New Risk • May 19
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 18% 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 Risks Debt is not well covered by operating cash flow (18% operating cash flow to total debt). Earnings have declined by 43% 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. Profit margins are more than 30% lower than last year (18% net profit margin). New Risk • Apr 13
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 5.2% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 56% per year over the past 5 years. Minor Risks High level of debt (41% 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 (21% net profit margin). Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$2.37 (vs NT$0.52 in FY 2024) Full year 2025 results: EPS: NT$2.37 (up from NT$0.52 in FY 2024). Revenue: NT$4.37b (up NT$3.76b from FY 2024). Net income: NT$898.8m (up 355% from FY 2024). Profit margin: 21% (down from 33% 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 31% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Mar 13
Kuo Yang Construction Co., Ltd., Annual General Meeting, Jun 09, 2026 Kuo Yang Construction Co., Ltd., Annual General Meeting, Jun 09, 2026, at 09:00 Taipei Standard Time. Location: 6 floor no,168, ching mao 1st rd., nangang district, taipei city Taiwan Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: NT$0.84 (vs NT$0.099 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.84 (up from NT$0.099 in 3Q 2024). Revenue: NT$1.43b (up NT$1.35b from 3Q 2024). Net income: NT$318.8m (up NT$281.0m from 3Q 2024). Profit margin: 22% (down from 52% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 1% per year. Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: NT$0.16 (vs NT$0.13 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.16 (up from NT$0.13 in 2Q 2024). Revenue: NT$454.8m (up 89% from 2Q 2024). Net income: NT$60.2m (up 27% from 2Q 2024). Profit margin: 13% (down from 20% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Reported Earnings • May 14
First quarter 2025 earnings released: EPS: NT$0.54 (vs NT$0.15 in 1Q 2024) First quarter 2025 results: EPS: NT$0.54 (up from NT$0.15 in 1Q 2024). Revenue: NT$679.8m (up 326% from 1Q 2024). Net income: NT$206.9m (up 255% from 1Q 2024). Profit margin: 30% (down from 37% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • May 01
Kuo Yang Construction Co., Ltd. to Report Q1, 2025 Results on May 07, 2025 Kuo Yang Construction Co., Ltd. announced that they will report Q1, 2025 results on May 07, 2025 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to NT$16.70, the stock trades at a trailing P/E ratio of 32.1x. Average trailing P/E is 11x in the Real Estate industry in Taiwan. Total loss to shareholders of 24% over the past three years. Reported Earnings • Mar 28
Full year 2024 earnings released: EPS: NT$0.52 (vs NT$0.80 in FY 2023) Full year 2024 results: EPS: NT$0.52 (down from NT$0.80 in FY 2023). Revenue: NT$607.7m (down 17% from FY 2023). Net income: NT$197.6m (down 35% from FY 2023). Profit margin: 33% (down from 41% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Mar 13
Kuo Yang Construction Co., Ltd., Annual General Meeting, Jun 26, 2025 Kuo Yang Construction Co., Ltd., Annual General Meeting, Jun 26, 2025, at 09:00 Taipei Standard Time. Location: 11 floor no,350, sung chiang rd., taipei city Taiwan Announcement • Mar 05
Kuo Yang Construction Co., Ltd. to Report Fiscal Year 2024 Results on Mar 12, 2025 Kuo Yang Construction Co., Ltd. announced that they will report fiscal year 2024 results on Mar 12, 2025 Reported Earnings • Nov 18
Third quarter 2024 earnings released: EPS: NT$0.10 (vs NT$0.11 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.10 (down from NT$0.11 in 3Q 2023). Revenue: NT$73.2m (down 51% from 3Q 2023). Net income: NT$37.8m (down 6.9% from 3Q 2023). Profit margin: 52% (up from 27% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. New Risk • Sep 23
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. 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). Earnings have declined by 30% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Upcoming Dividend • Aug 22
