Valuation Update With 7 Day Price Move • May 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$240, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 28x in the Semiconductor industry in Taiwan. Total returns to shareholders of 197% over the past three years. Reported Earnings • Mar 12
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: NT$7.48 (down from NT$9.09 in FY 2024). Revenue: NT$74.9b (up 2.2% from FY 2024). Net income: NT$5.54b (down 19% from FY 2024). Profit margin: 7.4% (down from 9.3% in FY 2024). 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%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 33% per year, which means it is well ahead of earnings. Announcement • Mar 12
Powertech Technology Inc., Annual General Meeting, May 27, 2026 Powertech Technology Inc., Annual General Meeting, May 27, 2026, at 09:00 Taipei Standard Time. Location: no,15, ta t`ung rd., hukou township, hsinchu county Taiwan New Risk • Mar 12
New major risk - Revenue and earnings growth Earnings have declined by 4.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 100% Paying a dividend despite having no free cash flows. Earnings have declined by 4.4% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.8% average weekly change). Profit margins are more than 30% lower than last year (7.4% net profit margin). Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$217, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 24x in the Semiconductor industry in Taiwan. Total returns to shareholders of 180% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$192 per share. Buy Or Sell Opportunity • Jan 27
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 45% to NT$264. The fair value is estimated to be NT$217, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 5.7% over the last 3 years. Earnings per share has declined by 11%. Revenue is forecast to grow by 37% in 2 years. Earnings are forecast to grow by 107% in the next 2 years. Price Target Changed • Jan 19
Price target increased by 8.8% to NT$187 Up from NT$172, the current price target is an average from 8 analysts. New target price is 29% below last closing price of NT$262. Stock is up 125% over the past year. The company is forecast to post earnings per share of NT$7.34 for next year compared to NT$9.09 last year. Valuation Update With 7 Day Price Move • Jan 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$204, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 22x in the Semiconductor industry in Taiwan. Total returns to shareholders of 193% over the past three years. Reported Earnings • Nov 08
Third quarter 2025 earnings: EPS misses analyst expectations Third quarter 2025 results: EPS: NT$2.08 (down from NT$2.28 in 3Q 2024). Revenue: NT$20.0b (up 9.1% from 3Q 2024). Net income: NT$1.54b (down 9.6% from 3Q 2024). Profit margin: 7.7% (down from 9.3% in 3Q 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 7.6%. 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 11% per year but the company’s share price has increased by 29% per year, which means it is well ahead of earnings. Price Target Changed • Oct 29
Price target increased by 23% to NT$166 Up from NT$135, the current price target is an average from 8 analysts. New target price is 9.0% below last closing price of NT$182. Stock is up 44% over the past year. The company is forecast to post earnings per share of NT$7.58 for next year compared to NT$9.09 last year. New Risk • Oct 28
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 7.0% 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 Dividend is not well covered by earnings (97% payout ratio). Share price has been volatile over the past 3 months (7.0% average weekly change). Profit margins are more than 30% lower than last year (7.8% net profit margin). Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$177, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 25x in the Semiconductor industry in Taiwan. Total returns to shareholders of 181% over the past three years. Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$142, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 21x in the Semiconductor industry in Taiwan. Total returns to shareholders of 104% over the past three years. Reported Earnings • Aug 09
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: NT$1.30 (down from NT$2.45 in 2Q 2024). Revenue: NT$18.1b (down 7.8% from 2Q 2024). Net income: NT$959.6m (down 48% from 2Q 2024). Profit margin: 5.3% (down from 9.3% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 9.6% 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 11% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Price Target Changed • Jul 31
Price target increased by 8.2% to NT$135 Up from NT$124, the current price target is an average from 8 analysts. New target price is 6.8% above last closing price of NT$126. Stock is down 18% over the past year. The company is forecast to post earnings per share of NT$7.87 for next year compared to NT$9.09 last year. Major Estimate Revision • Jul 30
Consensus revenue estimates increase by 11% The consensus outlook for revenues in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$67.6b to NT$75.3b. EPS estimate increased from NT$7.73 to NT$8.53 per share. Net income forecast to grow 0.2% next year vs 12% growth forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$129. Share price was steady at NT$139 over the past week. Upcoming Dividend • Jul 24
