Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$170, the stock trades at a trailing P/E ratio of 52.3x. Average trailing P/E is 26x in the Electrical industry in Taiwan. Total returns to shareholders of 8.0% over the past three years. Reported Earnings • May 07
First quarter 2026 earnings released: NT$0.004 loss per share (vs NT$0.37 profit in 1Q 2025) First quarter 2026 results: NT$0.004 loss per share (down from NT$0.37 profit in 1Q 2025). Revenue: NT$96.8m (down 7.6% from 1Q 2025). Net loss: NT$138.0k (down 101% from profit in 1Q 2025). Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 1% per year. Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$190, the stock trades at a trailing P/E ratio of 52.6x. Average trailing P/E is 28x in the Electrical industry in Taiwan. Total returns to shareholders of 26% over the past three years. Upcoming Dividend • Apr 03
Upcoming dividend of NT$2.90 per share Eligible shareholders must have bought the stock before 10 April 2026. Payment date: 15 May 2026. Payout ratio is on the higher end at 80% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (2.8%). Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$188, the stock trades at a trailing P/E ratio of 52x. Average trailing P/E is 26x in the Electrical industry in Taiwan. Total returns to shareholders of 20% over the past three years. New Risk • Mar 26
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: 1.8% 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 (34% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (14% net profit margin). Reported Earnings • Mar 04
Full year 2025 earnings released: EPS: NT$3.61 (vs NT$2.55 in FY 2024) Full year 2025 results: EPS: NT$3.61 (up from NT$2.55 in FY 2024). Revenue: NT$850.8m (up 106% from FY 2024). Net income: NT$123.2m (up 42% from FY 2024). Profit margin: 14% (down from 21% 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 5% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Board Change • Feb 26
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. 7 experienced directors. 1 highly experienced director. 3 independent directors (5 non-independent directors). Independent Director Jian Hong Ye was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$203, the stock trades at a trailing P/E ratio of 52.8x. Average trailing P/E is 24x in the Electrical industry in Taiwan. Total returns to shareholders of 100% over the past three years. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$211, the stock trades at a trailing P/E ratio of 54.9x. Average trailing P/E is 22x in the Electrical industry in Taiwan. Total returns to shareholders of 167% over the past three years. Reported Earnings • Nov 06
Third quarter 2025 earnings released: EPS: NT$1.58 (vs NT$0.64 in 3Q 2024) Third quarter 2025 results: EPS: NT$1.58 (up from NT$0.64 in 3Q 2024). Revenue: NT$278.6m (up 183% from 3Q 2024). Net income: NT$54.0m (up 148% from 3Q 2024). Profit margin: 19% (down from 22% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 51% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 11
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$222, the stock trades at a trailing P/E ratio of 76.6x. Average trailing P/E is 21x in the Electrical industry in Taiwan. Negligible returns to shareholders over past year. Reported Earnings • Aug 06
Second quarter 2025 earnings released: EPS: NT$0.66 (vs NT$0.34 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.66 (up from NT$0.34 in 2Q 2024). Revenue: NT$185.8m (up 112% from 2Q 2024). Net income: NT$22.6m (up 98% from 2Q 2024). Profit margin: 12% (in line with 2Q 2024). Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$204, the stock trades at a trailing P/E ratio of 79.1x. Average trailing P/E is 19x in the Electrical industry in Taiwan. Total loss to shareholders of 17% over the past year. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to NT$183, the stock trades at a trailing P/E ratio of 70.9x. Average trailing P/E is 20x in the Electrical industry in Taiwan. Total loss to shareholders of 4.3% over the past year. New Risk • Jun 20
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 10% 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 Risks Share price has been highly volatile over the past 3 months (10% average weekly change). Earnings have declined by 1.8% per year over the past 5 years. High level of non-cash earnings (29% accrual ratio). Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$144, the stock trades at a trailing P/E ratio of 56x. Average trailing P/E is 19x in the Electrical industry in Taiwan. Total returns to shareholders of 4.0% over the past year. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$129, the stock trades at a trailing P/E ratio of 49.9x. Average trailing P/E is 18x in the Electrical industry in Taiwan. Total returns to shareholders of 34% over the past year. New Risk • May 10
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 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 1.8% per year over the past 5 years. High level of non-cash earnings (29% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (8.6% average weekly change). Reported Earnings • May 07
First quarter 2025 earnings released: EPS: NT$0.37 (vs NT$0.34 in 1Q 2024) First quarter 2025 results: EPS: NT$0.37 (up from NT$0.34 in 1Q 2024). Revenue: NT$104.7m (up 47% from 1Q 2024). Net income: NT$12.5m (up 8.0% from 1Q 2024). Profit margin: 12% (down from 16% in 1Q 2024). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$119, the stock trades at a trailing P/E ratio of 46.5x. Average trailing P/E is 17x in the Electrical industry in Taiwan. Total returns to shareholders of 20% over the past year. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$108, the stock trades at a trailing P/E ratio of 42.2x. Average trailing P/E is 17x in the Electrical industry in Taiwan. Total returns to shareholders of 9.1% over the past year. New Risk • Apr 07
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 90% Dividend per share is over 47x cash flows per share. Dividend yield: 1.9% 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 90% Dividend per share is over 47x cash flows per share. Earnings have declined by 1.7% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (6.5% average weekly change). Reported Earnings • Mar 13
Full year 2024 earnings released: EPS: NT$2.55 (vs NT$2.70 in FY 2023) Full year 2024 results: EPS: NT$2.55. Revenue: NT$413.8m (flat on FY 2023). Net income: NT$86.8m (flat on FY 2023). Profit margin: 21% (in line with FY 2023). Declared Dividend • Mar 06
