New Risk • Jun 29
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 9.5% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.5% average weekly change). Valuation Update With 7 Day Price Move • Jun 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$745, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 30x in the Semiconductor industry in Taiwan. Total returns to shareholders of 120% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$530 per share. Buy Or Sell Opportunity • Jun 02
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 46% to NT$651. The fair value is estimated to be NT$538, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 27% in 2 years. Earnings are forecast to grow by 36% in the next 2 years. Reported Earnings • May 15
First quarter 2026 earnings: Revenues and EPS in line with analyst expectations First quarter 2026 results: EPS: NT$8.00 (down from NT$9.28 in 1Q 2025). Revenue: NT$36.4b (up 4.0% from 1Q 2025). Net income: NT$4.33b (down 9.1% from 1Q 2025). Profit margin: 12% (down from 14% in 1Q 2025). 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 12% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 13% per year. Announcement • Mar 02
Realtek Semiconductor Corp., Annual General Meeting, May 27, 2026 Realtek Semiconductor Corp., Annual General Meeting, May 27, 2026, at 09:00 Taipei Standard Time. Location: no,1, kung yeh tung 2nd rd., hsinchu science park, hsinchu city Taiwan Buy Or Sell Opportunity • Feb 27
Now 20% overvalued Over the last 90 days, the stock has fallen 7.6% to NT$482. The fair value is estimated to be NT$400, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.2% over the last 3 years. Earnings per share has grown by 11%. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 29% in the next 2 years. Reported Earnings • Nov 12
Third quarter 2025 earnings: Revenues and EPS in line with analyst expectations Third quarter 2025 results: EPS: NT$6.69 (down from NT$8.53 in 3Q 2024). Revenue: NT$29.5b (down 4.1% from 3Q 2024). Net income: NT$3.43b (down 22% from 3Q 2024). Profit margin: 12% (down from 14% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Aug 28
Dividend increased to NT$25.50 Dividend of NT$25.50 is 65% higher than last year. Ex-date: 10th September 2025 Payment date: 9th October 2025 Dividend yield will be 4.6%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (80% earnings payout ratio) and cash flows (60% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 36% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 14
Second quarter 2025 earnings: EPS misses analyst expectations Second quarter 2025 results: EPS: NT$7.62 (down from NT$8.55 in 2Q 2024). Revenue: NT$31.9b (up 4.0% from 2Q 2024). Net income: NT$3.91b (down 11% from 2Q 2024). Profit margin: 12% (down from 14% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.3%. Revenue is forecast to grow 10% 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 fallen by 3% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Reported Earnings • May 14
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: NT$9.28 (up from NT$6.10 in 1Q 2024). Revenue: NT$35.0b (up 37% from 1Q 2024). Net income: NT$4.76b (up 52% from 1Q 2024). Profit margin: 14% (up from 12% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 8.3%. Earnings per share (EPS) also surpassed analyst estimates by 5.1%. Revenue is forecast to grow 9.7% 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 fallen by 11% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Apr 23
Realtek Semiconductor Corp. to Report Q1, 2025 Results on Apr 30, 2025 Realtek Semiconductor Corp. announced that they will report Q1, 2025 results on Apr 30, 2025 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$440, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 16x in the Semiconductor industry in Taiwan. Total returns to shareholders of 27% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$461 per share. Announcement • Mar 21
E Ink Partners with Realtek to Introduce Second-Generation System-on-Panel Electronic Shelf Label E Ink Holdings Inc. announced its collaboration with Realtek Semiconductor to unveil the second-generation System-on-Panel (SoP) electronic shelf label (ESL) reference design. This innovative solution simplifies ESL development, significantly reducing the barrier to entry. Under identical display areas, the new-generation design achieves approximately a 30% reduction in thin-filmistor (TFT) size and a 50% decrease in flexible printed circuit (FPC) dimensions. This enables streamlined ESLs with slimmer borders perfectly suited for diverse retail environments. The SoP technology integrates components directly onto