Reported Earnings • May 01
First quarter 2026 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2026 results: EPS: NT$1.00 (down from NT$1.42 in 1Q 2025). Revenue: NT$11.0b (up 24% from 1Q 2025). Net income: NT$257.8m (down 27% from 1Q 2025). Profit margin: 2.3% (down from 4.0% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 7.0%. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is forecast to grow 7.0% p.a. on average during the next 2 years, compared to a 7.8% growth forecast for the Consumer Durables industry in Asia. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has remained flat. Price Target Changed • Mar 05
Price target decreased by 7.1% to NT$114 Down from NT$123, the current price target is an average from 2 analysts. New target price is 39% above last closing price of NT$82.10. Stock is down 33% over the past year. The company is forecast to post earnings per share of NT$7.46 for next year compared to NT$5.36 last year. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$82.70, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 16x in the Consumer Durables industry in Asia. Total returns to shareholders of 8.3% over the past three years. Reported Earnings • Feb 26
Full year 2025 earnings released: EPS: NT$5.36 (vs NT$9.26 in FY 2024) Full year 2025 results: EPS: NT$5.36 (down from NT$9.26 in FY 2024). Revenue: NT$46.5b (up 6.0% from FY 2024). Net income: NT$1.34b (down 38% from FY 2024). Profit margin: 2.9% (down from 4.9% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.1% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Consumer Durables industry in Asia. Over the last 3 years on average, earnings per share has increased by 3% per year and the company’s share price has also increased by 3% per year. Announcement • Feb 26
Merry Electronics Co., Ltd., Annual General Meeting, May 26, 2026 Merry Electronics Co., Ltd., Annual General Meeting, May 26, 2026. Location: no,22, kung yeh ou rd., nan tun district, taichung city Taiwan Major Estimate Revision • Nov 06
Consensus EPS estimates increase by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$43.7b to NT$45.2b. EPS estimate increased from NT$5.01 to NT$5.84 per share. Net income forecast to grow 13% next year vs 26% growth forecast for Consumer Durables industry in Taiwan. Consensus price target of NT$124 unchanged from last update. Share price rose 5.8% to NT$109 over the past week. Reported Earnings • Nov 01
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: NT$2.33 (down from NT$2.59 in 3Q 2024). Revenue: NT$13.1b (up 2.1% from 3Q 2024). Net income: NT$582.6m (down 7.0% from 3Q 2024). Profit margin: 4.4% (down from 4.9% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 21%. Revenue is forecast to grow 2.8% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Consumer Durables industry in Asia. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 9% per year. Upcoming Dividend • Aug 21
Upcoming dividend of NT$7.29 per share Eligible shareholders must have bought the stock before 28 August 2025. Payment date: 26 September 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 6.2%. Within top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (4.3%). Major Estimate Revision • Jul 30
Consensus EPS estimates fall by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$44.5b to NT$43.8b. EPS estimate also fell from NT$6.80 per share to NT$4.94 per share. Net income forecast to shrink 4.4% next year vs 20% growth forecast for Consumer Durables industry in Taiwan . Consensus price target of NT$128 unchanged from last update. Share price fell 6.3% to NT$112 over the past week. New Risk • Jul 27
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 110% The company is paying a dividend despite having no free cash flows. Dividend yield: 6.5% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Jul 26
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: NT$0.011 (down from NT$2.24 in 2Q 2024). Revenue: NT$10.3b (flat on 2Q 2024). Net income: NT$2.62m (down 100% from 2Q 2024). Profit margin: 0% (down from 4.8% in 2Q 2024). Revenue missed analyst estimates by 5.9%. Earnings per share (EPS) also missed analyst estimates by 99%. Revenue is forecast to grow 4.4% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Consumer Durables industry in Asia. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 12% per year. Major Estimate Revision • Jul 09
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$45.2b to NT$44.5b. EPS estimate also fell from NT$8.18 per share to NT$6.80 per share. Net income forecast to shrink 13% next year vs 18% growth forecast for Consumer Durables industry in Taiwan . Consensus price target of NT$128 unchanged from last update. Share price fell 3.1% to NT$111 over the past week. New Risk • Jul 08
