Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$47.00, the stock trades at a trailing P/E ratio of 18.2x. Average trailing P/E is 28x in the Machinery industry in Taiwan. Total loss to shareholders of 68% over the past three years. Reported Earnings • May 19
First quarter 2026 earnings released: EPS: NT$0.30 (vs NT$0.62 in 1Q 2025) First quarter 2026 results: EPS: NT$0.30 (down from NT$0.62 in 1Q 2025). Revenue: NT$1.64b (up 13% from 1Q 2025). Net income: NT$60.6m (down 51% from 1Q 2025). Profit margin: 3.7% (down from 8.5% in 1Q 2025). 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 fallen by 29% per year, which means it is performing significantly worse than earnings. Reported Earnings • Mar 13
Full year 2025 earnings released: EPS: NT$2.90 (vs NT$3.06 in FY 2024) Full year 2025 results: EPS: NT$2.90 (down from NT$3.06 in FY 2024). Revenue: NT$6.63b (up 14% from FY 2024). Net income: NT$579.8m (down 2.3% from FY 2024). Profit margin: 8.7% (down from 10% 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 1% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Declared Dividend • Mar 08
Dividend reduced to NT$1.20 Dividend of NT$1.20 is 1.6% lower than last year. Ex-date: 20th March 2026 Payment date: 22nd April 2026 Dividend yield will be 2.4%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (46% earnings payout ratio) but not covered by cash flows (211% cash payout ratio). The dividend has decreased over the past 96 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 49% to shift the payout ratio to a potentially unsustainable range, which is more than the 4.8% EPS decline seen over the last 5 years. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$49.70, the stock trades at a trailing P/E ratio of 18.7x. Average trailing P/E is 27x in the Machinery industry in Taiwan. Total loss to shareholders of 23% over the past three years. Buy Or Sell Opportunity • Dec 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.2% to NT$61.70. The fair value is estimated to be NT$77.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 6.8%. Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: NT$0.66 (vs NT$0.65 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.66 (up from NT$0.65 in 3Q 2024). Revenue: NT$1.71b (up 25% from 3Q 2024). Net income: NT$131.1m (up 4.2% from 3Q 2024). Profit margin: 7.7% (down from 9.2% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Nov 17
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.1% to NT$59.00. The fair value is estimated to be NT$77.18, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 17%. Valuation Update With 7 Day Price Move • Oct 08
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$76.60, the stock trades at a trailing P/E ratio of 29x. Average forward P/E is 31x in the Machinery industry in Taiwan. Total returns to shareholders of 145% over the past three years. Buy Or Sell Opportunity • Sep 26
Now 20% undervalued Over the last 90 days, the stock has risen 21% to NT$63.30. The fair value is estimated to be NT$79.53, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 17%. Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$69.40, the stock trades at a trailing P/E ratio of 26.3x. Average forward P/E is 24x in the Machinery industry in Taiwan. Total returns to shareholders of 84% over the past three years. Reported Earnings • Aug 17
Second quarter 2025 earnings released: EPS: NT$1.07 (vs NT$1.04 in 2Q 2024) Second quarter 2025 results: EPS: NT$1.07 (up from NT$1.04 in 2Q 2024). Revenue: NT$1.69b (up 1.7% from 2Q 2024). Net income: NT$214.9m (up 6.5% from 2Q 2024). Profit margin: 13% (in line with 2Q 2024). Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 18% per year. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$63.60, the stock trades at a trailing P/E ratio of 24.7x. Average forward P/E is 20x in the Machinery industry in Taiwan. Total returns to shareholders of 80% over the past three years. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.62 (vs NT$1.05 in 1Q 2024) First quarter 2025 results: EPS: NT$0.62 (down from NT$1.05 in 1Q 2024). Revenue: NT$1.45b (down 6.7% from 1Q 2024). Net income: NT$123.1m (down 39% from 1Q 2024). Profit margin: 8.5% (down from 13% 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 27% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • May 06
