Board Change • May 29
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Jim Lai was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • May 19
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: NT$0.02 (down from NT$0.80 in 1Q 2025). Revenue: NT$2.47b (down 17% from 1Q 2025). Net income: NT$4.93m (down 97% from 1Q 2025). Profit margin: 0.2% (down from 5.7% in 1Q 2025). Revenue missed analyst estimates by 4.8%. Earnings per share (EPS) exceeded analyst estimates. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. New Risk • Mar 19
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.8% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 41% per year over the past 5 years. Announcement • Mar 02
FocalTech Systems Co., Ltd., Annual General Meeting, May 26, 2026 FocalTech Systems Co., Ltd., Annual General Meeting, May 26, 2026, at 09:00 Taipei Standard Time. Location: 11- floor no,23, huan k`o 1st rd., jhubei city, hsinchu county Taiwan Reported Earnings • Feb 27
Full year 2025 earnings released: NT$4.64 loss per share (vs NT$2.71 profit in FY 2024) Full year 2025 results: NT$4.64 loss per share (down from NT$2.71 profit in FY 2024). Revenue: NT$12.0b (down 18% from FY 2024). Net loss: NT$990.6m (down 273% from profit in FY 2024). Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 15
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: NT$0.39 (down from NT$0.79 in 3Q 2024). Revenue: NT$3.11b (down 19% from 3Q 2024). Net income: NT$82.2m (down 51% from 3Q 2024). Profit margin: 2.6% (down from 4.4% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) exceeded analyst estimates by 65%. Revenue is expected to decline by 8.1% p.a. on average during the next 2 years, while revenues in the Semiconductor industry in Taiwan are expected to grow by 16%. Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 01
Upcoming dividend of NT$1.74 per share Eligible shareholders must have bought the stock before 08 September 2025. Payment date: 30 September 2025. Payout ratio is a comfortable 61% but the company is paying out more than the cash it is generating. Trailing yield: 2.5%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (2.1%). Reported Earnings • Aug 17
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: NT$0.36 (down from NT$0.51 in 2Q 2024). Revenue: NT$3.05b (up 2.5% from 2Q 2024). Net income: NT$76.8m (down 30% from 2Q 2024). Profit margin: 2.5% (down from 3.7% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) also missed analyst estimates by 41%. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • May 15
First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2025 results: EPS: NT$0.80 (up from NT$0.54 in 1Q 2024). Revenue: NT$2.99b (down 16% from 1Q 2024). Net income: NT$171.3m (up 51% from 1Q 2024). Profit margin: 5.7% (up from 3.2% in 1Q 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 18%. Earnings per share (EPS) exceeded analyst estimates by 163%. Revenue is forecast to grow 9.4% 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 fallen by 40% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Major Estimate Revision • May 13
Consensus revenue estimates decrease by 14%, EPS upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from NT$15.2b to NT$13.1b. EPS estimate increased from NT$2.94 to NT$3.69 per share. Net income forecast to grow 36% next year vs 19% growth forecast for Semiconductor industry in Taiwan. Consensus price target of NT$94.00 unchanged from last update. Share price rose 5.5% to NT$65.40 over the past week. Board Change • May 07
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Jim Lai was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • May 01
FocalTech Systems Co., Ltd. to Report Q1, 2025 Results on May 09, 2025 FocalTech Systems Co., Ltd. announced that they will report Q1, 2025 results on May 09, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$57.00, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total loss to shareholders of 46% over the past three years. Announcement • Mar 26
FocalTech Systems Co., Ltd. Announces Executive Changes FocalTech Systems Co., Ltd. announced new accounting officer. Name, title, and resume of the previous position holder: PEI-CHUN CHEN, Manager. Name, title, and resume of the new position holder: HUI-LING WANG, Manager. Reason for the change: new replacement. Effective date: 25 March 2025. New accounting officer will be ratified by the resolution of the board of directors on May 9, 2025. New Risk • Mar 13
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.3% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.5% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. New Risk • Mar 09
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.5% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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. This is currently the only risk that has been identified for the company. Major Estimate Revision • Feb 27
Consensus EPS estimates increase by 15% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from NT$2.55 to NT$2.94. Revenue forecast steady at NT$15.2b. Net income forecast to grow 31% next year vs 27% growth forecast for Semiconductor industry in Taiwan. Consensus price target of NT$94.00 unchanged from last update. Share price rose 3.6% to NT$80.40 over the past week. Announcement • Feb 24