Upcoming dividend of NT$0.40 per share Eligible shareholders must have bought the stock before 29 August 2024. Payment date: 30 September 2024. Trailing yield: 1.5%. Lower than top quartile of Taiwanese dividend payers (4.4%). Lower than average of industry peers (2.6%). Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: NT$0.12 (vs NT$0.14 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.12 (down from NT$0.14 in 2Q 2023). Revenue: NT$240.1m (up NT$218.4m from 2Q 2023). Net income: NT$47.5m (down 9.2% from 2Q 2023). Profit margin: 20% (down from 241% in 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 61 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$24.55, the stock trades at a trailing P/E ratio of 34x. Average trailing P/E is 20x in the Real Estate industry in Taiwan. Total loss to shareholders of 10% over the past three years. Announcement • Jul 27
Kuo Yang Construction Co., Ltd. to Report Q2, 2024 Results on Aug 05, 2024 Kuo Yang Construction Co., Ltd. announced that they will report Q2, 2024 results at 9:00 AM, Taipei Standard Time on Aug 05, 2024 Reported Earnings • May 19
First quarter 2024 earnings released: EPS: NT$0.15 (vs NT$0.23 in 1Q 2023) First quarter 2024 results: EPS: NT$0.15 (down from NT$0.23 in 1Q 2023). Revenue: NT$159.8m (down 39% from 1Q 2023). Net income: NT$58.3m (down 34% from 1Q 2023). Profit margin: 37% (up from 34% 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 98 percentage points per year, which is a significant difference in performance. Announcement • Apr 28
Kuo Yang Construction Co.,Ltd to Report Q1, 2024 Results on May 06, 2024 Kuo Yang Construction Co.,Ltd announced that they will report Q1, 2024 results on May 06, 2024 Reported Earnings • Mar 27
Full year 2023 earnings released: EPS: NT$0.80 (vs NT$1.28 in FY 2022) Full year 2023 results: EPS: NT$0.80 (down from NT$1.28 in FY 2022). Revenue: NT$735.5m (down 81% from FY 2022). Net income: NT$304.2m (down 37% from FY 2022). Profit margin: 41% (up from 12% 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 93 percentage points per year, which is a significant difference in performance. Announcement • Mar 14
Kuo Yang Construction Co.,Ltd, Annual General Meeting, Jun 07, 2024 Kuo Yang Construction Co.,Ltd, Annual General Meeting, Jun 07, 2024. Valuation Update With 7 Day Price Move • Dec 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$22.15, the stock trades at a trailing P/E ratio of 75.6x. Average trailing P/E is 19x in the Real Estate industry in Taiwan. Total loss to shareholders of 38% over the past three years. Reported Earnings • Aug 11
Second quarter 2023 earnings released: EPS: NT$0.14 (vs NT$0.55 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.14 (down from NT$0.55 in 2Q 2022). Revenue: NT$21.7m (down 98% from 2Q 2022). Net income: NT$52.3m (down 75% from 2Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 60 percentage points per year, which is a significant difference in performance. Announcement • Jun 14
Kuo Yang Construction Co.,Ltd Appoints Board Members Kuo Yang Construction Co.,Ltd appointed directors, Cheng Chi Co. Ltd.: Representative; Jer-Shyong Tsai, Cheng Chi Co. Ltd. Representative: Chien-Pung Ruan, and Cheng Chi Co. Ltd. Representative: Fu-chih Chiu, at its AGM, held on June 13, 2023. Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: NT$1.28 (vs NT$2.59 in FY 2021) Full year 2022 results: EPS: NT$1.28 (down from NT$2.59 in FY 2021). Revenue: NT$3.95b (down 23% from FY 2021). Net income: NT$485.9m (down 51% from FY 2021). Profit margin: 12% (down from 19% 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 38% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Buying Opportunity • Dec 20
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 7.1%. The fair value is estimated to be NT$23.15, 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 14%. Board Change • Nov 16
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 Bruce Yang 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 • Nov 12
Third quarter 2022 earnings released: EPS: NT$0.31 (vs NT$0.067 loss in 3Q 2021) Third quarter 2022 results: EPS: NT$0.31 (up from NT$0.067 loss in 3Q 2021). Revenue: NT$491.9m (up 1.7% from 3Q 2021). Net income: NT$117.0m (up NT$142.6m from 3Q 2021). Profit margin: 24% (up from net loss in 3Q 2021). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 11% per year. Reported Earnings • Aug 13
Second quarter 2022 earnings released: EPS: NT$0.54 (vs NT$1.40 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.54 (down from NT$1.40 in 2Q 2021). Revenue: NT$855.2m (down 62% from 2Q 2021). Net income: NT$207.0m (down 61% from 2Q 2021). Profit margin: 24% (in line with 2Q 2021). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • May 15
