Buy Or Sell Opportunity • Jun 05
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 23% to NT$77.40. The fair value is estimated to be NT$64.49, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 2.5% over the last 3 years. Earnings per share has grown by 3.8%. Valuation Update With 7 Day Price Move • May 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$84.60, the stock trades at a trailing P/E ratio of 57.2x. Average forward P/E is 20x in the Chemicals industry in Taiwan. Total returns to shareholders of 181% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$64.17 per share. Buy Or Sell Opportunity • May 21
Now 26% overvalued after recent price rise Over the last 90 days, the stock has risen 41% to NT$79.90. The fair value is estimated to be NT$63.58, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 2.5% over the last 3 years. Earnings per share has grown by 3.8%. Reported Earnings • May 19
First quarter 2026 earnings released: EPS: NT$0.37 (vs NT$0.30 in 1Q 2025) First quarter 2026 results: EPS: NT$0.37 (up from NT$0.30 in 1Q 2025). Revenue: NT$10.2b (up 1.8% from 1Q 2025). Net income: NT$428.3m (up 23% from 1Q 2025). Profit margin: 4.2% (up from 3.5% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 8.8% 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 31% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Apr 17
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 24 April 2026. Payment date: 26 May 2026. Payout ratio is a comfortable 71% but the company is paying out more than the cash it is generating. Trailing yield: 1.2%. Lower than top quartile of Taiwanese dividend payers (5.1%). Lower than average of industry peers (1.6%). 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$73.80, the stock trades at a trailing P/E ratio of 52.3x. Average forward P/E is 17x in the Chemicals industry in Taiwan. Total returns to shareholders of 147% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$35.10 per share. Price Target Changed • Mar 20
Price target increased by 81% to NT$80.00 Up from NT$44.21, the current price target is provided by 1 analyst. New target price is 20% above last closing price of NT$66.70. Stock is up 125% over the past year. The company posted earnings per share of NT$1.41 last year. Announcement • Mar 16
Eternal Materials Co., Ltd., Annual General Meeting, Jun 26, 2026 Eternal Materials Co., Ltd., Annual General Meeting, Jun 26, 2026, at 09:30 Taipei Standard Time. Location: no,22, ch`ang hsing rd., hou hsiang li, lujhu district, kaohsiung city Taiwan Declared Dividend • Mar 16
Dividend of NT$1.00 announced Shareholders will receive a dividend of NT$1.00. Ex-date: 24th April 2026 Payment date: 26th May 2026 Dividend yield will be 1.6%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (80% earnings payout ratio) but not covered by cash flows (123% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 11% to shift the payout ratio to a potentially unsustainable range, which is more than the 8.2% EPS decline seen over the last 5 years. New Risk • Mar 15
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 50% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 18% per year over the past 5 years. Minor Risks High level of debt (50% net debt to equity). Dividend is not well covered by cash flows (123% cash payout ratio). Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$1.41 (vs NT$1.56 in FY 2024) Full year 2025 results: EPS: NT$1.41 (down from NT$1.56 in FY 2024). Revenue: NT$40.7b (down 7.9% from FY 2024). Net income: NT$1.66b (down 9.8% from FY 2024). Profit margin: 4.1% (down from 4.2% in FY 2024). The decrease in margin was driven by lower revenue. 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 27% per year, which means it is well ahead of earnings. Announcement • Mar 14
Eternal Materials Co., Ltd. announces Annual dividend, payable on May 26, 2026 Eternal Materials Co., Ltd. announced Annual dividend of TWD 1.0000 per share payable on May 26, 2026, ex-date on April 24, 2026 and record date on April 27, 2026. Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$69.00, the stock trades at a trailing P/E ratio of 46.1x. Average forward P/E is 20x in the Chemicals industry in Taiwan. Total returns to shareholders of 140% over the past three years. New Risk • Jan 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.4% 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 Earnings have declined by 16% per year over the past 5 years. Minor Risks High level of debt (49% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.4% average weekly change). Valuation Update With 7 Day Price Move • Jan 06
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$50.70, the stock trades at a trailing P/E ratio of 33.9x. Average forward P/E is 19x in the Chemicals industry in Taiwan. Total returns to shareholders of 77% over the past three years. New Risk • Nov 29
