Valuation Update With 7 Day Price Move • May 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$40.70, the stock trades at a trailing P/E ratio of 14.3x. Average trailing P/E is 18x in the Commercial Services industry in Taiwan. Total returns to shareholders of 45% over the past three years. Reported Earnings • May 20
First quarter 2026 earnings released: EPS: NT$1.23 (vs NT$0.92 in 1Q 2025) First quarter 2026 results: EPS: NT$1.23 (up from NT$0.92 in 1Q 2025). Revenue: NT$1.29b (up 10% from 1Q 2025). Net income: NT$222.0m (up 33% from 1Q 2025). Profit margin: 17% (up from 14% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 21
Full year 2025 earnings released: EPS: NT$2.55 (vs NT$0.97 in FY 2024) Full year 2025 results: EPS: NT$2.55 (up from NT$0.97 in FY 2024). Revenue: NT$5.12b (up 51% from FY 2024). Net income: NT$461.9m (up 176% from FY 2024). Profit margin: 9.0% (up from 4.9% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • Mar 13
Forest Water Environmental Engineering Co., Ltd., Annual General Meeting, Jun 15, 2026 Forest Water Environmental Engineering Co., Ltd., Annual General Meeting, Jun 15, 2026. Location: b1 floor no,162, sung chiang rd., jhongshan district, taipei city Taiwan Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: NT$0.54 (vs NT$0.008 loss in 3Q 2024) Third quarter 2025 results: EPS: NT$0.54 (up from NT$0.008 loss in 3Q 2024). Revenue: NT$1.48b (up 86% from 3Q 2024). Net income: NT$97.8m (up NT$99.3m from 3Q 2024). Profit margin: 6.6% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 101% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 17
Second quarter 2025 earnings released: EPS: NT$0.59 (vs NT$0.20 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.59 (up from NT$0.20 in 2Q 2024). Revenue: NT$953.5m (up 42% from 2Q 2024). Net income: NT$106.7m (up 219% from 2Q 2024). Profit margin: 11% (up from 5.0% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 16
Upcoming dividend of NT$0.72 per share Eligible shareholders must have bought the stock before 23 July 2025. Payment date: 13 August 2025. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (4.5%). Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.92 (vs NT$0.79 in 1Q 2024) First quarter 2025 results: EPS: NT$0.92 (up from NT$0.79 in 1Q 2024). Revenue: NT$1.17b (up 57% from 1Q 2024). Net income: NT$167.1m (up 30% from 1Q 2024). Profit margin: 14% (down from 17% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • May 06
Forest Water Environmental Engineering Co., Ltd. to Report Q1, 2025 Results on May 13, 2025 Forest Water Environmental Engineering Co., Ltd. announced that they will report Q1, 2025 results on May 13, 2025 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to NT$24.80, the stock trades at a trailing P/E ratio of 26.8x. Average trailing P/E is 17x in the Commercial Services industry in Taiwan. Total loss to shareholders of 17% over the past three years. New Risk • Apr 07
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.5% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining 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 Risk Earnings have declined by 28% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Mar 27
Full year 2024 earnings released: EPS: NT$0.97 (vs NT$0.26 in FY 2023) Full year 2024 results: EPS: NT$0.97 (up from NT$0.26 in FY 2023). Revenue: NT$3.39b (down 8.0% from FY 2023). Net income: NT$167.2m (up 321% from FY 2023). Profit margin: 4.9% (up from 1.1% in FY 2023). The increase in margin was driven by lower expenses. 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 3% per year, which means it is significantly lagging earnings growth. Announcement • Mar 14
Forest Water Environmental Engineering Co., Ltd., Annual General Meeting, Jun 26, 2025 Forest Water Environmental Engineering Co., Ltd., Annual General Meeting, Jun 26, 2025. Location: b1 floor no,162, sung chiang rd., jhongshan district, taipei city Taiwan Announcement • Mar 06
Forest Water Environmental Engineering Co., Ltd. to Report Q4, 2024 Results on Mar 13, 2025 Forest Water Environmental Engineering Co., Ltd. announced that they will report Q4, 2024 results on Mar 13, 2025 New Risk • Dec 05
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 34% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (15% increase in shares outstanding). Reported Earnings • Nov 19
Third quarter 2024 earnings released: NT$0.01 loss per share (vs NT$0.24 profit in 3Q 2023) Third quarter 2024 results: NT$0.01 loss per share (down from NT$0.24 profit in 3Q 2023). Revenue: NT$797.7m (down 4.1% from 3Q 2023). Net loss: NT$1.45m (down 104% from profit in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 4% per year. Announcement • Nov 05
