Buy Or Sell Opportunity • Jul 20
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to NT$13.90. The fair value is estimated to be NT$17.47, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Meanwhile, the company has become profitable. Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$15.00, the stock trades at a trailing P/E ratio of 8.8x. Average trailing P/E is 19x in the Luxury industry in Taiwan. Total loss to shareholders of 51% over the past three years. Declared Dividend • Jun 24
Dividend reduced to NT$1.50 Dividend of NT$1.50 is 25% lower than last year. Ex-date: 9th July 2026 Payment date: 7th August 2026 Dividend yield will be 9.0%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is covered by both earnings (88% earnings payout ratio) and cash flows (72% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 80% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • May 17
First quarter 2026 earnings released: EPS: NT$0.50 (vs NT$0.42 in 1Q 2025) First quarter 2026 results: EPS: NT$0.50 (up from NT$0.42 in 1Q 2025). Revenue: NT$180.7m (down 39% from 1Q 2025). Net income: NT$68.4m (up 18% from 1Q 2025). Profit margin: 38% (up from 20% in 1Q 2025). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 18
Full year 2025 earnings released: EPS: NT$1.62 (vs NT$9.82 in FY 2024) Full year 2025 results: EPS: NT$1.62 (down from NT$9.82 in FY 2024). Revenue: NT$1.02b (down 72% from FY 2024). Net income: NT$223.6m (down 84% from FY 2024). Profit margin: 22% (down from 37% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Announcement • Mar 12
Hong Ho Precision Textile Co.,Ltd., Annual General Meeting, Jun 05, 2026 Hong Ho Precision Textile Co.,Ltd., Annual General Meeting, Jun 05, 2026. Location: no,806, sec.2 chung cheng rd., rende district, tainan city Taiwan Reported Earnings • Nov 11
Third quarter 2025 earnings released: EPS: NT$0.59 (vs NT$4.87 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.59 (down from NT$4.87 in 3Q 2024). Revenue: NT$221.0m (down 86% from 3Q 2024). Net income: NT$81.3m (down 88% from 3Q 2024). Profit margin: 37% (down from 42% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: NT$1.04 (vs NT$2.05 in 2Q 2024) Second quarter 2025 results: EPS: NT$1.04 (down from NT$2.05 in 2Q 2024). Revenue: NT$472.9m (down 37% from 2Q 2024). Net income: NT$142.4m (down 50% from 2Q 2024). Profit margin: 30% (down from 38% in 2Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 107% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. New Risk • Jul 21
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$2.81b (US$95.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. 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. Market cap is less than US$100m (NT$2.81b market cap, or US$95.4m). Declared Dividend • Jul 04
Dividend increased to NT$2.00 Dividend of NT$2.00 is 186% higher than last year. Ex-date: 21st July 2025 Payment date: 15th August 2025 Dividend yield will be 8.0%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is well covered by both earnings (25% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has increased by an average of 21% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 140% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • May 14
First quarter 2025 earnings released: EPS: NT$0.42 (vs NT$2.13 in 1Q 2024) First quarter 2025 results: EPS: NT$0.42 (down from NT$2.13 in 1Q 2024). Revenue: NT$293.9m (down 59% from 1Q 2024). Net income: NT$58.0m (down 80% from 1Q 2024). Profit margin: 20% (down from 41% 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 121% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Apr 30
Hong Ho Precision Textile Co.,Ltd. to Report Q1, 2025 Results on May 07, 2025 Hong Ho Precision Textile Co.,Ltd. announced that they will report Q1, 2025 results on May 07, 2025 New Risk • Apr 09
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.27b (US$99.3m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. 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. Share price has been volatile over the past 3 months (7.6% average weekly change). Market cap is less than US$100m (NT$3.27b market cap, or US$99.3m). Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$25.65, the stock trades at a trailing P/E ratio of 2.6x. Average trailing P/E is 17x in the Luxury industry in Taiwan. Total loss to shareholders of 17% over the past three years. Reported Earnings • Mar 20
Full year 2024 earnings released: EPS: NT$9.82 (vs NT$0.80 in FY 2023) Full year 2024 results: EPS: NT$9.82 (up from NT$0.80 in FY 2023). Revenue: NT$3.68b (up NT$3.10b from FY 2023). Net income: NT$1.35b (up NT$1.24b from FY 2023). Profit margin: 37% (up from 19% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 133% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$35.00, the stock trades at a trailing P/E ratio of 3.5x. Average trailing P/E is 22x in the Luxury industry in Taiwan. Total returns to shareholders of 15% over the past three years. Announcement • Mar 13