ePaper, glass, or flexible substrates, combining integrated circuits, panels, and system design into a unified ePaper display solution. The second-generation SoP incorporates Realtek's Bluetooth chipset using Chip-on-Glass (CoG) technology, creating the world's first device embedding a Radio Frequency Integrated Circuit (RFIC) directly onto glass. This advancement minimizes material usage, reduces product size, simplifies manufacturing processes, and delivers a more efficient, environmentally sustainable display solution. The second- generation SoP design increases efficiency through an optimized circuit layout and transmission line architecture, allowing signal transmission distances to approach those of traditional shelf labels. Additionally, the FPC is integrated onto the back of the panel, further reducing the device size and material usage, resulting in a more energy-efficient and eco-friendly ESL solution that aligns with ESG principles for sustainable development. The SoP design integrates an RF chip onto a 2.66-inch e-paper display glass substrate using Realtek Semiconductor's next-generation Redistribution Layer (RDL) technology, replacing traditional wire bonding packaging. These advancements make it commercially viable, and the deep integration of semiconductors and display panels provides a foundation for the next generation of retail products. As a pioneer in ePaper technology, E Ink is dedicated to achieving net-zero carbon emissions by 2040. Beyond the inherent sustainability benefits of ePaper products, E Ink proactively optimizes product designs to enhance environmental friendliness. Furthermore, ESLs significantly reduce carbon emissions. For example, over the past seven years, approximately 600 million 3-inch ePaper labels have been installed globally. Changing pricing information four times daily, traditional paper labels produce 32,000 times more carbon dioxide than ePaper labels. Similarly, 30 million 10-inch electronic advertising displays globally, used continuously for five years, produce 12,000 times more CO2 emissions if utilizing LCD technology compared to ePaper. Compared to disposable printed paper, dynamic ePaper displays emit 60,000 times less CO2. The second-generation Sop ESL will be showcased at E Ink's booth (#L717) during Touch Taiwan 2025 from, April 16 to 18. Visitors are welcome to experience the latest innovation firsthand. Announcement • Mar 03
Realtek Semiconductor Corp., Annual General Meeting, May 28, 2025 Realtek Semiconductor Corp., Annual General Meeting, May 28, 2025, at 09:00 Taipei Standard Time. Location: no,1, kung yeh tung 2nd rd., hsinchu science park, hsinchu city Taiwan Reported Earnings • Mar 01
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: NT$29.82 (up from NT$17.85 in FY 2023). Revenue: NT$113.4b (up 19% from FY 2023). Net income: NT$15.3b (up 67% from FY 2023). Profit margin: 14% (up from 9.6% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.9%. Revenue is forecast to grow 12% 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 fallen by 16% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Feb 20
Realtek Semiconductor Corp. to Report Fiscal Year 2024 Results on Feb 27, 2025 Realtek Semiconductor Corp. announced that they will report fiscal year 2024 results on Feb 27, 2025 Buy Or Sell Opportunity • Nov 20
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.0% to NT$496. The fair value is estimated to be NT$621, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 18%. Revenue is forecast to grow by 28% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. Reported Earnings • Nov 13
Third quarter 2024 earnings: Revenues and EPS in line with analyst expectations Third quarter 2024 results: EPS: NT$8.53 (up from NT$5.02 in 3Q 2023). Revenue: NT$30.8b (up 15% from 3Q 2023). Net income: NT$4.37b (up 70% from 3Q 2023). Profit margin: 14% (up from 9.6% in 3Q 2023). 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 12% 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 fallen by 18% 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. Announcement • Oct 17
Realtek Semiconductor Corp. to Report Q3, 2024 Results on Oct 30, 2024 Realtek Semiconductor Corp. announced that they will report Q3, 2024 results on Oct 30, 2024 Buy Or Sell Opportunity • Oct 16
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 12% to NT$480. The fair value is estimated to be NT$611, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 17%. Revenue is forecast to grow by 29% in 2 years. Earnings are forecast to grow by 57% in the next 2 years. Buy Or Sell Opportunity • Sep 30
