New Risk • May 13
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 53% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. 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). Share price has been highly volatile over the past 3 months (14% average weekly change). High level of non-cash earnings (53% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • May 13
First quarter 2026 earnings released: EPS: NT$30.00 (vs NT$1.72 in 1Q 2025) First quarter 2026 results: EPS: NT$30.00 (up from NT$1.72 in 1Q 2025). Revenue: NT$26.1b (up 163% from 1Q 2025). Net income: NT$9.53b (up NT$9.01b from 1Q 2025). Profit margin: 37% (up from 5.3% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 29% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 80% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$440, the stock trades at a trailing P/E ratio of 19.2x. Average forward P/E is 27x in the Semiconductor industry in Taiwan. Total returns to shareholders of 600% over the past three years. Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$23.18 (vs NT$9.25 in FY 2024) Full year 2025 results: EPS: NT$23.18 (up from NT$9.25 in FY 2024). Revenue: NT$53.1b (up 32% from FY 2024). Net income: NT$7.29b (up 169% from FY 2024). Profit margin: 14% (up from 6.7% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has increased by 74% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Mar 13
Upcoming dividend of NT$17.00 per share Eligible shareholders must have bought the stock before 20 March 2026. Payment date: 24 April 2026. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Taiwanese dividend payers (5.3%). In line with average of industry peers (1.4%). Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$317, the stock trades at a trailing P/E ratio of 29.1x. Average forward P/E is 21x in the Semiconductor industry in Taiwan. Total returns to shareholders of 442% over the past three years. Price Target Changed • Mar 08
Price target increased by 58% to NT$316 Up from NT$200, the current price target is provided by 1 analyst. New target price is 9.9% above last closing price of NT$288. Stock is up 230% over the past year. The company posted earnings per share of NT$9.25 last year. Valuation Update With 7 Day Price Move • Jan 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$364, the stock trades at a trailing P/E ratio of 33.3x. Average forward P/E is 26x in the Semiconductor industry in Taiwan. Total returns to shareholders of 537% over the past three years. Valuation Update With 7 Day Price Move • Jan 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$300, the stock trades at a trailing P/E ratio of 27.5x. Average forward P/E is 24x in the Semiconductor industry in Taiwan. Total returns to shareholders of 457% over the past three years. Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$224, the stock trades at a trailing P/E ratio of 20.5x. Average forward P/E is 21x in the Semiconductor industry in Taiwan. Total returns to shareholders of 353% over the past three years. Reported Earnings • Nov 15
Third quarter 2025 earnings released: EPS: NT$5.57 (vs NT$2.02 in 3Q 2024) Third quarter 2025 results: EPS: NT$5.57 (up from NT$2.02 in 3Q 2024). Revenue: NT$14.5b (up 54% from 3Q 2024). Net income: NT$1.76b (up 199% from 3Q 2024). Profit margin: 12% (up from 6.3% 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 3 years, compared to a 16% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 47% per year whereas the company’s share price has increased by 49% per year. Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$222, the stock trades at a trailing P/E ratio of 30.7x. Average forward P/E is 23x in the Semiconductor industry in Taiwan. Total returns to shareholders of 304% over the past three years. New Risk • Oct 28
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 6.8% 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 Debt is not well covered by operating cash flow (17% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.8% average weekly change). Valuation Update With 7 Day Price Move • Oct 03
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$173, the stock trades at a trailing P/E ratio of 23.9x. Average forward P/E is 25x in the Semiconductor industry in Taiwan. Total returns to shareholders of 254% over the past three years. Valuation Update With 7 Day Price Move • Sep 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$129, the stock trades at a trailing P/E ratio of 17.8x. Average forward P/E is 21x in the Semiconductor industry in Taiwan. Total returns to shareholders of 145% over the past three years. Price Target Changed • Sep 08
Price target increased by 30% to NT$134 Up from NT$103, the current price target is provided by 1 analyst. New target price is 21% above last closing price of NT$111. Stock is up 26% over the past year. The company posted earnings per share of NT$9.25 last year. Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: NT$2.75 (vs NT$2.58 in 2Q 2024) Second quarter 2025 results: EPS: NT$2.75 (up from NT$2.58 in 2Q 2024). Revenue: NT$12.8b (up 28% from 2Q 2024). Net income: NT$878.6m (up 16% from 2Q 2024). Profit margin: 6.9% (down from 7.5% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10.0% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 07