Upcoming dividend of NT$7.00 per share Eligible shareholders must have bought the stock before 31 July 2025. Payment date: 05 September 2025. Payout ratio is on the higher end at 84%, however this is supported by cash flows. Trailing yield: 5.1%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (2.1%). Declared Dividend • Jun 30
Dividend of NT$7.00 announced Dividend of NT$7.00 is the same as last year. Ex-date: 31st July 2025 Payment date: 5th September 2025 Dividend yield will be 5.3%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (84% earnings payout ratio) and cash flows (74% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 75% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Jun 19
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from NT$8.92 to NT$7.73. Revenue forecast unchanged from NT$67.6b at last update. Net income forecast to grow 1.6% next year vs 17% growth forecast for Semiconductor industry in Taiwan. Consensus price target of NT$128 unchanged from last update. Share price was steady at NT$130 over the past week. Reported Earnings • May 11
First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2025 results: EPS: NT$1.58 (down from NT$2.32 in 1Q 2024). Revenue: NT$15.5b (down 16% from 1Q 2024). Net income: NT$1.18b (down 32% from 1Q 2024). Profit margin: 7.6% (down from 9.5% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 9.1%. Earnings per share (EPS) exceeded analyst estimates by 17%. Revenue is forecast to grow 7.8% 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 8% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Major Estimate Revision • Apr 30
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$76.4b to NT$74.6b. EPS estimate also fell from NT$10.28 per share to NT$8.78 per share. Net income forecast to shrink 9.5% next year vs 22% growth forecast for Semiconductor industry in Taiwan . Consensus price target broadly unchanged at NT$130. Share price fell 7.3% to NT$108 over the past week. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$106, 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 37% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$149 per share. Buy Or Sell Opportunity • Apr 07
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.5% to NT$115. The fair value is estimated to be NT$151, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.1% over the last 3 years. Earnings per share has declined by 5.4%. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 42% in the next 2 years. Buy Or Sell Opportunity • Mar 19
Now 20% undervalued Over the last 90 days, the stock has risen 6.2% to NT$129. The fair value is estimated to be NT$161, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.1% over the last 3 years. Earnings per share has declined by 5.4%. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 42% in the next 2 years. Announcement • Feb 24
Powertech Technology Inc., Annual General Meeting, May 28, 2025 Powertech Technology Inc., Annual General Meeting, May 28, 2025. Location: no,15, ta t`ung rd., hukou township, hsinchu county Taiwan Reported Earnings • Feb 24
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: NT$9.09 (down from NT$10.72 in FY 2023). Revenue: NT$73.3b (up 4.1% from FY 2023). Net income: NT$6.79b (down 15% from FY 2023). Profit margin: 9.3% (down from 11% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.3%. Revenue is forecast to grow 8.1% 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 5% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • Feb 14
Powertech Technology Inc. to Report Fiscal Year 2024 Results on Feb 21, 2025 Powertech Technology Inc. announced that they will report fiscal year 2024 results on Feb 21, 2025 Announcement • Jan 17
Powertech Technology Inc. SHS to Be Deleted from OTC Equity Powertech Technology Inc. SHS (Taiwan) will be deleted from OTC Equity effective January 16, 2025, due to Inactive Security. Buy Or Sell Opportunity • Jan 14
Now 21% overvalued Over the last 90 days, the stock has fallen 12% to NT$117. The fair value is estimated to be NT$97.06, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 6.3% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Price Target Changed • Jan 01
Price target decreased by 8.5% to NT$135 Down from NT$148, the current price target is an average from 8 analysts. New target price is 11% above last closing price of NT$122. Stock is down 10.0% over the past year. The company is forecast to post earnings per share of NT$9.00 for next year compared to NT$10.72 last year. Reported Earnings • Nov 09
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: NT$2.28 (up from NT$2.11 in 3Q 2023). Revenue: NT$18.3b (flat on 3Q 2023). Net income: NT$1.70b (up 8.1% from 3Q 2023). Profit margin: 9.3% (up from 8.5% in 3Q 2023). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 6.6%. Revenue is forecast to grow 9.1% 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 2% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Price Target Changed • Nov 05