Dividend increased to NT$2.30 Dividend of NT$2.30 is 4.5% higher than last year. Ex-date: 19th March 2025 Payment date: 17th April 2025 Dividend yield will be 1.4%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is not covered by earnings (101% earnings payout ratio) nor is it covered by cash flows (232% cash payout ratio). The dividend has decreased over the past 26 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 13% to bring the payout ratio under control. However, EPS has declined by 5.9% over the last 5 years so the company would need to reverse this trend. New Risk • Jan 13
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 Risks Share price has been highly volatile over the past 3 months (8.1% average weekly change). Earnings have declined by 1.5% per year over the past 5 years. New Risk • Dec 05
New major risk - Revenue and earnings growth Earnings have declined by 1.5% 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 Risk Earnings have declined by 1.5% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (7.1% average weekly change). Reported Earnings • Nov 17
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: NT$0.64 (up from NT$0.29 in 3Q 2023). Revenue: NT$98.4m (up 15% from 3Q 2023). Net income: NT$21.8m (up 131% from 3Q 2023). Profit margin: 22% (up from 11% in 3Q 2023). Revenue exceeded analyst estimates by 9.4%. Earnings per share (EPS) also surpassed analyst estimates by 36%. Revenue is forecast to grow 4.7% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Electrical industry in Taiwan. Reported Earnings • Aug 17
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: NT$0.34 (down from NT$0.82 in 2Q 2023). Revenue: NT$87.5m (down 20% from 2Q 2023). Net income: NT$11.4m (down 55% from 2Q 2023). Profit margin: 13% (down from 23% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.9%. Earnings per share (EPS) also missed analyst estimates by 31%. Revenue is forecast to grow 6.1% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Electrical industry in Taiwan. Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$157, the stock trades at a forward P/E ratio of 73x. Average forward P/E is 20x in the Electrical industry in Taiwan. Total loss to shareholders of 1.9% over the past year. New Risk • Jun 17
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 6.7% 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 Share price has been volatile over the past 3 months (6.7% average weekly change). Shareholders have been diluted in the past year (10.0% increase in shares outstanding). Valuation Update With 7 Day Price Move • May 31
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$119, the stock trades at a forward P/E ratio of 55x. Average forward P/E is 21x in the Electrical industry in Taiwan. Total loss to shareholders of 31% over the past year. Reported Earnings • May 16
First quarter 2024 earnings released: EPS: NT$0.34 (vs NT$0.73 in 1Q 2023) First quarter 2024 results: EPS: NT$0.34 (down from NT$0.73 in 1Q 2023). Revenue: NT$71.5m (down 33% from 1Q 2023). Net income: NT$11.6m (down 49% from 1Q 2023). Profit margin: 16% (down from 21% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 2.1% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electrical industry in Taiwan. New Risk • Apr 12
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.19b (US$98.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 4.3% per year for the foreseeable future. Minor Risks Short dividend paying track record (1 year of continuous dividend payments). Shareholders have been diluted in the past year (10.0% increase in shares outstanding). Market cap is less than US$100m (NT$3.19b market cap, or US$98.7m). Upcoming Dividend • Mar 15
Upcoming dividend of NT$2.20 per share Eligible shareholders must have bought the stock before 22 March 2024. Payment date: 19 April 2024. The company is paying out more than 100% of its profits and is paying out 78% of its cash flow. Trailing yield: 2.1%. Lower than top quartile of Taiwanese dividend payers (4.8%). Lower than average of industry peers (2.4%). Reported Earnings • Mar 13
Full year 2023 earnings released: EPS: NT$2.70 (vs NT$3.67 in FY 2022) Full year 2023 results: EPS: NT$2.70 (down from NT$3.67 in FY 2022). Revenue: NT$411.4m (down 5.9% from FY 2022). Net income: NT$86.8m (down 24% from FY 2022). Profit margin: 21% (down from 26% in FY 2022). Announcement • Mar 01
Wave Power Technology Inc., Annual General Meeting, Jun 07, 2024 Wave Power Technology Inc., Annual General Meeting, Jun 07, 2024. New Risk • Nov 08
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 7.4% 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 Risks Share price has been highly volatile over the past 3 months (7.4% average weekly change). High level of non-cash earnings (32% accrual ratio). Minor Risks Dividend is not well covered by cash flows (dividend per share is over 278x cash flows per share). Shareholders have been diluted in the past year (10.0% increase in shares outstanding). New Risk • Sep 25
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 10.0% 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 High level of non-cash earnings (32% accrual ratio). Minor Risks Dividend is not well covered by cash flows (dividend per share is over 278x cash flows per share). Share price has been volatile over the past 3 months (6.7% average weekly change). Shareholders have been diluted in the past year (10.0% increase in shares outstanding). Reported Earnings • Aug 11
Second quarter 2023 earnings released: EPS: NT$0.82 (vs NT$0.87 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.82 (down from NT$0.87 in 2Q 2022). Revenue: NT$109.0m (up 2.3% from 2Q 2022). Net income: NT$25.3m (down 5.5% from 2Q 2022). Profit margin: 23% (down from 25% in 2Q 2022). The decrease in margin was driven by higher expenses. New Risk • Jul 10
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 94% The company is paying a dividend despite having no free cash flows. Dividend yield: 2.1% 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 94% Paying a dividend despite having no free cash flows. High level of non-cash earnings (30% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (6.7% average weekly change). Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$187, the stock trades at a trailing P/E ratio of 51x. Average trailing P/E is 16x in the Electrical industry in Taiwan. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$175, the stock trades at a trailing P/E ratio of 47.6x. Average trailing P/E is 15x in the Electrical industry in Taiwan.