FocalTech Systems Co., Ltd., Annual General Meeting, May 26, 2025 FocalTech Systems Co., Ltd., Annual General Meeting, May 26, 2025, at 09:00 Taipei Standard Time. Location: 11- floor no,23, huan k`o 1st rd., jhubei city, hsinchu county Taiwan Announcement • Feb 22
Focaltech Systems Co., Ltd. Proposes Dividend Distribution for the Period January 1, 2024 to December 31, 2024 The Board of Directors of FocalTech Systems Co., Ltd. proposed dividend distribution. Date of the board of directors resolution: 21 February 2025 .Year or quarter which dividends belong to:2024 .Period which dividends belong to: 1 January 2024- 31 December 2024 .Appropriations of earnings in cash dividends to shareholders: TWD 1.72 . Total amount of cash distributed to shareholders: TWD 378,000,000. Announcement • Feb 14
FocalTech Systems Co., Ltd. to Report Q4, 2024 Results on Feb 21, 2025 FocalTech Systems Co., Ltd. announced that they will report Q4, 2024 results on Feb 21, 2025 Reported Earnings • Nov 17
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: EPS: NT$0.79 (up from NT$0.61 in 3Q 2023). Revenue: NT$3.81b (up 6.0% from 3Q 2023). Net income: NT$168.1m (up 32% from 3Q 2023). Profit margin: 4.4% (up from 3.5% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.4%. Earnings per share (EPS) missed analyst estimates by 6.0%. Revenue is forecast to grow 6.6% 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, the company's share price growth rate has exceeded its earnings growth rate by 61 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 17
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: NT$0.51 (up from NT$0.51 in 2Q 2023). Revenue: NT$2.98b (down 4.3% from 2Q 2023). Net income: NT$109.0m (up 3.7% from 2Q 2023). Profit margin: 3.7% (up from 3.4% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 7.2%. Earnings per share (EPS) also missed analyst estimates by 12%. Revenue is forecast to grow 4.3% 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, the company's share price growth rate has exceeded its earnings growth rate by 57 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Aug 07
Now 31% overvalued Over the last 90 days, the stock has fallen 7.2% to NT$77.00. The fair value is estimated to be NT$58.98, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 16% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 0.5% in a year. Earnings are forecast to grow by 27% in the next year. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$70.20, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 19x in the Semiconductor industry in Taiwan. Total loss to shareholders of 65% over the past three years. Announcement • Aug 02
FocalTech Systems Co., Ltd. to Report Q2, 2024 Results on Aug 09, 2024 FocalTech Systems Co., Ltd. announced that they will report Q2, 2024 results on Aug 09, 2024 Upcoming Dividend • Jul 05
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 11 July 2024. Payment date: 08 August 2024. Payout ratio is a comfortable 49% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (2.0%). Declared Dividend • Jun 15
Dividend increased to NT$1.00 Dividend of NT$1.00 is 99% higher than last year. Ex-date: 11th July 2024 Payment date: 8th August 2024 Dividend yield will be 1.1%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is well covered by both earnings (49% earnings payout ratio) and cash flows (11% cash payout ratio). The dividend has increased by an average of 5.2% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 6.8% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 18
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: NT$0.54 (up from NT$0.25 in 1Q 2023). Revenue: NT$3.56b (up 10% from 1Q 2023). Net income: NT$113.8m (up 120% from 1Q 2023). Profit margin: 3.2% (up from 1.6% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.7%. Earnings per share (EPS) also missed analyst estimates by 5.3%. Revenue is forecast to grow 2.8% 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, the company's share price growth rate has exceeded its earnings growth rate by 53 percentage points per year, which is a significant difference in performance. Announcement • May 03
FocalTech Systems Co., Ltd. to Report Q1, 2024 Results on May 10, 2024 FocalTech Systems Co., Ltd. announced that they will report Q1, 2024 results on May 10, 2024 Buy Or Sell Opportunity • Apr 12
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to NT$89.30. The fair value is estimated to be NT$112, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 7.7% in 2 years. Earnings are forecast to grow by 40% in the next 2 years. Announcement • Mar 22