Waffer Technology Corporation to Report Q1, 2025 Results on May 13, 2025 Waffer Technology Corporation announced that they will report Q1, 2025 results on May 13, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$41.20, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 21x in the Machinery industry in Taiwan. Total returns to shareholders of 18% over the past three years. Upcoming Dividend • Mar 14
Upcoming dividend of NT$1.22 per share Eligible shareholders must have bought the stock before 21 March 2025. Payment date: 23 April 2025. Payout ratio is a comfortable 40% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of Taiwanese dividend payers (4.5%). Lower than average of industry peers (2.5%). Reported Earnings • Mar 03
Full year 2024 earnings released: EPS: NT$3.06 (vs NT$4.17 in FY 2023) Full year 2024 results: EPS: NT$3.06 (down from NT$4.17 in FY 2023). Revenue: NT$5.83b (up 1.0% from FY 2023). Net income: NT$593.7m (down 26% from FY 2023). Profit margin: 10% (down from 14% in FY 2023). Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Declared Dividend • Feb 27
Dividend reduced to NT$1.22 Dividend of NT$1.22 is 27% lower than last year. Ex-date: 21st March 2025 Payment date: 23rd April 2025 Dividend yield will be 1.9%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (46% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 86 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 80% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 18
Waffer Technology Corporation to Report Fiscal Year 2024 Results on Feb 25, 2025 Waffer Technology Corporation announced that they will report fiscal year 2024 results at 1:30 PM, Taipei Standard Time on Feb 25, 2025 New Risk • Jan 04
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.5% 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 (23% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.3% average weekly change). Shareholders have been diluted in the past year (3.5% increase in shares outstanding). New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.4% average weekly change). Reported Earnings • Nov 17
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: NT$0.65 (down from NT$1.04 in 3Q 2023). Revenue: NT$1.37b (down 5.6% from 3Q 2023). Net income: NT$125.8m (down 37% from 3Q 2023). Profit margin: 9.2% (down from 14% in 3Q 2023). Revenue missed analyst estimates by 43%. Earnings per share (EPS) also missed analyst estimates by 70%. Revenue is forecast to grow 54% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 50% per year whereas the company’s share price has increased by 53% per year. New Risk • Nov 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 6.3% 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 Risk High level of non-cash earnings (33% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.3% average weekly change). Announcement • Nov 05
Waffer Technology Corporation to Report Q3, 2024 Results on Nov 12, 2024 Waffer Technology Corporation announced that they will report Q3, 2024 results on Nov 12, 2024 Reported Earnings • Aug 16
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: NT$1.04 (down from NT$1.17 in 2Q 2023). Revenue: NT$1.66b (up 16% from 2Q 2023). Net income: NT$201.7m (down 10% from 2Q 2023). Profit margin: 12% (down from 16% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 20%. Earnings per share (EPS) also missed analyst estimates by 42%. Revenue is forecast to grow 47% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 57% per year whereas the company’s share price has increased by 62% per year. Announcement • Aug 03
Waffer Technology Corporation to Report Q2, 2024 Results on Aug 12, 2024 Waffer Technology Corporation announced that they will report Q2, 2024 results on Aug 12, 2024 Announcement • May 30
Waffer Technology Corporation Announces Election of Directors Waffer Technology Corporation at shareholders meeting on May 28, 2024 the company approved election of Director-Chiu, Chih-Ko, Director-Getac Holdings Corp. Miau, Joseph, Independent Director-Hwang, Jung-ChiouIndependent Director-Dzeng, Chwei-Ji, Independent Director-Liu, Yin-Fei, and Independent Director-Chen, Han-Tung. Resume of the new position holder: Chiu, Chih-Ko/Director, Waffer Technology Corp, Director-Getac Holdings Corp.Miau, Joseph/Director, Waffer Technology Corp. Independent director-Hwang, Jung-Chiou/Independent director, Waffer Technology Corp. Independent director-Dzeng, Chwei-Ji/Independent director, Waffer Technology Corp.Independent director:Liu, Yin-Fei/Independent director, Waffer Technology Corp. Independent director:Chen, Han-Tung/Independent director, Waffer. Effective date of the new appointment is May 28, 2024. Reported Earnings • May 15
