New Risk • Aug 14
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 28% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (28% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (8.2% net profit margin). Market cap is less than US$100m (NT$930.8m market cap, or US$29.1m). Reported Earnings • Aug 14
Second quarter 2026 earnings released: EPS: NT$0.26 (vs NT$0.11 in 2Q 2025) Second quarter 2026 results: EPS: NT$0.26 (up from NT$0.11 in 2Q 2025). Revenue: NT$146.8m (down 27% from 2Q 2025). Net income: NT$9.94m (up 131% from 2Q 2025). Profit margin: 6.8% (up from 2.2% in 2Q 2025). The increase in margin was driven by lower 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 7% per year, which means it has not declined as severely as earnings. Declared Dividend • May 30
Dividend reduced to NT$1.22 Dividend of NT$1.22 is 39% lower than last year. Ex-date: 16th June 2026 Payment date: 9th July 2026 Dividend yield will be 4.8%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (69% earnings payout ratio) and cash flows (38% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 24% to shift the payout ratio to a potentially unsustainable range, which is more than the 3.8% EPS decline seen over the last 5 years. Reported Earnings • May 19
First quarter 2026 earnings released: EPS: NT$0.62 (vs NT$0.18 in 1Q 2025) First quarter 2026 results: EPS: NT$0.62 (up from NT$0.18 in 1Q 2025). Revenue: NT$218.4m (up 14% from 1Q 2025). Net income: NT$23.5m (up 242% from 1Q 2025). Profit margin: 11% (up from 3.6% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 15% 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. New Risk • Mar 13
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: 5.5% Last year net profit margin: 9.6% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (5.5% net profit margin). Market cap is less than US$100m (NT$957.3m market cap, or US$29.9m). Reported Earnings • Mar 13
Full year 2025 earnings released: EPS: NT$1.34 (vs NT$3.16 in FY 2024) Full year 2025 results: EPS: NT$1.34 (down from NT$3.16 in FY 2024). Revenue: NT$919.1m (down 27% from FY 2024). Net income: NT$50.6m (down 58% from FY 2024). Profit margin: 5.5% (down from 9.6% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 6% per year. Announcement • Mar 12
Chang Jia M&E Engineering Corp., Annual General Meeting, May 28, 2026 Chang Jia M&E Engineering Corp., Annual General Meeting, May 28, 2026, at 09:00 Taipei Standard Time. Location: 15 floor no,99, fu hsing n. rd., songshan district, taipei city Taiwan Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: NT$0.36 (vs NT$0.78 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.36 (down from NT$0.78 in 3Q 2024). Revenue: NT$193.8m (down 23% from 3Q 2024). Net income: NT$13.6m (down 54% from 3Q 2024). Profit margin: 7.0% (down from 12% in 3Q 2024). 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 2% per year. Reported Earnings • Aug 17
Second quarter 2025 earnings released: EPS: NT$0.11 (vs NT$0.069 loss in 2Q 2024) Second quarter 2025 results: EPS: NT$0.11 (up from NT$0.069 loss in 2Q 2024). Revenue: NT$200.2m (down 41% from 2Q 2024). Net income: NT$4.31m (up NT$6.92m from 2Q 2024). Profit margin: 2.2% (up from net loss in 2Q 2024). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 5% per year. Upcoming Dividend • Jun 09
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 16 June 2025. Payment date: 10 July 2025. Payout ratio is a comfortable 74% and this is well supported by cash flows. Trailing yield: 7.3%. Within top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (4.0%). Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.18 (vs NT$0.63 in 1Q 2024) First quarter 2025 results: EPS: NT$0.18 (down from NT$0.63 in 1Q 2024). Revenue: NT$192.4m (down 50% from 1Q 2024). Net income: NT$6.87m (down 71% from 1Q 2024). Profit margin: 3.6% (down from 6.2% in 1Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 10% per year. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$24.20, the stock trades at a trailing P/E ratio of 7.7x. Average trailing P/E is 16x in the Construction industry in Taiwan. Total returns to shareholders of 26% over the past three years. Announcement • Mar 12
