Major Estimate Revision • May 25
Consensus EPS estimates fall by 28%, revenue upgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast increased from NT$9.14b to NT$9.58b. EPS estimate fell from NT$16.57 to NT$11.93 per share. Net income forecast to grow 41% next year vs 58% growth forecast for Semiconductor industry in Taiwan. Consensus price target of NT$686 unchanged from last update. Share price rose 4.4% to NT$568 over the past week. Upcoming Dividend • May 20
Upcoming dividend of NT$5.00 per share Eligible shareholders must have bought the stock before 27 May 2026. Payment date: 18 June 2026. Payout ratio is a comfortable 74% but the company is not cash flow positive. Trailing yield: 1.4%. Lower than top quartile of Taiwanese dividend payers (5.1%). Higher than average of industry peers (1.1%). Reported Earnings • May 15
First quarter 2026 earnings released: EPS: NT$2.00 (vs NT$2.20 in 1Q 2025) First quarter 2026 results: EPS: NT$2.00. Revenue: NT$1.87b (up 9.1% from 1Q 2025). Net income: NT$245.1m (up 16% from 1Q 2025). Profit margin: 13% (in line with 1Q 2025). Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Semiconductor industry in Taiwan. Price Target Changed • May 05
Price target increased by 22% to NT$537 Up from NT$440, the current price target is an average from 2 analysts. New target price is 7.8% below last closing price of NT$582. Stock is up 60% over the past year. The company is forecast to post earnings per share of NT$13.58 for next year compared to NT$9.43 last year. Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to NT$562, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 26x in the Semiconductor industry in Taiwan. Total returns to shareholders of 75% over the past three years. Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$473, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 26x in the Semiconductor industry in Taiwan. Total returns to shareholders of 45% over the past three years. Reported Earnings • Mar 26
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: NT$9.43 (down from NT$12.32 in FY 2024). Revenue: NT$7.35b (up 12% from FY 2024). Net income: NT$905.3m (down 23% from FY 2024). Profit margin: 12% (down from 18% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 27% 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 6% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Major Estimate Revision • Mar 14
Consensus EPS estimates increase by 32% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$7.19b to NT$7.35b. EPS estimate increased from NT$7.19 to NT$9.47 per share. Net income forecast to grow 82% next year vs 46% growth forecast for Semiconductor industry in Taiwan. Consensus price target up from NT$440 to NT$453. Share price fell 3.8% to NT$381 over the past week. Announcement • Mar 11
Gudeng Precision Industrial Co., Ltd., Annual General Meeting, May 27, 2026 Gudeng Precision Industrial Co., Ltd., Annual General Meeting, May 27, 2026, at 09:00 Taipei Standard Time. Location: 7 floor no,7, chung hsing rd., tucheng district, new taipei city Taiwan New Risk • Mar 05
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 Share price has been volatile over the past 3 months (7.3% average weekly change). Profit margins are more than 30% lower than last year (10% net profit margin). Price Target Changed • Jan 14
Price target increased by 13% to NT$440 Up from NT$390, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of NT$423. Stock is down 6.1% over the past year. The company is forecast to post earnings per share of NT$7.19 for next year compared to NT$12.32 last year. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$408, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 22x in the Semiconductor industry in Taiwan. Total returns to shareholders of 57% over the past three years. Upcoming Dividend • Dec 04
Upcoming dividend of NT$1.90 per share Eligible shareholders must have bought the stock before 11 December 2025. Payment date: 09 January 2026. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 2.6%. Lower than top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (1.6%). New Risk • Nov 30
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 101% The company is paying a dividend despite having no free cash flows. Dividend yield: 2.6% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 101% Paying a dividend despite having no free cash flows. Minor Risk Profit margins are more than 30% lower than last year (10% net profit margin). Major Estimate Revision • Nov 22
Consensus EPS estimates fall by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$7.57b to NT$7.04b. EPS estimate also fell from NT$8.86 per share to NT$7.19 per share. Net income forecast to grow 81% next year vs 33% growth forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$405 to NT$370. Share price fell 4.1% to NT$327 over the past week. Board Change • Nov 21
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Shufang Ou was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 15
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: NT$1.56 (down from NT$4.39 in 3Q 2024). Revenue: NT$1.66b (down 12% from 3Q 2024). Net income: NT$150.0m (down 64% from 3Q 2024). Profit margin: 9.0% (down from 22% in 3Q 2024). The decrease in margin was primarily driven by lower revenue. Revenue missed analyst estimates by 9.9%. Earnings per share (EPS) also missed analyst estimates by 45%. Revenue is forecast to grow 31% 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 fallen by 5% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Declared Dividend • Nov 10
First half dividend of NT$1.90 announced Shareholders will receive a dividend of NT$1.90. Ex-date: 11th December 2025 Payment date: 9th January 2026 Dividend yield will be 2.0%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (53% 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 33% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 164% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$364, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 24x in the Semiconductor industry in Taiwan. Total returns to shareholders of 48% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$165 per share. Reported Earnings • Aug 15
Second quarter 2025 earnings: Revenues and EPS in line with analyst expectations Second quarter 2025 results: EPS: NT$0.44 (down from NT$3.00 in 2Q 2024). Revenue: NT$1.71b (down 2.6% from 2Q 2024). Net income: NT$42.3m (down 85% from 2Q 2024). Profit margin: 2.5% (down from 16% in 2Q 2024). The decrease in margin was primarily driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 24% p.a. on average during the next 3 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 2% per year whereas the company’s share price has increased by 3% per year. Major Estimate Revision • Aug 07
Consensus EPS estimates fall by 16% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from NT$13.70 to NT$11.55 per share. Revenue forecast steady at NT$7.80b. Net income forecast to grow 7.6% next year vs 15% growth forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$460 to NT$403. Share price was steady at NT$299 over the past week. Price Target Changed • Jul 16
Price target decreased by 23% to NT$460 Down from NT$597, the current price target is an average from 3 analysts. New target price is 45% above last closing price of NT$319. Stock is down 39% over the past year. The company is forecast to post earnings per share of NT$13.70 for next year compared to NT$12.32 last year. Upcoming Dividend • Jun 10
Upcoming dividend of NT$5.10 per share Eligible shareholders must have bought the stock before 17 June 2025. Payment date: 11 July 2025. Payout ratio is a comfortable 73% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Taiwanese dividend payers (5.2%). In line with average of industry peers (2.4%). Reported Earnings • May 17
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: EPS: NT$2.20 (down from NT$2.24 in 1Q 2024). Revenue: NT$1.71b (up 20% from 1Q 2024). Net income: NT$211.1m (flat on 1Q 2024). Profit margin: 12% (down from 15% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 7.8%. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to grow 23% p.a. on average during the next 3 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 10% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 03
Gudeng Precision Industrial Co., Ltd. to Report Q1, 2025 Results on May 12, 2025 Gudeng Precision Industrial Co., Ltd. announced that they will report Q1, 2025 results on May 12, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$349, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 69% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$201 per share. New Risk • Apr 04
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 22% 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 Risk High level of non-cash earnings (22% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (7.5% average weekly change). Announcement • Apr 01
Gudeng Precision Industrial Co., Ltd. Announces Executive Changes, Effective April 1, 2025 Gudeng Precision Industrial Co., Ltd. announced changes in Spokesperson and Chief Operating Officer of the company. Name, title, and resume of the previous position holder: Amy Shen/COO, COO Office with Name, title, and resume of the new position holder: (1) spokesperson Lynn Chu/Project Manager, Integrative Strategic Management Office (2) COO:N/A. Reason for the change: Adjustment of work responsibilities and internal organizational structure(No deployment of COO Office). Effective date is April 1, 2025. Reported Earnings • Mar 26
Full year 2024 earnings: EPS in line with expectations, revenues disappoint Full year 2024 results: EPS: NT$12.32 (up from NT$10.24 in FY 2023). Revenue: NT$6.54b (up 29% from FY 2023). Net income: NT$1.17b (up 29% from FY 2023). Profit margin: 18% (in line with FY 2023). Revenue missed analyst estimates by 3.1%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 25% 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 17% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Mar 11
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 6.1% 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 (6.1% average weekly change). Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$392, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 78% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$410 per share. New Risk • Mar 10
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.8% 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. This is currently the only risk that has been identified for the company. Declared Dividend • Mar 07
Dividend of NT$5.10 announced Shareholders will receive a dividend of NT$5.10. Ex-date: 17th June 2025 Payment date: 11th July 2025 Dividend yield will be 2.0%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (59% 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 31% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 57% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 06
Gudeng Precision Industrial Co., Ltd., Annual General Meeting, May 23, 2025 Gudeng Precision Industrial Co., Ltd., Annual General Meeting, May 23, 2025, at 09:00 Taipei Standard Time. Location: 9 floor no,2, sec.4 chung yang rd., tucheng district, new taipei city Taiwan Price Target Changed • Mar 03
Price target increased by 13% to NT$690 Up from NT$608, the current price target is an average from 2 analysts. New target price is 50% above last closing price of NT$460. Stock is up 0.7% over the past year. The company is forecast to post earnings per share of NT$12.88 for next year compared to NT$10.24 last year. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$508, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 21x in the Semiconductor industry in Taiwan. Total returns to shareholders of 115% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$459 per share. Upcoming Dividend • Dec 12
Upcoming dividend of NT$3.80 per share Eligible shareholders must have bought the stock before 19 December 2024. Payment date: 10 January 2025. Payout ratio is a comfortable 28% but the company is not cash flow positive. Trailing yield: 1.4%. Lower than top quartile of Taiwanese dividend payers (4.5%). Lower than average of industry peers (2.1%). Reported Earnings • Nov 17
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: NT$4.39 (up from NT$1.94 in 3Q 2023). Revenue: NT$1.89b (up 42% from 3Q 2023). Net income: NT$415.1m (up 143% from 3Q 2023). Profit margin: 22% (up from 13% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Revenue is forecast to grow 27% 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 27% per year whereas the company’s share price has increased by 25% per year. Declared Dividend • Nov 08
First half dividend of NT$3.80 announced Shareholders will receive a dividend of NT$3.80. Ex-date: 19th December 2024 Payment date: 10th January 2025 Dividend yield will be 1.4%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (35% 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 31% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 149% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Oct 31
Gudeng Precision Industrial Co., Ltd. to Report Q3, 2024 Results on Nov 06, 2024 Gudeng Precision Industrial Co., Ltd. announced that they will report Q3, 2024 results on Nov 06, 2024 Buy Or Sell Opportunity • Sep 23
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 39% to NT$595. The fair value is estimated to be NT$495, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has grown by 28%. Revenue is forecast to grow by 69% in 2 years. Earnings are forecast to grow by 125% in the next 2 years. New Risk • Sep 13
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 7.7% 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 Share price has been volatile over the past 3 months (7.7% average weekly change). Shareholders have been diluted in the past year (6.7% increase in shares outstanding). Price Target Changed • Sep 02
Price target increased by 9.7% to NT$608 Up from NT$555, the current price target is an average from 3 analysts. New target price is 11% above last closing price of NT$547. Stock is up 64% over the past year. The company is forecast to post earnings per share of NT$12.88 for next year compared to NT$10.24 last year. Buy Or Sell Opportunity • Aug 22
Now 21% undervalued Over the last 90 days, the stock has risen 29% to NT$524. The fair value is estimated to be NT$661, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has grown by 28%. Revenue is forecast to grow by 58% in 2 years. Earnings are forecast to grow by 124% in the next 2 years. Reported Earnings • Aug 15
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: NT$3.00 (up from NT$1.68 in 2Q 2023). Revenue: NT$1.76b (up 80% from 2Q 2023). Net income: NT$282.6m (up 93% from 2Q 2023). Profit margin: 16% (up from 15% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to grow 23% 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 28% per year whereas the company’s share price has increased by 31% per year. Announcement • Aug 06
Gudeng Precision Industrial Co., Ltd. to Report Q2, 2024 Results on Aug 13, 2024 Gudeng Precision Industrial Co., Ltd. announced that they will report Q2, 2024 results on Aug 13, 2024 Buy Or Sell Opportunity • Jul 29
Now 21% undervalued Over the last 90 days, the stock has risen 6.6% to NT$451. The fair value is estimated to be NT$570, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 25% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 70% in 2 years. Earnings are forecast to grow by 140% in the next 2 years. Board Change • Jul 26
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Shufang Ou was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$514, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 23x in the Semiconductor industry in Taiwan. Total returns to shareholders of 108% over the past three years. Board Change • Jul 02
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. 3 experienced directors. 4 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Director Jong-Chin Shen was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Jun 13
Upcoming dividend of NT$3.50 per share Eligible shareholders must have bought the stock before 20 June 2024. Payment date: 10 July 2024. Payout ratio is on the higher end at 87% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of Taiwanese dividend payers (4.3%). Lower than average of industry peers (2.2%). Board Change • May 29
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. 2 experienced directors. 4 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Wilson 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. Announcement • May 03
Entegris. Inc., Withdraws the Patent Infringement Lawsuit Against Gudeng Precision Industrial Co., Ltd. from the Court and Terminates the Case The plaintiff, Entegris. Inc., withdraws the patent infringement lawsuit against Gudeng Precision Industrial Co., Ltd. from the court and terminates the case. Parties to the legal matter: Plaintiff: Entegris Inc. Defendant: Gudeng Precision Industrial Co., Ltd. Name of the court or punishing agency of the legal matter: Intellectual Property and Commercial Court. Reference/Case number of relevant documents of the legal matter: 2024 Minzongzi No. 8. Date of occurrence of the event: May 2, 2024. Details of occurrence (including the matter under dispute): Entegris Inc. filed a lawsuit for damages to the Intellectual Property and Intellectual Property Court of the Commercial Court. claiming that the company made the ”300 Diffuser FOUP” front-opening wafer transfer box without authorization which infringing its invention patent No. I606534 or No. I515159. The case was tried by the court, but the plaintiff withdrew the lawsuit on April 29, 2024 and the company was informed by the appointed law firm on May 2, 2024 that the case was terminated. Impact on the Company’s finance and business and projected amount: As the case was withdrawn by the plaintiff, the case was terminated which had no impact on its finance and business; Countermeasures and improvement status: The Company will continue to appoint Formosa Transnational Attorneys at Law to handle the follow-up. Announcement • Apr 26
Gudeng Precision Industrial Co., Ltd. to Report Q1, 2024 Results on May 02, 2024 Gudeng Precision Industrial Co., Ltd. announced that they will report Q1, 2024 results on May 02, 2024 Reported Earnings • Apr 25
Full year 2023 earnings released: EPS: NT$10.24 (vs NT$11.12 in FY 2022) Full year 2023 results: EPS: NT$10.24 (down from NT$11.12 in FY 2022). Revenue: NT$5.08b (up 13% from FY 2022). Net income: NT$905.0m (down 3.0% from FY 2022). Profit margin: 18% (down from 21% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 27% 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 33% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. New Risk • Apr 02
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 6.1% 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 Share price has been volatile over the past 3 months (6.1% average weekly change). Shareholders have been diluted in the past year (12% increase in shares outstanding). Buy Or Sell Opportunity • Mar 18
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 14% to NT$425. The fair value is estimated to be NT$353, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 31%. Revenue is forecast to grow by 69% in 2 years. Earnings are forecast to grow by 123% in the next 2 years. Declared Dividend • Mar 08
Dividend of NT$3.50 announced Shareholders will receive a dividend of NT$3.50. Ex-date: 20th June 2024 Payment date: 10th July 2024 Dividend yield will be 1.8%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (78% 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 34% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 71% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 29
Gudeng Precision Industrial Co., Ltd. has filed a Follow-on Equity Offering in the amount of TWD 200 million. Gudeng Precision Industrial Co., Ltd. has filed a Follow-on Equity Offering in the amount of TWD 200 million.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 2,000,000
Price\Range: TWD 100 Upcoming Dividend • Dec 14
Upcoming dividend of NT$4.01 per share at 2.2% yield Eligible shareholders must have bought the stock before 21 December 2023. Payment date: 12 January 2024. Payout ratio is on the higher end at 78% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (3.2%). Announcement • Nov 09
Gudeng Precision Industrial Co., Ltd. Announces Cash Dividend for First Half of 2023, Payable on January 12, 2024 Gudeng Precision Industrial Co., Ltd. announced the cash Dividend for First Half of 2023. Type and monetary amount of dividend distribution: Cash dividends of TWD 377,883,181. Ex-rights (Ex-dividend) date: December 21, 2023; Ex-rights (Ex-dividend) record date: December 27, 2023. Payment date of cash dividend distribution: January 12, 2024. New Risk • Oct 07
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 5.9% 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 (5.9% average weekly change). Shareholders have been diluted in the past year (5.4% increase in shares outstanding). Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$362, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 19x in the Semiconductor industry in Taiwan. Total returns to shareholders of 51% over the past three years. Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: NT$1.68 (vs NT$3.38 in 2Q 2022) Second quarter 2023 results: EPS: NT$1.68 (down from NT$3.38 in 2Q 2022). Revenue: NT$978.0m (down 8.3% from 2Q 2022). Net income: NT$146.3m (down 48% from 2Q 2022). Profit margin: 15% (down from 27% in 2Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 27% 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 37% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. New Risk • Aug 08
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.9% 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 High level of non-cash earnings (22% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (4.9% increase in shares outstanding). Upcoming Dividend • Jun 09
Upcoming dividend of NT$3.94 per share at 2.2% yield Eligible shareholders must have bought the stock before 16 June 2023. Payment date: 07 July 2023. Payout ratio is a comfortable 71% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (3.3%). Reported Earnings • Apr 01
Full year 2022 earnings released: EPS: NT$11.12 (vs NT$4.03 in FY 2021) Full year 2022 results: EPS: NT$11.12 (up from NT$4.03 in FY 2021). Revenue: NT$4.49b (up 44% from FY 2021). Net income: NT$933.1m (up 177% from FY 2021). Profit margin: 21% (up from 11% 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 35% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 05
Upcoming dividend of NT$4.00 per share Eligible shareholders must have bought the stock before 12 December 2022. Payment date: 06 January 2023. Payout ratio is a comfortable 55% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (3.6%). Reported Earnings • Nov 19
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: NT$2.70 (up from NT$0.70 in 3Q 2021). Revenue: NT$1.07b (up 58% from 3Q 2021). Net income: NT$227.0m (up 285% from 3Q 2021). Profit margin: 21% (up from 8.7% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) also missed analyst estimates by 11%. 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 21% per year, which means it is significantly lagging 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. 3 experienced directors. 3 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Hui-Sen 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. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment deteriorated over the past week After last week's 18% share price decline to NT$227, the stock trades at a trailing P/E ratio of 25.7x. Average forward P/E is 10x in the Semiconductor industry in Taiwan. Total returns to shareholders of 103% 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$297, the stock trades at a trailing P/E ratio of 33.7x. Average forward P/E is 11x in the Semiconductor industry in Taiwan. Total returns to shareholders of 291% over the past three years. Reported Earnings • Aug 11
Second quarter 2022 earnings: EPS exceeds analyst expectations Second quarter 2022 results: EPS: NT$3.38 (up from NT$0.54 in 2Q 2021). Revenue: NT$1.07b (up 76% from 2Q 2021). Net income: NT$283.7m (up NT$238.8m from 2Q 2021). Profit margin: 27% (up from 7.4% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 16%. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 46% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment improved over the past week After last week's 18% share price gain to NT$213, the stock trades at a trailing P/E ratio of 35.5x. Average trailing P/E is 12x in the Semiconductor industry in Taiwan. Total returns to shareholders of 279% over the past three years. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$185, the stock trades at a trailing P/E ratio of 30.8x. Average trailing P/E is 12x in the Semiconductor industry in Taiwan. Total returns to shareholders of 368% over the past three years. Upcoming Dividend • Jun 09
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 16 June 2022. Payment date: 08 July 2022. Payout ratio is a comfortable 47% but the company is not cash flow positive. Trailing yield: 1.1%. Lower than top quartile of Taiwanese dividend payers (6.0%). Lower than average of industry peers (3.0%). Reported Earnings • May 19
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: NT$2.32 (up from NT$0.35 in 1Q 2021). Revenue: NT$1.03b (up 59% from 1Q 2021). Net income: NT$194.1m (up NT$164.3m from 1Q 2021). Profit margin: 19% (up from 4.6% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 48%. Earnings per share (EPS) also missed analyst estimates by 80%. 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 87% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Director Guang Hui Qiu was the last independent director to join the board, commencing their role in 2017. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 11
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: NT$4.03 (down from NT$6.18 in FY 2020). Revenue: NT$3.12b (up 24% from FY 2020). Net income: NT$336.7m (down 27% from FY 2020). Profit margin: 11% (down from 18% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 48%. Earnings per share (EPS) also missed analyst estimates by 80%. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 95% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 27
Upcoming dividend of NT$0.80 per share Eligible shareholders must have bought the stock before 03 January 2022. Payment date: 21 January 2022. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 1.4%. Lower than top quartile of Taiwanese dividend payers (5.0%). Lower than average of industry peers (2.0%). Reported Earnings • Nov 07
Third quarter 2021 earnings released: EPS NT$0.71 (vs NT$4.85 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$675.0m (up 21% from 3Q 2020). Net income: NT$59.0m (down 84% from 3Q 2020). Profit margin: 8.7% (down from 64% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has increased by 107% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS NT$0.54 (vs NT$1.64 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$604.7m (down 22% from 2Q 2020). Net income: NT$44.9m (down 63% from 2Q 2020). Profit margin: 7.4% (down from 16% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has increased by 96% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improved over the past week After last week's 16% share price gain to NT$307, the stock trades at a trailing P/E ratio of 49.2x. Average forward P/E is 16x in the Semiconductor industry in Taiwan. Total returns to shareholders of 805% over the past three years. Upcoming Dividend • Jun 29
Upcoming dividend of NT$3.50 per share Eligible shareholders must have bought the stock before 06 July 2021. Payment date: 23 July 2021. Trailing yield: 2.5%. Lower than top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (2.2%). Valuation Update With 7 Day Price Move • May 13
Investor sentiment deteriorated over the past week After last week's 19% share price decline to NT$231, the stock trades at a trailing P/E ratio of 37.1x. Average forward P/E is 14x in the Semiconductor industry in Taiwan. Total returns to shareholders of 561% over the past three years. Reported Earnings • May 08
First quarter 2021 earnings released: EPS NT$0.36 (vs NT$0.15 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$644.7m (up 42% from 1Q 2020). Net income: NT$29.7m (up 174% from 1Q 2020). Profit margin: 4.6% (up from 2.4% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has increased by 104% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 17
Gudeng Precision Industrial Co., Ltd, Annual General Meeting, May 31, 2021 Gudeng Precision Industrial Co., Ltd, Annual General Meeting, May 31, 2021. Reported Earnings • Mar 13
Full year 2020 earnings released: EPS NT$6.18 (vs NT$3.25 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$2.51b (up 5.8% from FY 2019). Net income: NT$460.3m (up 105% from FY 2019). Profit margin: 18% (up from 9.4% in FY 2019). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has increased by 105% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Mar 13
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 0.3%. Earnings per share (EPS) missed analyst estimates by 18%. Over the next year, revenue is forecast to grow 101%, compared to a 17% growth forecast for the Semiconductor industry in Taiwan. Is New 90 Day High Low • Feb 26
New 90-day high: NT$373 The company is up 30% from its price of NT$287 on 27 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company outperformed over that time. However, its price trend is similar to the Semiconductor industry, which is also up 30% over the same period. 
