New Risk • Jun 10
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 12% 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 Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 41% per year over the past 5 years. High level of non-cash earnings (28% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (0.2% net profit margin). New Risk • May 09
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.2% Last year net profit margin: 0.4% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 41% per year over the past 5 years. High level of non-cash earnings (29% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Profit margins are more than 30% lower than last year (0.2% net profit margin). Announcement • Mar 16
Wafer Works Corporation, Annual General Meeting, Jun 18, 2026 Wafer Works Corporation, Annual General Meeting, Jun 18, 2026. Location: no,100, lung yuan 1st rd., longtan district, taoyuan city Taiwan Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$0.09 (vs NT$0.007 in FY 2024) Full year 2025 results: EPS: NT$0.09 (up from NT$0.007 in FY 2024). Revenue: NT$9.82b (up 13% from FY 2024). Net income: NT$51.9m (up NT$47.9m from FY 2024). Profit margin: 0.5% (up from 0% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 109 percentage points per year, which is a significant difference in performance. Reported Earnings • Nov 08
Third quarter 2025 earnings released: EPS: NT$0.04 (vs NT$0.012 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.04 (up from NT$0.012 in 3Q 2024). Revenue: NT$2.56b (up 7.1% from 3Q 2024). Net income: NT$22.3m (up 239% from 3Q 2024). Profit margin: 0.9% (up from 0.3% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 97 percentage points per year, which is a significant difference in performance. Reported Earnings • Sep 18
Second quarter 2025 earnings released: NT$0.14 loss per share (vs NT$0.004 profit in 2Q 2024) Second quarter 2025 results: NT$0.14 loss per share (down from NT$0.004 profit in 2Q 2024). Revenue: NT$2.52b (up 11% from 2Q 2024). Net loss: NT$82.9m (down NT$84.9m from profit in 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 10
Second quarter 2025 earnings released: NT$0.15 loss per share (vs NT$0.004 profit in 2Q 2024) Second quarter 2025 results: NT$0.15 loss per share (down from NT$0.004 profit in 2Q 2024). Revenue: NT$2.52b (up 11% from 2Q 2024). Net loss: NT$82.9m (down NT$84.9m from profit in 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. New Risk • Jul 18
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 6.3% 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: Major Risk Earnings have declined by 11% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.3% average weekly change). Profit margins are more than 30% lower than last year (0.4% net profit margin). Reported Earnings • May 10
First quarter 2025 earnings released: EPS: NT$0.05 (vs NT$0.003 in 1Q 2024) First quarter 2025 results: EPS: NT$0.05 (up from NT$0.003 in 1Q 2024). Revenue: NT$2.30b (up 17% from 1Q 2024). Net income: NT$29.6m (up NT$28.0m from 1Q 2024). Profit margin: 1.3% (up from 0.1% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 48 percentage points per year, which is a significant difference in performance. Announcement • May 01
Wafer Works Corporation to Report Q1, 2025 Results on May 09, 2025 Wafer Works Corporation announced that they will report Q1, 2025 results on May 09, 2025 Reported Earnings • Mar 22
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: NT$0.01 (down from NT$1.05 in FY 2023). Revenue: NT$8.72b (down 13% from FY 2023). Net income: NT$4.03m (down 99% from FY 2023). Profit margin: 0% (down from 5.7% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 32%. Earnings per share (EPS) also missed analyst estimates by 104%. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 30% per year, which means it has not declined as severely as earnings. Announcement • Mar 17
Wafer Works Corporation, Annual General Meeting, Jun 23, 2025 Wafer Works Corporation, Annual General Meeting, Jun 23, 2025. Location: no,100, lung yuan 1st rd., longtan district, taoyuan city Taiwan Announcement • Mar 07
Wafer Works Corporation to Report Q4, 2024 Results on Mar 14, 2025 Wafer Works Corporation announced that they will report Q4, 2024 results on Mar 14, 2025 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 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: Major Risks Dividend is not well covered by earnings and cash flows. Dividend per share is over 21x earnings per share. Paying a dividend despite having no free cash flows. Earnings have declined by 5.0% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.1% average weekly change). Profit margins are more than 30% lower than last year (0.2% net profit margin). New Risk • Jan 03
