Valuation Update With 7 Day Price Move • May 14
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$150, the stock trades at a trailing P/E ratio of 47.7x. Average trailing P/E is 32x in the Chemicals industry in Taiwan. Total returns to shareholders of 356% over the past three years. New Risk • May 08
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 12% 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 Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (12% average weekly change). Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$105, the stock trades at a trailing P/E ratio of 33.5x. Average trailing P/E is 28x in the Chemicals industry in Taiwan. Total returns to shareholders of 213% over the past three years. Reported Earnings • Mar 27
Full year 2025 earnings released: EPS: NT$3.14 (vs NT$3.21 in FY 2024) Full year 2025 results: EPS: NT$3.14 (down from NT$3.21 in FY 2024). Revenue: NT$39.4b (up 32% from FY 2024). Net income: NT$1.87b (down 1.9% from FY 2024). Profit margin: 4.7% (down from 6.4% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Mar 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 7.6% 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: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.6% average weekly change). Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$74.00, the stock trades at a trailing P/E ratio of 31.5x. Average trailing P/E is 21x in the Chemicals industry in Taiwan. Total returns to shareholders of 125% over the past three years. Announcement • Mar 09
Solar Applied Materials Technology Corporation, Annual General Meeting, May 25, 2026 Solar Applied Materials Technology Corporation, Annual General Meeting, May 25, 2026. Location: 2 floor no,31, kung yeh 2nd rd., an nan district, tainan city Taiwan Reported Earnings • Nov 12
Third quarter 2025 earnings released: EPS: NT$1.17 (vs NT$0.77 in 3Q 2024) Third quarter 2025 results: EPS: NT$1.17 (up from NT$0.77 in 3Q 2024). Revenue: NT$10.4b (up 37% from 3Q 2024). Net income: NT$694.3m (up 52% from 3Q 2024). Profit margin: 6.7% (up from 6.0% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jul 14
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 21 July 2025. Payment date: 15 August 2025. Payout ratio is a comfortable 54% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (3.2%). Declared Dividend • Jun 23
Dividend increased to NT$2.00 Dividend of NT$2.00 is 67% higher than last year. Ex-date: 21st July 2025 Payment date: 15th August 2025 Dividend yield will be 3.6%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (54% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 2.8% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 7.1% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jun 21
Solar Applied Materials Technology Corporation Announces Cash Dividend, Payable on August 15, 2025 Solar Applied Materials Technology Corporation announced cash dividend of TWD 2.0 per share. Total cash dividend of TWD 1,192,142,486. Ex-rights (Ex-dividend) date: July 21, 2025. Ex-rights (Ex-dividend) record date: July 27, 2025. Payment date of cash dividend distribution: August 15, 2025.
The company announced adjustment in cash dividend payout ratio. Type and monetary amount of original dividend distribution: A cash dividend of TWD 2.0 per share, total cash dividend of TWD 1,192,142,486. Type and monetary amount of dividend distribution after the change: A cash dividend of TWD 2.00013422 per share, total cash dividend of TWD 1,192,142,486. Reason for the change: Due to the issuance of restricted stocks for employees, the company's total number of outstanding shares has been affected. Thus, the Chairman is authorized to adjust dividend payout ratio in accordance with the resolution made by the shareholders' meeting on June 12, 2025. New Risk • May 24
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 4.1% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (4.1% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • May 08
First quarter 2025 earnings released: EPS: NT$0.60 (vs NT$0.73 in 1Q 2024) First quarter 2025 results: EPS: NT$0.60 (down from NT$0.73 in 1Q 2024). Revenue: NT$8.24b (up 31% from 1Q 2024). Net income: NT$358.3m (down 17% from 1Q 2024). Profit margin: 4.3% (down from 6.8% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 5% per year. Announcement • Apr 25
Solar Applied Materials Technology Corporation to Report Q1, 2025 Results on May 02, 2025 Solar Applied Materials Technology Corporation announced that they will report Q1, 2025 results on May 02, 2025 New Risk • Apr 10
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 7.9% 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: Major Risk Debt is not well covered by operating cash flow (3.6% operating cash flow to total debt). Minor Risk Share price has been volatile over the past 3 months (7.9% average weekly change). Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$51.90, the stock trades at a trailing P/E ratio of 16.3x. Average trailing P/E is 18x in the Chemicals industry in Taiwan. Total returns to shareholders of 15% over the past three years. Reported Earnings • Mar 15