Upcoming dividend of NT$5.12 per share Eligible shareholders must have bought the stock before 14 July 2025. Payment date: 15 August 2025. Payout ratio is a comfortable 68% and this is well supported by cash flows. Trailing yield: 5.3%. Within top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (2.2%). Reported Earnings • May 14
First quarter 2025 earnings released: EPS: NT$1.72 (vs NT$3.62 in 1Q 2024) First quarter 2025 results: EPS: NT$1.72 (down from NT$3.62 in 1Q 2024). Revenue: NT$9.91b (down 8.9% from 1Q 2024). Net income: NT$526.4m (down 50% from 1Q 2024). Profit margin: 5.3% (down from 9.7% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • May 06
ADATA Technology Co., Ltd. to Report Q1, 2025 Results on May 13, 2025 ADATA Technology Co., Ltd. announced that they will report Q1, 2025 results on May 13, 2025 Announcement • Apr 17
ADATA Technology Co., Ltd. Declares Cash Dividend for the Second Half ended December 31, 2024 ADATA Technology Co., Ltd. declared a cash dividend of TWD 5 per share and total amount of cash dividends to shareholders TWD 1,623,253,240 for the second half period from July 1, 2024 to December 31, 2024. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$74.20, the stock trades at a trailing P/E ratio of 8.1x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 16% over the past three years. Reported Earnings • Mar 19
Full year 2024 earnings released: EPS: NT$9.25 (vs NT$5.21 in FY 2023) Full year 2024 results: EPS: NT$9.25 (up from NT$5.21 in FY 2023). Revenue: NT$40.2b (up 19% from FY 2023). Net income: NT$2.71b (up 92% from FY 2023). Profit margin: 6.7% (up from 4.2% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 26% 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
ADATA Technology Co., Ltd., Annual General Meeting, May 29, 2025 ADATA Technology Co., Ltd., Annual General Meeting, May 29, 2025, at 09:00 Taipei Standard Time. Location: 2 floor building. i no,258, lien ch`eng rd., jhonghe district, new taipei city Taiwan Announcement • Mar 04
ADATA Technology Co., Ltd. to Report Q4, 2024 Results on Mar 11, 2025 ADATA Technology Co., Ltd. announced that they will report Q4, 2024 results on Mar 11, 2025 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 17
Third quarter 2024 earnings released: EPS: NT$2.01 (vs NT$1.57 in 3Q 2023) Third quarter 2024 results: EPS: NT$2.01 (up from NT$1.57 in 3Q 2023). Revenue: NT$9.40b (up 9.3% from 3Q 2023). Net income: NT$589.7m (up 42% from 3Q 2023). Profit margin: 6.3% (up from 4.8% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.1% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$2.58 (vs NT$1.02 in 2Q 2023) Second quarter 2024 results: EPS: NT$2.58 (up from NT$1.02 in 2Q 2023). Revenue: NT$10.0b (up 47% from 2Q 2023). Net income: NT$754.6m (up 183% from 2Q 2023). Profit margin: 7.5% (up from 3.9% 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 18% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Aug 02
ADATA Technology Co., Ltd. to Report Q2, 2024 Results on Aug 08, 2024 ADATA Technology Co., Ltd. announced that they will report Q2, 2024 results on Aug 08, 2024 Declared Dividend • Jun 14
Dividend increased to NT$3.00 Dividend of NT$3.00 is 50% higher than last year. Ex-date: 27th June 2024 Payment date: 2nd August 2024 Dividend yield will be 2.6%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (34% 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 decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 15% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jun 14
ADATA Technology Co., Ltd. Announces Cash Dividend for the Second Half of 2023, Payable on August 2, 2024 ADATA Technology Co., Ltd. announced cash dividend of TWD 880,396,344 for the second half of 2023. Ex-rights (Ex-dividend) date is June 27, 2024. Ex-rights (Ex-dividend) record date is July 5, 2024. Payment date of cash dividend distribution is August 2, 2024. Reported Earnings • May 18
First quarter 2024 earnings released: EPS: NT$3.62 (vs NT$0.093 in 1Q 2023) First quarter 2024 results: EPS: NT$3.62 (up from NT$0.093 in 1Q 2023). Revenue: NT$10.9b (up 51% from 1Q 2023). Net income: NT$1.06b (up NT$1.04b from 1Q 2023). Profit margin: 9.7% (up from 0.3% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.2% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$120, the stock trades at a trailing P/E ratio of 25.1x. Average forward P/E is 22x in the Semiconductor industry in Taiwan. Total returns to shareholders of 63% over the past three years. Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$96.20, the stock trades at a trailing P/E ratio of 20.1x. Average forward P/E is 22x in the Semiconductor industry in Taiwan. Negligible returns to shareholders over past three years. Reported Earnings • Mar 16