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Dividend per share is over 21x earnings per share. Paying a dividend despite having no free cash flows. Earnings have declined by 5.0% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (0.2% net profit margin). Shareholders have been diluted in the past year (5.8% increase in shares outstanding). New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 11
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: NT$0.01 (down from NT$0.23 in 3Q 2023). Revenue: NT$2.39b (down 9.9% from 3Q 2023). Net income: NT$6.59m (down 95% from 3Q 2023). Profit margin: 0.3% (down from 4.7% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 95%. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Announcement • Nov 02
Wafer Works Corporation to Report Q3, 2024 Results on Nov 08, 2024 Wafer Works Corporation announced that they will report Q3, 2024 results on Nov 08, 2024 Announcement • Aug 29
Wafer Works Corporation announced that it expects to receive TWD 500 million in funding Wafer Works Corporation announced a private placement to issue 50,000,000 common shares at an issue price of TWD 10 per share for the gross proceeds of TWD 500,000,000 on August 27, 2024. The transaction has been approved by shareholders of company. The transaction is expected to close for original shareholders and employees on October 3, 2024 to October 4, 2024 and share subscription and payment period from October 5, 2024 to October 11, 2024. Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: NT$0.011 (vs NT$0.31 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.011 (down from NT$0.31 in 2Q 2023). Revenue: NT$2.27b (down 11% from 2Q 2023). Net income: NT$2.04m (down 99% from 2Q 2023). Profit margin: 0.1% (down from 6.6% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 18% per year whereas the company’s share price has fallen by 16% per year. Announcement • Aug 02
Wafer Works Corporation to Report Q2, 2024 Results on Aug 09, 2024 Wafer Works Corporation announced that they will report Q2, 2024 results on Aug 09, 2024 Upcoming Dividend • Jul 16
Upcoming dividend of NT$0.65 per share Eligible shareholders must have bought the stock before 23 July 2024. Payment date: 14 August 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 1.6%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (1.9%). Declared Dividend • Jun 27
Dividend reduced to NT$0.65 Dividend of NT$0.65 is 74% lower than last year. Ex-date: 23rd July 2024 Payment date: 14th August 2024 Dividend yield will be 1.7%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is not covered by earnings (117% earnings payout ratio). However, it is covered by cash flows (70% cash payout ratio). The dividend has increased by an average of 8.4% per year over the past 6 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 30% to bring the payout ratio under control. However, EPS has declined by 33% over the last 5 years so the company would need to reverse this trend. Reported Earnings • May 18
First quarter 2024 earnings released First quarter 2024 results: Revenue: NT$1.97b (down 27% from 1Q 2023). Net income: NT$1.56m (down 99% from 1Q 2023). Profit margin: 0.1% (down from 10.0% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 24% 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 16% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 02
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: NT$1.05 (down from NT$4.00 in FY 2022). Revenue: NT$10.0b (down 21% from FY 2022). Net income: NT$568.8m (down 74% from FY 2022). Profit margin: 5.7% (down from 17% in FY 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.7%. Revenue is forecast to grow 16% 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 21% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Mar 16
Wafer Works Corporation, Annual General Meeting, Jun 21, 2024 Wafer Works Corporation, Annual General Meeting, Jun 21, 2024. Location: No.100, Longyuan 1st Rd., Longtan District, Taoyuan City Taoyuan City Taiwan Agenda: To report the business of 2023; to approve audit Committee's review of the 2023 Financial Statements; to report on 2023 employees' and directors' remuneration; to report the investment in mainland China; and to report the issuance of commitment letters for the listing of the subsidiary, Wafer Works (Shanghai) Co., Ltd., on the Sci-Tech innovation board of the Shanghai Stock Exchange. Major Estimate Revision • Nov 17
Consensus EPS estimates fall by 52%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from NT$10.0b to NT$10.1b. EPS estimate fell from NT$2.40 to NT$1.15 per share. Net income forecast to shrink 53% next year vs 15% growth forecast for Semiconductor industry in Taiwan . Consensus price target down from NT$32.00 to NT$31.00. Share price rose 2.1% to NT$43.80 over the past week. New Risk • Nov 14
