New Risk • Jun 13
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 11% 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 (11% operating cash flow to total debt). Earnings have declined by 9.1% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • May 16
First quarter 2026 earnings released: EPS: NT$0.95 (vs NT$1.24 in 1Q 2025) First quarter 2026 results: EPS: NT$0.95 (down from NT$1.24 in 1Q 2025). Revenue: NT$8.80b (up 26% from 1Q 2025). Net income: NT$2.71b (down 20% from 1Q 2025). Profit margin: 31% (down from 48% in 1Q 2025). 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 fallen by 16% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Apr 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to NT$24.35. The fair value is estimated to be NT$30.47, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Earnings per share has grown by 21%. Buy Or Sell Opportunity • Apr 07
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to NT$25.20. The fair value is estimated to be NT$31.59, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Earnings per share has grown by 21%. Buy Or Sell Opportunity • Mar 23
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 18% to NT$25.00. The fair value is estimated to be NT$31.75, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Earnings per share has grown by 21%. New Risk • Mar 14
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: 27% Last year net profit margin: 52% 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 Risks Debt is not well covered by operating cash flow (11% operating cash flow to total debt). Earnings have declined by 4.1% 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 (27% net profit margin). Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$3.93 (vs NT$6.07 in FY 2024) Full year 2025 results: EPS: NT$3.93 (down from NT$6.07 in FY 2024). Revenue: NT$39.3b (up 24% from FY 2024). Net income: NT$10.7b (down 35% from FY 2024). Profit margin: 27% (down from 52% 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 21% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Feb 11
Ruentex Development Co.,Ltd., Annual General Meeting, May 20, 2026 Ruentex Development Co.,Ltd., Annual General Meeting, May 20, 2026. Location: 3 floor no,260, sec.2 pa to rd., taipei city Taiwan Reported Earnings • Nov 15
Third quarter 2025 earnings released: EPS: NT$0.96 (vs NT$1.30 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.96 (down from NT$1.30 in 3Q 2024). Revenue: NT$9.10b (up 6.0% from 3Q 2024). Net income: NT$2.63b (down 26% from 3Q 2024). Profit margin: 29% (down from 41% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: NT$0.48 (vs NT$1.54 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.48 (down from NT$1.54 in 2Q 2024). Revenue: NT$9.03b (up 22% from 2Q 2024). Net income: NT$1.31b (down 69% from 2Q 2024). Profit margin: 14% (down from 57% in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Declared Dividend • Jun 25
Dividend of NT$1.10 announced Shareholders will receive a dividend of NT$1.10. Ex-date: 9th July 2025 Payment date: 31st July 2025 Dividend yield will be 3.6%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (23% earnings payout ratio) and cash flows (84% 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 5.4% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • May 24
Ruentex Development Co.,Ltd. Approves the By-Election of Chen, Su-Huei and Lu, Yu-Mei as the Directors Ruentex Development Co. Ltd. held its regular shareholders meeting on May 23, 2025. Important resolutions included the approval of the by-election of the Company's directors. The list of persons elected as directors are Chen, Su-Huei and Lu, Yu-Mei. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$1.24 (vs NT$2.47 in 1Q 2024) First quarter 2025 results: EPS: NT$1.24 (down from NT$2.47 in 1Q 2024). Revenue: NT$7.02b (flat on 1Q 2024). Net income: NT$3.38b (down 50% from 1Q 2024). Profit margin: 48% (down from 96% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging 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$29.15, the stock trades at a trailing P/E ratio of 5x. Average trailing P/E is 11x in the Real Estate industry in Taiwan. Total loss to shareholders of 42% over the past three years. Announcement • Apr 01