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: NT$1.05 (up from NT$1.04 in 1Q 2023). Revenue: NT$1.56b (up 16% from 1Q 2023). Net income: NT$202.6m (up 1.2% from 1Q 2023). Profit margin: 13% (down from 15% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 31%. Revenue is forecast to grow 43% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has increased by 71% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 03
Waffer Technology Corporation to Report Q1, 2024 Results on May 09, 2024 Waffer Technology Corporation announced that they will report Q1, 2024 results on May 09, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of NT$1.68 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 April 2024. Payout ratio is a comfortable 40% but the company is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of Taiwanese dividend payers (4.7%). Lower than average of industry peers (2.7%). Announcement • Mar 14
Waffer Technology Corporation, Annual General Meeting, May 28, 2024 Waffer Technology Corporation, Annual General Meeting, May 28, 2024. Reported Earnings • Mar 03
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: NT$4.17 (up from NT$1.83 in FY 2022). Revenue: NT$5.77b (up 39% from FY 2022). Net income: NT$802.6m (up 148% from FY 2022). Profit margin: 14% (up from 7.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 8.4%. Revenue is forecast to grow 39% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 73% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Mar 02
Dividend increased to NT$1.68 Dividend of NT$1.68 is 140% higher than last year. Ex-date: 28th March 2024 Payment date: 26th April 2024 Dividend yield will be 1.6%, which is lower than the industry average of 3.0%. Announcement • Mar 01
Waffer Technology Corporation Proposes Cash Dividend for 2023 Waffer Technology Corporation Board of Directors of Waffer approved the dividend distribution plan for 2023, proposing a cash dividend of TWD 1.68 per share. Valuation Update With 7 Day Price Move • Oct 20
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$116, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 22x in the Machinery industry in Taiwan. Total returns to shareholders of 668% over the past three years. Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$141, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 22x in the Machinery industry in Taiwan. Total returns to shareholders of 798% over the past three years. Reported Earnings • Aug 17
Second quarter 2023 earnings released: EPS: NT$1.17 (vs NT$0.089 in 2Q 2022) Second quarter 2023 results: EPS: NT$1.17 (up from NT$0.089 in 2Q 2022). Revenue: NT$1.43b (up 56% from 2Q 2022). Net income: NT$224.3m (up NT$209.0m from 2Q 2022). Profit margin: 16% (up from 1.7% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 38% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Machinery industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 99% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$134, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 25x in the Machinery industry in Taiwan. Total returns to shareholders of 832% over the past three years. New Risk • Jul 06
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 20% 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 Risks Share price has been highly volatile over the past 3 months (9.0% average weekly change). High level of non-cash earnings (20% accrual ratio). Minor Risk Shareholders have been diluted in the past year (11% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$151, the stock trades at a trailing P/E ratio of 66.8x. Average trailing P/E is 16x in the Machinery industry in Taiwan. Total returns to shareholders of 1,094% over the past three years. Valuation Update With 7 Day Price Move • May 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$106, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 17x in the Machinery industry in Taiwan. Total returns to shareholders of 991% over the past three years. Valuation Update With 7 Day Price Move • Apr 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$82.10, the stock trades at a trailing P/E ratio of 48.7x. Average trailing P/E is 14x in the Machinery industry in Taiwan. Total returns to shareholders of 899% over the past three years. Upcoming Dividend • Mar 17