New major risk - Revenue and earnings growth Earnings have declined by 0.02% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 136% Cash payout ratio: 109% Earnings have declined by 0.02% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (9.0% net profit margin). Reported Earnings • Nov 08
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: NT$0.23 (down from NT$1.30 in 3Q 2022). Revenue: NT$2.65b (down 22% from 3Q 2022). Net income: NT$123.6m (down 83% from 3Q 2022). Profit margin: 4.7% (down from 21% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 65%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Price Target Changed • Oct 06
Price target increased by 10% to NT$39.00 Up from NT$35.33, the current price target is an average from 2 analysts. New target price is 15% below last closing price of NT$45.85. Stock is up 13% over the past year. The company posted earnings per share of NT$4.00 last year. Reported Earnings • Aug 05
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: NT$0.31 (down from NT$1.00 in 2Q 2022). Revenue: NT$2.54b (down 18% from 2Q 2022). Net income: NT$168.8m (down 69% from 2Q 2022). Profit margin: 6.6% (down from 17% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) also missed analyst estimates by 34%. Revenue is forecast to grow 7.7% p.a. on average during the next 3 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 47% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 12
Upcoming dividend of NT$2.50 per share at 5.2% yield Eligible shareholders must have bought the stock before 19 July 2023. Payment date: 10 August 2023. Payout ratio is a comfortable 69% and this is well supported by cash flows. Trailing yield: 5.2%. Lower than top quartile of Taiwanese dividend payers (5.5%). Higher than average of industry peers (3.2%). Major Estimate Revision • Apr 20
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$12.4b to NT$11.5b. EPS estimate also fell from NT$2.59 per share to NT$2.30 per share. Net income forecast to shrink 39% next year vs 23% decline forecast for Semiconductor industry in Taiwan. Consensus price target of NT$36.50 unchanged from last update. Share price fell 3.4% to NT$45.25 over the past week. Reported Earnings • Mar 17
Full year 2022 earnings: Revenues and EPS in line with analyst expectations Full year 2022 results: EPS: NT$4.00 (up from NT$2.02 in FY 2021). Revenue: NT$12.7b (up 23% from FY 2021). Net income: NT$2.16b (up 106% from FY 2021). Profit margin: 17% (up from 10% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 4.5% p.a. on average during the next 2 years, compared to a 8.3% 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 24% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target decreased to NT$42.50 Down from NT$49.00, the current price target is an average from 4 analysts. New target price is 7.4% below last closing price of NT$45.90. Stock is down 33% over the past year. The company is forecast to post earnings per share of NT$4.13 for next year compared to NT$2.02 last year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director De-Wai Chou was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Nov 11
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from NT$3.56 to NT$4.13. Revenue forecast steady at NT$12.9b. Net income forecast to shrink 26% next year vs 12% decline forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$49.00 to NT$42.50. Share price rose 3.8% to NT$43.80 over the past week. Reported Earnings • Nov 06
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: NT$1.30 (up from NT$0.61 in 3Q 2021). Revenue: NT$3.40b (up 29% from 3Q 2021). Net income: NT$705.2m (up 127% from 3Q 2021). Profit margin: 21% (up from 12% in 3Q 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 44%. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$37.90, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Semiconductor industry in Taiwan. Total returns to shareholders of 24% over the past three years. Price Target Changed • Aug 08
Price target decreased to NT$55.20 Down from NT$59.80, the current price target is an average from 4 analysts. New target price is 20% above last closing price of NT$45.95. Stock is down 30% over the past year. The company is forecast to post earnings per share of NT$3.56 for next year compared to NT$2.02 last year. Reported Earnings • Aug 07
Second quarter 2022 earnings: EPS misses analyst expectations Second quarter 2022 results: EPS: NT$1.00 (up from NT$0.45 in 2Q 2021). Revenue: NT$3.12b (up 26% from 2Q 2021). Net income: NT$540.1m (up 137% from 2Q 2021). Profit margin: 17% (up from 9.2% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.0%. Over the next year, revenue is forecast to grow 14%, compared to a 21% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Price Target Changed • Jul 14
Price target decreased to NT$67.80 Down from NT$76.40, the current price target is an average from 4 analysts. New target price is 51% above last closing price of NT$44.80. Stock is down 32% over the past year. The company is forecast to post earnings per share of NT$4.08 for next year compared to NT$2.02 last year. Price Target Changed • Jul 12