Elan Microelectronics Corp. Files Patent Infringement Lawsuit Against FocalTech Systems Co., Ltd Elan Microelectronics Corp. filed a patent infringement lawsuit against FocalTech Systems Co., Ltd. Parties to the legal matter: Plaintiff: Elan Microelectronics Corp. Defendant: FocalTech Systems Co., Ltd. Name of the court or punishing agency of the legal matter: Intellectual Property and Commercial Court. Reference/Case number of relevant documents of the legal matter: The court is dividing the case. Date of occurrence of the event: March 20, 2024. Details of occurrence (including the matter under dispute): Elan has filed a patent infringement complaint with the Intellectual Property and Commercial Court today (20th). Elan found that the laptops on the market were equipped with touch IC manufactured and sold by FocalTech Systems Co.,Ltd. (hereinafter referred to as: FocalTech). Depending on the outside patent attorney’s opinion, the aforementioned touch IC has been found that it falls within the claim scope of Taiwan invention patent No. I662460 owned by Elan, and therefore infringes Elan’s patent rights. The accused touch IC is used in the touchpad module of a single model for gaming laptops. However, in order to properly enforce Elan’s intellectual property rights to prevent plagiarism from the competitors and maintain the long-term competitive advantage of Elan’s products, Elan decided to file this lawsuit. Elan not only requested the court to exclude and stop all patent infringements caused by FocalTech but also requested damages so as to maintain the rights and interests of shareholders. Handling procedure: The case is currently in the court proceedings. Countermeasures and improvement status: The company makes announcements in accordance with relevant regulations regarding the disclosure of major information. Major Estimate Revision • Mar 13
Consensus EPS estimates increase by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$13.8b to NT$14.4b. EPS estimate increased from NT$1.97 to NT$2.39 per share. Net income forecast to grow 37% next year vs 24% growth forecast for Semiconductor industry in Taiwan. Consensus price target of NT$111 unchanged from last update. Share price fell 5.0% to NT$91.80 over the past week. Reported Earnings • Feb 28
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: NT$1.74 (up from NT$9.39 loss in FY 2022). Revenue: NT$13.6b (up 4.8% from FY 2022). Net income: NT$361.9m (up NT$2.27b from FY 2022). Profit margin: 2.7% (up from net loss in FY 2022). The move to profitability was primarily driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.4%. Revenue is forecast to grow 3.5% 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, the company's share price growth rate has exceeded its earnings growth rate by 64 percentage points per year, which is a significant difference in performance. Announcement • Feb 24
FocalTech Systems Co., Ltd., Annual General Meeting, Jun 07, 2024 FocalTech Systems Co., Ltd., Annual General Meeting, Jun 07, 2024. Location: 11F-1, No. 23, Huanke 1st Rd., Zhubei City, Hsinchu County 302047 Zhubei Taiwan Agenda: To consider 2023 operating result report; to consider Audit Committee review report; to report 2023 Employees and Directors Compensation Distributions; to adopt 2023 operating result report and financial statements; to adopt the proposal for distribution of 2023 profits; and to consider other matters. New Risk • Feb 09
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 7.1% 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 Risk Share price has been highly volatile over the past 3 months (7.1% average weekly change). Minor Risk Large one-off items impacting financial results. New Risk • Dec 06
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 24% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$101, the stock trades at a forward P/E ratio of 52x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 116% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$92.87 per share. New Risk • Nov 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 5.6% 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. This is currently the only risk that has been identified for the company. Price Target Changed • Nov 13
Price target increased by 31% to NT$94.00 Up from NT$72.00, the current price target is provided by 1 analyst. New target price is 7.6% above last closing price of NT$87.40. Stock is up 29% over the past year. The company is forecast to post earnings per share of NT$1.75 next year compared to a net loss per share of NT$9.39 last year. Reported Earnings • Aug 17
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: EPS: NT$0.51 (up from NT$0.44 in 2Q 2022). Revenue: NT$3.11b (down 6.5% from 2Q 2022). Net income: NT$105.1m (up 17% from 2Q 2022). Profit margin: 3.4% (up from 2.7% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) exceeded analyst estimates by 32%. Revenue is forecast to grow 5.5% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 26
Upcoming dividend of NT$0.50 per share at 0.6% yield Eligible shareholders must have bought the stock before 03 July 2023. Payment date: 28 July 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 0.6%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (3.2%). Board Change • Jun 14
High number of new directors Independent Director Jim Lai was the last director to join the board, commencing their role in 2023. Announcement • May 31
FocalTech Systems Co., Ltd. Approves Board Appointments FocalTech Systems Co., Ltd. announced that at its Annual Shareholders' Meeting held on May 30, 2023, elected Hsing-Chien Tuan, Jim Lai as independent directors. Reported Earnings • Mar 01
Full year 2022 earnings: EPS in line with analyst expectations despite revenue beat Full year 2022 results: NT$9.39 loss per share (down from NT$30.23 profit in FY 2021). Revenue: NT$12.9b (down 41% from FY 2021). Net loss: NT$1.91b (down 131% from profit in FY 2021). Revenue exceeded analyst estimates by 3.5%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is expected to decline by 2.8% p.a. on average during the next 2 years, while revenues in the Semiconductor industry in Taiwan are expected to grow by 8.2%. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target decreased to NT$75.00 Down from NT$105, the current price target is an average from 2 analysts. New target price is 8.7% above last closing price of NT$69.00. Stock is down 60% over the past year. The company is forecast to post earnings per share of NT$7.93 for next year compared to NT$30.23 last year. Reported Earnings • Nov 16
