, the stock trades at a trailing P/E ratio of 11.9x. Average forward P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 377% over the past three years. Aankondiging • Aug 12
Castles Technology Co., Ltd. Announces Change of Remuneration Committee Castles Technology Co., Ltd. announced that the member change of the Remuneration Committee. Name of the previous position holder: Fang Chih-Chiang. Resume of the previous position holder: SAGITTARIUS LIFE SCIENCE CORP. Independent Director. Name of the new position holder: CHEN,JIUNN-JEN. Resume of the new position holder:O-Bank - Project Director. The effective date of new member is August 11, 2023. New Risk • Jul 15
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 8.1% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.1% average weekly change). Minor Risk Shareholders have been diluted in the past year (11% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$133, the stock trades at a trailing P/E ratio of 15.7x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 490% over the past three years. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$102, the stock trades at a trailing P/E ratio of 12x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 386% over the past three years. Aankondiging • May 13
Castles Technology Co., Ltd. Announces Board Changes Castles Technology Co., Ltd. appointed HUNG, YUN CHUNG /Administration Division Finance Dept. Manager of Castles in the place of Tu, MEI YUN /Administration Division Director of Castles, effective from May 11, 2023. Reported Earnings • Apr 01
Full year 2022 earnings released: EPS: NT$8.19 (vs NT$2.51 in FY 2021) Full year 2022 results: EPS: NT$8.19 (up from NT$2.51 in FY 2021). Revenue: NT$7.40b (up 66% from FY 2021). Net income: NT$761.3m (up 242% from FY 2021). Profit margin: 10% (up from 5.0% 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 52% per year but the company’s share price has increased by 61% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$94.10, the stock trades at a trailing P/E ratio of 14.5x. Average forward P/E is 11x in the Electronic industry in Taiwan. Total returns to shareholders of 295% over the past three years. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$81.00, the stock trades at a trailing P/E ratio of 12.5x. Average forward P/E is 10x in the Electronic industry in Taiwan. Total returns to shareholders of 216% over the past three years. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$2.49 (vs NT$0.57 in 3Q 2021) Third quarter 2022 results: EPS: NT$2.49 (up from NT$0.57 in 3Q 2021). Revenue: NT$2.00b (up 67% from 3Q 2021). Net income: NT$237.4m (up 365% from 3Q 2021). Profit margin: 12% (up from 4.2% 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 70% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Nai-Kuan Huang was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: NT$2.49 (vs NT$0.57 in 3Q 2021) Third quarter 2022 results: EPS: NT$2.49 (up from NT$0.57 in 3Q 2021). Revenue: NT$2.00b (up 67% from 3Q 2021). Net income: NT$237.4m (up 365% from 3Q 2021). Profit margin: 12% (up from 4.2% 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 70% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 25
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$51.90, the stock trades at a trailing P/E ratio of 11.4x. Average trailing P/E is 10x in the Electronic industry in Taiwan. Total returns to shareholders of 90% over the past three years. Upcoming Dividend • Oct 14
Upcoming dividend of NT$0.54 per share Eligible shareholders must have bought the stock before 21 October 2022. Payment date: 15 November 2022. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Taiwanese dividend payers (7.4%). Lower than average of industry peers (4.9%). Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$55.70, the stock trades at a trailing P/E ratio of 12.3x. Average trailing P/E is 11x in the Electronic industry in Taiwan. Total returns to shareholders of 106% over the past three years. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment improved over the past week After last week's 19% share price gain to NT$79.20, the stock trades at a trailing P/E ratio of 17.3x. Average trailing P/E is 13x in the Electronic industry in Taiwan. Total returns to shareholders of 232% over the past three years. Reported Earnings • Aug 18
Second quarter 2022 earnings released: EPS: NT$1.65 (vs NT$0.56 in 2Q 2021) Second quarter 2022 results: EPS: NT$1.65 (up from NT$0.56 in 2Q 2021). Revenue: NT$1.60b (up 66% from 2Q 2021). Net income: NT$146.8m (up 198% from 2Q 2021). Profit margin: 9.2% (up from 5.1% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 87% 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 • Jul 14
Investor sentiment improved over the past week After last week's 19% share price gain to NT$64.00, the stock trades at a trailing P/E ratio of 17.8x. Average trailing P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 207% over the past three years. Valuation Update With 7 Day Price Move • May 30
Investor sentiment improved over the past week After last week's 18% share price gain to NT$44.30, the stock trades at a trailing P/E ratio of 11.1x. Average trailing P/E is 13x in the Electronic industry in Taiwan. Total returns to shareholders of 131% over the past three years. Reported Earnings • May 14
First quarter 2022 earnings released: EPS: NT$1.59 (vs NT$0.099 in 1Q 2021) First quarter 2022 results: EPS: NT$1.59 (up from NT$0.099 in 1Q 2021). Revenue: NT$1.41b (up 77% from 1Q 2021). Net income: NT$140.8m (up NT$132.1m from 1Q 2021). Profit margin: 10.0% (up from 1.1% 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 96% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Buying Opportunity • May 12
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 7.0%. The fair value is estimated to be NT$45.55, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Meanwhile, the company has become profitable. Aankondiging • May 12
Castles Technology Co., Ltd. Approves Cash Dividend for the Year Ended December 31, 2021 Castles Technology Co., Ltd. approved dividend distribution of TWD 0.6 per share for year ended December 31, 2021. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Nai-Kuan Huang was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 01
