New Risk • Aug 20
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 10% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (10% operating cash flow to total debt). Earnings have declined by 16% 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. Market cap is less than US$100m (NT$1.17b market cap, or US$36.6m). Reported Earnings • Aug 15
Second quarter 2026 earnings released: EPS: NT$0.52 (vs NT$0.20 in 2Q 2025) Second quarter 2026 results: EPS: NT$0.52 (up from NT$0.20 in 2Q 2025). Revenue: NT$239.5m (up 5.3% from 2Q 2025). Net income: NT$25.1m (up 167% from 2Q 2025). Profit margin: 11% (up from 4.1% in 2Q 2025). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Reported Earnings • May 19
First quarter 2026 earnings released: EPS: NT$0.33 (vs NT$0.54 in 1Q 2025) First quarter 2026 results: EPS: NT$0.33 (down from NT$0.54 in 1Q 2025). Revenue: NT$220.2m (down 14% from 1Q 2025). Net income: NT$15.8m (down 39% from 1Q 2025). Profit margin: 7.2% (down from 10.0% in 1Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. New Risk • Mar 13
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.1x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.1x net interest cover). Earnings have declined by 6.7% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (115% payout ratio). Market cap is less than US$100m (NT$1.29b market cap, or US$40.3m). Reported Earnings • Mar 12
Full year 2025 earnings released: EPS: NT$1.72 (vs NT$1.94 in FY 2024) Full year 2025 results: EPS: NT$1.72 (down from NT$1.94 in FY 2024). Revenue: NT$975.5m (down 13% from FY 2024). Net income: NT$82.6m (down 14% from FY 2024). Profit margin: 8.5% (in line with FY 2024). Over the last 3 years on average, earnings per share has fallen by 44% 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. Announcement • Mar 06
Sheh Kai Precision Co., Ltd., Annual General Meeting, May 28, 2026 Sheh Kai Precision Co., Ltd., Annual General Meeting, May 28, 2026. Location: 2 floor no,17, pen kung rd., pen chou li, gangshan district, kaohsiung city Taiwan Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$29.45, the stock trades at a trailing P/E ratio of 16.8x. Average trailing P/E is 26x in the Machinery industry in Taiwan. Total loss to shareholders of 22% over the past three years. New Risk • Dec 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 126% 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 Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 115% Cash payout ratio: 158% Earnings have declined by 2.2% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (NT$1.22b market cap, or US$38.9m). New Risk • Nov 17
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 12% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 151% Cash payout ratio: 158% Earnings have declined by 2.2% per year over the past 5 years. Minor Risk Market cap is less than US$100m (NT$1.23b market cap, or US$39.4m). Reported Earnings • Nov 11
Third quarter 2025 earnings released: EPS: NT$0.53 (vs NT$0.12 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.53 (up from NT$0.12 in 3Q 2024). Revenue: NT$275.2m (up 6.1% from 3Q 2024). Net income: NT$25.7m (up 336% from 3Q 2024). Profit margin: 9.3% (up from 2.3% in 3Q 2024). The increase in margin was primarily driven by higher revenue. 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 12% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: NT$0.20 (vs NT$0.51 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.20 (down from NT$0.51 in 2Q 2024). Revenue: NT$227.4m (down 23% from 2Q 2024). Net income: NT$9.41m (down 63% from 2Q 2024). Profit margin: 4.1% (down from 8.6% in 2Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 33% 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. New Risk • Jun 02
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 14% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 122% Cash payout ratio: 122% Minor Risks Profit margins are more than 30% lower than last year (7.4% net profit margin). Market cap is less than US$100m (NT$1.47b market cap, or US$49.1m). Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.54 (vs NT$0.83 in 1Q 2024) First quarter 2025 results: EPS: NT$0.54 (down from NT$0.83 in 1Q 2024). Revenue: NT$257.4m (down 12% from 1Q 2024). Net income: NT$25.9m (down 37% from 1Q 2024). Profit margin: 10.0% (down from 14% in 1Q 2024). The decrease in margin was driven by lower revenue. 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 4% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$28.55, the stock trades at a trailing P/E ratio of 14.8x. Average trailing P/E is 16x in the Machinery industry in Taiwan. Total loss to shareholders of 9.1% over the past three years. New Risk • Mar 30