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to NT$480. The fair value is estimated to be NT$613, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 17%. Revenue is forecast to grow by 29% in 2 years. Earnings are forecast to grow by 57% in the next 2 years. Buy Or Sell Opportunity • Sep 05
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.6% to NT$490. The fair value is estimated to be NT$616, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 17%. Revenue is forecast to grow by 31% in 2 years. Earnings are forecast to grow by 57% in the next 2 years. Declared Dividend • Aug 23
Dividend of NT$15.50 announced Shareholders will receive a dividend of NT$15.50. Ex-date: 5th September 2024 Payment date: 4th October 2024 Dividend yield will be 2.9%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (65% earnings payout ratio) and cash flows (41% cash payout ratio). The dividend has increased by an average of 16% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 72% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 13
Second quarter 2024 earnings: Revenues and EPS in line with analyst expectations Second quarter 2024 results: EPS: NT$8.55 (up from NT$5.08 in 2Q 2023). Revenue: NT$30.7b (up 17% from 2Q 2023). Net income: NT$4.39b (up 68% from 2Q 2023). Profit margin: 14% (up from 9.9% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 13% 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 17% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Aug 02
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.8% to NT$502. The fair value is estimated to be NT$643, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 12%. Revenue is forecast to grow by 32% in 2 years. Earnings are forecast to grow by 75% in the next 2 years. Major Estimate Revision • Jul 17
Consensus EPS estimates increase by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$112.7b to NT$114.7b. EPS estimate increased from NT$27.44 to NT$30.26 per share. Net income forecast to grow 52% next year vs 32% growth forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$598. Share price fell 2.6% to NT$555 over the past week. Announcement • Jul 17
Realtek Semiconductor Corp. to Report Q2, 2024 Results on Jul 30, 2024 Realtek Semiconductor Corp. announced that they will report Q2, 2024 results on Jul 30, 2024 Announcement • May 31
Realtek Semiconductor Corp. Announces Board Changes Realtek Semiconductor Corp. announced board changes. Title and name of the previous position holder: Directors: United Glory Co. Ltd. Representative: Chern, Kuo-Jong, Cotek Pharmaceutical Industry Co. Ltd. Representative: Yeh, Nan-Horng. Independent directors: Tsai, Tyau-Chang, Chen, Fu-Yen, and Lo, Chun-Pa. Resume of the previous position holder: Directors: United Glory Co. Ltd. Representative: Chern, Kuo-Jong; Chief Financial Officer of Realtek, otek Pharmaceutical Industry Co. Ltd. Representative: Yeh, Nan-Horng; Director of Realtek. Independent directors: Tsai, Tyau-Chang; Johnson Law office Lawyer, Chen, Fu-Yen; Chairman of ezTravel Co. Ltd., Lo, Chun-Pa; Investment Vice President of De Jie Investment Co. Ltd. Title and name of the new position holder: Directors: Taotech Co. Ltd. Representative: Yeh, Po-Len, Dejia Investment Co. Ltd. Representative: Yeh, Ming-Han. Independent directors: Yang, Pan-Chyr, Ko, Fu-Hwa, Hsieh, Yin-Ching. Resume of the new position holder: Directors: Dejia Investment Co. Ltd. Representative: Yeh, Ming-Han; Chairman of Dejia Investment Co. Ltd. Independent directors: ang, Pan-Chyr; Professor, Department of Internal Medicine, College of Medicine, National Taiwan University, Ko, Fu-Hwa; Managing Owner of SEMI DA Advisory LLC, Hsieh, Yin-Ching; Founder of Shay & Partners and leader of the TMT team. Effective date of the new appointment: May 30, 2024. Reported Earnings • May 15
First quarter 2024 earnings: Revenues and EPS in line with analyst expectations First quarter 2024 results: EPS: NT$6.10 (up from NT$3.50 in 1Q 2023). Revenue: NT$25.6b (up 31% from 1Q 2023). Net income: NT$3.13b (up 75% from 1Q 2023). Profit margin: 12% (up from 9.1% in 1Q 2023). 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 14% 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 fallen by 12% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Price Target Changed • Apr 22
Price target increased by 7.6% to NT$568 Up from NT$528, the current price target is an average from 15 analysts. New target price is 13% above last closing price of NT$504. Stock is up 37% over the past year. The company is forecast to post earnings per share of NT$27.44 for next year compared to NT$17.85 last year. Announcement • Apr 13
Realtek Semiconductor Corp. to Report Q1, 2024 Results on Apr 19, 2024 Realtek Semiconductor Corp. announced that they will report Q1, 2024 results on Apr 19, 2024 Price Target Changed • Mar 18