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.5% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 Risk Earnings are forecast to decline by an average of 1.5% per year for the foreseeable future. Minor Risk Dividend is not well covered by cash flows (169% cash payout ratio). Price Target Changed • May 04
Price target increased by 8.3% to NT$131 Up from NT$121, the current price target is an average from 3 analysts. New target price is 15% above last closing price of NT$114. Stock is down 6.6% over the past year. The company is forecast to post earnings per share of NT$8.68 for next year compared to NT$9.26 last year. Announcement • Apr 17
Merry Electronics Co., Ltd. to Report Q1, 2025 Results on Apr 24, 2025 Merry Electronics Co., Ltd. announced that they will report Q1, 2025 results on Apr 24, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$103, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Consumer Durables industry in Taiwan. Total returns to shareholders of 46% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$51.64 per share. Announcement • Mar 18
Merry Electronics Co., Ltd. (TWSE:2439) agreed to acquire MWT Holdings CO., Ltd from J-Star No. 3 Investment Limited Partnership, J-Star No.3 Jf, LP, J-Star No.3 Jc, LP, J-Star No.3 Gf, LP, J-STAR LLP 2016 managed by J-STAR Co., Ltd. for ¥10.3 billion. Merry Electronics Co., Ltd. (TWSE:2439) agreed to acquire MWT Holdings CO., Ltd from J-Star No. 3 Investment Limited Partnership, J-Star No.3 Jf, LP, J-Star No.3 Jc, LP, J-Star No.3 Gf, LP, J-STAR LLP 2016 managed by J-STAR Co., Ltd. for ¥10.3 billion on March 17, 2025. A cash consideration of ¥10.28 billion will be paid by Merry Electronics Co., Ltd. As part of consideration, ¥10.28 billion is paid towards common equity of MWT Holdings CO., Ltd.
The transaction is subject to approval by regulatory board / committee and approval of offer by acquirer board. Reported Earnings • Feb 28
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: NT$9.26 (up from NT$6.16 in FY 2023). Revenue: NT$43.9b (up 20% from FY 2023). Net income: NT$2.14b (up 62% from FY 2023). Profit margin: 4.9% (up from 3.6% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 1.4%. Revenue is forecast to grow 7.5% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Consumer Durables industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 12% per year. Announcement • Feb 27
Merry Electronics Co., Ltd., Annual General Meeting, May 26, 2025 Merry Electronics Co., Ltd., Annual General Meeting, May 26, 2025. Location: no,22, kung yeh ou rd., nan tun district, taichung city Taiwan Announcement • Feb 19
Merry Electronics Co., Ltd. to Report Q4, 2024 Results on Feb 26, 2025 Merry Electronics Co., Ltd. announced that they will report Q4, 2024 results on Feb 26, 2025 Reported Earnings • Oct 26
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: EPS: NT$2.59 (up from NT$1.97 in 3Q 2023). Revenue: NT$12.9b (up 36% from 3Q 2023). Net income: NT$626.4m (up 49% from 3Q 2023). Profit margin: 4.9% (up from 4.5% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 12%. Earnings per share (EPS) missed analyst estimates by 5.1%. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Consumer Durables industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 11% per year and the company’s share price has also increased by 11% per year. Announcement • Oct 17
Merry Electronics Co., Ltd. to Report Q3, 2024 Results on Oct 24, 2024 Merry Electronics Co., Ltd. announced that they will report Q3, 2024 results on Oct 24, 2024 Buy Or Sell Opportunity • Sep 23
Now 23% overvalued The stock has been flat over the last 90 days, currently trading at NT$133. The fair value is estimated to be NT$108, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 9.1%. Revenue is forecast to grow by 11% in a year. Earnings are forecast to grow by 26% in the next year. Buy Or Sell Opportunity • Aug 16
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to NT$137. The fair value is estimated to be NT$111, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 9.1%. Revenue is forecast to grow by 11% in a year. Earnings are forecast to grow by 26% in the next year. Declared Dividend • Jul 27
Dividend increased to NT$4.70 Dividend of NT$4.70 is 5.1% higher than last year. Ex-date: 30th August 2024 Payment date: 25th September 2024 Dividend yield will be 3.8%, which is lower than the industry average of 4.1%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (40% cash payout ratio). The dividend has increased by an average of 2.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 4.2% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 26
Merry Electronics Co., Ltd. Announces Cash Dividend, Payable on September 25, 2024 Merry Electronics Co., Ltd. announced distribution of cash dividend of TWD 1,030,914,177 to shareholders (equals to TWD 4.7 per share). Ex-rights (ex-dividend) trading date is August 30, 2024. Ex-rights (ex-dividend) record date is September 07, 2024; Payment date of common stock cash dividend distribution is September 25, 2024. Announcement • Jul 18