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: NT$13.57 loss per share (down from NT$9.02 profit in 3Q 2021). Revenue: NT$2.37b (down 62% from 3Q 2021). Net loss: NT$2.76b (down 251% from profit in 3Q 2021). Revenue missed analyst estimates by 36%. Earnings per share (EPS) were also behind analyst expectations. Revenue is expected to decline by 13% p.a. on average during the next 3 years, while revenues in the Semiconductor industry in Taiwan are expected to grow by 9.8%. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment improved over the past week After last week's 23% share price gain to NT$74.00, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 10x in the Semiconductor industry in Taiwan. Total returns to shareholders of 212% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$64.19 per share. Reported Earnings • Aug 16
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: NT$0.44 (down from NT$10.43 in 2Q 2021). Revenue: NT$3.33b (down 42% from 2Q 2021). Net income: NT$89.6m (down 96% from 2Q 2021). Profit margin: 2.7% (down from 37% in 2Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.4%. Earnings per share (EPS) also missed analyst estimates by 68%. Over the next year, revenue is expected to shrink by 32% compared to a 20% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 112% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 02
Consensus revenue estimates fall by 11% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from NT$16.4b to NT$14.5b. EPS estimate fell from NT$11.43 to NT$9.70 per share. Net income forecast to shrink 71% next year vs 7.9% growth forecast for Semiconductor industry in Taiwan . Consensus price target of NT$105 unchanged from last update. Share price fell 31% to NT$66.60 over the past week. Buying Opportunity • Jul 28
Now 31% undervalued after recent price drop Over the last 90 days, the stock is down 34%. The fair value is estimated to be NT$111, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 25% in a year. Earnings is forecast to decline by 61% in the next year. Upcoming Dividend • Jul 21
Upcoming dividend of NT$15.84 per share Eligible shareholders must have bought the stock before 28 July 2022. Payment date: 24 August 2022. Payout ratio is a comfortable 53% and this is well supported by cash flows. Trailing yield: 15%. Within top quartile of Taiwanese dividend payers (6.7%). Higher than average of industry peers (3.7%). Buying Opportunity • Jul 12
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 33%. The fair value is estimated to be NT$112, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 25% in a year. Earnings is forecast to decline by 61% in the next year. Buying Opportunity • Jun 22
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 40%. The fair value is estimated to be NT$115, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 25% in a year. Earnings is forecast to decline by 61% in the next year. Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment deteriorated over the past week After last week's 19% share price decline to NT$93.60, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 10x in the Semiconductor industry in Taiwan. Total returns to shareholders of 224% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$115 per share. Announcement • Jun 07
FocalTech Systems Co., Ltd. Appoints Peichun Chen as Accounting Officer FocalTech Systems Co., Ltd. announced the resume of the new position holder: PEICHUN CHEN, as accounting officer of the company with effect from June 6, 2022. Announcement • May 10
FocalTech Systems Co., Ltd. Announces Change of Accounting Officer FocalTech Systems Co., Ltd. announced that the change of accounting officer. Name, title, and resume of the previous position holder: CHINGTING CHIU, Manager. Effective date of change is May 09, 2022. Reported Earnings • May 07
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: NT$3.57 (down from NT$4.24 in 1Q 2021). Revenue: NT$3.89b (down 11% from 1Q 2021). Net income: NT$729.3m (down 14% from 1Q 2021). Profit margin: 19% (in line with 1Q 2021). Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 28%. Over the next year, revenue is expected to shrink by 25% compared to a 24% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 125% per year but the company’s share price has only increased by 52% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Apr 28
Consensus revenue estimates fall by 20% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from NT$20.6b to NT$16.4b. EPS estimate fell from NT$21.73 to NT$11.43 per share. Net income forecast to shrink 60% next year vs 25% growth forecast for Semiconductor industry in Taiwan . Consensus price target down from NT$162 to NT$105. Share price fell 8.0% to NT$116 over the past week. Price Target Changed • Apr 27
