New Risk • May 12
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.5x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.5x net interest cover). Earnings have declined by 9.9% per year over the past 5 years. 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 (1.6% net profit margin). Market cap is less than US$100m (NT$1.47b market cap, or US$46.9m). Announcement • Mar 30
Louisa Professional Coffee Ltd., Annual General Meeting, Jun 24, 2026 Louisa Professional Coffee Ltd., Annual General Meeting, Jun 24, 2026. Location: no,542, chung cheng rd., sinjhuang district, new taipei city Taiwan New Risk • Mar 02
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 7.7% per year over the past 5 years. Minor Risks High level of debt (117% net debt to equity). Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Dividend is not well covered by cash flows (104% cash payout ratio). Profit margins are more than 30% lower than last year (2.5% net profit margin). Market cap is less than US$100m (NT$1.84b market cap, or US$58.8m). Upcoming Dividend • Jan 08
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 15 January 2026. Payment date: 12 February 2026. Payout ratio is on the higher end at 80%, and the cash payout ratio is above 100%. Trailing yield: 2.7%. Lower than top quartile of Taiwanese dividend payers (5.4%). Lower than average of industry peers (4.8%). New Risk • Aug 18
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: 2.5% Last year net profit margin: 5.0% 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: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 144% Cash payout ratio: 186% Earnings have declined by 7.7% per year over the past 5 years. Minor Risks High level of debt (117% net debt to equity). Profit margins are more than 30% lower than last year (2.5% net profit margin). Market cap is less than US$100m (NT$2.12b market cap, or US$70.6m). Upcoming Dividend • Jun 11
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 18 June 2025. Payment date: 14 July 2025. Payout ratio is on the higher end at 97%, and the cash payout ratio is above 100%. Trailing yield: 4.3%. Lower than top quartile of Taiwanese dividend payers (5.2%). In line with average of industry peers (4.4%). New Risk • May 06
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 0% Cash payout ratio: 105% Dividend yield: 4.3% 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. Payout ratio: 0% Cash payout ratio: 105% Earnings have declined by 5.5% per year over the past 5 years. Minor Risks High level of debt (92% net debt to equity). Market cap is less than US$100m (NT$2.11b market cap, or US$70.2m). Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to NT$89.40, the stock trades at a trailing P/E ratio of 15.4x. Average trailing P/E is 19x in the Hospitality industry in Taiwan. Total loss to shareholders of 21% over the past three years. Announcement • Mar 28
Louisa Professional Coffee Ltd., Annual General Meeting, Jun 18, 2025 Louisa Professional Coffee Ltd., Annual General Meeting, Jun 18, 2025, at 10:00 Taipei Standard Time. Location: no,542, chung cheng rd., sinjhuang district, new taipei city Taiwan Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$115, the stock trades at a trailing P/E ratio of 19.8x. Average trailing P/E is 19x in the Hospitality industry in Taiwan. Total returns to shareholders of 3.0% over the past three years. New Risk • Mar 01
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.9% per year over the past 5 years. Minor Risks High level of debt (68% net debt to equity). Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). 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$1.99b market cap, or US$60.4m). Upcoming Dividend • Jan 02
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 09 January 2025. Payment date: 14 February 2025. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Taiwanese dividend payers (4.5%). Lower than average of industry peers (4.3%). Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$1.06 (vs NT$1.69 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.06 (down from NT$1.69 in 2Q 2023). Revenue: NT$581.3m (flat on 2Q 2023). Net income: NT$21.7m (down 37% from 2Q 2023). Profit margin: 3.7% (down from 5.9% in 2Q 2023). Upcoming Dividend • Jun 06
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 13 June 2024. Payment date: 05 July 2024. Payout ratio is a comfortable 70% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (4.0%). Reported Earnings • May 19
First quarter 2024 earnings released: EPS: NT$1.50 (vs NT$1.52 in 1Q 2023) First quarter 2024 results: EPS: NT$1.50 (down from NT$1.52 in 1Q 2023). Revenue: NT$571.7m (flat on 1Q 2023). Net income: NT$30.7m (down 1.7% from 1Q 2023). Profit margin: 5.4% (down from 5.5% in 1Q 2023). Reported Earnings • Apr 10
Full year 2023 earnings released: EPS: NT$6.28 (vs NT$5.04 in FY 2022) Full year 2023 results: EPS: NT$6.28 (up from NT$5.04 in FY 2022). Revenue: NT$2.37b (up 9.1% from FY 2022). Net income: NT$128.7m (up 25% from FY 2022). Profit margin: 5.4% (up from 4.8% in FY 2022). The increase in margin was driven by higher revenue. Announcement • Mar 22
Louisa Professional Coffee Ltd., Annual General Meeting, Jun 13, 2024 Louisa Professional Coffee Ltd., Annual General Meeting, Jun 13, 2024. Upcoming Dividend • Feb 26
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 04 March 2024. Payment date: 28 March 2024. Payout ratio is on the higher end at 90% but the company is not cash flow positive. Trailing yield: 3.9%. Lower than top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (2.5%). New Risk • Jan 17
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.15b (US$99.9m) 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: Major Risks Earnings have declined by 0.9% per year over the past 5 years. High level of non-cash earnings (35% accrual ratio). Minor Risks High level of debt (63% net debt to equity). Paying a dividend despite having no free cash flows. Market cap is less than US$100m (NT$3.15b market cap, or US$99.9m). Reported Earnings • Dec 15
Third quarter 2023 earnings released: EPS: NT$1.55 (vs NT$2.00 in 3Q 2022) Third quarter 2023 results: EPS: NT$1.55 (down from NT$2.00 in 3Q 2022). Revenue: NT$615.6m (up 6.3% from 3Q 2022). Net income: NT$31.7m (down 23% from 3Q 2022). Profit margin: 5.1% (down from 7.1% in 3Q 2022). The decrease in margin was driven by higher expenses. New Risk • Aug 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 47% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 2.4% per year over the past 5 years. High level of non-cash earnings (47% accrual ratio). Minor Risks High level of debt (76% net debt to equity). Market cap is less than US$100m (NT$3.12b market cap, or US$97.6m). New Risk • Aug 14
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.12b (US$97.8m) 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: Major Risk Earnings have declined by 6.8% per year over the past 5 years. Minor Risk Market cap is less than US$100m (NT$3.12b market cap, or US$97.8m). Buying Opportunity • Aug 14
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 11%. The fair value is estimated to be NT$193, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.6% over the last 3 years. Earnings per share has declined by 37%. Upcoming Dividend • Jun 22
Upcoming dividend of NT$3.00 per share at 1.8% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 31 July 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 1.8%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (1.9%). Reported Earnings • Jun 21
Full year 2022 earnings released: EPS: NT$5.03 (vs NT$4.41 in FY 2021) Full year 2022 results: EPS: NT$5.03 (up from NT$4.41 in FY 2021). Revenue: NT$2.17b (up 16% from FY 2021). Net income: NT$103.1m (up 16% from FY 2021). Profit margin: 4.8% (up from 4.7% in FY 2021). The increase in margin was driven by higher revenue. Buying Opportunity • May 02
Now 20% undervalued Over the last 90 days, the stock is up 30%. The fair value is estimated to be NT$201, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last year. Earnings per share has declined by 34%. Upcoming Dividend • Aug 31
Upcoming dividend of NT$6.00 per share Eligible shareholders must have bought the stock before 07 September 2022. Payment date: 05 October 2022. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 4.7%. Lower than top quartile of Taiwanese dividend payers (6.5%). Higher than average of industry peers (3.4%). Reported Earnings • Aug 15
First half 2022 earnings released: EPS: NT$1.05 (vs NT$1.37 in 1H 2021) First half 2022 results: EPS: NT$1.05 (down from NT$1.37 in 1H 2021). Revenue: NT$1.01b (up 10% from 1H 2021). Net income: NT$21.4m (down 21% from 1H 2021). Profit margin: 2.1% (down from 3.0% in 1H 2021). The decrease in margin was driven by higher expenses. Reported Earnings • May 02
Full year 2021 earnings released: EPS: NT$4.40 (vs NT$9.45 in FY 2020) Full year 2021 results: EPS: NT$4.40 (down from NT$9.45 in FY 2020). Revenue: NT$1.88b (down 5.0% from FY 2020). Net income: NT$88.9m (down 45% from FY 2020). Profit margin: 4.7% (down from 8.1% in FY 2020). The decrease in margin was driven by lower revenue. Announcement • Apr 13
Louisa Professional Coffee Ltd., Annual General Meeting, Jun 27, 2022 Louisa Professional Coffee Ltd., Annual General Meeting, Jun 27, 2022. 