Upcoming dividend of NT$0.70 per share at 1.0% yield Eligible shareholders must have bought the stock before 24 March 2023. Payment date: 26 April 2023. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Taiwanese dividend payers (6.2%). Lower than average of industry peers (3.2%). Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$64.10, the stock trades at a trailing P/E ratio of 38x. Average trailing P/E is 13x in the Machinery industry in Taiwan. Total returns to shareholders of 518% over the past three years. Reported Earnings • Feb 26
Full year 2022 earnings released: EPS: NT$1.83 (vs NT$0.96 in FY 2021) Full year 2022 results: EPS: NT$1.83 (up from NT$0.96 in FY 2021). Revenue: NT$4.16b (up 47% from FY 2021). Net income: NT$323.0m (up 96% from FY 2021). Profit margin: 7.8% (up from 5.8% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 66% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$46.90, the stock trades at a trailing P/E ratio of 31.8x. Average trailing P/E is 13x in the Machinery industry in Taiwan. Total returns to shareholders of 318% over the past three years. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$0.50 (vs NT$0.10 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.50 (up from NT$0.10 in 3Q 2021). Revenue: NT$1.09b (up 65% from 3Q 2021). Net income: NT$87.5m (up 402% from 3Q 2021). Profit margin: 8.0% (up from 2.6% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. 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. 7 experienced directors. 3 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Huai Jia Luo was the last independent director to join the board, commencing their role in 2012. 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 • Nov 13
Third quarter 2022 earnings released: EPS: NT$0.50 (vs NT$0.10 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.50 (up from NT$0.10 in 3Q 2021). Revenue: NT$1.09b (up 65% from 3Q 2021). Net income: NT$87.5m (up 402% from 3Q 2021). Profit margin: 8.0% (up from 2.6% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 19% share price decline to NT$31.05, the stock trades at a trailing P/E ratio of 25.3x. Average trailing P/E is 13x in the Machinery industry in Taiwan. Total returns to shareholders of 147% over the past three years. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$0.09 (vs NT$0.18 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.09 (down from NT$0.18 in 2Q 2021). Revenue: NT$920.9m (up 39% from 2Q 2021). Net income: NT$15.3m (down 50% from 2Q 2021). Profit margin: 1.7% (down from 4.7% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 47% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$38.30, the stock trades at a trailing P/E ratio of 29.1x. Average trailing P/E is 13x in the Machinery industry in Taiwan. Total returns to shareholders of 241% over the past three years. Valuation Update With 7 Day Price Move • May 30
Investor sentiment improved over the past week After last week's 18% share price gain to NT$44.65, the stock trades at a trailing P/E ratio of 33.9x. Average trailing P/E is 14x in the Machinery industry in Taiwan. Total returns to shareholders of 300% over the past three years. Reported Earnings • May 17
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: NT$0.52 (up from NT$0.16 in 1Q 2021). Revenue: NT$927.1m (up 45% from 1Q 2021). Net income: NT$90.3m (up 234% from 1Q 2021). Profit margin: 9.7% (up from 4.2% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 100%. Earnings per share (EPS) exceeded analyst estimates. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 46% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 06
Investor sentiment improved over the past week After last week's 17% share price gain to NT$42.55, the stock trades at a trailing P/E ratio of 44.7x. Average trailing P/E is 15x in the Machinery industry in Taiwan. Total returns to shareholders of 284% over the past three years. 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. 7 experienced directors. 3 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Huai Jia Luo was the last independent director to join the board, commencing their role in 2012. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Apr 14
Upcoming dividend of NT$0.30 per share Eligible shareholders must have bought the stock before 21 April 2022. Payment date: 19 May 2022. Payout ratio is a comfortable 31% but the company is not cash flow positive. Trailing yield: 0.8%. Lower than top quartile of Taiwanese dividend payers (5.7%). Lower than average of industry peers (3.2%). Announcement • Apr 07