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 103% Cash payout ratio: 94% Dividend yield: 5.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 103% Cash payout ratio: 94% Minor Risks Profit margins are more than 30% lower than last year (8.5% net profit margin). Market cap is less than US$100m (NT$1.86b market cap, or US$56.0m). Upcoming Dividend • Mar 25
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 01 April 2025. Payment date: 30 April 2025. The company last paid an ordinary dividend in May 2014. The average dividend yield among industry peers is 2.6%. Reported Earnings • Mar 19
Full year 2024 earnings released Full year 2024 results: Revenue: NT$1.12b (down 21% from FY 2023). Net income: NT$96.0m (down 61% from FY 2023). Profit margin: 8.5% (down from 17% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has increased by 1% per year. Reported Earnings • Nov 18
Third quarter 2024 earnings released: EPS: NT$0.12 (vs NT$1.70 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.12 (down from NT$1.70 in 3Q 2023). Revenue: NT$259.5m (down 35% from 3Q 2023). Net income: NT$5.89m (down 93% from 3Q 2023). Profit margin: 2.3% (down from 21% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 4% per year. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$32.30, the stock trades at a trailing P/E ratio of 8.6x. Average trailing P/E is 19x in the Machinery industry in Taiwan. Total returns to shareholders of 11% over the past three years. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$0.51 (vs NT$1.68 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.51 (down from NT$1.68 in 2Q 2023). Revenue: NT$294.1m (down 29% from 2Q 2023). Net income: NT$25.4m (down 70% from 2Q 2023). Profit margin: 8.6% (down from 20% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 10% per year. Upcoming Dividend • Jun 20
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 25 July 2024. Payout ratio is on the higher end at 92%, however this is supported by cash flows. Trailing yield: 8.5%. Within top quartile of Taiwanese dividend payers (4.2%). Higher than average of industry peers (2.5%). Reported Earnings • May 12
First quarter 2024 earnings released: EPS: NT$0.83 (vs NT$0.88 in 1Q 2023) First quarter 2024 results: EPS: NT$0.83 (down from NT$0.88 in 1Q 2023). Revenue: NT$293.7m (up 1.4% from 1Q 2023). Net income: NT$41.2m (down 5.3% from 1Q 2023). Profit margin: 14% (in line with 1Q 2023). Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 17% per year. Buy Or Sell Opportunity • Mar 27
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.1% to NT$54.20. The fair value is estimated to be NT$67.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.4% over the last 3 years. Earnings per share has grown by 24%. Announcement • Mar 15
Sheh Kai Precision Co., Ltd., Annual General Meeting, May 31, 2024 Sheh Kai Precision Co., Ltd., Annual General Meeting, May 31, 2024. Reported Earnings • Mar 15
Full year 2023 earnings released: EPS: NT$4.95 (vs NT$4.91 in FY 2022) Full year 2023 results: EPS: NT$4.95 (up from NT$4.91 in FY 2022). Revenue: NT$1.43b (down 1.5% from FY 2022). Net income: NT$245.5m (up 5.2% from FY 2022). Profit margin: 17% (up from 16% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 07
Upcoming dividend of NT$3.00 per share at 5.1% yield Eligible shareholders must have bought the stock before 14 December 2023. Payment date: 12 January 2024. Payout ratio is on the higher end at 91%, however this is supported by cash flows. Trailing yield: 5.1%. Lower than top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (3.1%). Reported Earnings • Nov 08
Third quarter 2023 earnings released: EPS: NT$1.70 (vs NT$1.48 in 3Q 2022) Third quarter 2023 results: EPS: NT$1.70 (up from NT$1.48 in 3Q 2022). Revenue: NT$400.4m (up 13% from 3Q 2022). Net income: NT$84.4m (up 14% from 3Q 2022). Profit margin: 21% (in line with 3Q 2022). Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: NT$1.68 (vs NT$1.86 in 2Q 2022) Second quarter 2023 results: EPS: NT$1.68 (down from NT$1.86 in 2Q 2022). Revenue: NT$413.3m (up 1.0% from 2Q 2022). Net income: NT$83.3m (flat on 2Q 2022). Profit margin: 20% (in line with 2Q 2022). Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 11
First quarter 2023 earnings released: EPS: NT$0.88 (vs NT$0.91 in 1Q 2022) First quarter 2023 results: EPS: NT$0.88. Revenue: NT$289.5m (down 9.3% from 1Q 2022). Net income: NT$43.6m (up 6.2% from 1Q 2022). Profit margin: 15% (up from 13% in 1Q 2022). The increase in margin was driven by lower expenses. Upcoming Dividend • Mar 22
Upcoming dividend of NT$1.50 per share at 6.6% yield Eligible shareholders must have bought the stock before 29 March 2023. Payment date: 27 April 2023. Payout ratio is a comfortable 61% and this is well supported by cash flows. Trailing yield: 6.6%. Within top quartile of Taiwanese dividend payers (6.0%). Higher than average of industry peers (3.2%). Reported Earnings • Mar 11
