Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$191, the stock trades at a trailing P/E ratio of 39.4x. Average forward P/E is 35x in the Semiconductor industry in Taiwan. Total returns to shareholders of 86% over the past three years. New Risk • Jun 17
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 121% 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 Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (17% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$152, the stock trades at a trailing P/E ratio of 31.4x. Average forward P/E is 27x in the Semiconductor industry in Taiwan. Total returns to shareholders of 86% over the past three years. Reported Earnings • May 15
First quarter 2026 earnings released: EPS: NT$2.00 (vs NT$1.70 in 1Q 2025) First quarter 2026 results: EPS: NT$2.00 (up from NT$1.70 in 1Q 2025). Revenue: NT$1.08b (down 4.2% from 1Q 2025). Net income: NT$177.3m (up 40% from 1Q 2025). Profit margin: 16% (up from 11% in 1Q 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 12% 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 fallen by 1% per year but the company’s share price has increased by 27% per year, which means it is well ahead of earnings. Price Target Changed • Apr 15
Price target increased by 58% to NT$205 Up from NT$130, the current price target is provided by 1 analyst. New target price is 12% above last closing price of NT$183. Stock is up 83% over the past year. The company posted earnings per share of NT$4.81 last year. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$151, the stock trades at a trailing P/E ratio of 30.4x. Average forward P/E is 23x in the Semiconductor industry in Taiwan. Total returns to shareholders of 84% over the past three years. Reported Earnings • Mar 31
Full year 2025 earnings released: EPS: NT$4.81 (vs NT$6.50 in FY 2024) Full year 2025 results: EPS: NT$4.81 (down from NT$6.50 in FY 2024). Revenue: NT$4.84b (up 11% from FY 2024). Net income: NT$367.1m (down 24% from FY 2024). Profit margin: 7.6% (down from 11% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.5% 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 fallen by 1% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • Mar 24
Integrated Service Technology Inc., Annual General Meeting, Jun 12, 2026 Integrated Service Technology Inc., Annual General Meeting, Jun 12, 2026, at 09:00 Taipei Standard Time. Location: 9 floor no,19, p`u ting rd., hsinchu city Taiwan Declared Dividend • Mar 23
Third quarter dividend of NT$1.20 announced Shareholders will receive a dividend of NT$1.20. Ex-date: 10th April 2026 Payment date: 12th May 2026 Dividend yield will be 2.9%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (82% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 8.0% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 35% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$144, the stock trades at a trailing P/E ratio of 26.5x. Average forward P/E is 23x in the Semiconductor industry in Taiwan. Total returns to shareholders of 76% over the past three years. New Risk • Mar 04
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 7.3% 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 High level of debt (76% net debt to equity). Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.3% average weekly change). Valuation Update With 7 Day Price Move • Jan 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$140, the stock trades at a trailing P/E ratio of 25.8x. Average forward P/E is 26x in the Semiconductor industry in Taiwan. Total returns to shareholders of 80% over the past three years. Declared Dividend • Jan 10
Third quarter dividend of NT$1.03 announced Shareholders will receive a dividend of NT$1.03. Ex-date: 27th January 2026 Payment date: 26th February 2026 Dividend yield will be 3.5%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (85% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 8.0% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 35% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Dec 18
Integrated Service Technology Inc. has filed a Follow-on Equity Offering in the amount of TWD 182 million. Integrated Service Technology Inc. has filed a Follow-on Equity Offering in the amount of TWD 182 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 11,700,000
Price\Range: TWD 14
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 1,300,000
Price\Range: TWD 14
Transaction Features: Reserved Share Offering; Rights Offering Reported Earnings • Nov 15
