Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$20.35, the stock trades at a trailing P/E ratio of 74x. Average trailing P/E is 32x in the Chemicals industry in Taiwan. Total returns to shareholders of 11% over the past three years. Reported Earnings • Apr 02
Full year 2025 earnings released: EPS: NT$0.28 (vs NT$0.78 in FY 2024) Full year 2025 results: EPS: NT$0.28 (down from NT$0.78 in FY 2024). Revenue: NT$1.03b (down 17% from FY 2024). Net income: NT$16.5m (down 65% from FY 2024). Profit margin: 1.6% (down from 3.8% in FY 2024). 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 fallen by 8% per year, which means it is significantly lagging earnings. Declared Dividend • Mar 14
Dividend reduced to NT$0.60 Dividend of NT$0.60 is 25% lower than last year. Ex-date: 12th June 2026 Payment date: 3rd July 2026 Dividend yield will be 4.0%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (dividend approximately 8x earnings). However, it is well covered by cash flows (21% 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 grow by 852% to bring the payout ratio under control. However, EPS has declined by 37% over the last 5 years so the company would need to reverse this trend. Announcement • Mar 13
Headway Advanced Materials Inc. announces Annual dividend, payable on July 03, 2026 Headway Advanced Materials Inc. announced Annual dividend of TWD 0.1000 per share payable on July 03, 2026, ex-date on June 12, 2026 and record date on June 15, 2026. Announcement • Mar 12
Headway Advanced Materials Inc., Annual General Meeting, May 27, 2026 Headway Advanced Materials Inc., Annual General Meeting, May 27, 2026, at 10:00 Taipei Standard Time. Location: 3 floor no,77, hsien cheng 8th st., jhubei city, hsinchu county Taiwan Reported Earnings • Nov 18
Third quarter 2025 earnings released: EPS: NT$0.02 (vs NT$0.23 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.02 (down from NT$0.23 in 3Q 2024). Revenue: NT$248.9m (down 23% from 3Q 2024). Net income: NT$1.13m (down 92% from 3Q 2024). Profit margin: 0.5% (down from 4.4% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. New Risk • Aug 20
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: 1.9% Last year net profit margin: 4.0% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 15% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (117% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Market cap is less than US$100m (NT$922.6m market cap, or US$30.5m). Buy Or Sell Opportunity • Aug 03
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to NT$15.35. The fair value is estimated to be NT$19.19, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.5% over the last 3 years. Earnings per share has grown by 50%. Upcoming Dividend • Jun 06
Upcoming dividend of NT$0.80 per share Eligible shareholders must have bought the stock before 13 June 2025. Payment date: 03 July 2025. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 4.5%. Lower than top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (3.1%). Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.14 (vs NT$0.24 in 1Q 2024) First quarter 2025 results: EPS: NT$0.14 (down from NT$0.24 in 1Q 2024). Revenue: NT$295.8m (up 5.4% from 1Q 2024). Net income: NT$8.64m (down 39% from 1Q 2024). Profit margin: 2.9% (down from 5.1% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. New Risk • Apr 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% 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 Earnings have declined by 19% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (103% payout ratio). Large one-off items impacting financial results. Market cap is less than US$100m (NT$1.04b market cap, or US$32.2m). 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$15.95, the stock trades at a trailing P/E ratio of 20.5x. Average trailing P/E is 17x in the Chemicals industry in Taiwan. Total loss to shareholders of 21% over the past three years. Reported Earnings • Apr 02
Full year 2024 earnings released: EPS: NT$0.78 (vs NT$0.39 in FY 2023) Full year 2024 results: EPS: NT$0.78 (up from NT$0.39 in FY 2023). Revenue: NT$1.24b (up 2.7% from FY 2023). Net income: NT$46.7m (up 79% from FY 2023). Profit margin: 3.8% (up from 2.2% 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 38% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Declared Dividend • Mar 07