Forest Water Environmental Engineering Co., Ltd. to Report Q3, 2024 Results on Nov 12, 2024 Forest Water Environmental Engineering Co., Ltd. announced that they will report Q3, 2024 results on Nov 12, 2024 Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$0.21 (vs NT$0.08 loss in 2Q 2023) Second quarter 2024 results: EPS: NT$0.21 (up from NT$0.08 loss in 2Q 2023). Revenue: NT$670.0m (down 36% from 2Q 2023). Net income: NT$33.4m (up NT$45.2m from 2Q 2023). Profit margin: 5.0% (up from net loss in 2Q 2023). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$40.40, the stock trades at a trailing P/E ratio of 34.6x. Average trailing P/E is 27x in the Commercial Services industry in Taiwan. Total returns to shareholders of 16% over the past three years. Announcement • Aug 02
Forest Water Environmental Engineering Co., Ltd. to Report Q2, 2024 Results on Aug 09, 2024 Forest Water Environmental Engineering Co., Ltd. announced that they will report Q2, 2024 results on Aug 09, 2024 Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$51.80, the stock trades at a trailing P/E ratio of 44.3x. Average trailing P/E is 29x in the Commercial Services industry in Taiwan. Total returns to shareholders of 47% over the past three years. New Risk • Jun 05
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 64% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 48% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (11% increase in shares outstanding). Reported Earnings • May 19
First quarter 2024 earnings released: EPS: NT$0.81 (vs NT$0.15 loss in 1Q 2023) First quarter 2024 results: EPS: NT$0.81 (up from NT$0.15 loss in 1Q 2023). Revenue: NT$745.1m (down 22% from 1Q 2023). Net income: NT$129.0m (up NT$150.3m from 1Q 2023). Profit margin: 17% (up from net loss in 1Q 2023). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • May 05
Forest Water Environmental Engineering Co., Ltd. to Report Q1, 2024 Results on May 13, 2024 Forest Water Environmental Engineering Co., Ltd. announced that they will report Q1, 2024 results on May 13, 2024 New Risk • Apr 22
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 8.5% 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 (8.5% average weekly change). Earnings have declined by 54% per year over the past 5 years. Minor Risk Shareholders have been diluted in the past year (9.1% increase in shares outstanding). Reported Earnings • Mar 31
Full year 2023 earnings released: EPS: NT$0.27 (vs NT$1.89 loss in FY 2022) Full year 2023 results: EPS: NT$0.27 (up from NT$1.89 loss in FY 2022). Revenue: NT$3.68b (down 6.2% from FY 2022). Net income: NT$39.8m (up NT$312.8m from FY 2022). Profit margin: 1.1% (up from net loss in FY 2022). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 84 percentage points per year, which is a significant difference in performance. Announcement • Mar 16
Forest Water Environmental Engineering Co., Ltd., Annual General Meeting, Jun 13, 2024 Forest Water Environmental Engineering Co., Ltd., Annual General Meeting, Jun 13, 2024. Location: B1.,No.162,Songjiang Rd.,Zhongshan Dist.,Taipei City,Taiwan(R.O.C.) Taipei City Taiwan Agenda: To consider 2023 business report; to consider Supervisor's review of the 2023 annual final accounting ledgers and statements; to consider Report on 2023 employees' and directors' remuneration; to consider Cause for convening the meeting; and to discuss other matters. New Risk • Feb 15
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 9.1% 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 Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings have declined by 54% per year over the past 5 years. Minor Risk Shareholders have been diluted in the past year (9.1% increase in shares outstanding). Announcement • Oct 19
Forest Water Environmental Engineering Co., Ltd. announced a financing transaction Forest Water Environmental Engineering Co., Ltd. announced a private placement to issue not less than 23,000,000 shares at an issue price no less than 80% of the reference price on October 17, 2023. The transaction has been approved by the shareholders of the company. Reported Earnings • Aug 19
Second quarter 2023 earnings released: NT$0.08 loss per share (vs NT$0.13 profit in 2Q 2022) Second quarter 2023 results: NT$0.08 loss per share (down from NT$0.13 profit in 2Q 2022). Revenue: NT$1.05b (down 4.6% from 2Q 2022). Net loss: NT$11.8m (down 164% from profit in 2Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 91 percentage points per year, which is a significant difference in performance. Reported Earnings • Nov 19
Third quarter 2022 earnings released: NT$1.92 loss per share (vs NT$0.41 profit in 3Q 2021) Third quarter 2022 results: NT$1.92 loss per share (down from NT$0.41 profit in 3Q 2021). Revenue: NT$903.4m (up 11% from 3Q 2021). Net loss: NT$276.5m (down NT$335.1m from profit in 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. 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. 9 experienced directors. 3 highly experienced directors. 3 independent directors (9 non-independent directors). Director Hai Feng Li was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Nov 11