Third quarter 2025 earnings released: EPS: NT$1.00 (vs NT$1.15 in 3Q 2024) Third quarter 2025 results: EPS: NT$1.00 (down from NT$1.15 in 3Q 2024). Revenue: NT$1.28b (up 14% from 3Q 2024). Net income: NT$74.2m (down 13% from 3Q 2024). Profit margin: 5.8% (down from 7.6% in 3Q 2024). Revenue is forecast to grow 9.4% 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 4% per year whereas the company’s share price has increased by 7% per year. Declared Dividend • Oct 19
Second quarter dividend of NT$1.20 announced Shareholders will receive a dividend of NT$1.20. Ex-date: 6th November 2025 Payment date: 28th November 2025 Dividend yield will be 3.8%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (79% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 8.0% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 60% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: NT$1.50 (vs NT$2.33 in 2Q 2024) Second quarter 2025 results: EPS: NT$1.50 (down from NT$2.33 in 2Q 2024). Revenue: NT$1.20b (up 14% from 2Q 2024). Net income: NT$111.5m (down 35% from 2Q 2024). Profit margin: 9.3% (down from 16% in 2Q 2024). Revenue is forecast to grow 13% 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 11% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jul 21
First quarter dividend of NT$1.00 announced Shareholders will receive a dividend of NT$1.00. Ex-date: 5th August 2025 Payment date: 25th August 2025 Dividend yield will be 3.3%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (71% earnings payout ratio) but not covered by cash flows (dividend approximately 5x free cash flows). The dividend has increased by an average of 8.0% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 33% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$123, the stock trades at a trailing P/E ratio of 19.1x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 174% over the past three years. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$1.70 (vs NT$1.80 in 1Q 2024) First quarter 2025 results: EPS: NT$1.70 (down from NT$1.80 in 1Q 2024). Revenue: NT$1.13b (up 5.8% from 1Q 2024). Net income: NT$126.4m (down 5.2% from 1Q 2024). Profit margin: 11% (down from 13% in 1Q 2024). Revenue is forecast to grow 14% 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 19% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • May 14
Now 21% overvalued Over the last 90 days, the stock has fallen 19% to NT$110. The fair value is estimated to be NT$90.44, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.0% over the last 3 years. Earnings per share has grown by 26%. Announcement • May 01
Integrated Service Technology Inc. to Report Q1, 2025 Results on May 09, 2025 Integrated Service Technology Inc. announced that they will report Q1, 2025 results on May 09, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$92.30, the stock trades at a trailing P/E ratio of 14.2x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 86% over the past three years. Upcoming Dividend • Apr 07
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 11 April 2025. Payment date: 16 May 2025. Payout ratio is a comfortable 66% and this is well supported by cash flows. Trailing yield: 4.2%. Lower than top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (2.3%). New Risk • Apr 06
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 26% 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 High level of debt (49% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • Mar 28
Full year 2024 earnings released: EPS: NT$6.50 (vs NT$5.15 in FY 2023) Full year 2024 results: EPS: NT$6.50 (up from NT$5.15 in FY 2023). Revenue: NT$4.35b (up 14% from FY 2023). Net income: NT$481.7m (up 25% from FY 2023). Profit margin: 11% (up from 10% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.0% 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 whereas the company’s share price has increased by 29% per year. Declared Dividend • Mar 24
Third quarter dividend of NT$1.00 announced Shareholders will receive a dividend of NT$1.00. Ex-date: 11th April 2025 Payment date: 16th May 2025 Dividend yield will be 3.2%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (68% earnings payout ratio) and cash flows (58% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 47% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 22
Integrated Service Technology Inc. Announces Cash Dividend for the Third Quarter of the Year 2024, Payable on May 16, 2025 Integrated Service Technology Inc. announced cash dividend of TWD 74,378,421 (TWD 1.00000000 per share) for the Third Quarter of the Year 2024. Date of the resolution by the board of directors or shareholders’ meeting, or of the decision by the company: March 21, 2025. Ex-rights (Ex-dividend) date: April 11, 2025. Ex-rights (Ex-dividend) record date: April 19, 2025. Payment date of cash dividend distribution: May 16, 2025. Announcement • Mar 11