Price target decreased to NT$72.80 Down from NT$78.40, the current price target is an average from 5 analysts. New target price is 65% above last closing price of NT$44.00. Stock is down 34% over the past year. The company is forecast to post earnings per share of NT$4.07 for next year compared to NT$2.02 last year. Upcoming Dividend • Jul 12
Upcoming dividend of NT$1.35 per share Eligible shareholders must have bought the stock before 19 July 2022. Payment date: 10 August 2022. Payout ratio is a comfortable 51% and the cash payout ratio is 100%. Trailing yield: 2.9%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (3.9%). Announcement • Jun 22
Wafer Works Corporation Announces Cash Dividend for the Year of 2021, Payable on August 10, 2022 Wafer Works Corporation announced cash dividends of TWD 730,260,536 (TWD 1.35 per share) for the year of 2021. With an Ex-dividend date of July 21, 2022, record date of July 25, 2022 and Payment date of cash dividend distribution is August 10, 2022. Major Estimate Revision • May 13
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from NT$3.57 to NT$4.07. Revenue forecast steady at NT$13.4b. Net income forecast to grow 84% next year vs 19% growth forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$78.40 to NT$76.40. Share price was steady at NT$55.50 over the past week. Reported Earnings • May 08
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: NT$0.90 (up from NT$0.29 in 1Q 2021). Revenue: NT$3.04b (up 32% from 1Q 2021). Net income: NT$486.9m (up 223% from 1Q 2021). Profit margin: 16% (up from 6.6% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 12%. Over the next year, revenue is forecast to grow 24%, compared to a 24% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. 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. 6 non-independent directors. Independent Director Feng-I Lin was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Mar 30
Consensus EPS estimates fall by 20% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from NT$13.5b to NT$13.3b. EPS estimate also fell from NT$4.20 per share to NT$3.37 per share. Net income forecast to grow 74% next year vs 26% growth forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$89.80 to NT$79.40. Share price fell 11% to NT$70.00 over the past week. Announcement • Jan 30
Wafer Works Corporation Announces Replacement of the Representative of the Company's Institutional Director Wafer Works Corporation appointed Liu, Hsiu-Mei, Accounting Manager of HUA ENG WIRE AND CABLE CO., LTD. as Representative of the Company's Institutional Director in place of Lin, Min-Shiang, effective February 1, 2022. The Company reported the death of former Director of the Board, Lin, Ming-Shiang, on Jan.10, 2022. Price Target Changed • Jan 12
Price target increased to NT$88.40 Up from NT$81.51, the current price target is an average from 5 analysts. New target price is 13% above last closing price of NT$78.20. Stock is up 81% over the past year. The company is forecast to post earnings per share of NT$2.14 for next year compared to NT$1.02 last year. Valuation Update With 7 Day Price Move • Nov 25
Investor sentiment improved over the past week After last week's 18% share price gain to NT$79.70, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 15x in the Semiconductor industry in Taiwan. Total returns to shareholders of 113% over the past three years. Reported Earnings • Nov 07
Third quarter 2021 earnings released: EPS NT$0.61 (vs NT$0.34 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$2.63b (up 40% from 3Q 2020). Net income: NT$310.8m (up 82% from 3Q 2020). Profit margin: 12% (up from 9.1% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment improved over the past week After last week's 16% share price gain to NT$64.90, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 14x in the Semiconductor industry in Taiwan. Total returns to shareholders of 58% over the past three years. Reported Earnings • Aug 09
Second quarter 2021 earnings released: EPS NT$0.45 (vs NT$0.30 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$2.48b (up 33% from 2Q 2020). Net income: NT$227.7m (up 51% from 2Q 2020). Profit margin: 9.2% (up from 8.1% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Upcoming Dividend • Aug 02
Upcoming dividend of NT$1.10 per share Eligible shareholders must have bought the stock before 09 August 2021. Payment date: 27 August 2021. Trailing yield: 1.6%. Lower than top quartile of Taiwanese dividend payers (5.0%). Lower than average of industry peers (2.2%). Price Target Changed • Jul 06
Price target increased to NT$74.00 Up from NT$62.67, the current price target is an average from 3 analysts. New target price is 22% above last closing price of NT$60.70. Stock is up 63% over the past year. Price Target Changed • Jun 29
