TSEC:2634

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Aerospace Industrial Development

Executive Summary

Aerospace Industrial Development Corporation engages in the development, manufacturing, integration, assembly, and testing and verification of aircraft systems and parts in Taiwan and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Aerospace Industrial Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2634 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 2634's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

8.8%

2634

7.8%

TW Aerospace & Defense

-2.0%

TW Market


1 Year Return

-3.3%

2634

-9.0%

TW Aerospace & Defense

40.8%

TW Market

Return vs Industry: 2634 exceeded the TW Aerospace & Defense industry which returned -9% over the past year.

Return vs Market: 2634 underperformed the TW Market which returned 40.8% over the past year.


Shareholder returns

2634IndustryMarket
7 Day8.8%7.8%-2.0%
30 Day11.6%9.8%4.0%
90 Day5.6%3.4%14.6%
1 Year0.7%-3.3%-5.0%-9.0%45.8%40.8%
3 Year-0.2%-11.3%-7.4%-17.5%65.6%46.9%
5 Year-3.1%-18.9%38.5%33.0%119.9%81.2%

Long-Term Price Volatility Vs. Market

How volatile is Aerospace Industrial Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aerospace Industrial Development undervalued compared to its fair value and its price relative to the market?

39.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2634 (NT$30.3) is trading above our estimate of fair value (NT$15.7)

Significantly Below Fair Value: 2634 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2634's PE Ratio (39.9x) is in line with the TW Aerospace & Defense industry average.

PE vs Market: 2634 is poor value based on its PE Ratio (39.9x) compared to the TW market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: 2634 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 2634 is overvalued based on its PB Ratio (2.1x) compared to the TW Aerospace & Defense industry average (1.5x).


Next Steps

Future Growth

How is Aerospace Industrial Development forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

100.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2634's forecast earnings growth (100.4% per year) is above the savings rate (0.8%).

Earnings vs Market: 2634's earnings (100.4% per year) are forecast to grow faster than the TW market (18.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2634's revenue (13% per year) is forecast to grow faster than the TW market (11% per year).

High Growth Revenue: 2634's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2634's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Aerospace Industrial Development performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2634 has high quality earnings.

Growing Profit Margin: 2634's current net profit margins (3.1%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: 2634's earnings have declined by 6.9% per year over the past 5 years.

Accelerating Growth: 2634's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2634 had negative earnings growth (-63.1%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-63.1%).


Return on Equity

High ROE: 2634's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Aerospace Industrial Development's financial position?


Financial Position Analysis

Short Term Liabilities: 2634's short term assets (NT$30.8B) exceed its short term liabilities (NT$21.2B).

Long Term Liabilities: 2634's short term assets (NT$30.8B) exceed its long term liabilities (NT$9.8B).


Debt to Equity History and Analysis

Debt Level: 2634's debt to equity ratio (174.7%) is considered high.

Reducing Debt: 2634's debt to equity ratio has increased from 111.7% to 174.7% over the past 5 years.

Debt Coverage: 2634's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: 2634's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Aerospace Industrial Development current dividend yield, its reliability and sustainability?

3.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2634's dividend (3.93%) is higher than the bottom 25% of dividend payers in the TW market (1.97%).

High Dividend: 2634's dividend (3.93%) is low compared to the top 25% of dividend payers in the TW market (4.93%).


Stability and Growth of Payments

Stable Dividend: 2634 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2634's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (156.9%), 2634's dividend payments are not 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?

2.4yrs

Average management tenure


CEO

Wan-June Ma

1.92yrs

Tenure

Mr. Wan-June Ma serves as Executive Director and President at Aerospace Industrial Development Corporation since March 18, 2019.


Leadership Team

NamePositionTenureCompensationOwnership
Wan-June Ma
President & Executive Director1.92yrsno data0.014%
NT$ 4.0m
Hsiu-Yen Huang
Director of Financial & Accounting2.42yrsno datano data
Fu-Ji Lin
Chief Audit Executive & Director of Human Resources Departmentno datano datano data
Shiu-Chun Du
Vice Presidentno datano data0.015%
NT$ 4.3m
Poa-Hua Ho
Vice President5.25yrsno data0.020%
NT$ 5.6m
ShuYuan Huang
Vice President2.42yrsno datano data
Ching-Chi Lo
Vice President of Civil Business3.5yrsno data0.011%
NT$ 3.0m
Jennifer Chuang
Senior VP and Director of Strategy & Operational Management Department0.33yrno datano data
Xiumei Zhuang
Deputy General Manager of Professional Engineering1.08yrsno datano data

2.4yrs

Average Tenure

Experienced Management: 2634's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wan-June Ma
President & Executive Director1.92yrsno data0.014%
NT$ 4.0m
Ming-Jong Liou
Director1.33yrsno datano data
Chia-Chung Chan
Executive & Independent Director2.67yrsno datano data
Fuh-Sheng Shieu
Representative Director4.58yrsno datano data
Cheng-Tao Yu
Representative Director3.17yrsno data0.011%
NT$ 3.2m
Yin-Chin Chen
Independent Director2.67yrsno datano data
Ming-Pin Chang
Representative Director2.67yrsno datano data
Heng-Pu Hsu
Representative Director2yrsno datano data
Kai-Hung Hu
Chairman of the Board1.92yrsno data0.0032%
NT$ 910.4k
Chung-Ming Hsu
Representative Director2.67yrsno data0.0080%
NT$ 2.3m
Li-Jen Lien
Independent Director1.75yrsno datano data

2.7yrs

Average Tenure

Experienced Board: 2634's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

Aerospace Industrial Development Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aerospace Industrial Development Corporation
  • Ticker: 2634
  • Exchange: TSEC
  • Founded: 1969
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: NT$28.539b
  • Shares outstanding: 941.87m
  • Website: https://www.aidc.com.tw

Number of Employees


Location

  • Aerospace Industrial Development Corporation
  • No. 1, Hanxiang Road
  • Xitun District
  • Taichung
  • 407803
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2634TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDAug 2014

Biography

Aerospace Industrial Development Corporation engages in the development, manufacturing, integration, assembly, and testing and verification of aircraft systems and parts in Taiwan and internationally. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 08:37
End of Day Share Price2021/02/26 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.