Forest Water Environmental Engineering Co., Ltd. Appoints Lin Ming-Chih as Corporate Governance Officer Forest Water Environmental Engineering Co., Ltd. announced the appointment of Lin Ming-Chih, Parent company's Corporate Governance Officer and Stock Affairs Officer as Corporate governance officer. Effective date is November 10, 2022. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$0.13 (vs NT$0.19 loss in 2Q 2021) Second quarter 2022 results: EPS: NT$0.13 (up from NT$0.19 loss in 2Q 2021). Revenue: NT$1.10b (up 27% from 2Q 2021). Net income: NT$18.5m (up NT$46.4m from 2Q 2021). Profit margin: 1.7% (up from net loss in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Aug 04
Upcoming dividend of NT$0.85 per share Eligible shareholders must have bought the stock before 11 August 2022. Payment date: 30 August 2022. Payout ratio is on the higher end at 91% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (5.0%). Reported Earnings • May 19
First quarter 2022 earnings released: EPS: NT$0.59 (vs NT$1.01 in 1Q 2021) First quarter 2022 results: EPS: NT$0.59 (down from NT$1.01 in 1Q 2021). Revenue: NT$791.6m (down 33% from 1Q 2021). Net income: NT$85.3m (down 42% from 1Q 2021). Profit margin: 11% (down from 12% in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as 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. 11 experienced directors. 1 highly experienced director. 3 independent directors (9 non-independent directors). Director Hai Feng Li was the last director to join the board, commencing their role in 2014. 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 • Apr 03
Full year 2021 earnings released: EPS: NT$1.36 (vs NT$1.07 in FY 2020) Full year 2021 results: EPS: NT$1.36 (up from NT$1.07 in FY 2020). Revenue: NT$3.96b (down 12% from FY 2020). Net income: NT$195.9m (up 26% from FY 2020). Profit margin: 4.9% (up from 3.5% in FY 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.41 (vs NT$0.19 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: NT$813.8m (down 20% from 3Q 2020). Net income: NT$58.6m (up 119% from 3Q 2020). Profit margin: 7.2% (up from 2.6% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 18
Second quarter 2021 earnings released: NT$0.21 loss per share (vs NT$0.55 profit in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and control over costs. Second quarter 2021 results: Revenue: NT$867.8m (down 26% from 2Q 2020). Net loss: NT$27.9m (down 137% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Aug 12
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 19 August 2021. Payment date: 08 September 2021. Trailing yield: 2.6%. Lower than top quartile of Taiwanese dividend payers (5.1%). Lower than average of industry peers (4.8%). Valuation Update With 7 Day Price Move • May 21
Investor sentiment improved over the past week After last week's 18% share price gain to NT$44.95, the stock trades at a trailing P/E ratio of 34.6x. Average trailing P/E is 17x in the Commercial Services industry in Taiwan. Total loss to shareholders of 26% over the past three years. Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$1.08 (vs NT$0.93 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were flat. First quarter 2021 results: Revenue: NT$1.18b (up 7.6% from 1Q 2020). Net income: NT$145.8m (up 16% from 1Q 2020). Profit margin: 12% (in line with 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 18% per year whereas the company’s share price has fallen by 17% per year. Reported Earnings • Apr 01
Full year 2020 earnings released: EPS NT$1.15 (vs NT$2.25 in FY 2019) The company reported a poor full year result with weaker earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: NT$4.49b (flat on FY 2019). Net income: NT$155.0m (down 49% from FY 2019). Profit margin: 3.5% (down from 6.9% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 17% per year. Is New 90 Day High Low • Mar 10
New 90-day high: NT$43.10 The company is up 2.0% from its price of NT$42.30 on 10 December 2020. The Taiwanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Commercial Services industry, which is also up 2.0% over the same period. Is New 90 Day High Low • Jan 18
New 90-day low: NT$39.70 The company is down 11% from its price of NT$44.65 on 20 October 2020. The Taiwanese market is up 20% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is up 2.0% over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS NT$0.20 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$1.02b (down 7.1% from 3Q 2019). Net income: NT$26.7m (down 62% from 3Q 2019). Profit margin: 2.6% (down from 6.5% in 3Q 2019). 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 and the company’s share price has also fallen by 10% per year. 