Full year 2024 earnings released: EPS: NT$3.21 (vs NT$1.83 in FY 2023) Full year 2024 results: EPS: NT$3.21 (up from NT$1.83 in FY 2023). Revenue: NT$29.8b (up 32% from FY 2023). Net income: NT$1.90b (up 75% from FY 2023). Profit margin: 6.4% (up from 4.8% 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 3% per year whereas the company’s share price has increased by 6% per year. Announcement • Mar 10
Solar Applied Materials Technology Corporation, Annual General Meeting, Jun 12, 2025 Solar Applied Materials Technology Corporation, Annual General Meeting, Jun 12, 2025. Location: 2 floor no,31, kung yeh 2nd rd., an nan district, tainan city Taiwan New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 09
Third quarter 2024 earnings released: EPS: NT$0.77 (vs NT$0.69 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.77 (up from NT$0.69 in 3Q 2023). Revenue: NT$7.62b (up 28% from 3Q 2023). Net income: NT$458.0m (up 12% from 3Q 2023). Profit margin: 6.0% (down from 6.9% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Oct 28
Solar Applied Materials Technology Corporation to Report Q3, 2024 Results on Nov 04, 2024 Solar Applied Materials Technology Corporation announced that they will report Q3, 2024 results on Nov 04, 2024 Valuation Update With 7 Day Price Move • Sep 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$67.50, the stock trades at a trailing P/E ratio of 31.8x. Average trailing P/E is 22x in the Chemicals industry in Taiwan. Total returns to shareholders of 44% over the past three years. Reported Earnings • Aug 14
Second quarter 2024 earnings released: EPS: NT$0.62 (vs NT$0.77 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.62 (down from NT$0.77 in 2Q 2023). Revenue: NT$7.60b (up 32% from 2Q 2023). Net income: NT$367.0m (down 19% from 2Q 2023). Profit margin: 4.8% (down from 7.9% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Announcement • Aug 02
Solar Applied Materials Technology Corporation to Report Q2, 2024 Results on Aug 09, 2024 Solar Applied Materials Technology Corporation announced that they will report Q2, 2024 results on Aug 09, 2024 Upcoming Dividend • Jul 11
Upcoming dividend of NT$1.20 per share Eligible shareholders must have bought the stock before 18 July 2024. Payment date: 16 August 2024. Payout ratio is a comfortable 53% but the company is paying out more than the cash it is generating. Trailing yield: 1.6%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (2.2%). Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$75.30, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 30x in the Chemicals industry in Taiwan. Total returns to shareholders of 85% over the past three years. Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$56.60, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 31x in the Chemicals industry in Taiwan. Total returns to shareholders of 41% over the past three years. Declared Dividend • Jun 13
Dividend reduced to NT$1.20 Dividend of NT$1.20 is 20% lower than last year. Ex-date: 18th July 2024 Payment date: 16th August 2024 Dividend yield will be 2.2%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (53% earnings payout ratio) but not covered by cash flows (208% cash payout ratio). The dividend has increased by an average of 3.5% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 17% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 13
Solar Applied Materials Technology Corporation Announces Dividend Distribution, Payable on August 16, 2024 Solar Applied Materials Technology Corporation announced adjustment in cash dividend payout ratio. Type and monetary amount of original dividend distribution: A cash dividend of TWD 1.2 per share Total cash dividend of TWD 715,490,092. Type and monetary amount of dividend distribution after the change: A cash dividend of TWD 1.20010869 per share Total cash dividend of TWD 715,490,092. Reason for the change: Due to the issuance of restricted stocks for employees,the Company's total number of outstanding shares has been affected. Thus, the Chairman is authorized to adjust dividend payout ratio in accordance with the resolution made by the shareholders' meeting on May 30, 2024. Ex-rights (Ex-dividend) date: July 18, 2024. Ex-rights (Ex-dividend) record date: July 25, 2024. Payment date of cash dividend distribution: August 16, 2024. Reported Earnings • May 15
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: NT$0.73 (up from NT$0.27 in 1Q 2023). Revenue: NT$6.31b (up 30% from 1Q 2023). Net income: NT$430.5m (up 167% from 1Q 2023). Profit margin: 6.8% (up from 3.3% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 9.4%. Earnings per share (EPS) also surpassed analyst estimates by 7.5%. Revenue is forecast to grow 2.8% p.a. on average during the next 2 years, compared to a 6.7% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has remained flat and the company’s share price has also remained flat. Announcement • Apr 26
Solar Applied Materials Technology Corporation to Report Q1, 2024 Results on May 02, 2024 Solar Applied Materials Technology Corporation announced that they will report Q1, 2024 results on May 02, 2024 Reported Earnings • Mar 12
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: NT$1.83 (down from NT$2.35 in FY 2022). Revenue: NT$22.6b (down 12% from FY 2022). Net income: NT$1.08b (down 22% from FY 2022). Profit margin: 4.8% (down from 5.4% in FY 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 5.5% p.a. on average during the next 2 years, compared to a 7.9% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has fallen by 2% per year. Announcement • Mar 07
Solar Applied Materials Technology Corporation, Annual General Meeting, May 30, 2024 Solar Applied Materials Technology Corporation, Annual General Meeting, May 30, 2024. Location: 207 Conference Room of Southern Taiwan Innovation & Research Park, MOEA (No. 31, Gongye 2nd Road, Annan District, Tainan City) Tainan City Taiwan Agenda: To consider 2023 Business Report; 2023 Audit Committee's Financial Statement Review Report; The Companys report on its issuance of secured corporate bond (green bond); and to discuss other matters. Reported Earnings • Nov 15
Third quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2023 results: EPS: NT$0.69 (down from NT$0.89 in 3Q 2022). Revenue: NT$5.95b (down 1.3% from 3Q 2022). Net income: NT$408.4m (down 23% from 3Q 2022). Profit margin: 6.9% (down from 8.7% in 3Q 2022). Revenue missed analyst estimates by 11%. Earnings per share (EPS) exceeded analyst estimates by 4.5%. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 7.0% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Oct 18
Solar Applied Materials Technology Corp Announces Change in Representative of Institutional Director Solar Applied Materials Technology Corp. announced the resignation of Yun-Fang Li and Yu-Cheng Cheng as representative of the institutional director, effective October 17, 2023. Yun-Fang Li is Chief Finance Officer of Xxentria Technology Materials Co. Ltd. Yu-Cheng Cheng is R&D Engineer of Xxentria Technology Materials Co. Ltd. The company announced the appointment of Yun-Fang Li and Yu-Cheng Cheng as representative of the institutional director, effective October 17, 2023. Yun-Fang Li is Vice President of Solar Applied materials technology corp. Yu-Cheng Cheng is Assistant Vice President of Solar Applied materials technology corp. Reported Earnings • Aug 09
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: EPS: NT$0.77 (up from NT$0.62 in 2Q 2022). Revenue: NT$5.76b (down 17% from 2Q 2022). Net income: NT$455.2m (up 25% from 2Q 2022). Profit margin: 7.9% (up from 5.2% in 2Q 2022). Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates by 23%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Chemicals 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 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 12
Upcoming dividend of NT$1.50 per share at 3.9% yield Eligible shareholders must have bought the stock before 19 July 2023. Payment date: 16 August 2023. Payout ratio is on the higher end at 75% but the company is not cash flow positive. Trailing yield: 3.9%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (3.8%). Announcement • Jun 13
Solar Applied Materials Technology Corporation Announces Remuneration Committee Changes Solar Applied Materials Technology Corporation announced changes in the sixth remuneration committee. Name of the previous position holder: Feng-Chi Kao, Tse-Hsiang Ting, Chun-Hung Tung. Resume of the previous position holder: Feng-Chi Kao/Prosecutor at the Tainan District Prosecutors Office, Chief Prosecutor at Kaohsiung District Prosecutors Office, Tse-Hsiang Ting/Certified Public Accountant of Nan Tai Union & Co., Supervisor of Ya Horng Electronic Co. Ltd., Chun-Hung Tung /Has Passed the Advanced Examination for Financial Officers by Examination Yuan, Manager of Chang Hwa Commercial Bank Ltd. Name of the new position holder: Feng-Chi Kao, Chun-Hung Tung, Chia-Hsin Chang, Pi-Chuan Sun. Resume of the new position holder: Feng-Chi Kao/Prosecutor at the Tainan District Prosecutors Office, Chief Prosecutor at Kaohsiung District Prosecutors Office, Chun-Hung Tung /Has Passed the Advanced Examination for Financial Officers by Examination Yuan, Manager of Chang Hwa Commercial Bank Ltd., Chia-Hsin Chang /Joint certified public accountant at KPMG. Pi-Chuan Sun /Dean of School of Business Administration of Tatung University. Effective date of the new member: June 8, 2023. Announcement • Jun 09
Solar Applied Materials Technology Corporation Announces Cash Dividend, Payable on August 16, 2023 Solar Applied Materials Technology Corporation announced cash dividend of TWD 1.5 per share, total cash dividend of TWD 895,278,365. Ex-rights (Ex-dividend) date is July 19, 2023; Ex-rights (Ex-dividend) record date is July 25, 2023; Payment date of cash dividend distribution is August 16, 2023. Announcement • Jun 01
Solar Applied Materials Technology Corporation Announces Audit Committee Changes Solar Applied Materials Technology Corporation appointed Chia-Hsin Chang, Joint certified public accountant at KPMG and Pi-Chuan Sun, Dean of School of Business Administration of Tatung University as Members of the Audit Committee in place of Tse-Hsiang Ting. Effective date of the new member is May 30, 2023. Reported Earnings • Mar 24
