New Risk • Mar 28
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 36% This is considered a major 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 Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 36% per year over the past 5 years. Shareholders have been substantially diluted in the past year (36% increase in shares outstanding). Minor Risk Market cap is less than US$100m (NT$807.5m market cap, or US$25.2m). Reported Earnings • Mar 09
Full year 2025 earnings released: NT$2.83 loss per share (vs NT$2.14 loss in FY 2024) Full year 2025 results: NT$2.83 loss per share (further deteriorated from NT$2.14 loss in FY 2024). Revenue: NT$1.34b (down 31% from FY 2024). Net loss: NT$99.0m (loss widened 32% from FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 76 percentage points per year, which is a significant difference in performance. Announcement • Mar 02
Axman Enterprise Co., Ltd., Annual General Meeting, May 22, 2026 Axman Enterprise Co., Ltd., Annual General Meeting, May 22, 2026. Location: 3 floor no,1, sec.3 chung shan rd., ta ch`iao ts`un, dacun township, changhua county Taiwan Board Change • Mar 02
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. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Chia-Hsing Chang was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. New Risk • Nov 12
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 5.4% 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. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 27% per year over the past 5 years. Minor Risk Market cap is less than US$100m (NT$647.5m market cap, or US$20.8m). Reported Earnings • Aug 06
Second quarter 2025 earnings released: NT$1.67 loss per share (vs NT$0.12 profit in 2Q 2024) Second quarter 2025 results: NT$1.67 loss per share (down from NT$0.12 profit in 2Q 2024). Revenue: NT$397.3m (down 32% from 2Q 2024). Net loss: NT$58.4m (down NT$62.5m from profit in 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 60 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Jun 06
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 13 June 2025. Payment date: 04 July 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 4.1%. Lower than top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (3.6%). Declared Dividend • May 18
Dividend reduced to NT$1.00 Dividend of NT$1.00 is 62% lower than last year. Ex-date: 13th June 2025 Payment date: 4th July 2025 Dividend yield will be 4.0%, which is lower than the industry average of 5.0%. Reported Earnings • May 07
First quarter 2025 earnings released: EPS: NT$0.47 (vs NT$0.12 in 1Q 2024) First quarter 2025 results: EPS: NT$0.47 (up from NT$0.12 in 1Q 2024). Revenue: NT$341.4m (down 23% from 1Q 2024). Net income: NT$16.5m (up 296% from 1Q 2024). Profit margin: 4.8% (up from 0.9% in 1Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 26% per year, which means it has not declined as severely as earnings. New Risk • Mar 06
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 290% Cash payout ratio: 358% Dividend yield: 8.9% 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 Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 290% Cash payout ratio: 358% Minor Risk Market cap is less than US$100m (NT$1.02b market cap, or US$31.1m). Reported Earnings • Mar 06
Full year 2024 earnings released: NT$2.14 loss per share (vs NT$3.62 profit in FY 2023) Full year 2024 results: NT$2.14 loss per share (down from NT$3.62 profit in FY 2023). Revenue: NT$1.93b (down 43% from FY 2023). Net loss: NT$74.8m (down 165% from profit in FY 2023). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 27% per year, which means it has not declined as severely as earnings. Announcement • Jan 22
Axman Enterprise Co., Ltd., Annual General Meeting, May 16, 2025 Axman Enterprise Co., Ltd., Annual General Meeting, May 16, 2025, at 09:30 Taipei Standard Time. Location: 3 floor no,1, sec.3 chung shan rd., ta ch`iao ts`un, dacun township, changhua county Taiwan Reported Earnings • Nov 18
Third quarter 2024 earnings released: EPS: NT$0.70 (vs NT$1.04 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.70 (down from NT$1.04 in 3Q 2023). Revenue: NT$566.7m (down 30% from 3Q 2023). Net income: NT$24.6m (down 26% from 3Q 2023). Profit margin: 4.3% (up from 4.1% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 7% per year. Reported Earnings • Aug 06
Second quarter 2024 earnings released: EPS: NT$0.12 (vs NT$1.48 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.12 (down from NT$1.48 in 2Q 2023). Revenue: NT$586.3m (down 39% from 2Q 2023). Net income: NT$4.12m (down 91% from 2Q 2023). Profit margin: 0.7% (down from 4.6% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Jul 22
Now 22% overvalued Over the last 90 days, the stock has fallen 7.0% to NT$43.95. The fair value is estimated to be NT$35.91, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 32%. Upcoming Dividend • Jun 13
Upcoming dividend of NT$2.60 per share Eligible shareholders must have bought the stock before 20 June 2024. Payment date: 12 July 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 5.4%. Within top quartile of Taiwanese dividend payers (4.3%). Higher than average of industry peers (2.7%). Reported Earnings • May 04
First quarter 2024 earnings released: EPS: NT$0.12 (vs NT$1.29 in 1Q 2023) First quarter 2024 results: EPS: NT$0.12 (down from NT$1.29 in 1Q 2023). Revenue: NT$443.5m (down 50% from 1Q 2023). Net income: NT$4.18m (down 89% from 1Q 2023). Profit margin: 0.9% (down from 4.4% in 1Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. New Risk • Mar 06