Integrated Service Technology Inc., Annual General Meeting, Jun 13, 2025 Integrated Service Technology Inc., Annual General Meeting, Jun 13, 2025, at 09:00 Taipei Standard Time. Location: 9 floor no,19, p`u ting rd., hsinchu city Taiwan Announcement • Mar 01
Integrated Service Technology Inc. to Report Q4, 2024 Results on Mar 07, 2025 Integrated Service Technology Inc. announced that they will report Q4, 2024 results on Mar 07, 2025 Upcoming Dividend • Jan 29
Upcoming dividend of NT$1.30 per share Eligible shareholders must have bought the stock before 05 February 2025. Payment date: 26 February 2025. Payout ratio is a comfortable 68% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Taiwanese dividend payers (4.5%). In line with average of industry peers (2.0%). Declared Dividend • Jan 13
Third quarter dividend of NT$1.30 announced Shareholders will receive a dividend of NT$1.30. Ex-date: 5th February 2025 Payment date: 26th February 2025 Dividend yield will be 3.0%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (68% earnings payout ratio) and cash flows (58% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 47% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jan 11
Integrated Service Technology Inc. Announces Cash Dividend Distribution for the Second Quarter of the Year 2024, Payable on February 26, 2025 Integrated Service Technology Inc. announced a cash dividend of TWD 1.29847171 per share for the Second quarter of the fiscal year 2024, amounting to TWD 96,644,173. The ex-rights (ex-dividend) date is February 5, 2025. Ex-rights (ex-dividend) record date is February 11, 2025. Payment date of cash dividend distribution is February 26, 2025. Board Change • Jan 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 4 highly experienced directors. Director Wen-Hao Lo was the last 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: Insufficient board refreshment. Reported Earnings • Nov 18
Third quarter 2024 earnings released: EPS: NT$1.15 (vs NT$1.22 in 3Q 2023) Third quarter 2024 results: EPS: NT$1.15 (down from NT$1.22 in 3Q 2023). Revenue: NT$1.12b (up 20% from 3Q 2023). Net income: NT$85.3m (down 6.8% from 3Q 2023). Profit margin: 7.6% (down from 9.8% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.8% p.a. on average during the next 3 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 31% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$164, the stock trades at a trailing P/E ratio of 27.5x. Average forward P/E is 23x in the Semiconductor industry in Taiwan. Total returns to shareholders of 223% over the past three years. Announcement • Oct 26
Integrated Service Technology Inc. to Report Q3, 2024 Results on Nov 04, 2024 Integrated Service Technology Inc. announced that they will report Q3, 2024 results on Nov 04, 2024 Declared Dividend • Oct 23
Second quarter dividend of NT$1.00 announced Shareholders will receive a dividend of NT$1.00. Ex-date: 7th November 2024 Payment date: 28th November 2024 Dividend yield will be 1.9%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (67% earnings payout ratio) and cash flows (65% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 55% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Oct 22
Integrated Service Technology Inc. Announces Cash Dividend Distribution for the First Quarter of the Year 2024, Payable on 28 November 2024 Integrated Service Technology Inc. announced a cash dividend distribution of TWD 74,040,921 which amounts to TWD 0.99546239 per share for the first quarter of the year 2024. The ex-rights (ex-dividend) date is November 7, 2024. Ex-rights (ex-dividend) record date is November 13, 2024. Payment date of cash dividend distribution is November 28, 2024. On April 26, 2024, the company's board of directors resolved to distribute a cash dividend of TWD 1.0 per share for the First quarter of the fiscal year 2024, amounting to TWD 74,040,921. After adjustment: TWD 0.99546239 per share. New Risk • Aug 26