Dividend of NT$0.80 announced Shareholders will receive a dividend of NT$0.80. Ex-date: 13th June 2025 Payment date: 3rd July 2025 Dividend yield will be 4.2%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (53% earnings payout ratio) but not covered by cash flows (171% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 11% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 18
Third quarter 2024 earnings released: EPS: NT$0.23 (vs NT$0.094 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.23 (up from NT$0.094 in 3Q 2023). Revenue: NT$321.0m (up 2.6% from 3Q 2023). Net income: NT$14.0m (up 127% from 3Q 2023). Profit margin: 4.4% (up from 2.0% in 3Q 2023). 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 11% per year, which means it is significantly lagging earnings. Announcement • Oct 31
Headway Advanced Materials Inc. to Report Q3, 2024 Results on Nov 06, 2024 Headway Advanced Materials Inc. announced that they will report Q3, 2024 results on Nov 06, 2024 Valuation Update With 7 Day Price Move • Sep 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$22.75, the stock trades at a trailing P/E ratio of 27.9x. Average trailing P/E is 22x in the Chemicals industry in Taiwan. Total returns to shareholders of 1.5% over the past three years. New Risk • Sep 12
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 7.4% 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 19% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.4% average weekly change). Market cap is less than US$100m (NT$1.18b market cap, or US$36.8m). Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$21.30, the stock trades at a trailing P/E ratio of 26.2x. Average trailing P/E is 23x in the Chemicals industry in Taiwan. Total returns to shareholders of 20% over the past three years. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$0.18 (vs NT$0.062 loss in 2Q 2023) Second quarter 2024 results: EPS: NT$0.18 (up from NT$0.062 loss in 2Q 2023). Revenue: NT$294.6m (up 21% from 2Q 2023). Net income: NT$10.6m (up NT$14.4m from 2Q 2023). Profit margin: 3.6% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Jul 31
Headway Advanced Materials Inc. to Report Q2, 2024 Results on Aug 07, 2024 Headway Advanced Materials Inc. announced that they will report Q2, 2024 results on Aug 07, 2024 Upcoming Dividend • Jun 06
Upcoming dividend of NT$0.50 per share Eligible shareholders must have bought the stock before 13 June 2024. Payment date: 11 July 2024. Payout ratio is on the higher end at 92%, however this is supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Taiwanese dividend payers (4.2%). Higher than average of industry peers (2.2%). Announcement • May 26
Headway Advanced Materials Inc. Announces No Re-Election of Lee, Lin-Sheng as Independent Director Headway Advanced Materials Inc. at its 2024 Annual General Shareholders' Meeting, announced Lee, Lin-Sheng, Managing Attorney of Lee Hsu & Wang Attorneys-at-Law, not re-elected as independent director. Announcement • May 25
Headway Advanced Materials Inc. Approves Directors Appointment Headway Advanced Materials Inc. Elected Liou, Han-Yin. Chao, Wei-Chun Cheng, Chih-Wen Lee, Hwang-Pao Chen, Yu-Ting Chen, Tzu-Chin as Director, Chen, Chien-Yuan Chang, Juei-Fang Chang, Shu-Mei as Independent directors. The newly appointed directors (including independent directors) will serve a term of three years from May 24, 2024. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: NT$0.24 (vs NT$0.095 in 1Q 2023) First quarter 2024 results: EPS: NT$0.24 (up from NT$0.095 in 1Q 2023). Revenue: NT$280.8m (down 12% from 1Q 2023). Net income: NT$14.2m (up 152% from 1Q 2023). Profit margin: 5.1% (up from 1.8% in 1Q 2023). 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 62 percentage points per year, which is a significant difference in performance. Announcement • May 11
Headway Advanced Materials Inc. to Report Q1, 2024 Results on May 08, 2024 Headway Advanced Materials Inc. announced that they will report Q1, 2024 results on May 08, 2024 Reported Earnings • Mar 17
Full year 2023 earnings released: EPS: NT$0.39 (vs NT$0.31 in FY 2022) Full year 2023 results: EPS: NT$0.39 (up from NT$0.31 in FY 2022). Revenue: NT$1.21b (down 17% from FY 2022). Net income: NT$26.0m (up 40% from FY 2022). Profit margin: 2.2% (up from 1.3% in FY 2022). 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 71 percentage points per year, which is a significant difference in performance. Declared Dividend • Mar 09
Dividend of NT$0.50 announced Shareholders will receive a dividend of NT$0.50. Ex-date: 13th June 2024 Payment date: 11th July 2024 Dividend yield will be 11%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is not covered by earnings (dividend approximately 5x earnings). However, it is well covered by cash flows (30% 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 grow by 460% to bring the payout ratio under control. However, EPS has declined by 12% over the last 5 years so the company would need to reverse this trend. Announcement • Mar 06
Headway Advanced Materials Inc., Annual General Meeting, May 24, 2024 Headway Advanced Materials Inc., Annual General Meeting, May 24, 2024. Location: 3F., No. 77, Xianzheng 8th St., Zhubei City Hsinchu County Taiwan Agenda: To consider 2023 Business Report; to consider Audit Committee's Review Report on the 2023 Financial Statements; to consider report 2023 employees' and directors' compensation; and to transact such other business matters. New Risk • Nov 24
New major risk - Revenue and earnings growth Earnings have declined by 0.7% 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 0.7% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (438% payout ratio). Market cap is less than US$100m (NT$1.04b market cap, or US$32.9m). Upcoming Dividend • Sep 20
Upcoming dividend of NT$1.45 per share at 3.6% yield Eligible shareholders must have bought the stock before 27 September 2023. Payment date: 13 October 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.6%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (3.7%). Reported Earnings • Aug 14
Second quarter 2023 earnings released: NT$0.05 loss per share (vs NT$0.009 loss in 2Q 2022) Second quarter 2023 results: NT$0.05 loss per share (further deteriorated from NT$0.009 loss in 2Q 2022). Revenue: NT$242.9m (down 35% from 2Q 2022). Net loss: NT$3.74m (loss widened 489% from 2Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Jun 13
Upcoming dividend of NT$0.60 per share at 3.3% yield Eligible shareholders must have bought the stock before 20 June 2023. Payment date: 12 July 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.3%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (3.5%). Valuation Update With 7 Day Price Move • May 13
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$18.50, the stock trades at a trailing P/E ratio of 69.9x. Average trailing P/E is 17x in the Chemicals industry in Taiwan. Total returns to shareholders of 29% over the past three years. Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to NT$21.15, the stock trades at a trailing P/E ratio of 79.9x. Average trailing P/E is 18x in the Chemicals industry in Taiwan. Total returns to shareholders of 49% over the past three years. Reported Earnings • Mar 30
Full year 2022 earnings released: EPS: NT$0.27 (vs NT$0.46 in FY 2021) Full year 2022 results: EPS: NT$0.27 (down from NT$0.46 in FY 2021). Revenue: NT$1.45b (down 1.9% from FY 2021). Net income: NT$18.6m (down 42% from FY 2021). Profit margin: 1.3% (down from 2.2% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Buying Opportunity • Nov 25
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 12%. The fair value is estimated to be NT$20.79, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 25%. Reported Earnings • Nov 20
Third quarter 2022 earnings released: NT$0.001 loss per share (vs NT$0.12 profit in 3Q 2021) Third quarter 2022 results: NT$0.001 loss per share (down from NT$0.12 profit in 3Q 2021). Revenue: NT$332.3m (down 7.4% from 3Q 2021). Net loss: NT$61.0k (down 101% from profit in 3Q 2021). Profit margin: 0% (down from 2.3% in 3Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Buying Opportunity • Aug 26
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 3.6%. The fair value is estimated to be NT$23.87, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.4% over the last 3 years. Earnings per share has declined by 2.5%. Upcoming Dividend • Aug 19
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 26 August 2022. Payment date: 16 September 2022. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 7.6%. Within top quartile of Taiwanese dividend payers (6.5%). In line with average of industry peers (7.7%). Reported Earnings • May 16
First quarter 2022 earnings released: EPS: NT$0.26 (vs NT$0.30 in 1Q 2021) First quarter 2022 results: EPS: NT$0.26 (down from NT$0.30 in 1Q 2021). Revenue: NT$417.3m (up 12% from 1Q 2021). Net income: NT$18.1m (down 13% from 1Q 2021). Profit margin: 4.3% (down from 5.6% 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 20% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 28
Full year 2021 earnings released: EPS: NT$0.46 (vs NT$0.65 in FY 2020) Full year 2021 results: EPS: NT$0.46 (down from NT$0.65 in FY 2020). Revenue: NT$1.48b (up 6.9% from FY 2020). Net income: NT$31.8m (down 30% from FY 2020). Profit margin: 2.2% (down from 3.3% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 47% 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 17
Third quarter 2021 earnings released: EPS NT$0.12 (vs NT$0.24 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: NT$359.0m (up 7.8% from 3Q 2020). Net income: NT$8.18m (down 51% from 3Q 2020). Profit margin: 2.3% (down from 5.0% 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 55% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 05
Investor sentiment deteriorated over the past week After last week's 20% share price decline to NT$21.30, the stock trades at a trailing P/E ratio of 27.2x. Average trailing P/E is 15x in the Chemicals industry in Taiwan. Total returns to shareholders of 34% over the past three years. Valuation Update With 7 Day Price Move • Sep 01
Investor sentiment improved over the past week After last week's 17% share price gain to NT$22.00, the stock trades at a trailing P/E ratio of 27.7x. Average trailing P/E is 15x in the Chemicals industry in Taiwan. Total returns to shareholders of 33% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$0.16 (vs NT$0.033 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$376.7m (up 41% from 2Q 2020). Net income: NT$10.9m (up NT$13.2m from 2Q 2020). Profit margin: 2.9% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improved over the past week After last week's 16% share price gain to NT$20.65, the stock trades at a trailing P/E ratio of 25.4x. Average trailing P/E is 17x in the Chemicals industry in Taiwan. Total returns to shareholders of 21% over the past three years. Upcoming Dividend • Aug 18
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 25 August 2021. Payment date: 17 September 2021. Trailing yield: 4.8%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (2.9%). Reported Earnings • May 18
First quarter 2021 earnings released: EPS NT$0.30 (vs NT$0.14 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: NT$373.9m (down 1.0% from 1Q 2020). Net income: NT$21.0m (up 117% from 1Q 2020). Profit margin: 5.6% (up from 2.6% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 01
Full year 2020 earnings released: EPS NT$0.65 (vs NT$0.86 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$1.38b (down 14% from FY 2019). Net income: NT$45.2m (down 24% from FY 2019). Profit margin: 3.3% (down from 3.7% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 7% per year and the company’s share price has also fallen by 7% per year. Announcement • Feb 23
Headway Advanced Materials Inc., Annual General Meeting, May 31, 2021 Headway Advanced Materials Inc., Annual General Meeting, May 31, 2021. Is New 90 Day High Low • Dec 21
New 90-day high: NT$16.70 The company is up 7.0% from its price of NT$15.55 on 22 September 2020. The Taiwanese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 8.0% over the same period. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS NT$0.24 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: NT$333.2m (down 12% from 3Q 2019). Net income: NT$16.6m (up 26% from 3Q 2019). Profit margin: 5.0% (up from 3.5% in 3Q 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Sep 21
New 90-day low: NT$15.50 The company is down 8.0% from its price of NT$16.90 on 23 June 2020. The Taiwanese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is flat over the same period.