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.4% Last year net profit margin: 5.1% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (3.4% net profit margin). Shareholders have been diluted in the past year (17% increase in shares outstanding). Market cap is less than US$100m (NT$1.75b market cap, or US$55.3m). Announcement • Jan 27
Axman Enterprise Co., Ltd., Annual General Meeting, May 24, 2024 Axman Enterprise Co., Ltd., Annual General Meeting, May 24, 2024. Reported Earnings • Nov 05
Third quarter 2023 earnings released: EPS: NT$1.04 (vs NT$1.38 in 3Q 2022) Third quarter 2023 results: EPS: NT$1.04 (down from NT$1.38 in 3Q 2022). Revenue: NT$804.3m (up 3.3% from 3Q 2022). Net income: NT$33.1m (down 20% from 3Q 2022). Profit margin: 4.1% (down from 5.3% in 3Q 2022). The decrease in margin was driven by higher expenses. New Risk • Sep 05
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 17% 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: Minor Risks Short dividend paying track record (1 year of continuous dividend payments). Shareholders have been diluted in the past year (17% increase in shares outstanding). Market cap is less than US$100m (NT$2.09b market cap, or US$65.3m). Reported Earnings • Aug 05
Second quarter 2023 earnings released: EPS: NT$1.48 (vs NT$1.49 in 2Q 2022) Second quarter 2023 results: EPS: NT$1.48 (down from NT$1.49 in 2Q 2022). Revenue: NT$961.0m (up 32% from 2Q 2022). Net income: NT$44.5m (flat on 2Q 2022). Profit margin: 4.6% (down from 6.1% in 2Q 2022). The decrease in margin was driven by higher expenses. Upcoming Dividend • Jun 06
Upcoming dividend of NT$2.60 per share at 3.7% yield Eligible shareholders must have bought the stock before 13 June 2023. Payment date: 13 July 2023. Payout ratio is a comfortable 45% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (4.4%). Reported Earnings • Mar 09
Full year 2022 earnings released: EPS: NT$5.82 (vs NT$1.85 in FY 2021) Full year 2022 results: EPS: NT$5.82 (up from NT$1.85 in FY 2021). Revenue: NT$3.32b (up 85% from FY 2021). Net income: NT$171.0m (up 246% from FY 2021). Profit margin: 5.1% (up from 2.7% in FY 2021). The increase in margin was driven by higher revenue. Announcement • Jan 13
Axman Enterprise Co., Ltd., Annual General Meeting, May 26, 2023 Axman Enterprise Co., Ltd., Annual General Meeting, May 26, 2023. Reported Earnings • Nov 06
Third quarter 2022 earnings released: EPS: NT$1.38 (vs NT$0.052 in 3Q 2021) Third quarter 2022 results: EPS: NT$1.38 (up from NT$0.052 in 3Q 2021). Revenue: NT$778.6m (up 165% from 3Q 2021). Net income: NT$41.3m (up NT$39.8m from 3Q 2021). Profit margin: 5.3% (up from 0.5% in 3Q 2021). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment improved over the past week After last week's 21% share price gain to NT$60.90, the stock trades at a trailing P/E ratio of 16.2x. Average trailing P/E is 11x in the Leisure industry in Taiwan. Total returns to shareholders of 50% over the past year. Reported Earnings • Aug 07
Second quarter 2022 earnings released Second quarter 2022 results: EPS: NT$1.63. Revenue: NT$728.4m (flat on 2Q 2021). Net income: NT$44.7m (up NT$44.7m from 2Q 2021). Profit margin: 6.1% (up from null in 2Q 2021). Upcoming Dividend • Jul 04
Upcoming dividend of NT$0.59 per share Eligible shareholders must have bought the stock before 11 July 2022. Payment date: 01 August 2022. Payout ratio is a comfortable 20% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (4.6%). Reported Earnings • May 06
First quarter 2022 earnings released: EPS: NT$1.27 (vs NT$0.31 in 1Q 2021) First quarter 2022 results: EPS: NT$1.27 (up from NT$0.31 in 1Q 2021). Revenue: NT$674.0m (up 51% from 1Q 2021). Net income: NT$35.0m (up 329% from 1Q 2021). Profit margin: 5.2% (up from 1.8% in 1Q 2021). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorated over the past week After last week's 20% share price decline to NT$52.80, the stock trades at a trailing P/E ratio of 29.2x. Average trailing P/E is 14x in the Leisure industry in Taiwan. Total returns to shareholders of 17% over the past year. Reported Earnings • Mar 09
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: NT$1.85 (up from NT$1.04 in FY 2020). Revenue: NT$1.80b (up 32% from FY 2020). Net income: NT$49.5m (up 92% from FY 2020). Profit margin: 2.7% (up from 1.9% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improved over the past week After last week's 15% share price gain to NT$57.60, the stock trades at a trailing P/E ratio of 57.5x. Average trailing P/E is 16x in the Leisure industry in Taiwan. Total returns to shareholders of 46% over the past year. Reported Earnings • Nov 13
Third quarter 2021 earnings released: EPS NT$0.05 (vs NT$0.60 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$294.0m (down 30% from 3Q 2020). Net income: NT$1.43m (down 90% from 3Q 2020). Profit margin: 0.5% (down from 3.6% in 3Q 2020). The decrease in margin was driven by lower revenue. Reported Earnings • Apr 21
Full year 2020 earnings released: EPS NT$1.04 (vs NT$2.18 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$1.36b (down 35% from FY 2019). Net income: NT$25.8m (down 52% from FY 2019). Profit margin: 1.9% (down from 2.6% in FY 2019). The decrease in margin was driven by lower revenue. Announcement • Mar 11
Axman Enterprise Co., Ltd., Annual General Meeting, May 28, 2021 Axman Enterprise Co., Ltd., Annual General Meeting, May 28, 2021. 
