New Risk • Apr 10
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 34% 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 Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 268% Paying a dividend despite having no free cash flows. Earnings have declined by 37% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.3% net profit margin). Announcement • Mar 16
Yem Chio Co., Ltd., Annual General Meeting, Jun 23, 2026 Yem Chio Co., Ltd., Annual General Meeting, Jun 23, 2026. Location: b1 floor no,397, hsing shan rd., neihu district, taipei city Taiwan New Risk • Nov 17
New major risk - Revenue and earnings growth Earnings have declined by 30% 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 Risks Interest payments are not well covered by earnings (1.8x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 399% Paying a dividend despite having no free cash flows. Earnings have declined by 30% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (1.3% net profit margin). Upcoming Dividend • Aug 25
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 01 September 2025. Payment date: 26 September 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 6.3%. Within top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (4.5%). Reported Earnings • Aug 17
Second quarter 2025 earnings released: NT$0.009 loss per share (vs NT$0.71 profit in 2Q 2024) Second quarter 2025 results: NT$0.009 loss per share (down from NT$0.71 profit in 2Q 2024). Revenue: NT$3.12b (down 39% from 2Q 2024). Net loss: NT$5.39m (down 101% from profit in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Reported Earnings • May 17
First quarter 2025 earnings released: EPS: NT$0.12 (vs NT$0.30 in 1Q 2024) First quarter 2025 results: EPS: NT$0.12 (down from NT$0.30 in 1Q 2024). Revenue: NT$2.99b (down 3.0% from 1Q 2024). Net income: NT$80.1m (down 58% from 1Q 2024). Profit margin: 2.7% (down from 6.2% in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$14.40, the stock trades at a trailing P/E ratio of 11.4x. Average trailing P/E is 14x in the Packaging industry in Taiwan. Total returns to shareholders of 10% over the past three years. Buy Or Sell Opportunity • Apr 07
Now 27% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.5% to NT$15.80. The fair value is estimated to be NT$21.79, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.0% over the last 3 years. Earnings per share has declined by 25%. Announcement • Mar 17
Yem Chio Co., Ltd., Annual General Meeting, Jun 20, 2025 Yem Chio Co., Ltd., Annual General Meeting, Jun 20, 2025. Location: b1 floor no,397, hsing shan rd., neihu district, taipei city Taiwan New Risk • Dec 07
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. 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 (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (3.9% increase in shares outstanding). Buy Or Sell Opportunity • Nov 26
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.4% to NT$18.20. The fair value is estimated to be NT$22.85, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.1% over the last 3 years. Earnings per share has declined by 47%. Announcement • Nov 05
Yem Chio Co., Ltd. to Report Q3, 2024 Results on Nov 12, 2024 Yem Chio Co., Ltd. announced that they will report Q3, 2024 results on Nov 12, 2024 Buy Or Sell Opportunity • Oct 29
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to NT$18.40. The fair value is estimated to be NT$23.01, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.1% over the last 3 years. Earnings per share has declined by 47%. Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: NT$0.72 (vs NT$0.41 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.72 (up from NT$0.41 in 2Q 2023). Revenue: NT$5.10b (up 64% from 2Q 2023). Net income: NT$459.8m (up 80% from 2Q 2023). Profit margin: 9.0% (up from 8.2% 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 47% 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
Yem Chio Co., Ltd. to Report Q2, 2024 Results on Aug 09, 2024 Yem Chio Co., Ltd. announced that they will report Q2, 2024 results on Aug 09, 2024 Upcoming Dividend • Jul 11
Upcoming dividend of NT$0.98 per share Eligible shareholders must have bought the stock before 18 July 2024. Payment date: 09 August 2024. Payout ratio is a comfortable 69% but the company is not cash flow positive. Trailing yield: 4.3%. Within top quartile of Taiwanese dividend payers (4.2%). Higher than average of industry peers (2.9%). Declared Dividend • May 25
Dividend of NT$1.00 announced Shareholders will receive a dividend of NT$1.00. Ex-date: 18th July 2024 Payment date: 9th August 2024 Dividend yield will be 5.2%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (70% 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 9.1% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 30% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • May 25