Hong Ho Precision Textile Co.,Ltd., Annual General Meeting, Jun 13, 2025 Hong Ho Precision Textile Co.,Ltd., Annual General Meeting, Jun 13, 2025. Location: no,806, sec.2 chung cheng rd., rende district, tainan city Taiwan Valuation Update With 7 Day Price Move • Dec 12
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to NT$44.20, the stock trades at a trailing P/E ratio of 4.4x. Average trailing P/E is 25x in the Luxury industry in Taiwan. Total returns to shareholders of 34% over the past three years. Reported Earnings • Nov 18
Third quarter 2024 earnings released: EPS: NT$4.87 (vs NT$0.049 loss in 3Q 2023) Third quarter 2024 results: EPS: NT$4.87 (up from NT$0.049 loss in 3Q 2023). Revenue: NT$1.59b (up NT$1.57b from 3Q 2023). Net income: NT$671.2m (up NT$678.0m from 3Q 2023). Profit margin: 42% (up from net loss in 3Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 138% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Oct 30
Hong Ho Precision Textile Co.,Ltd. to Report Q3, 2024 Results on Nov 06, 2024 Hong Ho Precision Textile Co.,Ltd. announced that they will report Q3, 2024 results on Nov 06, 2024 Reported Earnings • Aug 14
Second quarter 2024 earnings released: EPS: NT$2.05 (vs NT$0.045 loss in 2Q 2023) Second quarter 2024 results: EPS: NT$2.05 (up from NT$0.045 loss in 2Q 2023). Revenue: NT$745.2m (up NT$708.4m from 2Q 2023). Net income: NT$282.4m (up NT$288.5m from 2Q 2023). Profit margin: 38% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 119% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to NT$42.65, the stock trades at a trailing P/E ratio of 14.1x. Average trailing P/E is 22x in the Luxury industry in Taiwan. Total returns to shareholders of 44% over the past three years. Announcement • Jul 31
Hong Ho Precision Textile Co.,Ltd. to Report Q2, 2024 Results on Aug 07, 2024 Hong Ho Precision Textile Co.,Ltd. announced that they will report Q2, 2024 results on Aug 07, 2024 Upcoming Dividend • Jul 09
Upcoming dividend of NT$0.70 per share Eligible shareholders must have bought the stock before 16 July 2024. Payment date: 15 August 2024. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (3.1%). New Risk • Jun 11
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 6.5% 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: Minor Risks High level of debt (88% net debt to equity). Share price has been volatile over the past 3 months (6.5% average weekly change). Reported Earnings • May 19
First quarter 2024 earnings released: EPS: NT$2.13 (vs NT$0.094 loss in 1Q 2023) First quarter 2024 results: EPS: NT$2.13 (up from NT$0.094 loss in 1Q 2023). Revenue: NT$717.6m (up NT$682.0m from 1Q 2023). Net income: NT$293.2m (up NT$306.1m from 1Q 2023). Profit margin: 41% (up from net loss in 1Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 02
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$43.75, the stock trades at a trailing P/E ratio of 54.8x. Average trailing P/E is 27x in the Luxury industry in Taiwan. Total returns to shareholders of 53% over the past three years. Announcement • May 02
Hong Ho Precision Textile Co.,Ltd. to Report Q1, 2024 Results on May 08, 2024 Hong Ho Precision Textile Co.,Ltd. announced that they will report Q1, 2024 results on May 08, 2024 New Risk • Mar 25
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: 2.1% 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 Debt is not well covered by operating cash flow (20% operating cash flow to total debt). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Mar 18
Full year 2023 earnings released: EPS: NT$0.80 (vs NT$0.28 loss in FY 2022) Full year 2023 results: EPS: NT$0.80 (up from NT$0.28 loss in FY 2022). Revenue: NT$573.3m (up 268% from FY 2022). Net income: NT$110.0m (up NT$147.8m from FY 2022). Profit margin: 19% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. New Risk • Aug 15
New major risk - Revenue and earnings growth Earnings have declined by 6.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-NT$220m free cash flow). Earnings have declined by 6.4% per year over the past 5 years. Reported Earnings • Aug 15
Second quarter 2023 earnings released: NT$0.04 loss per share (vs NT$0.034 loss in 2Q 2022) Second quarter 2023 results: NT$0.04 loss per share (further deteriorated from NT$0.034 loss in 2Q 2022). Net loss: NT$6.15m (loss widened 33% from 2Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Jul 07
Upcoming dividend of NT$0.20 per share at 0.6% yield Eligible shareholders must have bought the stock before 14 July 2023. Payment date: 11 August 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 0.6%. Lower than top quartile of Taiwanese dividend payers (5.4%). Lower than average of industry peers (4.4%). Reported Earnings • Nov 16
