TSEC:2408

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Nanya Technology Corporation manufactures and sells dynamic random access memory (DRAM) and other memory products in Taiwan and internationally. More Details


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Nanya Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2408 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2408's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.6%

2408

1.0%

TW Semiconductor

1.1%

TW Market


1 Year Return

0.1%

2408

55.0%

TW Semiconductor

20.3%

TW Market

Return vs Industry: 2408 underperformed the TW Semiconductor industry which returned 55% over the past year.

Return vs Market: 2408 underperformed the TW Market which returned 20.3% over the past year.


Shareholder returns

2408IndustryMarket
7 Day3.6%1.0%1.1%
30 Day22.5%10.5%8.1%
90 Day32.3%15.1%8.4%
1 Year2.7%0.1%59.7%55.0%24.6%20.3%
3 Year13.1%-5.7%112.8%91.1%45.0%28.9%
5 Year134.1%72.0%258.8%200.1%95.8%61.4%

Long-Term Price Volatility Vs. Market

How volatile is Nanya Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nanya Technology undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2408 (NT$71.3) is trading below our estimate of fair value (NT$373.14)

Significantly Below Fair Value: 2408 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2408 is poor value based on its PE Ratio (27.1x) compared to the TW Semiconductor industry average (23.5x).

PE vs Market: 2408 is poor value based on its PE Ratio (27.1x) compared to the TW market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: 2408 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 2408 is good value based on its PB Ratio (1.4x) compared to the TW Semiconductor industry average (2.1x).


Next Steps

Future Growth

How is Nanya Technology forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

46.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2408's forecast earnings growth (46.9% per year) is above the savings rate (0.9%).

Earnings vs Market: 2408's earnings (46.9% per year) are forecast to grow faster than the TW market (16.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2408's revenue (15.2% per year) is forecast to grow faster than the TW market (9% per year).

High Growth Revenue: 2408's revenue (15.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2408's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Nanya Technology performed over the past 5 years?

-1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2408 has high quality earnings.

Growing Profit Margin: 2408's current net profit margins (13.6%) are lower than last year (29.6%).


Past Earnings Growth Analysis

Earnings Trend: 2408's earnings have declined by 1.6% per year over the past 5 years.

Accelerating Growth: 2408's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2408 had negative earnings growth (-51%) over the past year, making it difficult to compare to the Semiconductor industry average (12%).


Return on Equity

High ROE: 2408's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Nanya Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 2408's short term assets (NT$76.1B) exceed its short term liabilities (NT$10.7B).

Long Term Liabilities: 2408's short term assets (NT$76.1B) exceed its long term liabilities (NT$3.1B).


Debt to Equity History and Analysis

Debt Level: 2408's debt to equity ratio (0%) is considered satisfactory.

Reducing Debt: 2408's debt to equity ratio has reduced from 87.5% to 0% over the past 5 years.

Debt Coverage: 2408's debt is well covered by operating cash flow (571413.9%).

Interest Coverage: 2408 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Nanya Technology current dividend yield, its reliability and sustainability?

2.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2408's dividend (2.12%) is higher than the bottom 25% of dividend payers in the TW market (2.12%).

High Dividend: 2408's dividend (2.12%) is low compared to the top 25% of dividend payers in the TW market (5.18%).


Stability and Growth of Payments

Stable Dividend: 2408 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2408 has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.4%), 2408's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2408's dividends in 3 years are forecast to be well covered by earnings (35.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Pei-Ing Lee (65 yo)

5.08yrs

Tenure

NT$5,049,000

Compensation

Dr. Pei-Ing Lee has been the President of Nanya Technology Corporation since November 1, 2015 and served as its General Manager since October 6, 2015 and its Senior Vice President until October 6, 2015. Dr...


Leadership Team

NamePositionTenureCompensationOwnership
Pei-Ing Lee
President & Director5.08yrsNT$5.05m0.022%
NT$ 48.8m
Philip Jao
Finance Officer & Corporate Governance Supervisor3.67yrsno datano data
Hung-Chi Kuo
Accounting Officer9.92yrsno datano data
Zhi Xiang Wu
VP of Planning & Administration Management and Director1.5yrsno data0.0068%
NT$ 15.0m
Rex Chuang
VP of Marketing & FAE and Director1.5yrsno datano data
Rex Chen
Assistant Vice President of Global Sales2.92yrsno datano data
Lin-Chin Su
Executive VP & Director25.75yrsno data0.0049%
NT$ 10.7m
Yau-Ming Chen
Vice President1.67yrsno datano data

3.3yrs

Average Tenure

Experienced Management: 2408's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pei-Ing Lee
President & Director5.08yrsNT$5.05m0.022%
NT$ 48.8m
Zhi Xiang Wu
VP of Planning & Administration Management and Director1.5yrsno data0.0068%
NT$ 15.0m
Rex Chuang
VP of Marketing & FAE and Director1.5yrsno datano data
Lin-Chin Su
Executive VP & Director25.75yrsno data0.0049%
NT$ 10.7m
Chia-Chau Wu
Chairman of the Board16.5yrsNT$50.00k0.000030%
NT$ 65.7k
Ming-Jen Tzou
Director25.75yrsNT$50.00kno data
Wen-Yuan Wong
Director13.5yrsNT$50.00k0.0043%
NT$ 9.4m
Tsai-Feng Hou
Independent Director7.42yrsno datano data
Ruey-Yu Wang
Director10.42yrsNT$30.00kno data
Ching-Chyi Lai
Independent Director4.42yrsno datano data
Shu-Po Hsu
Independent Director7.42yrsno datano data
Shih-Ming Hsieh
Director19.67yrsNT$50.00kno data

12.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 2408's board of directors are seasoned and experienced ( 12 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nanya Technology Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nanya Technology Corporation
  • Ticker: 2408
  • Exchange: TSEC
  • Founded: 1995
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$219.147b
  • Shares outstanding: 3.07b
  • Website: https://www.nanya.com

Number of Employees


Location

  • Nanya Technology Corporation
  • No. 98, Nanlin Road
  • Taishan District
  • New Taipei City
  • 243
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2408TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDAug 2000

Biography

Nanya Technology Corporation manufactures and sells dynamic random access memory (DRAM) and other memory products in Taiwan and internationally. The company’s products have applications in mobile phones, s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 08:32
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.