Ruentex Development Co.,Ltd. Announces Institutional Director Changes, Effective May 22, 2025 Ruentex Development Co.,Ltd. announced change of juristic-person representative director and change in one-third or more of directors. Elected or changed position (Please enter institutional director, institutional supervisor, independent director, natural-person director or natural-person supervisor):institutional director. Title and name of the previous position holder: Ruentex Industries Ltd. Respresentive: Yin,Chung-Yao; and Yingjia Investment Co. Ltd. Respresentive: Ho,Kai-Lin. Title and name of the new position holder: Ruentex Industries Ltd. Respresentive: Huang,Ming-Duan; and Yingjia Investment Co. Ltd. Respresentive: Yin,Chung-Yao. Resume of the new position holder: Huang,Ming-Duan,Chairperson of Sun Art Retail Group Limited; and Yin,Chung-Yao,Chairperson of Nan Shan Life Insurance Co. Ltd. Effective date of the new appointment: May 22, 2025. Reported Earnings • Mar 15
Full year 2024 earnings released: EPS: NT$6.07 (vs NT$2.65 in FY 2023) Full year 2024 results: EPS: NT$6.07 (up from NT$2.65 in FY 2023). Revenue: NT$31.8b (up 16% from FY 2023). Net income: NT$16.6b (up 114% from FY 2023). Profit margin: 52% (up from 28% in FY 2023). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 11% per year. Announcement • Mar 04
Ruentex Development Co.,Ltd. Announces Institutional Directors Resignations, Effective May 22, 2025 Ruentex Development Co.,Ltd. announced change in representative of the company’s institutional director. Title and name of the previous position holder: Ruentex Xing Co. Ltd. Respresentives: Lee,Chih-Hung and Chen,Li-Yu. Resume of the previous position holder: Lee, Chih-Hung, Chairperson of Ruentex Engineering & Construction Co. Ltd. Chen, Li-Yu, Director and vice president of Ruentex Development Co. Ltd. Reason for the change: Resignation. The company received the letter of resignation on March 23, 2025, and the effective date of resignation is May 22, 2025. Announcement • Feb 21
Ruentex Development Co.,Ltd., Annual General Meeting, May 23, 2025 Ruentex Development Co.,Ltd., Annual General Meeting, May 23, 2025. Location: 3 floor no,260, sec.2 pa to rd., taipei city Taiwan Announcement • Feb 08
Ruentex Development Co.,Ltd. to Report Q4, 2024 Results on Mar 12, 2025 Ruentex Development Co.,Ltd. announced that they will report Q4, 2024 results on Mar 12, 2025 Announcement • Jan 02
Ruentex Development Co.,Ltd. Announces Establishment of Sustainability Development Committee Ruentex Development Co.,Ltd. announced the establishment of Sustainability Development Committee. Name of the new position holder: Ko, Shun-Hsiung (Independent Director of the Company). Chang, Guo-Zhen (Independent Director of the Company). Hsieh, Shang-Hsien (Independent Director of the Company). Resume of the new position holder: Ko, Shun-Hsiung MA, Department of Finance, National Taiwan University Accountant, Chien Ta Accounting Firm Independent Director of Nishoku Technology Inc. Independent Director of Silergy Corporation. Chang, Guo-Zhen PhD, Civil Engineering, State Univ.of NY at Buffalo Professor, Department of Civil Engineering, National Taiwan University Director, National Center for Research on Earthquake Engineering, National Applied Research Laboratories. Hsieh, Shang-Hsien PhD and MS in Civil and Environmental Engineering, Cornell University Professor, Department of Civil Engineering, National Taiwan University Director and Chair of the International Society for Computing in Civil and Building Engineering. Reason for the change: new appointment. Effective date of the new member: December 31, 2024. 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 16
Third quarter 2024 earnings released: EPS: NT$1.30 (vs NT$2.10 in 3Q 2023) Third quarter 2024 results: EPS: NT$1.30 (down from NT$2.10 in 3Q 2023). Revenue: NT$8.59b (up 61% from 3Q 2023). Net income: NT$3.56b (down 41% from 3Q 2023). Profit margin: 41% (down from 113% in 3Q 2023). 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 2% per year, which means it has not declined as severely as earnings. Announcement • Oct 26
Ruentex Development Co.,Ltd. to Report Q3, 2024 Results on Nov 12, 2024 Ruentex Development Co.,Ltd. announced that they will report Q3, 2024 results on Nov 12, 2024 New Risk • Aug 17
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 41% 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: Minor Risks Dividend is not well covered by cash flows (248% cash payout ratio). Large one-off items impacting financial results. Reported Earnings • Aug 14
Second quarter 2024 earnings released: EPS: NT$1.54 (vs NT$1.69 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.54 (down from NT$1.69 in 2Q 2023). Revenue: NT$7.43b (up 5.6% from 2Q 2023). Net income: NT$4.21b (down 8.5% from 2Q 2023). Profit margin: 57% (down from 65% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • Jul 27
Ruentex Development Co.,Ltd. to Report Q2, 2024 Results on Aug 13, 2024 Ruentex Development Co.,Ltd. announced that they will report Q2, 2024 results on Aug 13, 2024 New Risk • Jul 23
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 6.5% 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: Minor Risks Dividend is not well covered by cash flows (248% cash payout ratio). Share price has been volatile over the past 3 months (6.5% average weekly change). Large one-off items impacting financial results. Upcoming Dividend • Jul 09
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 16 July 2024. Payment date: 08 August 2024. Trailing yield: 3.4%. Lower than top quartile of Taiwanese dividend payers (4.2%). Higher than average of industry peers (2.7%). New Risk • May 18
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 33% 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: Minor Risks Dividend is not well covered by cash flows (248% cash payout ratio). Large one-off items impacting financial results. Reported Earnings • May 16
First quarter 2024 earnings released: EPS: NT$2.46 (vs NT$0.11 in 1Q 2023) First quarter 2024 results: EPS: NT$2.46 (up from NT$0.11 in 1Q 2023). Revenue: NT$7.00b (up 11% from 1Q 2023). Net income: NT$6.73b (up NT$6.42b from 1Q 2023). Profit margin: 96% (up from 4.9% in 1Q 2023). The increase in margin was primarily driven by lower expenses. 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 20% per year, which means it is well ahead of earnings. Announcement • Apr 28
Ruentex Development Co.,Ltd. to Report Q1, 2024 Results on May 13, 2024 Ruentex Development Co.,Ltd. announced that they will report Q1, 2024 results on May 13, 2024 Reported Earnings • Mar 16
Full year 2023 earnings released: EPS: NT$2.65 (vs NT$3.33 in FY 2022) Full year 2023 results: EPS: NT$2.65 (down from NT$3.33 in FY 2022). Revenue: NT$27.4b (down 15% from FY 2022). Net income: NT$7.74b (down 15% from FY 2022). Profit margin: 28% (in line with FY 2022). 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 14% per year, which means it is well ahead of earnings. Announcement • Mar 15
Ruentex Development Co.,Ltd., Annual General Meeting, May 29, 2024 Ruentex Development Co.,Ltd., Annual General Meeting, May 29, 2024. New Risk • Nov 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: 6.3% 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 (6.3% operating cash flow to total debt). Earnings have declined by 2.3% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (125% cash payout ratio). Profit margins are more than 30% lower than last year (20% net profit margin). Reported Earnings • Nov 14
Third quarter 2023 earnings released: EPS: NT$2.10 (vs NT$1.63 in 3Q 2022) Third quarter 2023 results: EPS: NT$2.10 (up from NT$1.63 in 3Q 2022). Revenue: NT$5.35b (down 31% from 3Q 2022). Net income: NT$6.04b (up 35% from 3Q 2022). 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 18% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 07
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 14 September 2023. Payment date: 02 October 2023. The company last paid an ordinary dividend in March 2013. The average dividend yield among industry peers is 4.4%. New Risk • Aug 28
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 Risks Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Earnings have declined by 2.3% 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 (14% net profit margin). New Risk • Aug 13
New major risk - Revenue and earnings growth Earnings have declined by 2.5% 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 2.5% 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 (14% net profit margin). Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: NT$1.52 (vs NT$1.92 in 2Q 2022) Second quarter 2023 results: EPS: NT$1.52 (down from NT$1.92 in 2Q 2022). Revenue: NT$7.03b (down 8.0% from 2Q 2022). Net income: NT$4.60b (down 21% from 2Q 2022). Profit margin: 65% (down from 77% in 2Q 2022). 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 28% per year, which means it is well ahead of earnings. Announcement • Jul 01