Third quarter 2022 earnings released: NT$0.05 loss per share (vs NT$0.17 loss in 3Q 2021) Third quarter 2022 results: NT$0.05 loss per share (improved from NT$0.17 loss in 3Q 2021). Net loss: NT$6.31m (loss narrowed 73% from 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 3% 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. No highly experienced directors. 2 independent directors (5 non-independent directors). was the last director to join the board, commencing their role in . 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: NT$0.05 loss per share (vs NT$0.17 loss in 3Q 2021) Third quarter 2022 results: NT$0.05 loss per share (improved from NT$0.17 loss in 3Q 2021). Net loss: NT$6.31m (loss narrowed 73% from 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 16
Second quarter 2022 earnings released: NT$0.03 loss per share (vs NT$0.089 loss in 2Q 2021) Second quarter 2022 results: NT$0.03 loss per share (up from NT$0.089 loss in 2Q 2021). Net loss: NT$4.62m (loss narrowed 62% from 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 08
Upcoming dividend of NT$0.30 per share Eligible shareholders must have bought the stock before 15 July 2022. Payment date: 12 August 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 0.9%. Lower than top quartile of Taiwanese dividend payers (6.8%). Lower than average of industry peers (4.0%). Reported Earnings • May 16
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: NT$0.02 loss per share (down from NT$0.15 profit in 1Q 2021). Net loss: NT$3.23m (down 115% from profit in 1Q 2021). Revenue missed analyst estimates by 47%. Earnings per share (EPS) were also behind analyst expectations. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 1% per year. 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. 9 experienced directors. No highly experienced directors. 2 independent directors (5 non-independent directors). was the last director to join the board, commencing their role in . 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 • Mar 31
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: NT$0.12 loss per share (down from NT$0.054 loss in FY 2020). Net loss: NT$17.2m (loss widened 131% from FY 2020). Revenue missed analyst estimates by 47%. Earnings per share (EPS) were also behind analyst expectations. 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 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 12
Third quarter 2021 earnings released: NT$0.17 loss per share (vs NT$0.15 profit in 3Q 2020) Third quarter 2021 results: Net loss: NT$23.3m (down 210% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 97% 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 18
Second quarter 2021 earnings released: NT$0.09 loss per share (vs NT$0.29 loss in 2Q 2020) The company reported a soft second quarter result with weaker revenues and control over costs, although losses reduced. Second quarter 2021 results: Revenue: NT$29.9m (down 73% from 2Q 2020). Net loss: NT$12.3m (loss narrowed 70% from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 103% 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 • Aug 06
Upcoming dividend of NT$0.30 per share Eligible shareholders must have bought the stock before 13 August 2021. Payment date: 10 September 2021. Trailing yield: 1.0%. Lower than top quartile of Taiwanese dividend payers (5.0%). Lower than average of industry peers (2.5%). Reported Earnings • May 16
First quarter 2021 earnings released: EPS NT$0.15 (vs NT$0.008 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: NT$83.2m (down 34% from 1Q 2020). Net income: NT$21.0m (up NT$20.0m from 1Q 2020). Profit margin: 25% (up from 0.8% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 31
Full year 2020 earnings released: NT$0.05 loss per share (vs NT$0.002 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: NT$490.6m (down 11% from FY 2019). Net loss: NT$7.44m (down NT$7.73m from profit in FY 2019). Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Mar 20
Hong Ho Precision Textile Co.,Ltd., Annual General Meeting, Jun 08, 2021 Hong Ho Precision Textile Co.,Ltd., Annual General Meeting, Jun 08, 2021. Is New 90 Day High Low • Jan 21
New 90-day low: NT$29.10 The company is down 17% from its price of NT$35.10 on 23 October 2020. The Taiwanese market is up 21% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is down 1.0% over the same period. Is New 90 Day High Low • Dec 11
New 90-day low: NT$29.50 The company is down 9.0% from its price of NT$32.30 on 11 September 2020. The Taiwanese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is up 5.0% over the same period. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS NT$0.15 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$153.6m (up 29% from 3Q 2019). Net income: NT$21.2m (up NT$31.0m from 3Q 2019). Profit margin: 14% (up from net loss in 3Q 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Oct 19
New 90-day high: NT$34.15 The company is up 19% from its price of NT$28.75 on 21 July 2020. The Taiwanese market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 5.0% over the same period.