Full year 2023 earnings released: EPS: NT$5.21 (vs NT$3.19 in FY 2022) Full year 2023 results: EPS: NT$5.21 (up from NT$3.19 in FY 2022). Revenue: NT$33.7b (down 3.6% from FY 2022). Net income: NT$1.41b (up 70% from FY 2022). Profit margin: 4.2% (up from 2.4% in FY 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Mar 13
ADATA Technology Co., Ltd., Annual General Meeting, May 27, 2024 ADATA Technology Co., Ltd., Annual General Meeting, May 27, 2024. Announcement • Dec 27
ADATA Technology Co., Ltd. Announces Establishment of Risk Management Committee ADATA Technology Co., Ltd. announced the establishment of Risk Management Committee. Name of the new position holder: Chen, Li-Pai; Chen, Ling-Chuan; Hu, Yao-Jen; Chen, Tzu-Chang; Li, Tsung-Jung; Hu, Bai-Sha; Hu, Gin-Ing. Resume of the new position holder: Chen, Li-Pai: Chairman of ADATA; Chen, Ling-Chuan: President of ADATA; Hu, Yao-Jen: Independent Director of ADATA; Chen, Tzu-Chang: Independent Director of ADATA; Li, Tsung-Jung: Independent Director of ADATA; Hu, Bai-Sha: Independent Director of ADATA; Hu, Gin-Ing: Independent Director of ADATA. Effective date of the new member is December 26, 2023. Reported Earnings • Nov 15
Third quarter 2023 earnings released: EPS: NT$1.57 (vs NT$0.55 in 3Q 2022) Third quarter 2023 results: EPS: NT$1.57 (up from NT$0.55 in 3Q 2022). Revenue: NT$8.60b (down 3.6% from 3Q 2022). Net income: NT$414.2m (up 191% from 3Q 2022). Profit margin: 4.8% (up from 1.6% in 3Q 2022). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. New Risk • Oct 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 Interest payments are not well covered by earnings (0.6x net interest cover). Minor Risks Share price has been volatile over the past 3 months (5.8% average weekly change). Shareholders have been diluted in the past year (12% increase in shares outstanding). New Risk • Oct 12
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 12% 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 Risk Interest payments are not well covered by earnings (0.6x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (12% increase in shares outstanding). Announcement • Sep 27
ADATA Technology Co., Ltd. has completed a Follow-on Equity Offering in the amount of TWD 1.86 billion. ADATA Technology Co., Ltd. has completed a Follow-on Equity Offering in the amount of TWD 1.86 billion.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 4,500,000
Price\Range: TWD 62
Security Name: Shares
Security Type: Common Stock
Securities Offered: 3,000,000
Price\Range: TWD 62
Security Name: Shares
Security Type: Common Stock
Securities Offered: 22,500,000
Price\Range: TWD 62
Transaction Features: Reserved Share Offering; Rights Offering Announcement • Sep 09
Adata Industrial Debuts At Electronica India Showcasing Expanded AI Application Capabilities ADATA Technology announced that ADATA Industrial, its industrial-grade embedded storage brand, will participate in Electronica India for the first time from September 13 to 15. Debuting at India's largest electronics show, ADATA Industrial will focus on AI applications to showcase the latest generation of its DDR5 5600 series industrial-grade memory and various 112-layer (BiCS5) storage products. ADATA Industrial will showcase a series of BiCS5 3D (e)TLC storage products that feature KIOXIA and WDC components in various form factors. In addition to highly-efficient and durable industrial-grade SSDs, ADATA will also exhibit BiCS5 NAND flash solutions — enterprise-level 7.68TB large-capacity SATA III 2.5’’ SSDs and ultra-high-speed PCIe Gen4x4 M.2 2280 SSDs. These SSDs have passed various verifications, reaching DWPD>1 for greater SSD lifespan. ADATA Industrial’s R&D team presents unique value-added technologies for data security, durability, and high temperature resistance, which are among the most important aspects of AI-related vertical applications. With the development of a new generation of cloud and AI industries, data privacy has become one of the most serious issues in digital trade. ADATA Industrial's exclusive data security encryption software A+ OPAL is the solution to this problem and is applicable to all TCG OPAL-supporting ADATA industrial-grade NVMe and SATA III SSDs. In order to enhance data reliability, ADATA Power Loss Protect is implemented through software and hardware and utilizes reliable Tantalum polymer capacitors to activate the protection mechanism when the system is powered off abnormally to back up important hard drive data. ADATA Industrial upgraded its A+ SLC technology to push the P/E Cycles of 3D flash memory products to 100,000 cycles, greatly prolonging the service life of SSDs and improving durability considerably. Reported Earnings • Aug 17