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 36% 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 High level of debt (55% net debt to equity). 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 (8.4% average weekly change). Large one-off items impacting financial results. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$2.33 (vs NT$2.02 in 2Q 2023) Second quarter 2024 results: EPS: NT$2.33 (up from NT$2.02 in 2Q 2023). Revenue: NT$1.05b (up 8.2% from 2Q 2023). Net income: NT$172.4m (up 14% from 2Q 2023). Profit margin: 16% (in line with 2Q 2023). Revenue is forecast to grow 7.0% 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 increased by 36% per year but the company’s share price has increased by 46% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$148, the stock trades at a trailing P/E ratio of 26x. Average forward P/E is 23x in the Semiconductor industry in Taiwan. Total returns to shareholders of 233% over the past three years. Announcement • Jul 27
Integrated Service Technology Inc. to Report Q2, 2024 Results on Aug 05, 2024 Integrated Service Technology Inc. announced that they will report Q2, 2024 results on Aug 05, 2024 Declared Dividend • Jul 19
First quarter dividend of NT$0.70 announced Shareholders will receive a dividend of NT$0.70. Ex-date: 5th August 2024 Payment date: 26th August 2024 Dividend yield will be 2.6%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (66% earnings payout ratio) and cash flows (69% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 61% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jul 18
Integrated Service Technology Inc. Announces Cash Dividend Distribution for the Fourth Quarter of the Year 2024, Payable on August 26, 2024 Integrated Service Technology Inc. announced a cash dividend distribution of TWD 51,809,745, which amounts to TWD 0.69691391 per share for the fourth quarter of the year 2024. The ex-rights (ex-dividend) date is scheduled for August 5, 2024, while the ex-rights (ex-dividend) record date is set for August 11, 2024. Payment date of cash dividend distribution is on August 26, 2024. Valuation Update With 7 Day Price Move • Jun 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$156, the stock trades at a trailing P/E ratio of 27.3x. Average forward P/E is 23x in the Semiconductor industry in Taiwan. Total returns to shareholders of 228% over the past three years. Reported Earnings • May 12
First quarter 2024 earnings released: EPS: NT$1.80 (vs NT$1.31 in 1Q 2023) First quarter 2024 results: EPS: NT$1.80 (up from NT$1.31 in 1Q 2023). Revenue: NT$1.07b (up 9.0% from 1Q 2023). Net income: NT$133.3m (up 36% from 1Q 2023). Profit margin: 13% (up from 10.0% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.8% 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 38% per year whereas the company’s share price has increased by 42% per year. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$146, the stock trades at a trailing P/E ratio of 27.9x. Average forward P/E is 21x in the Semiconductor industry in Taiwan. Total returns to shareholders of 198% over the past three years. New Risk • Apr 12
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 8.4% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.4% average weekly change). Minor Risks High level of debt (57% net debt to equity). Dividend is not well covered by cash flows (171% cash payout ratio). Declared Dividend • Mar 25
Fourth quarter dividend of NT$1.02 announced Shareholders will receive a dividend of NT$1.02. Ex-date: 12th April 2024 Payment date: 24th May 2024 Dividend yield will be 3.3%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (72% earnings payout ratio) but not covered by cash flows (171% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 64% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 17
Full year 2023 earnings released: EPS: NT$5.15 (vs NT$5.33 in FY 2022) Full year 2023 results: EPS: NT$5.15 (down from NT$5.33 in FY 2022). Revenue: NT$3.81b (up 1.8% from FY 2022). Net income: NT$385.6m (down 4.8% from FY 2022). Profit margin: 10% (in line with FY 2022). Revenue is forecast to grow 7.1% 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 31% per year, which means it is significantly lagging earnings growth. Announcement • Mar 08
Integrated Service Technology Inc. announced a financing transaction Integrated Service Technology Inc. announced a private placement to issue 10,000,000 common shares on March 6, 2024. The transaction has been approved by the shareholders of the company and is restricted to a hold period of 3 years. Announcement • Mar 07