Price target decreased by 7.6% to NT$140 Down from NT$151, the current price target is an average from 8 analysts. New target price is 12% above last closing price of NT$125. Stock is up 16% over the past year. The company is forecast to post earnings per share of NT$9.00 for next year compared to NT$10.72 last year. Reported Earnings • Aug 10
Second quarter 2024 earnings: EPS exceeds analyst expectations Second quarter 2024 results: EPS: NT$2.45 (up from NT$1.80 in 2Q 2023). Revenue: NT$19.6b (up 14% from 2Q 2023). Net income: NT$1.83b (up 36% from 2Q 2023). Profit margin: 9.3% (up from 7.8% in 2Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.1%. Revenue is forecast to grow 10% 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 2% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Price Target Changed • Aug 05
Price target decreased by 7.5% to NT$162 Down from NT$175, the current price target is an average from 8 analysts. New target price is 14% above last closing price of NT$143. Stock is up 49% over the past year. The company is forecast to post earnings per share of NT$9.94 for next year compared to NT$10.72 last year. Buy Or Sell Opportunity • Aug 01
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.7% to NT$154. The fair value is estimated to be NT$194, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.0% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 21% in the next 2 years. Upcoming Dividend • Jul 25
Upcoming dividend of NT$7.00 per share Eligible shareholders must have bought the stock before 01 August 2024. Payment date: 05 September 2024. Payout ratio is a comfortable 61% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Taiwanese dividend payers (4.3%). Higher than average of industry peers (2.0%). Declared Dividend • Jul 01
Dividend of NT$7.00 announced Shareholders will receive a dividend of NT$7.00. Ex-date: 1st August 2024 Payment date: 5th September 2024 Dividend yield will be 3.7%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (61% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 45% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 14
First quarter 2024 earnings: Revenues and EPS in line with analyst expectations First quarter 2024 results: EPS: NT$2.32 (up from NT$1.51 in 1Q 2023). Revenue: NT$18.3b (up 16% from 1Q 2023). Net income: NT$1.74b (up 54% from 1Q 2023). Profit margin: 9.5% (up from 7.2% in 1Q 2023). 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 15% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Price Target Changed • May 02
Price target increased by 8.4% to NT$162 Up from NT$150, the current price target is an average from 9 analysts. New target price is 5.1% below last closing price of NT$171. Stock is up 82% over the past year. The company is forecast to post earnings per share of NT$10.27 for next year compared to NT$10.72 last year. Major Estimate Revision • May 01
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from NT$11.86 to NT$10.27 per share. Revenue forecast steady at NT$80.6b. Net income forecast to shrink 8.3% next year vs 30% growth forecast for Semiconductor industry in Taiwan . Consensus price target up from NT$150 to NT$155. Share price was steady at NT$175 over the past week. Major Estimate Revision • Apr 24
Consensus EPS estimates increase by 20% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from NT$9.90 to NT$11.86. Revenue forecast steady at NT$81.1b. Net income forecast to shrink 7.7% next year vs 26% growth forecast for Semiconductor industry in Taiwan . Consensus price target broadly unchanged at NT$150. Share price fell 5.5% to NT$172 over the past week. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$196, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 21x in the Semiconductor industry in Taiwan. Total returns to shareholders of 126% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$174 per share. Reported Earnings • Mar 10
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: NT$10.72 (down from NT$11.60 in FY 2022). Revenue: NT$70.4b (down 16% from FY 2022). Net income: NT$8.01b (down 7.8% from FY 2022). Profit margin: 11% (up from 10% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.1%. Revenue is forecast to grow 13% 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 remained flat but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Announcement • Mar 09
Powertech Technology Inc., Annual General Meeting, May 30, 2024 Powertech Technology Inc., Annual General Meeting, May 30, 2024. Location: Plant 3D, No.15, Datong Rd., Hukou Township, Hsinchu County Taiwan Agenda: To consider Report of Business for year 2023; to consider Audit Committee's review report; to consider Report of the Distribution Plan of compensation for directors of the Board and employees for year 2023; to consider Report of implementation status for the resolution of 2023 Annual General Shareholders’ Meeting for the issuance of new common shares for cash to sponsor the issuance of the overseas depositary shares and/or issuance of new common shares for cash in public offering and/or issuance of new common shares for cash in private placement and/or issuance of overseas or domestic convertible bonds in private placement and/or issuance of overseas or domestic convertible bonds; to consider Report the amendments to the ”Rules of Procedure for Board of Directors Meetings"; and to consider other matters. New Risk • Feb 15