Merry Electronics Co., Ltd. to Report Q2, 2024 Results on Jul 25, 2024 Merry Electronics Co., Ltd. announced that they will report Q2, 2024 results on Jul 25, 2024 Reported Earnings • Apr 27
First quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2024 results: EPS: NT$1.70 (up from NT$0.26 in 1Q 2023). Revenue: NT$8.35b (up 17% from 1Q 2023). Net income: NT$365.1m (up NT$309.1m from 1Q 2023). Profit margin: 4.4% (up from 0.8% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) exceeded analyst estimates by 39%. Revenue is forecast to grow 8.5% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Consumer Durables industry in Asia. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Apr 27
Merry Electronics Co., Ltd. announced that it expects to receive TWD 3.05 billion in funding Merry Electronics Co., Ltd. announced a private placement of 5,000,000 common shares at a price of TWD 10 per share for the gross proceeds of TWD 50,000,000 and series 4 unsecured corporate convertible bonds for the gross proceeds of TWD 2,500,000,000 and series 5 unsecured corporate convertible bonds for the gross proceeds of TWD 500,000,000; for total gross proceeds of TWD 3,050,000,000 on April 25, 2024. The transaction has been approved by the shareholders of the company. Announcement • Apr 20
Merry Electronics Co., Ltd. to Report Q1, 2024 Results on Apr 25, 2024 Merry Electronics Co., Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 Major Estimate Revision • Mar 01
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$37.6b to NT$41.2b. EPS estimate increased from NT$6.63 to NT$7.52 per share. Net income forecast to grow 24% next year vs 22% growth forecast for Consumer Durables industry in Taiwan. Consensus price target up from NT$94.67 to NT$126. Share price rose 6.4% to NT$116 over the past week. Reported Earnings • Feb 25
Full year 2023 earnings released: EPS: NT$6.16 (vs NT$6.81 in FY 2022) Full year 2023 results: EPS: NT$6.16 (down from NT$6.81 in FY 2022). Revenue: NT$36.7b (up 3.6% from FY 2022). Net income: NT$1.32b (down 9.3% from FY 2022). Profit margin: 3.6% (down from 4.1% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.9% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Consumer Durables industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 08
Price target increased by 9.6% to NT$91.33 Up from NT$83.33, the current price target is an average from 3 analysts. New target price is 9.6% below last closing price of NT$101. Stock is up 19% over the past year. The company is forecast to post earnings per share of NT$6.40 for next year compared to NT$6.81 last year. Major Estimate Revision • Nov 04
Consensus EPS estimates increase by 21% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from NT$34.5b to NT$35.5b. EPS estimate increased from NT$5.29 to NT$6.42 per share. Net income forecast to grow 5.8% next year vs 20% growth forecast for Consumer Durables industry in Taiwan. Consensus price target up from NT$83.33 to NT$88.33. Share price rose 3.5% to NT$92.10 over the past week. Reported Earnings • Oct 28
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: NT$1.97 (down from NT$2.74 in 3Q 2022). Revenue: NT$9.45b (down 14% from 3Q 2022). Net income: NT$421.7m (down 28% from 3Q 2022). Profit margin: 4.5% (down from 5.3% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 5.3%. Earnings per share (EPS) also surpassed analyst estimates by 30%. Revenue is forecast to grow 2.6% p.a. on average during the next 2 years, compared to a 9.3% growth forecast for the Consumer Durables industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. New Risk • Oct 02
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.4% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 Risk Earnings are forecast to decline by an average of 5.4% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Upcoming Dividend • Aug 24
Upcoming dividend of NT$4.47 per share at 4.9% yield Eligible shareholders must have bought the stock before 31 August 2023. Payment date: 22 September 2023. Payout ratio is a comfortable 70% and this is well supported by cash flows. Trailing yield: 4.9%. Lower than top quartile of Taiwanese dividend payers (5.6%). Higher than average of industry peers (4.4%). Reported Earnings • Jul 29
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: NT$1.69 (down from NT$1.84 in 2Q 2022). Revenue: NT$8.36b (up 4.4% from 2Q 2022). Net income: NT$362.6m (down 7.7% from 2Q 2022). Profit margin: 4.3% (down from 4.9% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) also surpassed analyst estimates by 45%. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Consumer Durables industry in Asia. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Jul 28