Full year 2022 earnings released: EPS: NT$4.91 (vs NT$3.32 in FY 2021) Full year 2022 results: EPS: NT$4.91 (up from NT$3.32 in FY 2021). Revenue: NT$1.45b (flat on FY 2021). Net income: NT$233.3m (up 56% from FY 2021). Profit margin: 16% (up from 10% in FY 2021). Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 08
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 15 December 2022. Payment date: 16 January 2023. Payout ratio is a comfortable 72% and this is well supported by cash flows. Trailing yield: 8.9%. Within top quartile of Taiwanese dividend payers (6.8%). Higher than average of industry peers (3.4%). Reported Earnings • Nov 08
Third quarter 2022 earnings released: EPS: NT$1.48 (vs NT$1.06 in 3Q 2021) Third quarter 2022 results: EPS: NT$1.48 (up from NT$1.06 in 3Q 2021). Revenue: NT$353.9m (down 11% from 3Q 2021). Net income: NT$73.9m (up 55% from 3Q 2021). Profit margin: 21% (up from 12% 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 13% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 16
Second quarter 2022 earnings released: EPS: NT$1.83 (vs NT$0.86 in 2Q 2021) Second quarter 2022 results: EPS: NT$1.83 (up from NT$0.86 in 2Q 2021). Revenue: NT$409.2m (up 22% from 2Q 2021). Net income: NT$83.5m (up 115% from 2Q 2021). Profit margin: 20% (up from 12% 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 4% per year whereas the company’s share price has remained flat. Reported Earnings • May 16
First quarter 2022 earnings released: EPS: NT$0.91 (vs NT$0.81 in 1Q 2021) First quarter 2022 results: EPS: NT$0.91 (up from NT$0.81 in 1Q 2021). Revenue: NT$319.2m (up 5.9% from 1Q 2021). Net income: NT$41.0m (up 12% from 1Q 2021). Profit margin: 13% (in line with 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 4% per year. Upcoming Dividend • Mar 24
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 31 March 2022. Payment date: 29 April 2022. Payout ratio is on the higher end at 91% but the company is not cash flow positive. Trailing yield: 11%. Within top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (3.0%). Reported Earnings • Mar 11
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: NT$3.32 (up from NT$2.37 in FY 2020). Revenue: NT$1.44b (up 36% from FY 2020). Net income: NT$149.2m (up 40% from FY 2020). Profit margin: 10% (in line with FY 2020). Revenue missed analyst estimates by 9.4%. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Dec 02
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 09 December 2021. Payment date: 10 January 2022. Trailing yield: 5.4%. Within top quartile of Taiwanese dividend payers (5.1%). Higher than average of industry peers (2.7%). Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS NT$1.06 (vs NT$0.60 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$396.9m (up 48% from 3Q 2020). Net income: NT$47.8m (up 78% from 3Q 2020). Profit margin: 12% (up from 10.0% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 11% 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 12
Second quarter 2021 earnings released: EPS NT$0.86 (vs NT$0.41 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$335.2m (up 44% from 2Q 2020). Net income: NT$38.8m (up 111% from 2Q 2020). Profit margin: 12% (up from 7.9% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 13% 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 16
First quarter 2021 earnings released: EPS NT$0.81 (vs NT$0.68 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were flat. First quarter 2021 results: Revenue: NT$301.5m (up 16% from 1Q 2020). Net income: NT$36.7m (up 20% from 1Q 2020). Profit margin: 12% (in line with 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS NT$2.37 (vs NT$3.36 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$1.06b (down 5.0% from FY 2019). Net income: NT$106.7m (down 30% from FY 2019). Profit margin: 10.0% (down from 14% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 4% per year. Upcoming Dividend • Mar 24
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 31 March 2021. Payment date: 29 April 2021. Trailing yield: 7.2%. Within top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (2.3%). Announcement • Mar 09
Sheh Kai Precision Co., Ltd., Annual General Meeting, May 31, 2021 Sheh Kai Precision Co., Ltd., Annual General Meeting, May 31, 2021. Is New 90 Day High Low • Feb 20
New 90-day high: NT$32.50 The company is up 5.0% from its price of NT$30.95 on 20 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 16% over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS NT$0.60 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$268.3m (down 6.6% from 3Q 2019). Net income: NT$26.8m (down 26% from 3Q 2019). Profit margin: 10.0% (down from 13% in 3Q 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Oct 20
New 90-day low: NT$30.90 The company is down 3.0% from its price of NT$32.00 on 22 July 2020. The Taiwanese market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 3.0% over the same period.