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: NT$2.35 (up from NT$2.15 in FY 2021). Revenue: NT$25.8b (down 18% from FY 2021). Net income: NT$1.39b (up 11% from FY 2021). Profit margin: 5.4% (up from 4.0% 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 4.3%. Revenue is forecast to grow 5.1% p.a. on average during the next 2 years, compared to a 2.1% growth forecast for the Chemicals 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 increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$38.85, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Chemicals industry in Taiwan. Total returns to shareholders of 108% over the past three years. Price Target Changed • Nov 16
Price target decreased to NT$43.50 Down from NT$61.50, the current price target is an average from 2 analysts. New target price is 25% above last closing price of NT$34.70. Stock is down 38% over the past year. The company is forecast to post earnings per share of NT$2.44 for next year compared to NT$2.15 last year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 6 non-independent directors. Independent Director Chang-Po Wu was the last independent director to join the board, commencing their role in 2016. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: NT$0.89 (up from NT$0.61 in 3Q 2021). Revenue: NT$6.03b (down 27% from 3Q 2021). Net income: NT$527.3m (up 46% from 3Q 2021). Profit margin: 8.7% (up from 4.4% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 7.6%. Earnings per share (EPS) exceeded analyst estimates by 78%. Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, while revenues in the Chemicals industry in Taiwan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 12% per year and the company’s share price has also increased by 12% per year. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 18% share price decline to NT$29.30, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Chemicals industry in Taiwan. Total returns to shareholders of 42% over the past three years. Announcement • Sep 28
Solar Applied Materials Technology Corporation Announces the Resignation of Chien-Yung Ma as CTO Solar Applied Materials Technology Corporation announced the resignation of Chien-Yung Ma as CTO, effective September 27, 2022. Reported Earnings • Aug 07
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: NT$0.62 (up from NT$0.53 in 2Q 2021). Revenue: NT$6.96b (down 9.1% from 2Q 2021). Net income: NT$365.4m (up 17% from 2Q 2021). Profit margin: 5.2% (up from 4.1% in 2Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 7.2%. Earnings per share (EPS) also missed analyst estimates by 2.4%. Over the next year, revenue is forecast to decline by 8.9% while the industry in Taiwan is not expected to grow. Over the last 3 years on average, earnings per share has increased by 18% per year and the company’s share price has also increased by 18% per year. Major Estimate Revision • Aug 05
Consensus revenue estimates fall by 14% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from NT$32.6b to NT$28.2b. EPS estimate fell from NT$2.85 to NT$2.44 per share. Net income forecast to grow 9.9% next year vs 13% decline forecast for Chemicals industry in Taiwan. Consensus price target down from NT$61.50 to NT$43.50. Share price fell 3.1% to NT$35.95 over the past week. Upcoming Dividend • Jul 20
Upcoming dividend of NT$1.49 per share Eligible shareholders must have bought the stock before 27 July 2022. Payment date: 26 August 2022. Payout ratio is a comfortable 65% but the company is paying out more than the cash it is generating. Trailing yield: 3.9%. Lower than top quartile of Taiwanese dividend payers (6.8%). Lower than average of industry peers (8.3%). Price Target Changed • Jul 06
Price target increased to NT$61.50 Up from NT$49.00, the current price target is an average from 2 analysts. New target price is 63% above last closing price of NT$37.75. Stock is down 18% over the past year. The company is forecast to post earnings per share of NT$2.85 for next year compared to NT$2.15 last year. Board Change • Jul 06
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 6 non-independent directors. Independent Director Chang-Po Wu was the last independent director to join the board, commencing their role in 2016. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 17
Solar Applied Materials Technology Corporation Announces Cash Dividend Solar Applied Materials Technology Corporation announced cash dividend of TWD 1.5 per share. Announcement • Jun 01
Solar Applied Materials Technology Corporation Announces Executive Changes, Effective May 31, 2022 Solar Applied Materials Technology Corporation announced that Chii-Feng Huang President, Solar Applied Materials appointed in place of Chien-Yung Ma Chairman of Solar Applied Material Technology Corp. Effective May 31, 2022. Announcement • Apr 07
Solar Applied Materials Technology Corporation's Subsidiary Solar Chemical (Kunshan) Suspends Operation to Cooperate with the Local Government's Epidemic Prevention Policies Solar Applied Materials Technology Corporation announced on behalf of important subsidiary Solar Chemical (KunShan) suspended operation to cooperate with the local government's epidemic prevention policies. The company cooperates with local government regulations to take contingency measures to ensure the safety and health of employees. Reported Earnings • Mar 19
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: NT$2.15 (up from NT$1.69 in FY 2020). Revenue: NT$31.4b (up 18% from FY 2020). Net income: NT$1.26b (up 49% from FY 2020). Profit margin: 4.0% (up from 3.2% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 2.7%. Over the next year, revenue is forecast to grow 2.9% compared to a 2.1% decline forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 10
Solar Applied Materials Technology Corporation Announces Resignation of Members of Remuneration Committee and Audit Committee Solar Applied Materials Technology Corporation announced the Name of the previous position holder: Mr. Chen-Ming Fang, Ms. Mei-Hui Wu, Independent director of Solar. The company received the letters of resignation on March 8,2022, and the resignations take effect on March 8, 2022. Resume of the new position holder: Member of Remuneration Committee shall be announced after appointment, and member of Audit Committee shall be announced after re-election. Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS NT$0.61 (vs NT$0.53 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$8.26b (up 10.0% from 3Q 2020). Net income: NT$361.6m (up 37% from 3Q 2020). Profit margin: 4.4% (up from 3.5% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has increased by 43% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Aug 19
Upcoming dividend of NT$1.20 per share Eligible shareholders must have bought the stock before 26 August 2021. Payment date: 17 September 2021. Trailing yield: 2.6%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (2.9%). Reported Earnings • Aug 12
Second quarter 2021 earnings released: EPS NT$0.53 (vs NT$0.37 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$7.66b (up 19% from 2Q 2020). Net income: NT$311.9m (up 70% from 2Q 2020). Profit margin: 4.1% (up from 2.9% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year whereas the company’s share price has increased by 31% per year. Valuation Update With 7 Day Price Move • May 16
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$43.40, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 12x in the Chemicals industry in Taiwan. Total returns to shareholders of 89% over the past three years. Price Target Changed • May 14
Price target increased to NT$53.50 Up from NT$49.00, the current price target is provided by 1 analyst. New target price is 23% above last closing price of NT$43.40. Stock is up 121% over the past year. Reported Earnings • May 11
First quarter 2021 earnings released: EPS NT$0.46 (vs NT$0.27 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$7.37b (up 36% from 1Q 2020). Net income: NT$262.2m (up 96% from 1Q 2020). Profit margin: 3.6% (up from 2.5% 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 32% per year whereas the company’s share price has increased by 31% per year. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment improved over the past week After last week's 21% share price gain to NT$55.70, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 12x in the Chemicals industry in Taiwan. Total returns to shareholders of 145% over the past three years. Major Estimate Revision • Mar 16
Analysts update estimates The 2021 consensus revenue estimate increased from NT$27.6b to NT$30.3b. Earnings per share (EPS) estimate was lowered from NT$2.48 to NT$2.20 for the same period. Net income is expected to grow by 54% next year compared to 63% growth forecast for the Chemicals industry in Taiwan. The consensus price target increased from NT$49.00 to NT$51.00. Share price stayed mostly flat at NT$46.05 over the past week. Reported Earnings • Mar 09
Full year 2020 earnings released: EPS NT$1.69 (vs NT$2.35 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: NT$26.7b (up 21% from FY 2019). Net income: NT$843.4m (down 19% from FY 2019). Profit margin: 3.2% (down from 4.7% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Mar 09
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 8.3%. Over the next year, revenue is forecast to grow 3.6%, compared to a 14% growth forecast for the Chemicals industry in Taiwan. Is New 90 Day High Low • Feb 02
New 90-day low: NT$43.20 The company is down 1.0% from its price of NT$43.60 on 05 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$65.18 per share. Is New 90 Day High Low • Jan 07
New 90-day high: NT$48.75 The company is up 10.0% from its price of NT$44.40 on 08 October 2020. The Taiwanese market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 15% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$65.95 per share. Is New 90 Day High Low • Nov 12
New 90-day high: NT$45.65 The company is up 14% from its price of NT$40.00 on 14 August 2020. The Taiwanese market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$58.58 per share. Reported Earnings • Nov 10
Third quarter 2020 earnings released: EPS NT$0.53 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$7.51b (up 14% from 3Q 2019). Net income: NT$263.3m (up 33% from 3Q 2019). Profit margin: 3.5% (up from 3.0% 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 58% per year but the company’s share price has only increased by 43% per year, which means it is significantly lagging earnings growth.