First quarter 2022 earnings released: EPS: NT$0.61 (vs NT$0.89 in 1Q 2021) First quarter 2022 results: EPS: NT$0.61 (down from NT$0.89 in 1Q 2021). Revenue: NT$2.23b (up 20% from 1Q 2021). Net income: NT$232.0m (down 31% from 1Q 2021). Profit margin: 10% (down from 18% 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 34% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 30
Full year 2021 earnings released: EPS: NT$2.58 (vs NT$13.89 in FY 2020) Full year 2021 results: EPS: NT$2.58 (down from NT$13.89 in FY 2020). Revenue: NT$5.12b (down 64% from FY 2020). Net income: NT$982.2m (down 80% from FY 2020). Profit margin: 19% (down from 35% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Feb 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.1%. The fair value is estimated to be NT$28.94, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 78% per annum over the last 3 years. The company has become profitable over the last 3 years. Buying Opportunity • Jan 22
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.1%. The fair value is estimated to be NT$29.09, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 78% per annum over the last 3 years. The company has become profitable over the last 3 years. Upcoming Dividend • Nov 17
Upcoming dividend of NT$0.50 per share Eligible shareholders must have bought the stock before 24 November 2021. Payment date: 22 December 2021. Trailing yield: 8.0%. Within top quartile of Taiwanese dividend payers (5.1%). Higher than average of industry peers (4.4%). Reported Earnings • Nov 13
Third quarter 2021 earnings released: NT$0.07 loss per share (vs NT$0.57 profit in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and control over costs. Third quarter 2021 results: Revenue: NT$483.7m (down 13% from 3Q 2020). Net loss: NT$25.6m (down 112% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 90% 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 • Aug 13
Second quarter 2021 earnings released: EPS NT$1.40 (vs NT$12.05 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$2.28b (down 77% from 2Q 2020). Net income: NT$531.9m (down 88% from 2Q 2020). Profit margin: 23% (down from 46% in 2Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 109% 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 • May 15
First quarter 2021 earnings released: EPS NT$0.89 (vs NT$0.081 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$1.87b (up NT$1.64b from 1Q 2020). Net income: NT$338.2m (up NT$368.8m from 1Q 2020). Profit margin: 18% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 132% 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 30
Full year 2020 earnings released: EPS NT$7.58 (vs NT$0.15 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$14.3b (up NT$12.4b from FY 2019). Net income: NT$4.94b (up NT$4.89b from FY 2019). Profit margin: 35% (up from 3.0% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 129% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improved over the past week After last week's 16% share price gain to NT$36.95, the stock is trading at a trailing P/E ratio of 2.9x, up from the previous P/E ratio of 2.5x. This compares to an average P/E of 16x in the Real Estate industry in Taiwan. Total returns to shareholders over the past three years are 76%. Is New 90 Day High Low • Jan 28
New 90-day low: NT$30.60 The company is down 29% from its price of NT$43.26 on 30 October 2020. The Taiwanese market is up 23% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Real Estate industry, which is up 1.0% over the same period. Is New 90 Day High Low • Jan 04
New 90-day low: NT$38.05 The company is down 15% from its price of NT$44.82 on 06 October 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Real Estate industry, which is up 6.0% over the same period. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment deteriorated over the past week After last week's 18% share price decline to NT$38.05, the stock is trading at a trailing P/E ratio of 3x, down from the previous P/E ratio of 3.6x. This compares to an average P/E of 16x in the Real Estate industry in Taiwan. Total returns to shareholders over the past three years are 68%. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS NT$0.31 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$555.7m (up 97% from 3Q 2019). Net income: NT$215.5m (up NT$253.7m from 3Q 2019). Profit margin: 39% (up from net loss in 3Q 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 130% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Oct 12
New 90-day low: NT$23.35 The company is down 8.0% from its price of NT$25.25 on 14 July 2020. The Taiwanese market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Real Estate industry, which is up 4.0% over the same period.