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 49% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 16% per year over the past 5 years. Minor Risks High level of debt (49% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: NT$0.49 (vs NT$0.39 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.49 (up from NT$0.39 in 3Q 2024). Revenue: NT$10.1b (down 11% from 3Q 2024). Net income: NT$574.6m (up 26% from 3Q 2024). Profit margin: 5.7% (up from 4.0% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 6.2% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Chemicals industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. New Risk • Aug 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.2% 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 Earnings have declined by 14% per year over the past 5 years. Minor Risks High level of debt (60% net debt to equity). Dividend is not well covered by cash flows (115% cash payout ratio). Share price has been volatile over the past 3 months (6.2% average weekly change). Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to NT$35.05, the stock trades at a trailing P/E ratio of 25.1x. Average trailing P/E is 23x in the Chemicals industry in Taiwan. Total returns to shareholders of 15% over the past three years. Reported Earnings • Aug 09
Second quarter 2025 earnings released: EPS: NT$0.30 (vs NT$0.38 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.30 (down from NT$0.38 in 2Q 2024). Revenue: NT$10.4b (down 10% from 2Q 2024). Net income: NT$352.9m (down 21% from 2Q 2024). Profit margin: 3.4% (down from 3.9% in 2Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 20% 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. Announcement • Jun 26
Eternal Materials Co., Ltd. Announces Board Changes Eternal Materials Co., Ltd. announced the board changes. Title and name of the previous position holder: Director: Yang, Huai-Kung. Independent Director: Chen, I-Heng. Resume of the previous position holder: Director: Yang, Huai-Kung, (Bachelor of Accounting, Soochow University, VP, Director of the Company). Independent Director: Chen, I-Heng, (PH.D of HR Management & Organization Development of New York University, Professor of Institute of HR Management of National Sun Yat-Sen University). Title and name of the new position holder: Director: Yang, Chin Ying. Independent Director: Chen, Ting-Yuan. Resume of the new position holder: Director: Yang, Chin Ying, (MBA, University of Dallas, Vice President of ABN AMRO Holding N.V.). Independent Director: Chen, Ting-Yuan (Bachelor of Forestry, National Chung Hsing University, Chairman of Chenta Precision Machinery Industrial Inc.). Effective date of the new appointment is on June 25, 2025. Reported Earnings • May 13
First quarter 2025 earnings released: EPS: NT$0.30 (vs NT$0.38 in 1Q 2024) First quarter 2025 results: EPS: NT$0.30 (down from NT$0.38 in 1Q 2024). Revenue: NT$10.1b (flat on 1Q 2024). Net income: NT$349.2m (down 22% from 1Q 2024). Profit margin: 3.5% (down from 4.4% in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • May 01
Eternal Materials Co., Ltd. to Report Q1, 2025 Results on May 09, 2025 Eternal Materials Co., Ltd. announced that they will report Q1, 2025 results on May 09, 2025 Upcoming Dividend • Apr 17
Upcoming dividend of NT$1.20 per share Eligible shareholders must have bought the stock before 24 April 2025. Payment date: 23 May 2025. Payout ratio is on the higher end at 77%, and the cash payout ratio is above 100%. Trailing yield: 4.5%. Lower than top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (3.1%). Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$23.75, the stock trades at a trailing P/E ratio of 15.3x. Average trailing P/E is 17x in the Chemicals industry in Taiwan. Total loss to shareholders of 31% over the past three years. Reported Earnings • Mar 21
Full year 2024 earnings released: EPS: NT$1.56 (vs NT$1.28 in FY 2023) Full year 2024 results: EPS: NT$1.56 (up from NT$1.28 in FY 2023). Revenue: NT$44.2b (up 4.1% from FY 2023). Net income: NT$1.83b (up 22% from FY 2023). Profit margin: 4.2% (up from 3.5% in FY 2023). The increase in margin was driven by higher revenue. 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 8% per year, which means it has not declined as severely as earnings. Announcement • Mar 18
Eternal Materials Co., Ltd., Annual General Meeting, Jun 25, 2025 Eternal Materials Co., Ltd., Annual General Meeting, Jun 25, 2025, at 09:30 Taipei Standard Time. Location: no,22, ch`ang hsing rd., hou hsiang li, lujhu district, kaohsiung city Taiwan Declared Dividend • Mar 17
Dividend increased to NT$1.20 Dividend of NT$1.20 is 50% higher than last year. Ex-date: 24th April 2025 Payment date: 23rd May 2025 Dividend yield will be 4.1%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (54% earnings payout ratio) but not covered by cash flows (185% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 40% to shift the payout ratio to a potentially unsustainable range, which is more than the 3.7% EPS decline seen over the last 5 years. Announcement • Mar 15
Eternal Materials Co., Ltd. announces Annual dividend, payable on May 23, 2025 Eternal Materials Co., Ltd. announced Annual dividend of TWD 1.0000 per share payable on May 23, 2025, ex-date on April 24, 2025 and record date on April 26, 2025. 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 10
Third quarter 2024 earnings released: EPS: NT$0.39 (vs NT$0.51 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.39 (down from NT$0.51 in 3Q 2023). Revenue: NT$11.3b (flat on 3Q 2023). Net income: NT$456.6m (down 24% from 3Q 2023). Profit margin: 4.0% (down from 5.3% in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 14
Second quarter 2024 earnings released: EPS: NT$0.38 (vs NT$0.30 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.38 (up from NT$0.30 in 2Q 2023). Revenue: NT$11.6b (up 6.6% from 2Q 2023). Net income: NT$445.5m (up 25% from 2Q 2023). Profit margin: 3.9% (up from 3.3% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Announcement • Aug 02
Eternal Materials Co., Ltd. to Report Q2, 2024 Results on Aug 09, 2024 Eternal Materials Co., Ltd. announced that they will report Q2, 2024 results on Aug 09, 2024 Reported Earnings • May 13
First quarter 2024 earnings released: EPS: NT$0.38 (vs NT$0.12 in 1Q 2023) First quarter 2024 results: EPS: NT$0.38 (up from NT$0.12 in 1Q 2023). Revenue: NT$10.0b (up 4.6% from 1Q 2023). Net income: NT$445.7m (up 226% from 1Q 2023). Profit margin: 4.4% (up from 1.4% in 1Q 2023). The increase in margin was driven by higher revenue. 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 4% per year, which means it has not declined as severely as earnings. Announcement • May 11
Eternal Materials Co., Ltd. Announces Change of Chief Operating Officer of the New Business Development Unit, Effective May 13, 2024 Eternal Materials Co., Ltd. announced change of Chief Operating Officer of the New Business Development Unit of the Company. Name, title, and resume of the previous position holder: Pan, Chin-Cheng (Chief Operating Officer of High Performance Materials Division of the Company is hold concurrently of the position of Chief Operating Officer of the New Business Development Unit of the Company). Name, title, and resume of the new position holder: Mao, Hui-Kuan (President and Chief Operating Officer of the Company). Type of the change: Position Adjustment. Reason for the change: For business needs. Effective date: May 13, 2024. Announcement • May 05
Eternal Materials Co., Ltd. to Report Q1, 2024 Results on May 10, 2024 Eternal Materials Co., Ltd. announced that they will report Q1, 2024 results on May 10, 2024 Upcoming Dividend • Apr 18
Upcoming dividend of NT$0.80 per share Eligible shareholders must have bought the stock before 25 April 2024. Payment date: 24 May 2024. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Taiwanese dividend payers (4.6%). Lower than average of industry peers (4.0%). Announcement • Nov 11
Eternal Materials Co., Ltd. Establishes Nominating Committee and Appointment of Its Members Eternal Materials Co., Ltd. Established Nominating Committee and Appointment of Its Members. Name of the new position holder: (1)Hung, Lee-Jung (2)Chen, Yi-Heng (3)Lo, Li-Chun (4)Lu, Chun-Cheng. 6.Resume of the new position holder: (1)The Company's Independent Director (2)The Company's Independent Director (3)The Company's Independent Director (4)The Company's Independent Director. Effective date of the new member: November 10, 2023. Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: NT$0.30 (vs NT$0.76 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.30 (down from NT$0.76 in 2Q 2022). Revenue: NT$10.8b (down 18% from 2Q 2022). Net income: NT$357.9m (down 60% from 2Q 2022). Profit margin: 3.3% (down from 6.8% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 7% per year. Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: NT$0.30 (vs NT$0.76 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.30 (down from NT$0.76 in 2Q 2022). Revenue: NT$10.8b (down 18% from 2Q 2022). Net income: NT$357.9m (down 60% from 2Q 2022). Profit margin: 3.3% (down from 6.8% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 7% per year. New Risk • Jun 16
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: 4.0% Last year net profit margin: 7.0% 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: Minor Risks High level of debt (64% net debt to equity). 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 (4.0% net profit margin). Upcoming Dividend • Mar 22
Upcoming dividend of NT$1.20 per share at 3.8% yield Eligible shareholders must have bought the stock before 29 March 2023. Payment date: 27 April 2023. Payout ratio is a comfortable 56% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Taiwanese dividend payers (6.0%). Lower than average of industry peers (6.4%). Reported Earnings • Mar 12
Full year 2022 earnings released: EPS: NT$2.15 (vs NT$3.01 in FY 2021) Full year 2022 results: EPS: NT$2.15 (down from NT$3.01 in FY 2021). Revenue: NT$49.0b (down 2.9% from FY 2021). Net income: NT$2.62b (down 26% from FY 2021). Profit margin: 5.3% (down from 7.0% in FY 2021). The decrease in margin was driven by lower revenue. 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 9% per year. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 independent directors. 8 non-independent directors. Independent Director Yi-Heng Chen was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: NT$0.41 (vs NT$0.83 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.41 (down from NT$0.83 in 3Q 2021). Revenue: NT$11.7b (down 10% from 3Q 2021). Net income: NT$487.8m (down 50% from 3Q 2021). Profit margin: 4.2% (down from 7.5% in 3Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of NT$0.50 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 14 October 2022. Payout ratio is a comfortable 54% but the company is paying out more than the cash it is generating. Trailing yield: 4.5%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (8.1%). Reported Earnings • Aug 05
Second quarter 2022 earnings released: EPS: NT$0.72 (vs NT$0.87 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.72 (down from NT$0.87 in 2Q 2021). Revenue: NT$13.2b (flat on 2Q 2021). Net income: NT$891.0m (down 17% from 2Q 2021). Profit margin: 6.8% (down from 8.1% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 21
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 28 July 2022. Payment date: 26 August 2022. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 4.5%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (8.2%). Board Change • Jul 03
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 independent directors. 8 non-independent directors. Independent Director Yi-Heng Chen was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • May 15
First quarter 2022 earnings released: EPS: NT$0.72 (vs NT$0.67 in 1Q 2021) First quarter 2022 results: EPS: NT$0.72 (up from NT$0.67 in 1Q 2021). Revenue: NT$12.4b (up 10% from 1Q 2021). Net income: NT$888.5m (up 7.7% from 1Q 2021). Profit margin: 7.2% (down from 7.4% 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 24% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Yi-Heng Chen was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 13
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: NT$2.86 (up from NT$2.05 in FY 2020). Revenue: NT$50.5b (up 32% from FY 2020). Net income: NT$3.55b (up 40% from FY 2020). Profit margin: 7.0% (up from 6.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 2.6% while the industry in Taiwan is not expected to grow. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 08
Third quarter 2021 earnings released: EPS NT$0.79 (vs NT$0.72 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: NT$13.0b (up 32% from 3Q 2020). Net income: NT$981.2m (up 9.5% from 3Q 2020). Profit margin: 7.5% (down from 9.1% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 08
Third quarter 2021 earnings released: EPS NT$0.79 (vs NT$0.72 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: NT$13.0b (up 32% from 3Q 2020). Net income: NT$981.2m (up 9.5% from 3Q 2020). Profit margin: 7.5% (down from 9.1% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 09
Second quarter 2021 earnings released: EPS NT$0.87 (vs NT$0.52 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$13.2b (up 48% from 2Q 2020). Net income: NT$1.07b (up 65% from 2Q 2020). Profit margin: 8.1% (up from 7.3% 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 19% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 20
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 27 July 2021. Payment date: 26 August 2021. Trailing yield: 3.6%. Lower than top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (2.8%). Valuation Update With 7 Day Price Move • May 24
Investor sentiment improved over the past week After last week's 22% share price gain to NT$40.75, the stock trades at a trailing P/E ratio of 16x. Average forward P/E is 12x in the Chemicals industry in Taiwan. Total returns to shareholders of 71% over the past three years. Reported Earnings • May 08
First quarter 2021 earnings released: EPS NT$0.66 (vs NT$0.17 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$11.2b (up 47% from 1Q 2020). Net income: NT$824.6m (up 290% from 1Q 2020). Profit margin: 7.4% (up from 2.8% 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 15% per year whereas the company’s share price has increased by 17% per year. Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment improved over the past week After last week's 17% share price gain to NT$45.80, the stock trades at a trailing P/E ratio of 22.3x. Average forward P/E is 15x in the Chemicals industry in Taiwan. Total returns to shareholders of 98% over the past three years. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS NT$2.05 (vs NT$1.99 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: NT$38.4b (down 4.9% from FY 2019). Net income: NT$2.54b (up 3.1% from FY 2019). Profit margin: 6.6% (up from 6.1% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 9% per year and the company’s share price has also increased by 9% per year. Executive Departure • Feb 15
Chief Strategy Officer & Director has left the company On the 12th of February, Tzu-Fei Shiao's tenure as Chief Strategy Officer & Director ended after 4.5 years in the role. We don't have any record of a personal shareholding under Tzu-Fei's name. A total of 2 executives have left over the last 12 months. Is New 90 Day High Low • Jan 29
New 90-day low: NT$33.25 The company is down 1.0% from its price of NT$33.65 on 30 October 2020. The Taiwanese market is up 22% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 10.0% over the same period. Is New 90 Day High Low • Dec 23
New 90-day high: NT$36.90 The company is up 13% from its price of NT$32.75 on 24 September 2020. The Taiwanese market is up 12% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Chemicals industry, which is up 14% over the same period. Is New 90 Day High Low • Nov 26
New 90-day high: NT$35.50 The company is up 3.0% from its price of NT$34.45 on 28 August 2020. The Taiwanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 10.0% over the same period. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS NT$0.72 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: NT$9.89b (down 5.0% from 3Q 2019). Net income: NT$896.2m (up 56% from 3Q 2019). Profit margin: 9.1% (up from 5.5% in 3Q 2019). The increase in margin was driven by lower expenses. 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 6% per year.