Chang Jia M&E Engineering Corp., Annual General Meeting, May 29, 2025 Chang Jia M&E Engineering Corp., Annual General Meeting, May 29, 2025. Location: 15 floor no,99, fu hsing n. rd., songshan district, taipei city Taiwan Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: NT$0.78 (vs NT$1.26 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.78 (down from NT$1.26 in 3Q 2023). Revenue: NT$252.7m (down 57% from 3Q 2023). Net income: NT$29.4m (down 38% from 3Q 2023). Profit margin: 12% (up from 8.1% in 3Q 2023). The increase in margin was driven by lower expenses. 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 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 17
Second quarter 2024 earnings released: NT$0.07 loss per share (vs NT$0.58 profit in 2Q 2023) Second quarter 2024 results: NT$0.07 loss per share (down from NT$0.58 profit in 2Q 2023). Revenue: NT$338.6m (down 6.6% from 2Q 2023). Net loss: NT$2.60m (down 112% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Aug 12
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 24% to NT$29.65. The fair value is estimated to be NT$37.13, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.9% over the last 3 years. Earnings per share has grown by 23%. Upcoming Dividend • Jun 24
Upcoming dividend of NT$2.10 per share Eligible shareholders must have bought the stock before 01 July 2024. Payment date: 19 July 2024. Payout ratio is a comfortable 59% and this is well supported by cash flows. Trailing yield: 5.4%. Within top quartile of Taiwanese dividend payers (4.2%). Higher than average of industry peers (3.6%). Buy Or Sell Opportunity • Jun 14
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 2.5% to NT$39.35. The fair value is estimated to be NT$32.44, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.9% over the last 3 years. Earnings per share has grown by 23%. Buy Or Sell Opportunity • May 28
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 7.9% to NT$38.80. The fair value is estimated to be NT$32.24, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.9% over the last 3 years. Earnings per share has grown by 23%. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: NT$0.63 (vs NT$0.34 in 1Q 2023) First quarter 2024 results: EPS: NT$0.63 (up from NT$0.34 in 1Q 2023). Revenue: NT$384.7m (down 8.1% from 1Q 2023). Net income: NT$24.0m (up 85% from 1Q 2023). Profit margin: 6.2% (up from 3.1% in 1Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 20% per year. Reported Earnings • Mar 20
Full year 2023 earnings released: EPS: NT$3.26 (vs NT$2.83 in FY 2022) Full year 2023 results: EPS: NT$3.26 (up from NT$2.83 in FY 2022). Revenue: NT$1.91b (up 41% from FY 2022). Net income: NT$123.2m (up 15% from FY 2022). Profit margin: 6.5% (down from 7.9% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 14% per year. Announcement • Mar 19
Chang Jia M&E Engineering Corp., Annual General Meeting, Jun 13, 2024 Chang Jia M&E Engineering Corp., Annual General Meeting, Jun 13, 2024. Buy Or Sell Opportunity • Feb 29
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at NT$36.75. The fair value is estimated to be NT$30.21, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years. Earnings per share has grown by 19%. Reported Earnings • Aug 11
Second quarter 2023 earnings released: EPS: NT$0.58 (vs NT$0.85 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.58 (down from NT$0.85 in 2Q 2022). Revenue: NT$362.5m (flat on 2Q 2022). Net income: NT$21.9m (down 32% from 2Q 2022). Profit margin: 6.0% (down from 8.8% in 2Q 2022). 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 10% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 23
Upcoming dividend of NT$1.90 per share at 6.3% yield Eligible shareholders must have bought the stock before 30 June 2023. Payment date: 02 August 2023. Payout ratio is a comfortable 64% and this is well supported by cash flows. Trailing yield: 6.3%. Within top quartile of Taiwanese dividend payers (5.5%). Higher than average of industry peers (5.3%). Valuation Update With 7 Day Price Move • May 15