Waffer Technology Corporation, Annual General Meeting, Jun 21, 2022 Waffer Technology Corporation, Annual General Meeting, Jun 21, 2022. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 20% share price gain to NT$37.35, the stock trades at a trailing P/E ratio of 39.2x. Average trailing P/E is 17x in the Machinery industry in Taiwan. Total returns to shareholders of 119% over the past three years. Reported Earnings • Feb 27
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: NT$0.96 (down from NT$3.85 in FY 2020). Revenue: NT$2.82b (up 41% from FY 2020). Net income: NT$164.7m (down 75% from FY 2020). Profit margin: 5.8% (down from 33% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 100%. Earnings per share (EPS) exceeded analyst estimates. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment improved over the past week After last week's 15% share price gain to NT$36.10, the stock trades at a trailing P/E ratio of 41.6x. Average trailing P/E is 16x in the Machinery industry in Taiwan. Total returns to shareholders of 114% over the past three years. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.10 (vs NT$0.063 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$658.6m (up 32% from 3Q 2020). Net income: NT$17.4m (up 63% from 3Q 2020). Profit margin: 2.6% (up from 2.1% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment improved over the past week After last week's 18% share price gain to NT$20.50, the stock trades at a trailing P/E ratio of 24.6x. Average trailing P/E is 17x in the Machinery industry in Taiwan. Total returns to shareholders of 51% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$0.18 (vs NT$3.49 in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: NT$662.7m (up 75% from 2Q 2020). Net income: NT$30.8m (down 95% from 2Q 2020). Profit margin: 4.7% (down from 155% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$0.16 (vs NT$0.14 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$637.7m (up 42% from 1Q 2020). Net income: NT$27.1m (up NT$50.5m from 1Q 2020). Profit margin: 4.2% (up from net loss in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 14
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$16.85, the stock trades at a trailing P/E ratio of 4.4x. Average trailing P/E is 17x in the Machinery industry in Taiwan. Total returns to shareholders of 5.6% over the past three years. Upcoming Dividend • Apr 15
Upcoming dividend of NT$0.60 per share Eligible shareholders must have bought the stock before 22 April 2021. Payment date: 21 May 2021. Trailing yield: 2.5%. Lower than top quartile of Taiwanese dividend payers (4.8%). In line with average of industry peers (2.3%). Reported Earnings • Feb 28
Full year 2020 earnings released: EPS NT$3.85 (vs NT$3.00 loss in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: NT$2.00b (down 8.7% from FY 2019). Net income: NT$649.8m (up NT$1.15b from FY 2019). Profit margin: 33% (up from net loss in FY 2019). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Jan 27
New 90-day high: NT$22.65 The company is up 46% from its price of NT$15.50 on 29 October 2020. The Taiwanese market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 25% over the same period. Is New 90 Day High Low • Jan 11
New 90-day high: NT$21.30 The company is up 31% from its price of NT$16.20 on 13 October 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 24% over the same period. Valuation Update With 7 Day Price Move • Dec 28
Investor sentiment improved over the past week After last week's 17% share price gain to NT$20.15, the stock is trading at a trailing P/E ratio of 5.9x, up from the previous P/E ratio of 5.1x. This compares to an average P/E of 17x in the Machinery industry in Taiwan. Total returns to shareholders over the past three years were flat. Is New 90 Day High Low • Dec 25
New 90-day high: NT$18.90 The company is up 26% from its price of NT$14.95 on 25 September 2020. The Taiwanese market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 20% over the same period. Is New 90 Day High Low • Dec 03
New 90-day high: NT$17.60 The company is up 6.0% from its price of NT$16.55 on 04 September 2020. The Taiwanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Machinery industry, which is up 5.0% over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS NT$0.06 The company reported a solid third quarter result with improved earnings and profit margins, although revenues were flat. Third quarter 2020 results: Revenue: NT$500.4m (flat on 3Q 2019). Net income: NT$10.7m (up NT$167.6m from 3Q 2019). Profit margin: 2.1% (up from net loss in 3Q 2019). The move to profitability was primarily driven by lower expenses. 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 2% per year.