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 5.4% 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 Dividend is not well covered by earnings (97% payout ratio). Share price has been volatile over the past 3 months (5.4% average weekly change). Profit margins are more than 30% lower than last year (7.7% net profit margin). Price Target Changed • Jan 31
Price target increased by 8.7% to NT$145 Up from NT$133, the current price target is an average from 9 analysts. New target price is approximately in line with last closing price of NT$146. Stock is up 68% over the past year. The company is forecast to post earnings per share of NT$10.60 for next year compared to NT$11.60 last year. Price Target Changed • Dec 15
Price target increased by 13% to NT$130 Up from NT$115, the current price target is an average from 9 analysts. New target price is 15% below last closing price of NT$153. Stock is up 86% over the past year. The company is forecast to post earnings per share of NT$10.22 for next year compared to NT$11.60 last year. Reported Earnings • Nov 02
Third quarter 2023 earnings: Revenues and EPS in line with analyst expectations Third quarter 2023 results: EPS: NT$2.10 (down from NT$3.20 in 3Q 2022). Revenue: NT$18.4b (down 14% from 3Q 2022). Net income: NT$1.57b (down 34% from 3Q 2022). Profit margin: 8.5% (down from 11% 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 12% 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 1% per year but the company’s share price has increased by 8% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Oct 25
Consensus EPS estimates increase by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from NT$7.77 to NT$8.67. Revenue forecast steady at NT$70.5b. Net income forecast to grow 12% next year vs 6.0% growth forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$115. Share price fell 2.8% to NT$106 over the past week. Reported Earnings • Aug 07
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: NT$1.80 (down from NT$3.67 in 2Q 2022). Revenue: NT$17.2b (down 26% from 2Q 2022). Net income: NT$1.34b (down 51% from 2Q 2022). Profit margin: 7.8% (down from 12% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$93.70, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 17% over the past three years. Price Target Changed • Jul 26
Price target increased by 8.2% to NT$106 Up from NT$98.27, the current price target is an average from 10 analysts. New target price is approximately in line with last closing price of NT$110. Stock is up 22% over the past year. The company is forecast to post earnings per share of NT$8.04 for next year compared to NT$11.60 last year. Upcoming Dividend • Jul 25
Upcoming dividend of NT$7.00 per share at 6.4% yield Eligible shareholders must have bought the stock before 01 August 2023. Payment date: 05 September 2023. Payout ratio is a comfortable 69% but the company is paying out more than the cash it is generating. Trailing yield: 6.4%. Within top quartile of Taiwanese dividend payers (5.5%). Higher than average of industry peers (3.3%). Announcement • Jun 29
Shenzhen Longsys Electronics Co., Ltd. (SZSE:301308) agreed to acquire 42% stake in Powertech Technology (Suzhou) Ltd from Spansion Holdings (Singapore) Pte. Ltd. for TWD 2.4 billion. Shenzhen Longsys Electronics Co., Ltd. (SZSE:301308) agreed to acquire 42% stake in Powertech Technology (Suzhou) Ltd from Spansion Holdings (Singapore) Pte. Ltd. for TWD 2.4 billion on June 27, 2023. Under the terms, Shenzhen Longsys will pay the 50% settlement payment and will pay the rest 50% payment within 5 working days after the expiry of 60 days after the completion of equity delivery. If the transaction fails to receive the approval of State Administration of Foreign Exchange in China after 180 days from the date of signing contract, PTI has the right to terminate this contract. The transaction has been resolved by the Board of Directors of Spansion Holdings (Singapore) Pte. Tsai Hsuan, Tseng of Tsai Chin Certified Public Accountant acted as fairness opinion provider for Powertech Technology. Announcement • Jun 01
Powertech Technology Inc. Approves Board Appointments Powertech Technology Inc. announced that at its shareholders meeting held on May 31, 2023, the shareholders approved the appointment of Ray Chen, Vice Chairman and CSO, Compal Electronics Inc. and Chao-Chin Tung, Vice Chairman, SHOWA DENKO HD Trace Corp. as Independent directors. Effective date of the new appointment is May 31, 2023. Reported Earnings • May 06
First quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2023 results: EPS: NT$1.51 (down from NT$2.93 in 1Q 2022). Revenue: NT$15.7b (down 24% from 1Q 2022). Net income: NT$1.13b (down 49% from 1Q 2022). Profit margin: 7.2% (down from 11% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) exceeded analyst estimates by 28%. 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 increased by 13% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 11
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: NT$11.60. Revenue: NT$83.9b (flat on FY 2021). Net income: NT$8.69b (down 2.4% from FY 2021). Profit margin: 10% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.3%. Revenue is forecast to stay flat during the next 2 years compared to a 8.3% growth forecast for the Semiconductor industry in Taiwan. Price Target Changed • Feb 03
Price target increased by 7.2% to NT$92.44 Up from NT$86.22, the current price target is an average from 9 analysts. New target price is approximately in line with last closing price of NT$88.80. Stock is down 9.0% over the past year. The company is forecast to post earnings per share of NT$11.32 for next year compared to NT$11.54 last year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Director Ray Chen was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 06
Third quarter 2022 earnings released: EPS: NT$3.20 (vs NT$3.21 in 3Q 2021) Third quarter 2022 results: EPS: NT$3.20 (down from NT$3.21 in 3Q 2021). Revenue: NT$21.4b (down 4.0% from 3Q 2021). Net income: NT$2.39b (down 3.1% from 3Q 2021). Profit margin: 11% (in line with 3Q 2021). Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Price Target Changed • Oct 18
Price target decreased to NT$100 Down from NT$112, the current price target is an average from 9 analysts. New target price is 40% above last closing price of NT$71.80. Stock is down 26% over the past year. The company is forecast to post earnings per share of NT$11.87 for next year compared to NT$11.54 last year. Reported Earnings • Aug 07
Second quarter 2022 earnings: EPS exceeds analyst expectations Second quarter 2022 results: EPS: NT$3.67 (up from NT$2.88 in 2Q 2021). Revenue: NT$23.3b (up 13% from 2Q 2021). Net income: NT$2.75b (up 24% from 2Q 2021). Profit margin: 12% (up from 11% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 16%. Over the next year, revenue is forecast to grow 3.8%, compared to a 21% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 22
Upcoming dividend of NT$6.80 per share Eligible shareholders must have bought the stock before 29 July 2022. Payment date: 05 September 2022. Payout ratio is a comfortable 55% and this is well supported by cash flows. Trailing yield: 7.4%. Within top quartile of Taiwanese dividend payers (6.7%). Higher than average of industry peers (3.7%). Reported Earnings • May 07
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: NT$2.92 (up from NT$2.21 in 1Q 2021). Revenue: NT$20.8b (up 13% from 1Q 2021). Net income: NT$2.20b (up 29% from 1Q 2021). Profit margin: 11% (up from 9.3% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.1%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 6.2%, compared to a 24% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Director Ray Chen was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 11
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: NT$11.54 (up from NT$8.60 in FY 2020). Revenue: NT$83.8b (up 10.0% from FY 2020). Net income: NT$8.90b (up 34% from FY 2020). Profit margin: 11% (up from 8.7% 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 forecast to grow 8.2%, compared to a 24% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 11% per year. Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS NT$3.20 (vs NT$2.10 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$22.3b (up 18% from 3Q 2020). Net income: NT$2.47b (up 52% from 3Q 2020). Profit margin: 11% (up from 8.6% 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 9% per year whereas the company’s share price has increased by 12% per year. Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS NT$2.88 (vs NT$2.26 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$20.6b (up 6.2% from 2Q 2020). Net income: NT$2.22b (up 27% from 2Q 2020). Profit margin: 11% (up from 9.0% 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 6% per year whereas the company’s share price has increased by 9% per year. Upcoming Dividend • Jul 23
Upcoming dividend of NT$5.00 per share Eligible shareholders must have bought the stock before 30 July 2021. Payment date: 03 September 2021. Trailing yield: 4.5%. Lower than top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (2.2%). Reported Earnings • May 14
First quarter 2021 earnings released: EPS NT$2.21 (vs NT$2.11 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: NT$18.4b (down 2.0% from 1Q 2020). Net income: NT$1.71b (up 4.6% from 1Q 2020). Profit margin: 9.3% (up from 8.7% in 1Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 5% per year and the company’s share price has also increased by 5% per year. Price Target Changed • Apr 29
Price target increased to NT$130 Up from NT$121, the current price target is an average from 10 analysts. New target price is 17% above last closing price of NT$112. Stock is up 10% over the past year. Reported Earnings • Mar 30
Full year 2020 earnings released: EPS NT$8.60 (vs NT$7.52 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: NT$76.2b (up 14% from FY 2019). Net income: NT$6.66b (up 14% from FY 2019). Profit margin: 8.7% (down from 8.8% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 5% per year. Is New 90 Day High Low • Jan 18
New 90-day high: NT$102 The company is up 19% from its price of NT$85.60 on 20 October 2020. The Taiwanese market is up 20% over the last 90 days, indicating the company underperformed over that time. It also underperformed 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$87.28 per share.