TSEC:1605

Stock Analysis Report

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Executive Summary

Walsin Lihwa Corporation manufactures and sells bare copper wires, wires and cables, and specialty steel products in Asia, the United States, Europe, and internationally. More Details


Snowflake Analysis

Undervalued with proven track record.

Share Price & News

How has Walsin Lihwa's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1605 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1605's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.8%

1605

1.5%

TW Electrical

0.9%

TW Market


1 Year Return

29.7%

1605

18.5%

TW Electrical

18.7%

TW Market

Return vs Industry: 1605 exceeded the TW Electrical industry which returned 18% over the past year.

Return vs Market: 1605 exceeded the TW Market which returned 17.8% over the past year.


Shareholder returns

1605IndustryMarket
7 Day2.8%1.5%0.9%
30 Day5.7%3.4%7.1%
90 Day11.7%6.7%8.2%
1 Year34.3%29.7%23.2%18.5%23.0%18.7%
3 Year29.7%11.1%28.8%14.2%44.9%28.8%
5 Year224.8%157.6%83.9%51.6%94.4%60.3%

Long-Term Price Volatility Vs. Market

How volatile is Walsin Lihwa's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Walsin Lihwa undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1605 (NT$18.55) is trading below our estimate of fair value (NT$85.06)

Significantly Below Fair Value: 1605 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1605 is good value based on its PE Ratio (10.6x) compared to the TW Electrical industry average (16.2x).

PE vs Market: 1605 is good value based on its PE Ratio (10.6x) compared to the TW market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1605's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1605 is good value based on its PB Ratio (0.8x) compared to the TW Electrical industry average (1.4x).


Next Steps

Future Growth

How is Walsin Lihwa forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Walsin Lihwa has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Walsin Lihwa performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1605 has a large one-off gain of NT$2.0B impacting its September 30 2020 financial results.

Growing Profit Margin: 1605's current net profit margins (5.1%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: 1605's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: 1605's earnings growth over the past year (65.9%) exceeds its 5-year average (11.9% per year).

Earnings vs Industry: 1605 earnings growth over the past year (65.9%) exceeded the Electrical industry 1.8%.


Return on Equity

High ROE: 1605's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is Walsin Lihwa's financial position?


Financial Position Analysis

Short Term Liabilities: 1605's short term assets (NT$54.1B) exceed its short term liabilities (NT$27.7B).

Long Term Liabilities: 1605's short term assets (NT$54.1B) exceed its long term liabilities (NT$34.3B).


Debt to Equity History and Analysis

Debt Level: 1605's debt to equity ratio (50.1%) is considered high.

Reducing Debt: 1605's debt to equity ratio has increased from 46.3% to 50.1% over the past 5 years.

Debt Coverage: 1605's debt is well covered by operating cash flow (22.5%).

Interest Coverage: 1605's interest payments on its debt are well covered by EBIT (48.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Walsin Lihwa current dividend yield, its reliability and sustainability?

2.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1605's dividend (2.73%) is higher than the bottom 25% of dividend payers in the TW market (2.15%).

High Dividend: 1605's dividend (2.73%) is low compared to the top 25% of dividend payers in the TW market (5.24%).


Stability and Growth of Payments

Stable Dividend: 1605's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1605's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.9%), 1605's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Fred Pan

1.42yrs

Tenure

Mr. Wen-Hu Pan, also known as Fred, has been President of Walsin Lihwa Corporation since June 13, 2019 and serves as its Senior General Manager of Commerce & Real Estate BU. Mr. Pan served as Vice Presiden...


Leadership Team

NamePositionTenureCompensationOwnership
Wen-Hu Pan
President and Senior GM of Commerce & Real Estate BU1.42yrsno data0.0033%
NT$ 2.0m
Cheng-Chiang Chen
Executive VP & VP of Finance0.25yrno data0.0073%
NT$ 4.3m
Chin-Sheng Wu
Director of Accounting2.67yrsno datano data
Sherry Ho
Company Secretary0.83yrno datano data
Hsu Allen
Chief of Staff & Head of HR Department1yrno datano data
Jin-Renn Leu
President of Insulated Wire & Cable Business Group0.83yrno data0.0016%
NT$ 953.1k
Kevin Niu
President of Stainless Steel Business Group0.83yrno datano data
Josh Chia
President of Commodity Business Group0.83yrno datano data
Jen-Chan Huang
Copper Wire BU Controllerno datano datano data

0.8yrs

Average Tenure

Experienced Management: 1605's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yu-Lon Chiao
Chairman24.5yrsNT$381.00k2.03%
NT$ 1.2b
Yu-Cheng Chiao
Director39.58yrsNT$2.18m1.81%
NT$ 1.1b
Hui-Ming Cheng
Director18.42yrsNT$329.32k0.031%
NT$ 18.4m
Pei-Ming Chen
Director0.50yrno datano data
Yu-Heng Chiao
Director30.58yrsNT$249.00k2.19%
NT$ 1.3b
Yu-Hwei Chiao
Vice Chairman4.33yrsNT$132.00k2.85%
NT$ 1.7b
Shiang-Chung Chen
Independent Director6.42yrsNT$634.50kno data
Ming-Ling Hsueh
Independent Director6.42yrsNT$630.67kno data
King-Ling Du
Independent Director6.42yrsNT$742.50k0.000030%
NT$ 17.8k
Wei-Shin Ma
Director6.42yrsNT$146.00k1.74%
NT$ 1.0b
Ruey-Long Chen
Independent Director3.5yrsno datano data

6.4yrs

Average Tenure

Experienced Board: 1605's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Walsin Lihwa Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Walsin Lihwa Corporation
  • Ticker: 1605
  • Exchange: TSEC
  • Founded: 1966
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: NT$59.197b
  • Shares outstanding: 3.23b
  • Website: https://www.walsin.com

Number of Employees


Location

  • Walsin Lihwa Corporation
  • No. 1, Songzhi Road
  • 25th Floor
  • Taipei
  • 11047
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1605TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDJul 1986
WLSRSBDL (Bourse de Luxembourg)GDR-EACH REPR 10 SHS TWD10 REG SLUUSDOct 1995
WLSR1BDL (Bourse de Luxembourg)GDR 144ALUUSDMar 2001

Biography

Walsin Lihwa Corporation manufactures and sells bare copper wires, wires and cables, and specialty steel products in Asia, the United States, Europe, and internationally. The company offers copper bars, po...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 08:35
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.