Price target increased to NT$65.67 Up from NT$60.67, the current price target is an average from 3 analysts. New target price is 7.7% above last closing price of NT$61.00. Stock is up 83% over the past year. Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment improved over the past week After last week's 21% share price gain to NT$64.50, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 16x in the Semiconductor industry in Taiwan. Total returns to shareholders of 19% over the past three years. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improved over the past week After last week's 15% share price gain to NT$50.80, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 16x in the Semiconductor industry in Taiwan. Total loss to shareholders of 14% over the past three years. Major Estimate Revision • May 28
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate increased from NT$1.90 to NT$2.12. Revenue forecast steady at NT$10.2b. Net income forecast to grow 112% next year vs 33% growth forecast for Semiconductor industry in Taiwan. Consensus price target reaffirmed at NT$60.67. Share price rose 13% to NT$50.00 over the past week. 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$46.10, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 14x in the Semiconductor industry in Taiwan. Total loss to shareholders of 17% over the past three years. Reported Earnings • May 08
First quarter 2021 earnings released: EPS NT$0.29 (vs NT$0.20 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$2.30b (up 33% from 1Q 2020). Net income: NT$150.6m (up 49% from 1Q 2020). Profit margin: 6.6% (up from 5.8% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment improved over the past week After last week's 26% share price gain to NT$58.30, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 43% over the past three years. Valuation Update With 7 Day Price Move • Apr 11
Investor sentiment improved over the past week After last week's 16% share price gain to NT$48.55, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 19x in the Semiconductor industry in Taiwan. Total returns to shareholders of 22% over the past three years. Major Estimate Revision • Apr 07
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from NT$9.10b to NT$9.60b. EPS estimate fell from NT$2.30 to NT$1.80 per share. Net income forecast to grow 58% next year vs 33% growth forecast for Semiconductor industry in Taiwan. Consensus price target up from NT$35.00 to NT$50.00. Share price was steady at NT$42.45 over the past week. Reported Earnings • Mar 26
Full year 2020 earnings released: EPS NT$1.02 (vs NT$2.41 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$7.42b (down 3.3% from FY 2019). Net income: NT$518.7m (down 58% from FY 2019). Profit margin: 7.0% (down from 16% in FY 2019). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 26
New 90-day high: NT$46.50 The company is up 28% from its price of NT$36.20 on 27 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Semiconductor industry, which is up 30% over the same period. Valuation Update With 7 Day Price Move • Dec 09
Market bids up stock over the past week After last week's 18% share price gain to NT$45.70, the stock is trading at a trailing P/E ratio of 47.9x, up from the previous P/E ratio of 40.6x. This compares to an average P/E of 25x in the Semiconductor industry in Taiwan. Total returns to shareholders over the past three years are 31%. Valuation Update With 7 Day Price Move • Dec 04
Market bids up stock over the past week After last week's 18% share price gain to NT$42.55, the stock is trading at a trailing P/E ratio of 44.6x, up from the previous P/E ratio of 38x. This compares to an average P/E of 25x in the Semiconductor industry in Taiwan. Total returns to shareholders over the past three years are 23%. Is New 90 Day High Low • Nov 27
New 90-day high: NT$36.25 The company is up 5.0% from its price of NT$34.40 on 28 August 2020. The Taiwanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 15% over the same period. Reported Earnings • Nov 06
Third quarter 2020 earnings released: EPS NT$0.33 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: NT$1.88b (up 7.3% from 3Q 2019). Net income: NT$170.9m (down 45% from 3Q 2019). Profit margin: 9.1% (down from 18% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Nov 06
Revenue and earnings miss expectations Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 23%. Over the next year, revenue is forecast to grow 19%, compared to a 14% growth forecast for the Semiconductor industry in Taiwan. Is New 90 Day High Low • Oct 29
New 90-day low: NT$32.85 The company is down 12% from its price of NT$37.15 on 31 July 2020. The Taiwanese market is up 1.0% 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. 