Second quarter 2023 earnings released: EPS: NT$1.02 (vs NT$0.14 in 2Q 2022) Second quarter 2023 results: EPS: NT$1.02 (up from NT$0.14 in 2Q 2022). Revenue: NT$6.85b (down 22% from 2Q 2022). Net income: NT$266.6m (up NT$230.0m from 2Q 2022). Profit margin: 3.9% (up from 0.4% in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Board Change • Jul 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Gin Ing Hu was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Jun 20
Upcoming dividend of NT$2.00 per share at 2.2% yield Eligible shareholders must have bought the stock before 27 June 2023. Payment date: 02 August 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 2.2%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (3.1%). New Risk • Jun 17
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 6.0% 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 Interest payments are not well covered by earnings (1.0x net interest cover). Minor Risks Share price has been volatile over the past 3 months (6.0% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Announcement • Jun 07
ADATA Technology Co., Ltd. Announces Cash Dividend, Payable on August 2, 2023 ADATA Technology Co., Ltd. announced cash dividend of TWD 526,930,896. Payment date of cash dividend distribution on August 2, 2023. Ex-rights (Ex-dividend) record date of July 3, 2023. Valuation Update With 7 Day Price Move • May 31
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$89.30, the stock trades at a trailing P/E ratio of 61.5x. Average forward P/E is 19x in the Semiconductor industry in Taiwan. Total returns to shareholders of 82% over the past three years. Reported Earnings • Mar 23
Full year 2022 earnings released: EPS: NT$3.19 (vs NT$9.14 in FY 2021) Full year 2022 results: EPS: NT$3.19 (down from NT$9.14 in FY 2021). Revenue: NT$34.9b (down 12% from FY 2021). Net income: NT$829.6m (down 63% from FY 2021). Profit margin: 2.4% (down from 5.7% 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 8% per year but the company’s share price has increased by 17% 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 an independent director. The company's board is composed of: 1 new director. 4 experienced directors. 4 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Yao-Jen Hu was the last independent director to join the board, commencing their role in 2021. 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$0.55 (vs NT$0.14 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.55 (up from NT$0.14 in 3Q 2021). Revenue: NT$8.92b (down 7.9% from 3Q 2021). Net income: NT$142.4m (up 305% from 3Q 2021). Profit margin: 1.6% (up from 0.4% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 17
Second quarter 2022 earnings released: EPS: NT$0.14 (vs NT$6.05 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.14 (down from NT$6.05 in 2Q 2021). Revenue: NT$8.75b (down 18% from 2Q 2021). Net income: NT$36.6m (down 98% from 2Q 2021). Profit margin: 0.4% (down from 14% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 14
Upcoming dividend of NT$5.43 per share Eligible shareholders must have bought the stock before 21 July 2022. Payment date: 26 August 2022. Payout ratio is a comfortable 68% but the company is not cash flow positive. Trailing yield: 9.2%. Within top quartile of Taiwanese dividend payers (6.8%). Higher than average of industry peers (3.9%). Announcement • Jun 23
ADATA Technology Co., Ltd. Announces Cash Dividends, Payable on August 26, 2022 ADATA Technology Co., Ltd. announced cash dividends of TWD 1,421,581,409. Ex-rights (Ex-dividend) date is July 21, 2022. Ex-rights (Ex-dividend) record date is July 27, 2022. Payment date of cash dividend distribution is August 26, 2022. Valuation Update With 7 Day Price Move • Jun 22
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$60.50, the stock trades at a trailing P/E ratio of 7.8x. Average trailing P/E is 13x in the Semiconductor industry in Taiwan. Total returns to shareholders of 40% over the past three years. Announcement • Jun 15
ADATA Technology Co., Ltd. Announces Establishment of ESG Committee ADATA Technology Co., Ltd. announced the establishment of ESG committee. Name of the new position holder: Simon Chen, Shalley Chen, Tzu-Chang Chen, Yao-Jen Hu and Tsung-Jung Li. Resume of the new position holder: Simon Chen,Chairman of ADATA, Shalley Chen, President of ADATA, Tzu-Chang Chen,Independent Director of ADATA, Yao-Jen Hu,Independent Director of ADATA and Tsung-Jung Li,Independent Director of ADATA. Simon Chen serves as the convener and Chairperson. Buying Opportunity • Jun 14
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be NT$88.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • May 18
First quarter 2022 earnings released: EPS: NT$1.82 (vs NT$2.94 in 1Q 2021) First quarter 2022 results: EPS: NT$1.82 (down from NT$2.94 in 1Q 2021). Revenue: NT$9.79b (up 7.7% from 1Q 2021). Net income: NT$471.4m (down 31% from 1Q 2021). Profit margin: 4.8% (down from 7.5% 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 74% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 2 independent directors. 7 non-independent directors. Independent Director Tsung-Jung Li was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Apr 01