Merry Electronics Co., Ltd. Announces Ex-Dividend, Payable on September 22, 2023 Merry Electronics Co., Ltd. announced Distribution of cash dividend TWD 981,234,639 to shareholders (equals to TWD 4.5 per share). Ex-rights (ex-dividend) record date: September 8, 2023. Payment date of cash dividend distribution: September 22, 2023. Date of the resolution by the board of directors or shareholders meeting or decision by the Company: July 27, 2023. Announcement • Jun 15
Merry Electronics Co., Ltd. Approves the Cash Dividend of 2022 Merry Electronics Co., Ltd. at shareholders meeting on June 14, 2023 the company approved the Proposal for the Distribution of 2022 profits with cash dividend TWD 981,234,639 to shareholders (equals to TWD 4.5 per share). Reported Earnings • May 02
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: NT$0.26 (down from NT$0.52 in 1Q 2022). Revenue: NT$7.13b (up 19% from 1Q 2022). Net income: NT$56.0m (down 49% from 1Q 2022). Profit margin: 0.8% (down from 1.8% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 40%. Revenue is forecast to grow 5.8% p.a. on average during the next 2 years, compared to a 7.9% growth forecast for the Consumer Durables industry in Asia. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 13% per year. Price Target Changed • Mar 10
Price target increased by 12% to NT$103 Up from NT$92.00, the current price target is an average from 5 analysts. New target price is 20% above last closing price of NT$86.40. Stock is up 7.1% over the past year. The company is forecast to post earnings per share of NT$6.35 for next year compared to NT$6.81 last year. Reported Earnings • Feb 26
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: NT$6.81 (up from NT$5.40 in FY 2021). Revenue: NT$35.4b (down 2.2% from FY 2021). Net income: NT$1.46b (up 29% from FY 2021). Profit margin: 4.1% (up from 3.1% in FY 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 8.0% growth forecast for the Consumer Durables industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 15% per year. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Chang-Yun I was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Price Target Changed • Nov 02
Price target decreased to NT$92.33 Down from NT$103, the current price target is an average from 6 analysts. New target price is 15% above last closing price of NT$80.20. Stock is down 16% over the past year. The company is forecast to post earnings per share of NT$7.41 for next year compared to NT$5.40 last year. Reported Earnings • Oct 29
Third quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2022 results: EPS: NT$2.74 (up from NT$2.20 in 3Q 2021). Revenue: NT$11.1b (up 31% from 3Q 2021). Net income: NT$586.3m (up 28% from 3Q 2021). Profit margin: 5.3% (down from 5.4% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Consumer Durables industry in Asia. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Aug 18
Upcoming dividend of NT$3.97 per share Eligible shareholders must have bought the stock before 25 August 2022. Payment date: 22 September 2022. Payout ratio is a comfortable 57% and this is well supported by cash flows. Trailing yield: 4.6%. Lower than top quartile of Taiwanese dividend payers (6.4%). In line with average of industry peers (4.7%). Announcement • Aug 11
Merry Electronics Co., Ltd. Announces Dividend Rate Adjustment for 2021 Merry Electronics Co., Ltd. announced the Dividend Rate Adjustment for 2021. Type and monetary amount of original dividend distribution: Cash dividend of common shares amounting to TWD 866,040,168, equal to TWD 4.0 per share. Type and monetary amount of dividend distribution after the change: Cash dividend of common shares amounting to TWD 866,040,168, equal to TWD 3.97082633 per share. Reported Earnings • Jul 30
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: NT$1.84 (up from NT$0.54 in 2Q 2021). Revenue: NT$8.00b (down 2.0% from 2Q 2021). Net income: NT$392.6m (up 253% from 2Q 2021). Profit margin: 4.9% (up from 1.4% in 2Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) exceeded analyst estimates by 28%. Over the next year, revenue is forecast to grow 8.8%, compared to a 9.0% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Announcement • Jul 29
Merry Electronics Co., Ltd. Announces Cash Dividend for 2021 Merry Electronics Co., Ltd. announced distribution of cash dividend TWD 866,040,168 to shareholders (equals to TWD 4.0 per share). Ex-rights (ex-dividend) record date: August 31, 2022. Ex-rights (ex-dividend) trading date: August 25, 2022. Announcement • Jun 16
Merry Electronics Co., Ltd. Approves Cash Dividend for 2021 Merry Electronics Co., Ltd. announced that at its shareholders meeting held on June 15, 2022, approved the proposal for the distribution of 2021 profits with cash dividend TWD 866,040,168 to shareholders (equals to TWD 4.0 per share). Reported Earnings • May 02
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: NT$0.52 (up from NT$0.10 in 1Q 2021). Revenue: NT$6.02b (down 22% from 1Q 2021). Net income: NT$110.3m (up 427% from 1Q 2021). Profit margin: 1.8% (up from 0.3% in 1Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates by 267%. Over the next year, revenue is forecast to grow 15%, compared to a 10% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Price Target Changed • Apr 27
Price target increased to NT$105 Up from NT$94.00, the current price target is an average from 6 analysts. New target price is 30% above last closing price of NT$80.40. Stock is down 36% over the past year. The company is forecast to post earnings per share of NT$6.81 for next year compared to NT$5.40 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 6 non-independent directors. Independent Director Harvey Wu was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Mar 04
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from NT$7.82 to NT$6.97 per share. Revenue forecast steady at NT$39.6b. Net income forecast to grow 37% next year vs 19% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$95.29 to NT$106. Share price was steady at NT$83.00 over the past week. Price Target Changed • Mar 01
Price target increased to NT$105 Up from NT$95.29, the current price target is an average from 5 analysts. New target price is 27% above last closing price of NT$82.50. Stock is down 41% over the past year. The company is forecast to post earnings per share of NT$6.79 for next year compared to NT$5.40 last year. Reported Earnings • Feb 27
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: NT$5.40 (down from NT$6.39 in FY 2020). Revenue: NT$36.2b (up 5.0% from FY 2020). Net income: NT$1.13b (down 15% from FY 2020). Profit margin: 3.1% (down from 3.8% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 20%. Over the next year, revenue is forecast to grow 9.0%, compared to a 9.3% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Announcement • Feb 26
Merry Electronics Co., Ltd., Annual General Meeting, Jun 15, 2022 Merry Electronics Co., Ltd., Annual General Meeting, Jun 15, 2022. Location: Merry Corporation No. 22, 23rd Road Taichung Industrial Park Taichung Taiwan Agenda: To report the business report of 2021; to report the Audit Committees review report on the financial statements of 2021; to report the compensation to employees and remuneration to directors of 2021; to report the earnings distribution of 2021; to report on the connection and reasonableness between the contents and amounts of remuneration to directors and managerial officers and performance assessments results of directors and managerial officers; to report on the offering of the third domestic unsecured convertible bonds; to report the amendment of the Corporate Social Responsibility Best Practice Principles; and to transact other matters. Price Target Changed • Nov 03
Price target decreased to NT$111 Down from NT$119, the current price target is an average from 6 analysts. New target price is 16% above last closing price of NT$95.00. Stock is down 32% over the past year. The company is forecast to post earnings per share of NT$6.26 for next year compared to NT$6.39 last year. Price Target Changed • Nov 01
Price target decreased to NT$118 Down from NT$128, the current price target is an average from 5 analysts. New target price is 30% above last closing price of NT$90.40. Stock is down 35% over the past year. The company is forecast to post earnings per share of NT$5.78 for next year compared to NT$6.39 last year. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS NT$2.20 (vs NT$1.90 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$8.46b (down 17% from 3Q 2020). Net income: NT$457.6m (up 16% from 3Q 2020). Profit margin: 5.4% (up from 3.9% 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 36% 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. Price Target Changed • Oct 13
Price target decreased to NT$119 Down from NT$128, the current price target is an average from 6 analysts. New target price is 45% above last closing price of NT$82.00. Stock is down 46% over the past year. Upcoming Dividend • Aug 18
Upcoming dividend of NT$5.07 per share Eligible shareholders must have bought the stock before 25 August 2021. Payment date: 17 September 2021. Trailing yield: 4.8%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (3.3%). Major Estimate Revision • Aug 06
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from NT$6.91 to NT$6.05 per share. Revenue forecast steady at NT$38.0b. Net income forecast to grow 42% next year vs 23% growth forecast for Electronic industry in Taiwan. Consensus price target down from NT$130 to NT$127. Share price was steady at NT$111 over the past week. Reported Earnings • Jul 30
Second quarter 2021 earnings released: EPS NT$0.54 (vs NT$1.47 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: NT$8.17b (up 27% from 2Q 2020). Net income: NT$111.2m (down 63% from 2Q 2020). Profit margin: 1.4% (down from 4.7% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jun 11
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from NT$7.87 to NT$6.99 per share. Revenue forecast steady at NT$38.1b. Net income forecast to grow 23% next year vs 20% growth forecast for Electronic industry in Taiwan. Consensus price target down from NT$136 to NT$130. Share price was steady at NT$108 over the past week. Price Target Changed • May 09
Price target decreased to NT$144 Down from NT$160, the current price target is an average from 6 analysts. New target price is 32% above last closing price of NT$109. Stock is down 18% over the past year. Major Estimate Revision • May 08
Consensus EPS estimates fall to NT$8.38 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from NT$40.0b to NT$38.4b. EPS estimate also fell from NT$10.03 to NT$8.38. Net income forecast to grow 47% next year vs 26% growth forecast for Electronic industry in Taiwan. Consensus price target down from NT$160 to NT$149. Share price fell 14% to NT$109 over the past week. Reported Earnings • May 02
First quarter 2021 earnings released: EPS NT$0.10 (vs NT$0.23 in 1Q 2020) The company reported a mediocre first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: NT$7.73b (up 49% from 1Q 2020). Net income: NT$20.9m (down 56% from 1Q 2020). Profit margin: 0.3% (down from 0.9% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Mar 05
Analysts update estimates The 2021 consensus earning per share (EPS) estimate was lowered from NT$10.90 to NT$9.44. Revenue estimate was approximately flat at NT$39.6b. Net income is expected to grow by 54% next year compared to 27% growth forecast for the Electronic industry in Taiwan. The consensus price target was lowered from NT$165 to NT$159. Share price is down by 1.5% to NT$135 over the past week. Analyst Estimate Surprise Post Earnings • Feb 27
Revenue and earnings miss expectations Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 26%. Over the next year, revenue is forecast to grow 13%, compared to a 16% growth forecast for the Electronic industry in Taiwan. Announcement • Feb 26
Merry Electronics Co., Ltd., Annual General Meeting, Jun 15, 2021 Merry Electronics Co., Ltd., Annual General Meeting, Jun 15, 2021. Location: Merry Corporation No. 22, 23rd Road Taichung Industrial Park, Taichung Taichung Taiwan Agenda: To consider report the business report of 2020; to consider report the Audit Committee’s review report on the financial statements of 2020; to consider report the compensation to employees and remuneration to directors of 2020; to consider report the earnings distribution of 2020; to consider report on the connection and reasonableness between the contents and amounts of remuneration to directors and managerial officers and performance assessments results of directors and managerial officers; to consider report the amendment of the Corporate Social Responsibility Best Practice Principles; and to consider any other matter. Reported Earnings • Feb 26
Full year 2020 earnings released: EPS NT$6.39 (vs NT$12.51 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$34.4b (down 5.4% from FY 2019). Net income: NT$1.32b (down 48% from FY 2019). Profit margin: 3.8% (down from 7.0% in FY 2019). The decrease in margin was driven by lower revenue. 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 7% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 02
New 90-day low: NT$133 The company is down 5.0% from its price of NT$140 on 04 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 24% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$218 per share. Is New 90 Day High Low • Jan 15
New 90-day low: NT$136 The company is down 11% from its price of NT$153 on 16 October 2020. The Taiwanese market is up 22% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 29% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$219 per share. Major Estimate Revision • Nov 05
Analysts update estimates The 2020 consensus revenue estimate increased from NT$33.4b to NT$35.3b. Earnings per share (EPS) estimate was lowered from NT$9.91 to NT$8.13 for the same period. Net income is expected to grow by 83% next year compared to 22% growth forecast for the Electronic industry in Taiwan. The consensus price target was lowered from NT$173 to NT$163. Share price is down by 3.1% to NT$141 over the past week. Is New 90 Day High Low • Oct 30
New 90-day low: NT$141 The company is down 11% from its price of NT$159 on 31 July 2020. The Taiwanese market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$173 per share.