New Risk • May 04
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: 1.5% 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (NT$1.66b market cap, or US$52.6m). Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$3.63 (vs NT$2.76 in FY 2024) Full year 2025 results: EPS: NT$3.63 (up from NT$2.76 in FY 2024). Revenue: NT$5.73b (up 21% from FY 2024). Net income: NT$109.4m (up 29% from FY 2024). Profit margin: 1.9% (up from 1.8% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Specialty Retail industry in Asia. 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 14% per year, which means it has not declined as severely as earnings. Announcement • Mar 11
H.H.Galaxy Co., Ltd., Annual General Meeting, Jun 17, 2026 H.H.Galaxy Co., Ltd., Annual General Meeting, Jun 17, 2026. Location: 6 floor no,45, tung hsing rd., sinyi district, taipei city Taiwan Board Change • Mar 02
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 6 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Weichu Xu was the last independent director to join the board, commencing their role in 2022. 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 17
Third quarter 2025 earnings released: EPS: NT$0.51 (vs NT$0.11 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.51 (up from NT$0.11 in 3Q 2024). Revenue: NT$1.32b (up 24% from 3Q 2024). Net income: NT$15.4m (up 367% from 3Q 2024). Profit margin: 1.2% (up from 0.3% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Specialty Retail industry in Asia. Reported Earnings • Aug 17
Second quarter 2025 earnings released: EPS: NT$1.02 (vs NT$0.88 in 2Q 2024) Second quarter 2025 results: EPS: NT$1.02 (up from NT$0.88 in 2Q 2024). Revenue: NT$1.37b (up 24% from 2Q 2024). Net income: NT$25.3m (up 13% from 2Q 2024). Profit margin: 1.8% (down from 2.0% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Specialty Retail industry in Asia. Upcoming Dividend • Jun 19
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 26 June 2025. Payment date: 25 July 2025. Payout ratio is a comfortable 29% but the company is not cash flow positive. Trailing yield: 1.1%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (3.6%). Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$1.04 (vs NT$0.89 in 1Q 2024) First quarter 2025 results: EPS: NT$1.04 (up from NT$0.89 in 1Q 2024). Revenue: NT$1.20b (up 20% from 1Q 2024). Net income: NT$26.0m (up 15% from 1Q 2024). Profit margin: 2.2% (down from 2.3% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Specialty Retail industry in Asia. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$87.00, the stock trades at a trailing P/E ratio of 25.5x. Average forward P/E is 13x in the Specialty Retail industry in Taiwan. Total loss to shareholders of 10% over the past year. Reported Earnings • Apr 02
Full year 2024 earnings released: EPS: NT$3.34 (vs NT$5.99 in FY 2023) Full year 2024 results: EPS: NT$3.34 (down from NT$5.99 in FY 2023). Revenue: NT$4.73b (up 9.0% from FY 2023). Net income: NT$84.8m (down 39% from FY 2023). Profit margin: 1.8% (down from 3.2% in FY 2023). The decrease in margin was driven by higher expenses. Announcement • Mar 12
H.H.Galaxy Co., Ltd., Annual General Meeting, Jun 19, 2025 H.H.Galaxy Co., Ltd., Annual General Meeting, Jun 19, 2025. Location: 6 floor no,99, fu hsing n. rd., songshan district, taipei city Taiwan New Risk • Feb 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.2% average weekly change). Profit margins are more than 30% lower than last year (2.2% net profit margin). Market cap is less than US$100m (NT$2.09b market cap, or US$63.7m). Board Change • Feb 03
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 2 non-independent directors. Independent Director Weichu Xu was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 19
Third quarter 2024 earnings released: EPS: NT$0.13 (vs NT$1.10 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.13 (down from NT$1.10 in 3Q 2023). Revenue: NT$1.06b (up 2.2% from 3Q 2023). Net income: NT$3.29m (down 87% from 3Q 2023). Profit margin: 0.3% (down from 2.4% in 3Q 2023). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Oct 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$94.00, the stock trades at a trailing P/E ratio of 19.1x. Average trailing P/E is 26x in the Specialty Retail industry in Taiwan. Total loss to shareholders of 24% over the past year. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$0.92 (vs NT$1.43 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.92 (down from NT$1.43 in 2Q 2023). Revenue: NT$1.11b (up 8.0% from 2Q 2023). Net income: NT$22.4m (down 29% from 2Q 2023). Profit margin: 2.0% (down from 3.1% in 2Q 2023). The decrease in margin was driven by higher expenses. Upcoming Dividend • Jul 16
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 23 July 2024. Payment date: 16 August 2024. Payout ratio is a comfortable 35% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (3.3%). Reported Earnings • May 17
First quarter 2024 earnings released: EPS: NT$0.94 (vs NT$1.52 in 1Q 2023) First quarter 2024 results: EPS: NT$0.94 (down from NT$1.52 in 1Q 2023). Revenue: NT$995.1m (up 4.8% from 1Q 2023). Net income: NT$22.6m (down 32% from 1Q 2023). Profit margin: 2.3% (down from 3.5% in 1Q 2023). The decrease in margin was driven by higher expenses. Announcement • Apr 12
H.H.Galaxy Co., Ltd., Annual General Meeting, Jun 26, 2024 H.H.Galaxy Co., Ltd., Annual General Meeting, Jun 26, 2024. New Risk • Apr 03
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: 2.3% 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 Risk High level of non-cash earnings (26% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.1% average weekly change). Shareholders have been diluted in the past year (10.0% increase in shares outstanding). Market cap is less than US$100m (NT$2.66b market cap, or US$83.1m). Reported Earnings • Mar 30
Full year 2023 earnings released: EPS: NT$6.29 (vs NT$6.37 in FY 2022) Full year 2023 results: EPS: NT$6.29. Revenue: NT$4.34b (up 7.1% from FY 2022). Net income: NT$139.2m (up 8.4% from FY 2022). Profit margin: 3.2% (in line with FY 2022). Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$120, the stock trades at a trailing P/E ratio of 19.1x. Average trailing P/E is 28x in the Specialty Retail industry in Taiwan. Total returns to shareholders of 25% over the past year. New Risk • Jan 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 10.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.4% average weekly change). High level of non-cash earnings (26% accrual ratio). Minor Risks Shareholders have been diluted in the past year (10.0% increase in shares outstanding). Market cap is less than US$100m (NT$2.59b market cap, or US$82.7m). Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$129, the stock trades at a trailing P/E ratio of 18.6x. Average trailing P/E is 28x in the Specialty Retail industry in Taiwan. Total returns to shareholders of 18% over the past year. New Risk • Nov 20
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 5.8% 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 High level of non-cash earnings (21% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (5.8% average weekly change). Market cap is less than US$100m (NT$3.14b market cap, or US$99.2m). New Risk • Jul 18
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (36% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Share price has been volatile over the past 3 months (6.8% average weekly change). 