Price target decreased to NT$162 Down from NT$269, the current price target is an average from 3 analysts. New target price is 39% above last closing price of NT$116. Stock is down 42% over the past year. The company is forecast to post earnings per share of NT$21.73 for next year compared to NT$30.23 last year. Announcement • Apr 26
Focaltech Systems Co., Ltd. Proposes Cash Dividends for the Period of 1st January, 2021 to 31st January 2021 FocalTech Systems Co., Ltd. proposed cash dividends to shareholders of TWD 15.71 per share. Period which dividends belong to is 1st January, 2021 to 31 January 2021. Major Estimate Revision • Mar 03
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from NT$22.8b to NT$20.6b. EPS estimate also fell from NT$24.86 per share to NT$21.73 per share. Net income forecast to shrink 23% next year vs 30% growth forecast for Semiconductor industry in Taiwan . Consensus price target of NT$162 unchanged from last update. Share price was steady at NT$157 over the past week. Reported Earnings • Mar 01
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: NT$30.23. Revenue: NT$22.0b (up 59% from FY 2020). Net income: NT$6.11b (up NT$5.10b from FY 2020). Profit margin: 28% (up from 7.3% in FY 2020). 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. Over the next year, revenue is expected to shrink by 6.4% compared to a 24% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 133% per year but the company’s share price has only increased by 69% per year, which means it is significantly lagging earnings growth. Announcement • Feb 25
FocalTech Systems Co., Ltd., Annual General Meeting, Jun 09, 2022 FocalTech Systems Co., Ltd., Annual General Meeting, Jun 09, 2022. Location: Darwin, 2F, No.1, Gongye E. 2nd Rd Hsin Chu City Taiwan Agenda: To consider the report of 2021 Employees and Directors Compensation Distributions; to adopt 2021 operating result report and financial statements; to adopt the proposal for distribution of 2021 profit; to consider by-election for one director; to release the prohibition on Director from participation in competitive business; to adopt 2021 operating result report and financial statements; to adopt the proposal for distribution of 2021 profit; to consider the amendment to the ”articles of incorporation"; and to consider the other matters. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$9.02 (vs NT$1.32 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$6.27b (up 64% from 3Q 2020). Net income: NT$1.83b (up NT$1.56b from 3Q 2020). Profit margin: 29% (up from 7.2% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 119% per year but the company’s share price has only increased by 64% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$140, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 14x in the Semiconductor industry in Taiwan. Total returns to shareholders of 372% over the past three years. Upcoming Dividend • Sep 08
Upcoming dividend of NT$3.23 per share Eligible shareholders must have bought the stock before 15 September 2021. Payment date: 14 October 2021. Trailing yield: 1.9%. Lower than top quartile of Taiwanese dividend payers (5.2%). In line with average of industry peers (2.1%). Executive Departure • Sep 04
Director James Liao has left the company On the 1st of September, James Liao's tenure as Director ended after 6.2 years in the role. We don't have any record of a personal shareholding under James' name. James is the only executive to leave the company over the last 12 months. The current median tenure of the management team is less than a year, which is considered inexperienced in the Simply Wall St Risk Model. Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS NT$10.43 (vs NT$0.54 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$5.77b (up 109% from 2Q 2020). Net income: NT$2.11b (up NT$2.00b from 2Q 2020). Profit margin: 37% (up from 3.9% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 86% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$224, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 15x in the Semiconductor industry in Taiwan. Total returns to shareholders of 629% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$337 per share. Major Estimate Revision • Aug 04
Consensus EPS estimates increase to NT$34.40 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from NT$22.7b to NT$23.3b. EPS estimate increased from NT$30.79 to NT$34.40 per share. Net income forecast to grow 289% next year vs 35% growth forecast for Semiconductor industry in Taiwan. Consensus price target up from NT$181 to NT$213. Share price rose 5.0% to NT$274 over the past week. Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment improved over the past week After last week's 20% share price gain to NT$271, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 743% over the past three years. Major Estimate Revision • Jun 26
Consensus revenue estimates increase to NT$22.7b The consensus outlook for revenues in 2021 has improved. 2021 revenue forecast increased from NT$19.8b to NT$22.7b. EPS estimate increased from NT$18.48 to NT$30.79 per share. Net income forecast to grow 227% next year vs 33% growth forecast for Semiconductor industry in Taiwan. Consensus price target of NT$181 unchanged from last update. Share price was steady at NT$220 over the past week. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment improved over the past week After last week's 17% share price gain to NT$233, 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 600% over the past three years. Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$4.24 (vs NT$0.34 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$4.35b (up 50% from 1Q 2020). Net income: NT$845.7m (up NT$779.6m from 1Q 2020). Profit margin: 19% (up from 2.3% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 63% per year and the company’s share price has also increased by 63% per year. Valuation Update With 7 Day Price Move • May 11
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$163, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 17x in the Semiconductor industry in Taiwan. Total returns to shareholders of 408% over the past three years. Major Estimate Revision • May 05
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from NT$16.3b to NT$20.0b. EPS estimate unchanged from NT$8.23 at last update. Semiconductor industry in Taiwan expected to see average net income growth of 34% next year. Consensus price target up from NT$106 to NT$141. Share price fell 14% to NT$173 over the past week. Announcement • Apr 20
FocalTech Systems Co., Ltd. announced that it expects to receive TWD 1.499999912 billion in funding from Acer Incorporated FocalTech Systems Co., Ltd. (TSEC:3545) announced a private placement of 7,537,688 common shares at a price of TWD 199 per share for gross proceeds of TWD 1,499,999,912 on April 19, 2021. The transaction will include participation from Acer Incorporated (TSEC:2353). The transaction as been approved at the board of director meeting of the investor. Reported Earnings • Mar 31
Full year 2020 earnings released: EPS NT$3.97 (vs NT$0.91 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$13.8b (up 51% from FY 2019). Net income: NT$1.01b (up NT$1.19b from FY 2019). Profit margin: 7.3% (up from net loss in FY 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has increased by 58% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment improved over the past week After last week's 21% share price gain to NT$184, 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 367% over the past three years. Valuation Update With 7 Day Price Move • Mar 12
Investor sentiment improved over the past week After last week's 24% share price gain to NT$123, the stock is trading at a trailing P/E ratio of 46.9x, up from the previous P/E ratio of 37.9x. This compares to an average P/E of 26x in the Semiconductor industry in Taiwan. Total returns to shareholders over the past three years are 228%. Is New 90 Day High Low • Feb 23
New 90-day high: NT$113 The company is up 90% from its price of NT$59.10 on 25 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 32% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$7.48 per share. Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment improved over the past week After last week's 23% share price gain to NT$109, the stock is trading at a trailing P/E ratio of 41.6x, up from the previous P/E ratio of 33.7x. This compares to an average P/E of 29x in the Semiconductor industry in Taiwan. Total returns to shareholders over the past three years are 215%. Announcement • Feb 05
FocalTech Systems Co., Ltd., Annual General Meeting, Jun 24, 2021 FocalTech Systems Co., Ltd., Annual General Meeting, Jun 24, 2021. Location: Room203 of the Allied Association for Science Parks Industries Address:No. 2, Prosperity Rd. 1, Hsinchu Science Park Hsin Chu City Taiwan Agenda: To consider 2020 operating result report; to consider audit committee review report; to consider report of 2020 Employees and Directors Compensation Distributions; to adopt 2020 operating result report and financial statements; to adopt the proposal for distribution of 2020 profit; to approve Amendment to the Articles of Incorporation; and to consider other matters. Valuation Update With 7 Day Price Move • Jan 29
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$84.00, the stock is trading at a trailing P/E ratio of 32.1x, down from the previous P/E ratio of 38.5x. This compares to an average P/E of 26x in the Semiconductor industry in Taiwan. Total returns to shareholders over the past three years are 122%. Is New 90 Day High Low • Jan 14
New 90-day high: NT$106 The company is up 122% from its price of NT$47.85 on 14 October 2020. The Taiwanese market is up 22% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 34% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$7.34 per share. Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment improved over the past week After last week's 15% share price gain to NT$106, the stock is trading at a trailing P/E ratio of 40.5x, up from the previous P/E ratio of 35.1x. This compares to an average P/E of 26x in the Semiconductor industry in Taiwan. Total returns to shareholders over the past three years are 178%. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improved over the past week After last week's 24% share price gain to NT$85.00, the stock is trading at a trailing P/E ratio of 32.4x, up from the previous P/E ratio of 26.1x. 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 125%. Valuation Update With 7 Day Price Move • Dec 21
Investor sentiment improved over the past week After last week's 18% share price gain to NT$80.80, the stock is trading at a trailing P/E ratio of 30.8x, up from the previous P/E ratio of 26.1x. 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 109%.