Price target increased by 7.7% to NT$520 Up from NT$483, the current price target is an average from 15 analysts. New target price is 12% below last closing price of NT$590. Stock is up 51% over the past year. The company is forecast to post earnings per share of NT$28.01 for next year compared to NT$17.85 last year. Reported Earnings • Feb 29
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: NT$17.85 (down from NT$31.62 in FY 2022). Revenue: NT$95.2b (down 15% from FY 2022). Net income: NT$9.15b (down 44% from FY 2022). Profit margin: 9.6% (down from 14% in FY 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 12% 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 fallen by 3% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Feb 28
Realtek Semiconductor Corp., Annual General Meeting, May 30, 2024 Realtek Semiconductor Corp., Annual General Meeting, May 30, 2024. Location: No.1, Industry East 2nd Road, Hsinchu Science Park Hsinchu Taiwan Agenda: To consider Business report of 2023; to consider Audit Committee's review report; to consider report 2023 employees compensation and directors remuneration; to consider report 2023 cash dividends distribution from retained earnings; to consider report 2023 related party transactions; to consider 2023 business report and financial statements; to consider distribution of 2023 retained earnings; and to consider other matters. Buy Or Sell Opportunity • Feb 27
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 23% to NT$571. The fair value is estimated to be NT$472, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years. Earnings per share has grown by 7.8%. Revenue is forecast to grow by 25% in 2 years. Earnings are forecast to grow by 60% in the next 2 years. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$548, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 22x in the Semiconductor industry in Taiwan. Total returns to shareholders of 42% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$472 per share. Price Target Changed • Feb 03
Price target increased by 8.2% to NT$474 Up from NT$438, the current price target is an average from 15 analysts. New target price is approximately in line with last closing price of NT$470. Stock is up 35% over the past year. The company is forecast to post earnings per share of NT$17.67 for next year compared to NT$31.62 last year. Announcement • Jan 29
ParkerVision Inc Receives Favorable Markman Rulings in Infringement Actions Against MediaTek Inc., MediaTek USA Inc. and Realtek Semiconductor Corp ParkerVision Inc. announced that the United States District Court for the Western District of Texas issued its Markman, or claim construction, rulings in ParkerVision's patent infringement actions against MediaTek Inc. and MediaTek USA Inc. and Realtek Semiconductor Corp. The Court's claim constructions are largely favorable to ParkerVision. The Court held back-to-back Markman hearings on Friday, January 26, 2024, for the MediaTek and Realtek actions. Consistent with its standard practice, the Court issued preliminary rulings on the disputed claim constructions in advance of the Markman hearings. The Markman hearings were then held to allow the parties to present arguments with regard to any of the Court's preliminary rulings that they wished the Court to reconsider and/or fine-tune. In ParkerVision v. MediaTek, the Court adopted ParkerVision's proposed claim constructions for 13 of 16 disputed terms while adopting two proposed terms for MediaTek, and one term the Court construed on its own. In ParkerVision v. Realtek, the Court adopted ParkerVision's proposed claim constructions for nine of 10 disputed terms, with the one remaining term being a combination of the proposals from both parties. These MediaTek and Realtek infringement actions were initially filed in November 2022 and allege infringement against both parties of the same four ParkerVision patents. Both cases are scheduled for jury trial in December 2024. The Company has inter partes review actions pending against one of the patents. In 2023, ParkerVision filed two additional infringement cases against MediaTek and one new infringement case against Realtek alleging infringement of different ParkerVision patents. Reported Earnings • Nov 15
Third quarter 2023 earnings: Revenues and EPS in line with analyst expectations Third quarter 2023 results: EPS: NT$5.01 (down from NT$8.20 in 3Q 2022). Revenue: NT$26.7b (down 10% from 3Q 2022). Net income: NT$2.57b (down 39% from 3Q 2022). Profit margin: 9.6% (down from 14% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. 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 8% per year whereas the company’s share price has increased by 3% per year. Upcoming Dividend • Sep 04
Upcoming dividend of NT$27.00 per share at 6.3% yield Eligible shareholders must have bought the stock before 11 September 2023. Payment date: 06 October 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 6.3%. Within top quartile of Taiwanese dividend payers (5.5%). Higher than average of industry peers (3.3%). Announcement • Aug 25
Realtek Semiconductor Corp. Announces Total Cash Dividend, Payable on October 6, 2023 Realtek Semiconductor Corp. announced Cash dividends from retained earnings: TWD 13,334,454,666 (TWD 26 per share). The dividend is payable on October 6, 2023 with ex-rights (ex-dividend) trading date of September 11, 2023 and ex-rights (ex-dividend) record date of September 17, 2023. New Risk • Aug 13
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: 11% Last year net profit margin: 17% 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 Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 129% Cash payout ratio: 275% Minor Risk Profit margins are more than 30% lower than last year (11% net profit margin). Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: NT$5.08 (vs NT$9.12 in 2Q 2022) Second quarter 2023 results: EPS: NT$5.08 (down from NT$9.12 in 2Q 2022). Revenue: NT$26.3b (down 14% from 2Q 2022). Net income: NT$2.61b (down 44% from 2Q 2022). Profit margin: 9.9% (down from 15% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 11% 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 19% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. New Risk • Jun 25
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 108% Cash payout ratio: 244% Dividend yield: 6.9% 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. This is currently the only risk that has been identified for the company. Price Target Changed • Apr 25
Price target increased by 7.4% to NT$381 Up from NT$355, the current price target is an average from 14 analysts. New target price is 11% above last closing price of NT$345. Stock is down 9.6% over the past year. The company is forecast to post earnings per share of NT$19.67 for next year compared to NT$31.62 last year. Reported Earnings • Mar 02
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: NT$31.62 (down from NT$33.00 in FY 2021). Revenue: NT$111.8b (up 6.0% from FY 2021). Net income: NT$16.2b (down 3.8% from FY 2021). Profit margin: 14% (down from 16% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.0%. Earnings per share (EPS) also missed analyst estimates by 1.2%. Revenue is forecast to stay flat 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 37% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Price Target Changed • Mar 01
Price target increased by 8.1% to NT$340 Up from NT$315, the current price target is an average from 13 analysts. New target price is 11% below last closing price of NT$380. Stock is down 19% over the past year. The company is forecast to post earnings per share of NT$30.87 for next year compared to NT$33.00 last year. Announcement • Feb 01
Ubiik and Realtek Announce Nimbus 220, a Dedicated NB-IoT Module for Upper 700 MHz A Block (3GPP band 103) - Perfect for Utilities and IoT Applications Ubiik has joined forces with Realtek Semiconductor Corporation, to deliver Nimbus 220, an NB-IoT module based on Realtek RTL9518 chipset, and optimized for operation in Upper 700 MHz A Block band. This is an important development for the utility and IoT markets in the US, as the joint development will allow license holders of Band 103 to fully utilize this prime 1 MHz paired spectrum by leveraging advanced features such as non-anchor carriers and Non-IP Data Delivery (NIDD). After Select Spectrum and Access Spectrum have announced that the Upper 700 MHz A Block is officially designated in 3GPP Release 16 as "NB-IoT Band 103" for 4G and 5G services, Ubiik and Realtek are now partnering on the development of this NB-IoT module allowing Ubiik's cellular base station goRAN™ to address current gaps in the North American market for band 103 (787-788 MHz uplink and 757-758 MHz downlink). With NB-IoT using as little as 180 kHz of spectrum, and being able to scale up by utilizing multiple carriers simultaneously, companies who are currently utilizing this band now have the possibility to add standard-compliant NB-IoT to deliver affordable, long-range connectivity to low-power or low-throughput devices. With this partnership, Ubiik aims to expand its reach in the North American market and provide customers with reliable private LTE connectivity. The module, whose embedded processing unit can support ANSI meters and other applications/protocols, will be launched together with goRAN™ base stations and showcased at Distributech 2023 booth #1637 in San Diego from February 7th to 9th, 2023. Reported Earnings • Nov 16
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: NT$8.20 (down from NT$9.57 in 3Q 2021). Revenue: NT$29.8b (up 2.8% from 3Q 2021). Net income: NT$4.21b (down 14% from 3Q 2021). Profit margin: 14% (down from 17% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.5%. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. 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. 7 non-independent directors. Independent Director Tyau-Chang Tsai 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. Reported Earnings • Nov 13
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: NT$8.20 (down from NT$9.57 in 3Q 2021). Revenue: NT$29.8b (up 2.8% from 3Q 2021). Net income: NT$4.21b (down 14% from 3Q 2021). Profit margin: 14% (down from 17% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.5%. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 42% 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 29
Price target decreased to NT$313 Down from NT$356, the current price target is an average from 13 analysts. New target price is 22% above last closing price of NT$256. Stock is down 49% over the past year. The company is forecast to post earnings per share of NT$33.12 for next year compared to NT$33.00 last year. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$234, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Semiconductor industry in Taiwan. Total returns to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$421 per share. Price Target Changed • Oct 07
Price target decreased to NT$363 Down from NT$391, the current price target is an average from 13 analysts. New target price is 40% above last closing price of NT$260. Stock is down 46% over the past year. The company is forecast to post earnings per share of NT$33.96 for next year compared to NT$33.00 last year. Upcoming Dividend • Sep 05
Upcoming dividend of NT$27.00 per share Eligible shareholders must have bought the stock before 12 September 2022. Payment date: 07 October 2022. Payout ratio is on the higher end at 79%, however this is supported by cash flows. Trailing yield: 9.1%. Within top quartile of Taiwanese dividend payers (6.5%). Higher than average of industry peers (3.7%). Reported Earnings • Aug 14
Second quarter 2022 earnings: EPS exceeds analyst expectations Second quarter 2022 results: EPS: NT$9.12 (up from NT$8.43 in 2Q 2021). Revenue: NT$30.5b (up 18% from 2Q 2021). Net income: NT$4.68b (up 8.7% from 2Q 2021). Profit margin: 15% (down from 17% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.1%. Over the next year, revenue is forecast to grow 6.1%, compared to a 20% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jul 30
Price target decreased to NT$430 Down from NT$482, the current price target is an average from 13 analysts. New target price is 26% above last closing price of NT$342. Stock is down 42% over the past year. The company is forecast to post earnings per share of NT$35.66 for next year compared to NT$33.00 last year. Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment improved over the past week After last week's 16% share price gain to NT$372, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 10x in the Semiconductor industry in Taiwan. Total returns to shareholders of 85% over the past three years. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$313, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 9x in the Semiconductor industry in Taiwan. Total returns to shareholders of 56% over the past three years. Reported Earnings • May 14
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: NT$10.15 (up from NT$5.98 in 1Q 2021). Revenue: NT$29.8b (up 28% from 1Q 2021). Net income: NT$5.19b (up 70% from 1Q 2021). Profit margin: 17% (up from 13% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.7%. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 9.1%, compared to a 23% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target decreased to NT$502 Down from NT$562, the current price target is an average from 14 analysts. New target price is 31% above last closing price of NT$383. Stock is down 29% over the past year. The company is forecast to post earnings per share of NT$37.50 for next year compared to NT$33.00 last year. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 4 experienced directors. 6 highly experienced directors. 3 independent directors (7 non-independent directors). Independent Director Fu-Yen Chen was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. 