Integrated Service Technology Inc., Annual General Meeting, Jun 14, 2024 Integrated Service Technology Inc., Annual General Meeting, Jun 14, 2024. Location: 9F, No. 19, Puding Road, Hsinchu City Hsinchu Taiwan Agenda: To approve 2023 business report of IST; to report of the statements examined by the audit committee for the year ended 2023; to report of 2023 earning distribution; to report of 2023 distribution of remunerations to employees and directors; to approve report of 2023 the received by the directors, including the compensation policy,the content and amount of individual compensation and their correlation with the performance evaluation results; and to discuss other matters. New Risk • Feb 15
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 5.7% 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 High level of debt (55% net debt to equity). Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.7% average weekly change). Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$118, the stock trades at a trailing P/E ratio of 20.4x. Average trailing P/E is 27x in the Semiconductor industry in Taiwan. Total returns to shareholders of 155% over the past three years. Upcoming Dividend • Jan 18
Upcoming dividend of NT$1.02 per share at 4.2% yield Eligible shareholders must have bought the stock before 25 January 2024. Payment date: 26 February 2024. Payout ratio is a comfortable 68% but the company is not cash flow positive. Trailing yield: 4.2%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (3.2%). Announcement • Jan 09
Integrated Service Technology Inc. Announces Cash Dividend for the Second Quarter of the Year 2023, Payable on February 26, 2024 Integrated Service Technology Inc. announced cash Dividends of TWD 75,502,921 (TWD 1.02011784 per share). Ex-rights (Ex-dividend) date is January 25, 2024. Ex-rights (Ex-dividend) record date is February 1, 2024. On August 4, 2023, the company's board of directors resolved to distribute a cash dividend of TWD 1.0 per share for the second quarter of the fiscal year 2023, amounting to TWD 75,502,921. Payment date of cash dividend distribution is February 26, 2024. Upcoming Dividend • Oct 31
Upcoming dividend of NT$0.99 per share at 4.8% yield Eligible shareholders must have bought the stock before 07 November 2023. Payment date: 27 November 2023. Payout ratio is a comfortable 62% and the cash payout ratio is 88%. Trailing yield: 4.8%. Lower than top quartile of Taiwanese dividend payers (5.6%). Higher than average of industry peers (3.3%). Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: NT$2.02 (vs NT$1.22 in 2Q 2022) Second quarter 2023 results: EPS: NT$2.02 (up from NT$1.22 in 2Q 2022). Revenue: NT$973.0m (up 6.8% from 2Q 2022). Net income: NT$151.2m (up 65% from 2Q 2022). Profit margin: 16% (up from 10.0% in 2Q 2022). Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 02
Upcoming dividend of NT$0.99 per share at 3.7% yield Eligible shareholders must have bought the stock before 09 August 2023. Payment date: 25 August 2023. Trailing yield: 3.7%. Lower than top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (3.2%). Valuation Update With 7 Day Price Move • Jul 26
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$104, the stock trades at a trailing P/E ratio of 18.8x. Average forward P/E is 19x in the Semiconductor industry in Taiwan. Total returns to shareholders of 73% over the past three years. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$111, the stock trades at a trailing P/E ratio of 20.1x. Average forward P/E is 19x in the Semiconductor industry in Taiwan. Total returns to shareholders of 85% over the past three years. Upcoming Dividend • Apr 06
Upcoming dividend of NT$1.00 per share at 2.3% yield Eligible shareholders must have bought the stock before 13 April 2023. Payment date: 18 May 2023. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Taiwanese dividend payers (5.9%). Lower than average of industry peers (3.3%). Reported Earnings • Mar 29
Full year 2022 earnings released: EPS: NT$5.33 (vs NT$2.02 in FY 2021) Full year 2022 results: EPS: NT$5.33 (up from NT$2.02 in FY 2021). Revenue: NT$3.74b (up 17% from FY 2021). Net income: NT$405.1m (up 125% from FY 2021). Profit margin: 11% (up from 5.6% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$88.40, the stock trades at a trailing P/E ratio of 19.8x. Average forward P/E is 14x in the Semiconductor industry in Taiwan. Total returns to shareholders of 147% over the past three years. 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. 9 experienced directors. No highly experienced directors. 4 independent directors (6 non-independent directors). Independent Director Jhuo-Min Yu 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 10