Full year 2021 earnings released: EPS: NT$2.51 (vs NT$2.23 in FY 2020) Full year 2021 results: EPS: NT$2.51 (up from NT$2.23 in FY 2020). Revenue: NT$4.46b (up 19% from FY 2020). Net income: NT$222.9m (up 13% from FY 2020). Profit margin: 5.0% (down from 5.3% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. Aankondiging • Mar 31
Castles Technology Co., Ltd., Annual General Meeting, Jun 21, 2022 Castles Technology Co., Ltd., Annual General Meeting, Jun 21, 2022. Location: 2F.,No.213,Sec.3,Beixin Rd Xindian District,New Taipei City.(Taipei Innovation City New Taipei City Taiwan Agenda: To discuss Business Report of 2021; to discuss Audit Committee's review of the 2021 annual final accounting books and statements; to discuss Compensation distribution for employees and directors of 2021; to report the issuance of securities in private placement; and to discuss Cause for convening the meeting. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improved over the past week After last week's 20% share price gain to NT$40.70, the stock trades at a trailing P/E ratio of 21x. Average trailing P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 207% over the past three years. Upcoming Dividend • Nov 16
Upcoming dividend of NT$0.60 per share Eligible shareholders must have bought the stock before 23 November 2021. Payment date: 20 December 2021. Trailing yield: 1.8%. Lower than top quartile of Taiwanese dividend payers (5.1%). Lower than average of industry peers (3.1%). Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.57 (vs NT$0.54 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: NT$1.20b (up 43% from 3Q 2020). Net income: NT$51.0m (up 6.3% from 3Q 2020). Profit margin: 4.2% (down from 5.7% 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 87% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment improved over the past week After last week's 17% share price gain to NT$32.45, the stock trades at a trailing P/E ratio of 17x. Average trailing P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 127% over the past three years. Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment improved over the past week After last week's 33% share price gain to NT$31.00, the stock trades at a trailing P/E ratio of 16.3x. Average trailing P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 59% over the past three years. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment improved over the past week After last week's 15% share price gain to NT$23.35, the stock trades at a trailing P/E ratio of 12.2x. Average trailing P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 3.3% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$0.56 (vs NT$0.56 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: NT$963.7m (up 7.6% from 2Q 2020). Net income: NT$49.3m (down 1.2% from 2Q 2020). Profit margin: 5.1% (down from 5.6% 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 70% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 19
Investor sentiment improved over the past week After last week's 20% share price gain to NT$26.00, the stock trades at a trailing P/E ratio of 13.6x. Average trailing P/E is 19x in the Electronic industry in Taiwan. Total returns to shareholders of 38% over the past three years. Valuation Update With 7 Day Price Move • May 24
Investor sentiment improved over the past week After last week's 22% share price gain to NT$21.95, the stock trades at a trailing P/E ratio of 11.4x. Average trailing P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 18% over the past three years. Reported Earnings • May 14
First quarter 2021 earnings released: EPS NT$0.10 (vs NT$0.41 in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$794.6m (down 9.4% from 1Q 2020). Net income: NT$8.77m (down 76% from 1Q 2020). Profit margin: 1.1% (down from 4.2% in 1Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 05
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$22.45, the stock trades at a trailing P/E ratio of 10.1x. Average trailing P/E is 19x in the Electronic industry in Taiwan. Total returns to shareholders of 6.9% over the past three years. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improved over the past week After last week's 15% share price gain to NT$26.20, the stock trades at a trailing P/E ratio of 11.8x. Average trailing P/E is 20x in the Electronic industry in Taiwan. Total returns to shareholders of 35% over the past three years. Reported Earnings • Mar 30
Full year 2020 earnings released: EPS NT$2.23 (vs NT$0.19 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$3.73b (up 4.4% from FY 2019). Net income: NT$198.1m (up NT$180.9m from FY 2019). Profit margin: 5.3% (up from 0.5% in FY 2019). Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Nov 20
New 90-day high: NT$23.45 The company is up 13% from its price of NT$20.75 on 21 August 2020. The Taiwanese market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 5.0% over the same period. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS NT$0.54 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$841.2m (up 7.9% from 3Q 2019). Net income: NT$48.0m (up 24% from 3Q 2019). Profit margin: 5.7% (up from 5.0% 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 16% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Oct 30
New 90-day low: NT$20.25 The company is down 13% from its price of NT$23.40 on 31 July 2020. The Taiwanese market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is down 3.0% over the same period. Aankondiging • Oct 01
Castles Technology Co., Ltd. (TSEC:5258) acquired business and assets of Spire Payments Ltd. Castles Technology Co., Ltd. (TSEC:5258) acquired business and assets of Spire Payments Ltd. on October 1, 2020.
Castles Technology Co., Ltd. (TSEC:5258) completed the acquisition of business and assets of Spire Payments Ltd. on October 1, 2020. Is New 90 Day High Low • Sep 29
New 90-day low: NT$20.40 The company is down 12% from its price of NT$23.30 on 01 July 2020. The Taiwanese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is down 3.0% over the same period.