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$27.85, the stock trades at a trailing P/E ratio of 9.8x. Average trailing P/E is 11x in the Construction industry in Taiwan. Total returns to shareholders of 36% over the past three years. Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$30.30, the stock trades at a trailing P/E ratio of 10.7x. Average trailing P/E is 11x in the Construction industry in Taiwan. Total returns to shareholders of 40% over the past three years. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$31.15, the stock trades at a trailing P/E ratio of 11.6x. Average trailing P/E is 11x in the Construction industry in Taiwan. Total returns to shareholders of 53% over the past three years. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. No experienced directors. 6 highly experienced directors. 2 independent directors (4 non-independent directors). Independent Director Wen Ling Huang was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$0.85 (vs NT$0.26 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.85 (up from NT$0.26 in 2Q 2021). Revenue: NT$362.2m (down 7.5% from 2Q 2021). Net income: NT$32.0m (up 231% from 2Q 2021). Profit margin: 8.8% (up from 2.5% in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Upcoming Dividend • Jun 23
Upcoming dividend of NT$1.15 per share Eligible shareholders must have bought the stock before 30 June 2022. Payment date: 05 August 2022. Payout ratio is on the higher end at 77% but the company is not cash flow positive. Trailing yield: 5.3%. Lower than top quartile of Taiwanese dividend payers (6.4%). Lower than average of industry peers (5.9%). Reported Earnings • May 12
First quarter 2022 earnings released: EPS: NT$0.21 (vs NT$0.12 in 1Q 2021) First quarter 2022 results: EPS: NT$0.21 (up from NT$0.12 in 1Q 2021). Revenue: NT$272.1m (up 3.0% from 1Q 2021). Net income: NT$7.81m (up 76% from 1Q 2021). Profit margin: 2.9% (up from 1.7% in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. No experienced directors. 7 highly experienced directors. 2 independent directors (5 non-independent directors). Independent Director Wen Ling Huang was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 30
Full year 2021 earnings released: EPS: NT$1.41 (vs NT$2.27 in FY 2020) Full year 2021 results: EPS: NT$1.41 (down from NT$2.27 in FY 2020). Revenue: NT$1.42b (up 6.7% from FY 2020). Net income: NT$53.5m (down 38% from FY 2020). Profit margin: 3.8% (down from 6.4% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Reported Earnings • Nov 13
Third quarter 2021 earnings released: EPS NT$0.32 (vs NT$0.73 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$357.4m (down 5.0% from 3Q 2020). Net income: NT$12.2m (down 56% from 3Q 2020). Profit margin: 3.4% (down from 7.3% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Upcoming Dividend • Aug 19
Upcoming dividend of NT$1.68 per share Eligible shareholders must have bought the stock before 26 August 2021. Payment date: 22 September 2021. Trailing yield: 7.0%. Within top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (4.9%). Reported Earnings • May 17
First quarter 2021 earnings released: EPS NT$0.12 (vs NT$0.23 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: NT$264.1m (up 18% from 1Q 2020). Net income: NT$4.45m (down 49% from 1Q 2020). Profit margin: 1.7% (down from 3.9% in 1Q 2020). 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 9% per year. Announcement • Mar 21
Chang Jia M&E Engineering Corp., Annual General Meeting, Jun 11, 2021 Chang Jia M&E Engineering Corp., Annual General Meeting, Jun 11, 2021. Reported Earnings • Mar 20
Full year 2020 earnings released: EPS NT$2.27 (vs NT$2.74 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: NT$1.33b (up 15% from FY 2019). Net income: NT$85.8m (down 17% from FY 2019). Profit margin: 6.4% (down from 8.9% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 11% per year. Is New 90 Day High Low • Dec 30
New 90-day high: NT$22.95 The company is up 5.0% from its price of NT$21.80 on 30 September 2020. The Taiwanese market is up 15% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Construction industry, which is also up 5.0% over the same period. Reported Earnings • Nov 10
Third quarter 2020 earnings released: EPS NT$0.73 The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2020 results: Revenue: NT$376.3m (up 59% from 3Q 2019). Net income: NT$27.6m (up 2.5% from 3Q 2019). Profit margin: 7.3% (down from 11% 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 17% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. 