Yem Chio Co., Ltd. Announces Cash Dividend, Payable on August 9, 2024 Yem Chio Co., Ltd. announced cash dividend of TWD 650,687,541. Ex-rights (ex-dividend) trading date is July 18, 2024, Ex-rights (ex-dividend) record date is July 24, 2024, Payment date of common stock cash dividend distribution is August 9, 2024. Reported Earnings • May 18
First quarter 2024 earnings released: EPS: NT$0.30 (vs NT$0.15 in 1Q 2023) First quarter 2024 results: EPS: NT$0.30 (up from NT$0.15 in 1Q 2023). Revenue: NT$3.09b (up 5.0% from 1Q 2023). Net income: NT$192.8m (up 117% from 1Q 2023). Profit margin: 6.2% (up from 3.0% 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 56% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • May 08
Yem Chio Co., Ltd. to Report Q1, 2024 Results on May 14, 2024 Yem Chio Co., Ltd. announced that they will report Q1, 2024 results on May 14, 2024 Announcement • Apr 02
Yem Chio Co., Ltd., Annual General Meeting, Jun 21, 2024 Yem Chio Co., Ltd., Annual General Meeting, Jun 21, 2024. Reported Earnings • Mar 21
Full year 2023 earnings released: EPS: NT$1.30 (vs NT$1.72 in FY 2022) Full year 2023 results: EPS: NT$1.30 (down from NT$1.72 in FY 2022). Revenue: NT$13.2b (down 9.9% from FY 2022). Net income: NT$801.2m (down 23% from FY 2022). Profit margin: 6.1% (down from 7.1% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Reported Earnings • Nov 18
Third quarter 2023 earnings released: EPS: NT$0.38 (vs NT$0.54 in 3Q 2022) Third quarter 2023 results: EPS: NT$0.38 (down from NT$0.54 in 3Q 2022). Revenue: NT$3.16b (down 11% from 3Q 2022). Net income: NT$237.8m (down 28% from 3Q 2022). Profit margin: 7.5% (down from 9.2% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Reported Earnings • Aug 17
Second quarter 2023 earnings released: EPS: NT$0.41 (vs NT$0.47 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.41 (down from NT$0.47 in 2Q 2022). Revenue: NT$3.10b (down 25% from 2Q 2022). Net income: NT$255.3m (down 11% from 2Q 2022). Profit margin: 8.2% (up from 7.0% in 2Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. New Risk • Jul 18
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 15% 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 (15% operating cash flow to total debt). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Upcoming Dividend • Jul 11
Upcoming dividend of NT$0.98 per share at 6.3% yield Eligible shareholders must have bought the stock before 18 July 2023. Payment date: 10 August 2023. Payout ratio is on the higher end at 76%, however this is supported by cash flows. Trailing yield: 6.3%. Within top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (5.3%). Announcement • May 26
Yem Chio Announces Dividend Payable on August 10, 2023 Yem Chio Co., Ltd. announced the dividend record date and the payable date of cash dividends. Type and monetary amount of dividend distribution: Cash dividends: TWD 625,786,540. Ex-rights (ex-dividend) trading date: July 18, 2023. Ex-rights (ex-dividend) record date: July 24, 2023. Date of the resolution by the board of directors or shareholders meeting or decision by the Company: May 25, 2023. Payment date of cash dividend distribution: August 10, 2023. Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: NT$1.72 (vs NT$3.47 in FY 2021) Full year 2022 results: EPS: NT$1.72 (down from NT$3.47 in FY 2021). Revenue: NT$14.7b (down 15% from FY 2021). Net income: NT$1.04b (down 49% from FY 2021). Profit margin: 7.1% (down from 12% 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 37% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$0.53 (vs NT$0.62 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.53 (down from NT$0.62 in 3Q 2021). Revenue: NT$3.56b (down 18% from 3Q 2021). Net income: NT$329.0m (down 12% from 3Q 2021). Profit margin: 9.2% (up from 8.6% in 3Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Director Yan-Jun Chen was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: NT$0.53 (vs NT$0.62 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.53 (down from NT$0.62 in 3Q 2021). Revenue: NT$3.56b (down 18% from 3Q 2021). Net income: NT$329.0m (down 12% from 3Q 2021). Profit margin: 9.2% (up from 8.6% in 3Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Nov 12
Yem Chio Co., Ltd. (TWSE:4306) agreed to acquire Chuang-Yi Investment Co., Ltd. Yem Chio Co., Ltd. (TWSE:4306) agreed to acquire Chuang-Yi Investment Co., Ltd. on November 10, 2022. The merger has been approved by the board of directors of Chuang-Yi Investment Co., Ltd. The transaction is expected to complete on December 1, 2022. Reported Earnings • Aug 13