Third quarter 2022 earnings released: EPS: NT$1.83 (vs NT$0.60 in 3Q 2021) Third quarter 2022 results: EPS: NT$1.83 (up from NT$0.60 in 3Q 2021). Revenue: NT$975.2m (up 20% from 3Q 2021). Net income: NT$136.5m (up 151% from 3Q 2021). Profit margin: 14% (up from 6.7% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$62.20, the stock trades at a trailing P/E ratio of 18.3x. Average trailing P/E is 10x in the Semiconductor industry in Taiwan. Total returns to shareholders of 59% over the past three years. Valuation Update With 7 Day Price Move • Sep 14
Investor sentiment improved over the past week After last week's 16% share price gain to NT$74.50, the stock trades at a trailing P/E ratio of 21.9x. Average trailing P/E is 13x in the Semiconductor industry in Taiwan. Total returns to shareholders of 112% over the past three years. Buying Opportunity • Aug 15
Now 21% undervalued Over the last 90 days, the stock is up 9.9%. The fair value is estimated to be NT$70.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$1.22 (vs NT$0.40 in 2Q 2021) Second quarter 2022 results: EPS: NT$1.22 (up from NT$0.40 in 2Q 2021). Revenue: NT$911.0m (up 18% from 2Q 2021). Net income: NT$91.5m (up 143% from 2Q 2021). Profit margin: 10.0% (up from 4.9% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 17
First quarter 2022 earnings released: EPS: NT$1.03 (vs NT$0.58 in 1Q 2021) First quarter 2022 results: EPS: NT$1.03 (up from NT$0.58 in 1Q 2021). Revenue: NT$874.8m (up 17% from 1Q 2021). Net income: NT$81.7m (up 51% from 1Q 2021). Profit margin: 9.3% (up from 7.2% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 110% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • 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 an independent director. The company's board is composed of: 1 new director. 9 experienced directors. No highly experienced directors. 4 independent directors (6 non-independent directors). Independent Director Jhuo-Min Yu 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 • Apr 01
Full year 2021 earnings released: EPS: NT$2.02 (vs NT$2.80 in FY 2020) Full year 2021 results: EPS: NT$2.02 (down from NT$2.80 in FY 2020). Revenue: NT$3.21b (up 5.6% from FY 2020). Net income: NT$179.7m (down 31% from FY 2020). Profit margin: 5.6% (down from 8.6% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 108% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jan 18
Upcoming dividend of NT$0.44 per share Eligible shareholders must have bought the stock before 25 January 2022. Payment date: 25 February 2022. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 6.0%. Within top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (1.9%). Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.60 (vs NT$0.90 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$816.0m (up 6.0% from 3Q 2020). Net income: NT$54.5m (down 36% from 3Q 2020). Profit margin: 6.7% (down from 11% 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 89% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Nov 02
Upcoming dividend of NT$1.13 per share Eligible shareholders must have bought the stock before 09 November 2021. Payment date: 26 November 2021. Trailing yield: 6.0%. Within top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (2.1%). Reported Earnings • Aug 15
Second quarter 2021 earnings released: EPS NT$0.40 (vs NT$0.80 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: NT$771.3m (up 1.6% from 2Q 2020). Net income: NT$37.7m (down 50% from 2Q 2020). Profit margin: 4.9% (down from 9.9% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Upcoming Dividend • Aug 03
Upcoming dividend of NT$0.63 per share Eligible shareholders must have bought the stock before 10 August 2021. Payment date: 27 August 2021. Trailing yield: 6.2%. Within top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (2.1%). Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$0.58 (vs NT$0.75 in 1Q 2020) The company reported a poor first quarter result with weaker earnings and profit margins, although revenues were flat. First quarter 2021 results: Revenue: NT$749.1m (flat on 1Q 2020). Net income: NT$54.2m (down 23% from 1Q 2020). Profit margin: 7.2% (down from 9.4% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 23% 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 • May 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$43.95, the stock trades at a trailing P/E ratio of 15.7x. Average trailing P/E is 22x in the Semiconductor industry in Taiwan. Total loss to shareholders of 36% over the past three years. Announcement • Apr 08
Phoenix Silicon International Corporation Announces Supplementing Material Information Sent on March9, 2021 for the Criminal Case Regarding the Infringement of Trade Secrets, Psi Filed an Ancillary Civil Action Against Integrated Service Technology Inc Phoenix Silicon International Corporation announced the supplementary explanation on the material information sent on March 9, 2021 GMing-che Li reproduced and utilized PSI's trade secrets without authorization, it¡¦s enough to enable IST to shorten their time in researching and developing BGBM process, reduce manpower and material resources,and seize the product market to engage in unfair competition, thus gaining benefits. Therefore, The Taiwan Hsinchu District Prosecutors Office had rendered an Indictment to above persons in accordance with Article 13-1(1)(2) and Article 13-4 of the Trade Secrets Act. For their infringement of PSI's trade secrets, resulting in PSI's damages, PSI filed an Ancillary Civil Action with the Taiwan Hsinchu District Court, claiming compensation for loss in the amount of TWD $5,636,098,000 against the above persons, Kuo-chu Liu and related person. Parties to the legal matter: Plaintiff:Phoenix Silicon International Corporation(PSI). Defendants: Integrated Service Technology Inc.(IST), Ming-che Li,Kuo-chu Liu and related person. Upcoming Dividend • Apr 02
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 09 April 2021. Payment date: 27 May 2021. Trailing yield: 4.8%. Within top quartile of Taiwanese dividend payers (4.8%). Higher than average of industry peers (1.8%). Reported Earnings • Mar 25
Full year 2020 earnings released: EPS NT$2.80 (vs NT$2.68 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$3.04b (up 21% from FY 2019). Net income: NT$262.1m (up NT$449.3m from FY 2019). Profit margin: 8.6% (up from net loss in FY 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 18% per year. Announcement • Mar 06
Integrated Service Technology, Inc., Annual General Meeting, Jun 11, 2021 Integrated Service Technology, Inc., Annual General Meeting, Jun 11, 2021. Is New 90 Day High Low • Jan 31
New 90-day low: NT$51.80 The company is down 1.0% from its price of NT$52.30 on 03 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 36% over the same period. Upcoming Dividend • Jan 20
Upcoming Dividend of NT$1.50 Per Share Will be paid on the 25th of February to those who are registered shareholders by the 27th of January. The trailing yield of 4.4% is below the top quartile of Taiwanese dividend payers (5.1%), but it is higher than industry peers (1.7%). Announcement • Jan 08
Integrated Service Technology Inc. Makes a Breakthrough in 1.5 Mil Taiko Wafer with High Wafer Strength Integrated Service Technology Inc. announced (January 6, 2021) that it has made a breakthrough in 1.5 mil (38um) taiko wafer with high wafer strength. Meanwhile, to be more focused on serving international customers, iST has established Prosperity Power Technology Inc. (abbreviated as Propowertek), with immediate effect. iST pointed, wafer thinning has been the most direct and effective process improvement in cutting power consumption and input impedance of power semiconductors which not only reduce packaging dimension but also extends the operating life of wafers by lowering RDS (on) and heat accumulation. However, the MOSFET foundries are facing a challenge of balancing thinness and strength of wafers to minimize the risks of soaring rate of broken wafers. iST is not only to exclusively develop the thinning technology for wafers 2mil(50um), 1.5mil(38um), and even 0.4mil(10um) thick, but also strengthen wafers by reducing stress accumulation at the damage layer with its optimized process. iST can provide customized solutions to enhance wafer for Power MOSFET/IGBT and other components. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 17% share price gain to NT$62.30, the stock is trading at a trailing P/E ratio of 51.3x, up from the previous P/E ratio of 43.9x. This compares to an average P/E of 26x in the Semiconductor industry in Taiwan. Total return to shareholders over the past three years is a loss of 42%. Is New 90 Day High Low • Jan 04
New 90-day high: NT$62.30 The company is up 10.0% from its price of NT$56.50 on 07 October 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 25% over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS NT$0.90 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: NT$769.5m (down 19% from 3Q 2019). Net income: NT$84.5m (up 441% from 3Q 2019). Profit margin: 11% (up from 1.6% in 3Q 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings.