New Risk • Jun 04
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 51% 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 Earnings have declined by 26% per year over the past 5 years. High level of non-cash earnings (21% accrual ratio). Shareholders have been substantially diluted in the past year (51% increase in shares outstanding). Minor Risk Market cap is less than US$100m (NT$1.25b market cap, or US$39.7m). New Risk • May 14
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 22% 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 26% per year over the past 5 years. High level of non-cash earnings (22% accrual ratio). Minor Risk Market cap is less than US$100m (NT$851.1m market cap, or US$27.0m). Reported Earnings • May 14
First quarter 2026 earnings released: EPS: NT$0.38 (vs NT$0.05 in 1Q 2025) First quarter 2026 results: EPS: NT$0.38 (up from NT$0.05 in 1Q 2025). Revenue: NT$99.3m (up 35% from 1Q 2025). Net income: NT$14.9m (up NT$13.0m from 1Q 2025). Profit margin: 15% (up from 2.6% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 12
Full year 2025 earnings released: EPS: NT$0.39 (vs NT$0.41 in FY 2024) Full year 2025 results: EPS: NT$0.39 (down from NT$0.41 in FY 2024). Revenue: NT$327.6m (down 6.8% from FY 2024). Net income: NT$15.2m (down 4.5% from FY 2024). Profit margin: 4.6% (up from 4.5% in FY 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 39 percentage points per year, which is a significant difference in performance. Announcement • Mar 11
Hotel Royal Chihpen, Annual General Meeting, Jun 24, 2026 Hotel Royal Chihpen, Annual General Meeting, Jun 24, 2026. Location: no,37-1, sec.2 chung shan n. rd., taipei city Taiwan Reported Earnings • Nov 12
Third quarter 2025 earnings released: EPS: NT$0.31 (vs NT$0.057 loss in 3Q 2024) Third quarter 2025 results: EPS: NT$0.31 (up from NT$0.057 loss in 3Q 2024). Revenue: NT$81.1m (down 5.7% from 3Q 2024). Net income: NT$12.1m (up NT$14.3m from 3Q 2024). Profit margin: 15% (up from net loss in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 09
Second quarter 2025 earnings released: NT$0.25 loss per share (vs NT$0.27 profit in 2Q 2024) Second quarter 2025 results: NT$0.25 loss per share (down from NT$0.27 profit in 2Q 2024). Revenue: NT$58.4m (down 29% from 2Q 2024). Net loss: NT$9.86m (down 194% from profit in 2Q 2024). 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 6% per year, which means it has not declined as severely as earnings. Reported Earnings • May 14
First quarter 2025 earnings released: EPS: NT$0.05 (vs NT$0.90 in 1Q 2024) First quarter 2025 results: EPS: NT$0.05 (down from NT$0.90 in 1Q 2024). Revenue: NT$73.8m (down 44% from 1Q 2024). Net income: NT$1.94m (down 95% from 1Q 2024). Profit margin: 2.6% (down from 26% in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. New Risk • May 14
New major risk - Revenue and earnings growth Earnings have declined by 1.9% 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 Risk Earnings have declined by 1.9% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (NT$1.10b market cap, or US$36.4m). New Risk • Apr 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 28% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.5% net profit margin). Market cap is less than US$100m (NT$959.9m market cap, or US$29.7m). Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$24.95, the stock trades at a trailing P/E ratio of 61x. Average trailing P/E is 18x in the Hospitality industry in Taiwan. Total loss to shareholders of 9.8% over the past three years. Reported Earnings • Apr 02
Full year 2024 earnings released: EPS: NT$0.41 (vs NT$2.98 in FY 2023) Full year 2024 results: EPS: NT$0.41 (down from NT$2.98 in FY 2023). Revenue: NT$351.5m (down 25% from FY 2023). Net income: NT$15.9m (down 86% from FY 2023). Profit margin: 4.5% (down from 25% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has remained flat. Announcement • Mar 13
Hotel Royal Chihpen, Annual General Meeting, Jun 26, 2025 Hotel Royal Chihpen, Annual General Meeting, Jun 26, 2025. Location: no,23 ln.113, lung ch`uan rd., wen ch`uan ts`u, beinan township, taitung county Taiwan Reported Earnings • Nov 18
Third quarter 2024 earnings released: NT$0.06 loss per share (vs NT$0.39 profit in 3Q 2023) Third quarter 2024 results: NT$0.06 loss per share (down from NT$0.39 profit in 3Q 2023). Revenue: NT$86.0m (down 16% from 3Q 2023). Net loss: NT$2.22m (down 115% from profit in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$47.40, the stock trades at a trailing P/E ratio of 17.7x. Average trailing P/E is 19x in the Hospitality industry in Taiwan. Total returns to shareholders of 68% over the past three years. Buy Or Sell Opportunity • Aug 23
Now 21% overvalued Over the last 90 days, the stock has fallen 9.5% to NT$43.10. The fair value is estimated to be NT$35.54, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years. Earnings per share has grown by 19%. Upcoming Dividend • Jul 18
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 25 July 2024. Payment date: 16 August 2024. Payout ratio is a comfortable 50% but the company is paying out more than the cash it is generating. Trailing yield: 3.4%. 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$0.90 (vs NT$0.87 in 1Q 2023) First quarter 2024 results: EPS: NT$0.90 (up from NT$0.87 in 1Q 2023). Revenue: NT$132.6m (down 6.0% from 1Q 2023). Net income: NT$34.9m (up 2.9% from 1Q 2023). Profit margin: 26% (up from 24% in 1Q 2023). 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 15% per year. New Risk • Apr 09
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 32% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 91% Cash payout ratio: 92% Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (NT$1.84b market cap, or US$57.4m). Reported Earnings • Apr 02
Full year 2023 earnings released: EPS: NT$2.98 (vs NT$2.44 in FY 2022) Full year 2023 results: EPS: NT$2.98 (up from NT$2.44 in FY 2022). Revenue: NT$467.2m (down 2.4% from FY 2022). Net income: NT$115.8m (up 22% from FY 2022). Profit margin: 25% (up from 20% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 31
Hotel Royal Chihpen, Annual General Meeting, Jun 26, 2024 Hotel Royal Chihpen, Annual General Meeting, Jun 26, 2024. Buying Opportunity • Nov 08
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 20%. The fair value is estimated to be NT$60.51, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years. Earnings per share has grown by 6.7%. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$49.15, the stock trades at a trailing P/E ratio of 18.2x. Average trailing P/E is 22x in the Hospitality industry in Taiwan. Total returns to shareholders of 72% over the past three years. Buying Opportunity • Sep 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 25%. The fair value is estimated to be NT$60.73, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years. Earnings per share has grown by 6.7%. Buying Opportunity • Aug 22
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 30%. The fair value is estimated to be NT$61.47, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years. Earnings per share has grown by 6.7%. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$50.50, the stock trades at a trailing P/E ratio of 18.7x. Average trailing P/E is 25x in the Hospitality industry in Taiwan. Total returns to shareholders of 110% over the past three years. Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: NT$0.60 (vs NT$0.23 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.60 (up from NT$0.23 in 2Q 2022). Revenue: NT$97.7m (up 19% from 2Q 2022). Net income: NT$23.3m (up 167% from 2Q 2022). Profit margin: 24% (up from 11% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jul 14
Upcoming dividend of NT$2.22 per share at 3.1% yield Eligible shareholders must have bought the stock before 21 July 2023. Payment date: 11 August 2023. Payout ratio is on the higher end at 95%, however this is supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Taiwanese dividend payers (5.5%). Higher than average of industry peers (2.1%). Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$78.40, the stock trades at a trailing P/E ratio of 33.6x. Average trailing P/E is 33x in the Hospitality industry in Taiwan. Total returns to shareholders of 211% over the past three years. New Risk • Jun 20
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 7.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.9% average weekly change). Minor Risks Dividend is not well covered by earnings (95% payout ratio). Market cap is less than US$100m (NT$2.77b market cap, or US$89.9m). Valuation Update With 7 Day Price Move • May 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$63.50, the stock trades at a trailing P/E ratio of 26x. Average trailing P/E is 29x in the Hospitality industry in Taiwan. Total returns to shareholders of 192% over the past three years. Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$53.00, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 20x in the Hospitality industry in Taiwan. Total returns to shareholders of 168% over the past three years. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$60.90, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 24x in the Hospitality industry in Taiwan. Total returns to shareholders of 201% over the past three years. Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment improved over the past week After last week's 17% share price gain to NT$50.20, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 21x in the Hospitality industry in Taiwan. Total returns to shareholders of 144% over the past three years. Reported Earnings • Nov 10
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: NT$0.66 (up from NT$0.28 loss in 3Q 2021). Revenue: NT$135.5m (up 163% from 3Q 2021). Net income: NT$25.6m (up NT$36.4m from 3Q 2021). Profit margin: 19% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) exceeded analyst estimates by 27%. Revenue is forecast to grow 7.1% p.a. on average during the next 2 years, compared to a 25% growth forecast for the Hospitality industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 20% per year and the company’s share price has also increased by 20% per year. Valuation Update With 7 Day Price Move • Oct 19
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$42.70, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 25x in the Hospitality industry in Asia. Total returns to shareholders of 116% over the past three years. Valuation Update With 7 Day Price Move • Oct 03
Investor sentiment improved over the past week After last week's 23% share price gain to NT$43.90, the stock trades at a trailing P/E ratio of 26.7x. Average trailing P/E is 30x in the Hospitality industry in Taiwan. Total returns to shareholders of 115% over the past three years. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$0.22 (vs NT$0.007 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.22 (up from NT$0.007 in 2Q 2021). Revenue: NT$82.3m (up 45% from 2Q 2021). Net income: NT$8.73m (up NT$8.47m from 2Q 2021). Profit margin: 11% (up from 0.5% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 15
Upcoming dividend of NT$1.38 per share Eligible shareholders must have bought the stock before 22 July 2022. Payment date: 12 August 2022. 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 (6.8%). Higher than average of industry peers (3.5%). Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment improved over the past week After last week's 16% share price gain to NT$36.65, the stock trades at a trailing P/E ratio of 25.7x. Average trailing P/E is 28x in the Hospitality industry in Taiwan. Total returns to shareholders of 65% over the past three years. Reported Earnings • May 11
First quarter 2022 earnings released: EPS: NT$0.99 (vs NT$1.07 in 1Q 2021) First quarter 2022 results: EPS: NT$0.99 (down from NT$1.07 in 1Q 2021). Revenue: NT$136.3m (up 5.5% from 1Q 2021). Net income: NT$38.3m (down 7.6% from 1Q 2021). Profit margin: 28% (down from 32% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Apr 10
Hotel Royal Chihpen, Annual General Meeting, Jun 29, 2022 Hotel Royal Chihpen, Annual General Meeting, Jun 29, 2022. Reported Earnings • Mar 31
Full year 2021 earnings released: EPS: NT$1.51 (vs NT$2.41 in FY 2020) Full year 2021 results: EPS: NT$1.51 (down from NT$2.41 in FY 2020). Revenue: NT$362.5m (down 16% from FY 2020). Net income: NT$58.6m (down 37% from FY 2020). Profit margin: 16% (down from 22% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 07
Third quarter 2021 earnings released: NT$0.28 loss per share (vs NT$0.78 profit in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and control over costs. Third quarter 2021 results: Revenue: NT$51.6m (down 60% from 3Q 2020). Net loss: NT$10.8m (down 136% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 16
Upcoming dividend of NT$2.20 per share Eligible shareholders must have bought the stock before 23 August 2021. Payment date: 15 September 2021. Trailing yield: 6.6%. Within top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (3.2%). Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS NT$0.01 (vs NT$0.49 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$56.9m (down 25% from 2Q 2020). Net income: NT$262.0k (down 99% from 2Q 2020). Profit margin: 0.5% (down from 25% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 17
First quarter 2021 earnings released: EPS NT$1.07 (vs NT$0.52 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$129.2m (up 26% from 1Q 2020). Net income: NT$41.4m (up 104% from 1Q 2020). Profit margin: 32% (up from 20% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 26
Full year 2020 earnings released: EPS NT$2.41 (vs NT$0.86 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$431.4m (up 22% from FY 2019). Net income: NT$93.7m (up 182% from FY 2019). Profit margin: 22% (up from 9.4% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 72% 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 • Jan 21
New 90-day low: NT$30.50 The company is down 9.0% from its price of NT$33.45 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 Hospitality industry, which is up 2.0% over the same period. Reported Earnings • Nov 11
Third quarter 2020 earnings released: EPS NT$0.77 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$127.9m (up 40% from 3Q 2019). Net income: NT$30.1m (up 259% from 3Q 2019). Profit margin: 24% (up from 9.2% in 3Q 2019). The increase in margin was driven by higher revenue. 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 12% per year, which means it is significantly lagging earnings growth. 