Ruentex Development Co.,Ltd. Announces Remuneration Committee Changes Ruentex Development Co.,Ltd. announced the members of the company’s 5th remuneration committee. Name of the previous position holder: Ko, Shun-Hsiung, Accountant of Chien-Ta accountant firm; Chang, Guo-Zhen, Professor of Department of Civil Engineering of NTU; Zhao, Yi-Long, Professor of Department of International Business of NTU. Name of the new position holder: Ko, Shun-Hsiung, Chang, Guo-Zhen and Hsieh, Shang-Hsien. Resume of the new position holder: Ko,Shun-Hsiung, Accountant of Chien-Ta accountant firm; Chang, Guo-Zhen, Professor of Department of Civil Engineering of NTU, Hsieh, Shang-Hsien, Professor of Department of Civil Engineering of NTU. Effective date of the new member is June 30, 2023. New Risk • Jun 30
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 9.2% 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 (9.2% operating cash flow to total debt). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (17% net profit margin). Announcement • Jun 11
Ruentex Development Co.,Ltd. Announces Audit Committee Changes Ruentex Development Co.,Ltd. announced the members of the company’s 4th Audit Committee. Name of the previous position holder: Zhao, Yi-Long. Resume of the previous position holder: Zhao, Yi-Long,Professor of Department of International Business of NTU. Name of the new position holder: Hsieh, Shang-Hsien. Resume of the new position holder: Hsieh, Shang-Hsien, Professor of Department of Civil Engineering of NTU. Reason for the change: term expired. Effective date of the new member: June 9, 2023. Date of occurrence of the change: June 9, 2023. Reported Earnings • Mar 17
Full year 2022 earnings released: EPS: NT$3.00 (vs NT$5.32 in FY 2021) Full year 2022 results: EPS: NT$3.00 (down from NT$5.32 in FY 2021). Revenue: NT$32.2b (up 18% from FY 2021). Net income: NT$9.16b (down 44% from FY 2021). Profit margin: 28% (down from 60% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 54% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 16
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$36.25, the stock trades at a trailing P/E ratio of 7.4x. Average trailing P/E is 14x in the Real Estate industry in Taiwan. Total returns to shareholders of 305% over the past three years. Announcement • Dec 28
Ruentex Development Co.,Ltd. Appoints Chang,Wen-Jen as Chief Information Security Officer Ruentex Development Co.,Ltd. appointed CHANG,WEN-JEN Vice President of General Management Office as Chief Information Security Officer, effective December 27, 2022. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$1.47 (vs NT$1.34 in 3Q 2021) Third quarter 2022 results: EPS: NT$1.47 (up from NT$1.34 in 3Q 2021). Revenue: NT$7.80b (down 7.9% from 3Q 2021). Net income: NT$4.49b (up 9.4% from 3Q 2021). Profit margin: 58% (up from 49% 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 22% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 2 experienced directors. 9 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Kuo-Chen Chang was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: NT$1.47 (vs NT$1.34 in 3Q 2021) Third quarter 2022 results: EPS: NT$1.47 (up from NT$1.34 in 3Q 2021). Revenue: NT$7.80b (down 7.9% from 3Q 2021). Net income: NT$4.49b (up 9.4% from 3Q 2021). Profit margin: 58% (up from 49% 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 22% per year but the company’s share price has increased by 43% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$2.87 (vs NT$1.86 in 2Q 2021) Second quarter 2022 results: EPS: NT$2.87 (up from NT$1.86 in 2Q 2021). Revenue: NT$7.65b (up 20% from 2Q 2021). Net income: NT$5.85b (up 55% from 2Q 2021). Profit margin: 77% (up from 60% in 2Q 2021). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 47% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Aug 05
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 12 August 2022. Payment date: 08 September 2022. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (6.4%). Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$59.20, the stock trades at a trailing P/E ratio of 8.9x. Average trailing P/E is 12x in the Real Estate industry in Taiwan. Total returns to shareholders of 208% over the past three years. Announcement • Jun 16
Ruentex Development Co.,Ltd. Approves Cash Dividend Ruentex Development Co.,Ltd. at the shareholders meeting held on June 15, 2022 approved cash dividend of TWD 2 per share. Reported Earnings • May 16
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: NT$2.15 (down from NT$3.25 in 1Q 2021). Revenue: NT$6.29b (up 20% from 1Q 2021). Net income: NT$4.37b (down 34% from 1Q 2021). Profit margin: 70% (down from 126% in 1Q 2021). The decrease in margin was primarily driven by lower expenses. Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates by 30%. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 54% per year, which means it is tracking significantly ahead of earnings growth. Buying Opportunity • May 06
Now 20% undervalued Over the last 90 days, the stock is up 20%. The fair value is estimated to be NT$95.62, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 28%. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 4 experienced directors. 7 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Kuo-Chen Chang was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Buying Opportunity • Apr 12
Now 22% undervalued Over the last 90 days, the stock is up 10%. The fair value is estimated to be NT$93.42, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 28%. Reported Earnings • Mar 17
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: NT$7.98 (up from NT$4.20 in FY 2020). Revenue: NT$27.3b (up 43% from FY 2020). Net income: NT$16.2b (up 90% from FY 2020). Profit margin: 60% (up from 45% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates by 30%. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 45% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$2.02 (vs NT$1.85 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$8.47b (up 63% from 3Q 2020). Net income: NT$4.11b (up 9.0% from 3Q 2020). Profit margin: 49% (down from 73% 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 17% per year but the company’s share price has increased by 45% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 26
Investor sentiment improved over the past week After last week's 18% share price gain to NT$67.20, the stock trades at a trailing P/E ratio of 9.7x. Average trailing P/E is 12x in the Real Estate industry in Taiwan. Total returns to shareholders of 264% over the past three years. Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improved over the past week After last week's 16% share price gain to NT$81.20, the stock trades at a trailing P/E ratio of 8.1x. Average trailing P/E is 11x in the Real Estate industry in Taiwan. Total returns to shareholders of 154% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$2.60 (vs NT$1.01 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$6.35b (up 69% from 2Q 2020). Net income: NT$3.78b (up 157% from 2Q 2020). Profit margin: 60% (up from 39% 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 1% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 13
An unknown buyer acquired Ruentex Construction & Develop from Ruentex Development Co.,Ltd. (TWSE:9945) for TWD 3.6 billion. An unknown buyer acquired Ruentex Construction & Develop from Ruentex Development Co.,Ltd. (TWSE:9945) for TWD 3.6 billion on August 12, 2021. Terms of delivery or payment was Wire transfer. Board of Directors are the decision making party for the deal.
An unknown buyer completed the acquisition of Ruentex Construction & Develop from Ruentex Development Co.,Ltd. (TWSE:9945) on August 12, 2021. Upcoming Dividend • Jul 19
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 26 July 2021. Payment date: 12 August 2021. Trailing yield: 1.5%. Lower than top quartile of Taiwanese dividend payers (4.9%). Lower than average of industry peers (4.7%). Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment improved over the past week After last week's 15% share price gain to NT$65.40, the stock trades at a trailing P/E ratio of 7.8x. Average trailing P/E is 12x in the Real Estate industry in Taiwan. Total returns to shareholders of 115% over the past three years. Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$4.56 (vs NT$2.03 in 1Q 2020) First quarter 2021 results: Revenue: NT$5.24b (up 36% from 1Q 2020). Net income: NT$6.63b (up 124% from 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS NT$5.88 (vs NT$6.23 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: NT$19.1b (up 11% from FY 2019). Net income: NT$8.56b (down 5.6% from FY 2019). Profit margin: 45% (down from 53% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Mar 03
New 90-day high: NT$42.05 The company is up 1.0% from its price of NT$41.45 on 03 December 2020. The Taiwanese market is up 13% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Real Estate industry, which is flat over the same period. Is New 90 Day High Low • Jan 28
New 90-day low: NT$39.25 The company is down 1.0% from its price of NT$39.50 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. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS NT$2.59 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: NT$5.18b (up 17% from 3Q 2019). Net income: NT$3.77b (down 13% from 3Q 2019). Profit margin: 73% (down from 98% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings.