Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to NT$12.75, the stock trades at a trailing P/E ratio of 4.4x. Average trailing P/E is 22x in the Semiconductor industry in Taiwan. Total loss to shareholders of 77% over the past three years. Valuation Update With 7 Day Price Move • Sep 19
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$15.05, the stock trades at a trailing P/E ratio of 5.2x. Average trailing P/E is 23x in the Semiconductor industry in Taiwan. Total loss to shareholders of 79% over the past three years. New Risk • Sep 15
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). High level of non-cash earnings (21% accrual ratio). Minor Risk Market cap is less than US$100m (NT$572.9m market cap, or US$18.0m). Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to NT$12.00, the stock trades at a trailing P/E ratio of 4.2x. Average trailing P/E is 22x in the Semiconductor industry in Taiwan. Total loss to shareholders of 79% over the past three years. Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: NT$4.88 (vs NT$0.91 loss in 2Q 2022) Second quarter 2023 results: EPS: NT$4.88 (up from NT$0.91 loss in 2Q 2022). Revenue: NT$20.4m (down 80% from 2Q 2022). Net income: NT$213.1m (up NT$252.5m from 2Q 2022). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 47% per year, which means it is significantly lagging earnings. Announcement • May 04
GlobalWafers Co., Ltd. (TPEX:6488) agreed to acquire Crystalwise Technology Inc. (TPEX:4944) from Sino-American Silicon Products Inc. (TPEX:5483) and others for approximately TND 420 million. GlobalWafers Co., Ltd. (TPEX:6488) agreed to acquire Crystalwise Technology Inc. (TPEX:4944) from Sino-American Silicon Products Inc. (TPEX:5483) and others for approximately TND 420 million on May 2, 2023. For every 1 share of Crystalwise, GlobalWafers issue 0.02 new shares. GlobalWafers Co., Ltd. board of directors approved the transaction. The transaction is subject to Crystalwise shareholder and regulatory approval. Transaction is expected to be completed by November 1, 2023. Sheng-Ping Huang of Shangher accounting firm acted as accountant to GlobalWafers Co., Ltd. Announcement • Feb 04
GlobalWafers Co., Ltd. (TPEX:6488) signed a letter of intent to acquire Shanghai Sawyer Shenkai Technology Material Co., Ltd. from Crystalwise Technology Inc. (TPEX:4944) for RMB 100 million. GlobalWafers Co., Ltd. (TPEX:6488) signed a letter of intent to acquire Shanghai Sawyer Shenkai Technology Material Co., Ltd. from Crystalwise Technology Inc. (TPEX:4944) for RMB 100 million on February 3, 2023. This transaction is subject to the following prerequisites: The board approval of the parent company, GlobalWafers. The shareholder meeting approval of Crystalwise Technology. Reported Earnings • Nov 20
Third quarter 2022 earnings released: NT$1.14 loss per share (vs NT$0.17 loss in 3Q 2021) Third quarter 2022 results: NT$1.14 loss per share (further deteriorated from NT$0.17 loss in 3Q 2021). Revenue: NT$64.5m (down 51% from 3Q 2021). Net loss: NT$49.6m (loss widened NT$42.2m from 3Q 2021). Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has fallen by 34% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 18
Second quarter 2022 earnings released: NT$0.45 loss per share (vs NT$0.36 loss in 2Q 2021) Second quarter 2022 results: NT$0.45 loss per share (down from NT$0.36 loss in 2Q 2021). Revenue: NT$104.1m (down 25% from 2Q 2021). Net loss: NT$39.4m (loss widened 24% from 2Q 2021). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 30% per year, which means it is significantly lagging earnings. Reported Earnings • May 19
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: NT$0.44 loss per share (down from NT$0.41 loss in 1Q 2021). Revenue: NT$109.4m (down 17% from 1Q 2021). Net loss: NT$37.9m (loss widened 7.1% from 1Q 2021). Revenue missed analyst estimates by 6.2%. Earnings per share (EPS) were also behind analyst expectations. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 03
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: NT$3.57 loss per share (down from NT$1.47 loss in FY 2020). Revenue: NT$521.5m (up 41% from FY 2020). Net loss: NT$311.1m (loss widened 144% from FY 2020). Revenue missed analyst estimates by 6.2%. Earnings per share (EPS) were also behind analyst expectations. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 15
Third quarter 2021 earnings released: NT$0.08 loss per share (vs NT$0.032 loss in 3Q 2020) The company reported a mediocre third quarter result with increased losses and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: NT$132.8m (up 54% from 3Q 2020). Net loss: NT$7.35m (loss widened 163% from 3Q 2020). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 18
Second quarter 2021 earnings released: NT$0.37 loss per share (vs NT$0.027 profit in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: NT$139.4m (up 70% from 2Q 2020). Net loss: NT$31.8m (down NT$34.1m from profit in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Reported Earnings • May 18
First quarter 2021 earnings released: NT$0.41 loss per share (vs NT$0.52 loss in 1Q 2020) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: NT$131.9m (up 58% from 1Q 2020). Net loss: NT$35.4m (loss narrowed 22% from 1Q 2020). Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 26
Full year 2020 earnings released: NT$1.46 loss per share (vs NT$9.39 loss in FY 2019) The company reported a decent full year result with reduced losses and improved control over expenses, although revenues were weaker. Full year 2020 results: Revenue: NT$371.1m (down 40% from FY 2019). Net loss: NT$127.5m (loss narrowed 83% from FY 2019). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Feb 25
New 90-day high: NT$38.40 The company is up 33% from its price of NT$28.90 on 27 November 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 29% over the same period. Is New 90 Day High Low • Dec 09
New 90-day high: NT$35.75 The company is up 4.0% from its price of NT$34.51 on 11 September 2020. The Taiwanese market is up 13% 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 18
Third quarter 2020 earnings released: NT$0.03 loss per share The company reported a decent third quarter result with reduced losses and improved control over expenses, although revenues were weaker. Third quarter 2020 results: Revenue: NT$86.1m (down 37% from 3Q 2019). Net loss: NT$2.79m (loss narrowed 98% from 3Q 2019). Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Nov 02
New 90-day low: NT$26.10 The company is down 6.0% from its price of NT$27.72 on 04 August 2020. The Taiwanese market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 2.0% over the same period.