Second quarter 2022 earnings released: EPS: NT$0.48 (vs NT$0.75 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.48 (down from NT$0.75 in 2Q 2021). Revenue: NT$4.12b (down 11% from 2Q 2021). Net income: NT$287.2m (down 34% from 2Q 2021). Profit margin: 7.0% (down from 9.4% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Aug 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Director Yan-Jun Chen was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Jul 08
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 15 July 2022. Payment date: 10 August 2022. Payout ratio is a comfortable 45% but the company is not cash flow positive. Trailing yield: 6.8%. Within top quartile of Taiwanese dividend payers (6.8%). In line with average of industry peers (6.6%). Board Change • Jul 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Director Yan-Jun Chen was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Jun 30
Yem Chio Co., Ltd. Announces Adjustment of Dividend Distribution Ratio Yem Chio Co., Ltd. held its shareholders meeting on June 29, 2022, approved type and monetary amount of original dividend distribution: cash dividend of TWD 1 per share. Type and monetary amount of dividend distribution after the change: cash dividend of TWD 0.99993307 per share. Announcement • May 21
Yem Chio Co., Ltd. Announces Cash Dividend, Payable on August 10, 2022 Yem Chio Co., Ltd. announced Cash dividend of TWD 622,566,349 with record date of July 23, 2022, payable date of August 10, 2022 and ex-dividend of July 15, 2022. Reported Earnings • May 17
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: NT$0.56 (down from NT$1.73 in 1Q 2021). Revenue: NT$3.89b (down 1.3% from 1Q 2021). Net income: NT$335.6m (down 66% from 1Q 2021). Profit margin: 8.6% (down from 25% in 1Q 2021). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 4.4%. Earnings per share (EPS) exceeded analyst estimates by 49%. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 01
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: NT$3.47 (up from NT$1.43 in FY 2020). Revenue: NT$17.2b (up 23% from FY 2020). Net income: NT$2.05b (up 154% from FY 2020). Profit margin: 12% (up from 5.8% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.4%. Earnings per share (EPS) exceeded analyst estimates by 49%. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.62 (vs NT$1.88 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$4.36b (up 23% from 3Q 2020). Net income: NT$372.8m (down 65% from 3Q 2020). Profit margin: 8.6% (down from 30% 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 53% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 11
Second quarter 2021 earnings released: EPS NT$0.79 (vs NT$0.64 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: NT$4.62b (up 42% from 2Q 2020). Net income: NT$432.9m (up 27% from 2Q 2020). Profit margin: 9.4% (down from 11% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 16
Upcoming dividend of NT$0.60 per share Eligible shareholders must have bought the stock before 23 July 2021. Payment date: 17 August 2021. Trailing yield: 3.1%. Lower than top quartile of Taiwanese dividend payers (5.0%). Lower than average of industry peers (4.1%). Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$1.83 (vs NT$0.34 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$3.94b (up 25% from 1Q 2020). Net income: NT$994.4m (up NT$1.18b from 1Q 2020). Profit margin: 25% (up from net loss in 1Q 2020). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 6% per year. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment improved over the past week After last week's 16% share price gain to NT$19.45, the stock trades at a trailing P/E ratio of 12.9x. Average trailing P/E is 15x in the Packaging industry in Taiwan. Total returns to shareholders of 26% over the past three years. Reported Earnings • Mar 06
Full year 2020 earnings released: EPS NT$1.51 (vs NT$0.99 loss 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$13.9b (down 14% from FY 2019). Net income: NT$805.6m (up NT$1.31b from FY 2019). Profit margin: 5.8% (up from net loss in FY 2019). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Jan 20
New 90-day low: NT$14.40 The company is down 5.0% from its price of NT$15.20 on 22 October 2020. The Taiwanese market is up 22% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Packaging industry, which is down 2.0% over the same period. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS NT$2.00 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: NT$3.56b (down 15% from 3Q 2019). Net income: NT$1.05b (up NT$1.05b from 3Q 2019). Profit margin: 30% (up from 0.1% 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 62% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Nov 09
New 90-day high: NT$16.25 The company is up 32% from its price of NT$12.35 on 11 August 2020. The Taiwanese market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Packaging industry, which is up 20% over the same period.