Full year 2021 earnings released: EPS: NT$9.14 (vs NT$6.10 in FY 2020) Full year 2021 results: EPS: NT$9.14 (up from NT$6.10 in FY 2020). Revenue: NT$39.6b (up 23% from FY 2020). Net income: NT$2.25b (up 66% from FY 2020). Profit margin: 5.7% (up from 4.2% in FY 2020). The increase in margin was driven by higher revenue. 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 28% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.14 (vs NT$1.37 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$9.68b (up 12% from 3Q 2020). Net income: NT$35.1m (down 88% from 3Q 2020). Profit margin: 0.4% (down from 3.5% 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 96% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$6.05 (vs NT$1.20 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$10.6b (up 42% from 2Q 2020). Net income: NT$1.47b (up 460% from 2Q 2020). Profit margin: 14% (up from 3.5% 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 78% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 11
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$99.40, the stock trades at a trailing P/E ratio of 14.2x. Average forward P/E is 16x in the Semiconductor industry in Taiwan. Total returns to shareholders of 105% over the past three years. Upcoming Dividend • Aug 02
Upcoming dividend of NT$3.18 per share Eligible shareholders must have bought the stock before 09 August 2021. Payment date: 31 August 2021. Trailing yield: 2.9%. Lower than top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (2.2%). Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 18% share price gain to NT$111, the stock trades at a trailing P/E ratio of 15.8x. Average forward P/E is 16x in the Semiconductor industry in Taiwan. Total returns to shareholders of 87% over the past three years. Valuation Update With 7 Day Price Move • May 28
Investor sentiment improved over the past week After last week's 16% share price gain to NT$98.80, the stock trades at a trailing P/E ratio of 14.2x. Average forward P/E is 15x in the Semiconductor industry in Taiwan. Total returns to shareholders of 65% over the past three years. Valuation Update With 7 Day Price Move • May 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$86.50, the stock trades at a trailing P/E ratio of 12.4x. Average forward P/E is 14x in the Semiconductor industry in Taiwan. Total returns to shareholders of 56% over the past three years. Reported Earnings • May 08
First quarter 2021 earnings released: EPS NT$2.94 (vs NT$2.12 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$9.10b (up 26% from 1Q 2020). Net income: NT$684.6m (up 44% from 1Q 2020). Profit margin: 7.5% (up from 6.6% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment improved over the past week After last week's 19% share price gain to NT$104, the stock trades at a trailing P/E ratio of 17x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 64% over the past three years. Reported Earnings • Mar 30
Full year 2020 earnings released: EPS NT$6.10 (vs NT$2.04 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$32.2b (up 26% from FY 2019). Net income: NT$1.35b (up 203% from FY 2019). Profit margin: 4.2% (up from 1.7% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Feb 20
New 90-day high: NT$77.50 The company is up 30% from its price of NT$59.70 on 20 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Semiconductor industry, which is up 35% over the same period. Is New 90 Day High Low • Dec 05
New 90-day high: NT$74.30 The company is up 36% from its price of NT$54.50 on 04 September 2020. The Taiwanese market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 20% over the same period. Valuation Update With 7 Day Price Move • Dec 03
Market bids up stock over the past week After last week's 19% share price gain to NT$72.70, the stock is trading at a trailing P/E ratio of 20x, up from the previous P/E ratio of 16.8x. This compares to an average P/E of 24x in the Semiconductor industry in Taiwan. Total returns to shareholders over the past three years are 2.8%. Is New 90 Day High Low • Nov 18
New 90-day high: NT$59.50 The company is up 17% from its price of NT$50.70 on 20 August 2020. The Taiwanese market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 13% over the same period. Analyst Estimate Surprise Post Earnings • Nov 13
Revenue beats expectations Revenue exceeded analyst estimates by 0.7%. Over the next year, revenue is forecast to grow 5.3%, compared to a 13% growth forecast for the Semiconductor industry in Taiwan. Reported Earnings • Nov 13
Third quarter 2020 earnings released: EPS NT$1.37 The company reported a mediocre third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: NT$8.65b (up 33% from 3Q 2019). Net income: NT$300.4m (down 29% from 3Q 2019). Profit margin: 3.5% (down from 6.5% 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 51% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings.