Valuation Update With 7 Day Price Move • May 07
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$63.90, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 29x in the Semiconductor industry in Taiwan. Total returns to shareholders of 114% over the past three years. Reported Earnings • May 01
First quarter 2026 earnings: EPS misses analyst expectations First quarter 2026 results: EPS: NT$3.00 (up from NT$0.26 loss in 1Q 2025). Revenue: NT$13.6b (up 22% from 1Q 2025). Net income: NT$14.2b (up NT$15.3b from 1Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.8%. Revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 20% 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 87 percentage points per year, which is a significant difference in performance. Price Target Changed • Apr 22
Price target increased by 8.2% to NT$67.00 Up from NT$61.94, the current price target is an average from 5 analysts. New target price is 18% above last closing price of NT$57.00. Stock is up 296% over the past year. The company is forecast to post earnings per share of NT$7.08 next year compared to a net loss per share of NT$1.86 last year. New Risk • Mar 09
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 12% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (12% average weekly change). Reported Earnings • Feb 27
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: NT$1.86 loss per share (further deteriorated from NT$1.64 loss in FY 2024). Revenue: NT$46.7b (up 4.5% from FY 2024). Net loss: NT$7.81b (loss widened 15% from FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 11%. 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, the company's share price growth rate has exceeded its earnings growth rate by 147 percentage points per year, which is a significant difference in performance. Announcement • Feb 14
Powerchip Semiconductor Manufacturing Corp. to Report Q4, 2025 Results on Feb 24, 2026 Powerchip Semiconductor Manufacturing Corp. announced that they will report Q4, 2025 results on Feb 24, 2026 Announcement • Jan 21
Powerchip Semiconductor Manufacturing Corp., Annual General Meeting, Apr 10, 2026 Powerchip Semiconductor Manufacturing Corp., Annual General Meeting, Apr 10, 2026, at 09:00 Taipei Standard Time. Location: b1 floor no,773, ming hu rd., hsinchu city Taiwan Major Estimate Revision • Jan 20
Consensus EPS estimates fall by 17% The consensus outlook for fiscal year 2025 has been updated. 2025 expected loss increased from -NT$1.42 to -NT$1.66 per share. Revenue forecast unchanged at NT$47.2b. Semiconductor industry in Taiwan expected to see average net income growth of 36% next year. Consensus price target up from NT$33.40 to NT$40.60. Share price rose 35% to NT$68.20 over the past week. Price Target Changed • Nov 21
Price target increased by 25% to NT$33.40 Up from NT$26.70, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of NT$33.15. Stock is up 88% over the past year. The company is forecast to post a net loss per share of NT$1.80 next year compared to a net loss per share of NT$1.64 last year. Reported Earnings • Nov 14
Third quarter 2025 earnings: Revenues and EPS in line with analyst expectations Third quarter 2025 results: NT$0.65 loss per share (improved from NT$0.69 loss in 3Q 2024). Revenue: NT$11.8b (up 1.6% from 3Q 2024). Net loss: NT$2.73b (loss narrowed 5.2% from 3Q 2024). 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, the company's share price growth rate has exceeded its earnings growth rate by 123 percentage points per year, which is a significant difference in performance. New Risk • Oct 22
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 8.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (8.5% average weekly change). Major Estimate Revision • Oct 22
Consensus EPS estimates fall by 52% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$47.7b to NT$47.2b. Losses expected to increase from NT$1.07 per share to NT$1.63. Semiconductor industry in Taiwan expected to see average net income growth of 27% next year. Consensus price target up from NT$20.13 to NT$22.88. Share price was steady at NT$28.20 over the past week. Price Target Changed • Oct 07
Price target increased by 17% to NT$20.13 Up from NT$17.25, the current price target is an average from 4 analysts. New target price is 33% below last closing price of NT$29.90. Stock is up 45% over the past year. The company is forecast to post a net loss per share of NT$1.07 next year compared to a net loss per share of NT$1.64 last year. New Risk • Sep 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.6% 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. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Minor Risk Share price has been volatile over the past 3 months (6.6% average weekly change). Price Target Changed • Sep 18
Price target increased by 20% to NT$17.25 Up from NT$14.33, the current price target is an average from 4 analysts. New target price is 23% below last closing price of NT$22.40. Stock is up 8.7% over the past year. The company is forecast to post a net loss per share of NT$1.09 next year compared to a net loss per share of NT$1.64 last year. Major Estimate Revision • Sep 17
Consensus EPS estimates upgraded to NT$1.09 loss The consensus outlook for fiscal year 2025 has been updated. 2025 losses forecast to reduce from -NT$1.73 to -NT$1.09 per share. Revenue forecast steady at NT$45.3b. Semiconductor industry in Taiwan expected to see average net income growth of 30% next year. Consensus price target up from NT$14.33 to NT$15.08. Share price rose 22% to NT$20.40 over the past week. New Risk • Aug 25
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 12% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 15
Second quarter 2025 earnings: Revenues and EPS in line with analyst expectations Second quarter 2025 results: NT$0.80 loss per share (further deteriorated from NT$0.47 loss in 2Q 2024). Revenue: NT$11.3b (up 1.4% from 2Q 2024). Net loss: NT$3.33b (loss widened 70% from 2Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 4.2% 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, the company's share price growth rate has exceeded its earnings growth rate by 98 percentage points per year, which is a significant difference in performance. Major Estimate Revision • Jul 23
Consensus EPS estimates fall by 71% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$46.9b to NT$45.4b. Losses expected to increase from NT$1.04 per share to NT$1.78. Semiconductor industry in Taiwan expected to see average net income growth of 12% next year. Consensus price target down from NT$14.78 to NT$14.33. Share price fell 3.7% to NT$15.65 over the past week. New Risk • May 27
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 10% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. This is currently the only risk that has been identified for the company. Reported Earnings • May 16
First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2025 results: NT$0.26 loss per share (further deteriorated from NT$0.11 loss in 1Q 2024). Revenue: NT$11.1b (up 2.7% from 1Q 2024). Net loss: NT$1.10b (loss widened 150% from 1Q 2024). Revenue missed analyst estimates by 1.0%. Earnings per share (EPS) exceeded analyst estimates by 68%. Revenue is forecast to grow 5.6% 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, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. Announcement • May 06
Powerchip Semiconductor Manufacturing Corp. to Report Q1, 2025 Results on May 13, 2025 Powerchip Semiconductor Manufacturing Corp. announced that they will report Q1, 2025 results on May 13, 2025 Major Estimate Revision • Apr 24
Consensus EPS estimates upgraded to NT$1.23 loss, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from NT$47.9b to NT$46.4b. 2025 losses expected to reduce from -NT$1.60 to -NT$1.23 per share. Semiconductor industry in Taiwan expected to see average net income growth of 24% next year. Consensus price target down from NT$16.75 to NT$14.15. Share price was steady at NT$14.00 over the past week. Price Target Changed • Apr 24
Price target decreased by 16% to NT$14.15 Down from NT$16.75, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$14.05. Stock is down 36% over the past year. The company is forecast to post a net loss per share of NT$1.23 next year compared to a net loss per share of NT$1.64 last year. New Risk • Apr 14
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.3% 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). Earnings are forecast to decline by an average of 7.3% per year for the foreseeable future. Major Estimate Revision • Mar 12
Consensus EPS estimates upgraded to NT$1.60 loss The consensus outlook for fiscal year 2025 has been updated. 2025 losses forecast to reduce from -NT$1.79 to -NT$1.60 per share. Revenue forecast steady at NT$48.3b. Semiconductor industry in Taiwan expected to see average net income growth of 19% next year. Consensus price target up from NT$16.63 to NT$17.63. Share price was steady at NT$18.25 over the past week. Major Estimate Revision • Feb 28
Consensus EPS estimates fall by 151% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$51.1b to NT$47.9b. Losses expected to increase from NT$0.71 per share to NT$1.79. Semiconductor industry in Taiwan expected to see average net income growth of 27% next year. Consensus price target down from NT$19.63 to NT$16.63. Share price was steady at NT$18.35 over the past week. Announcement • Feb 27
Powerchip Semiconductor Manufacturing Corp., Annual General Meeting, May 27, 2025 Powerchip Semiconductor Manufacturing Corp., Annual General Meeting, May 27, 2025, at 09:00 Taipei Standard Time. Location: b1 floor no,773, ming hu rd., hsinchu city Taiwan Price Target Changed • Feb 25
Price target decreased by 15% to NT$16.63 Down from NT$19.63, the current price target is an average from 4 analysts. New target price is 13% below last closing price of NT$19.00. Stock is down 29% over the past year. The company is forecast to post a net loss per share of NT$1.17 next year compared to a net loss per share of NT$0.40 last year. Announcement • Feb 18
Powerchip Semiconductor Manufacturing Corp. to Report Q4, 2024 Results on Feb 25, 2025 Powerchip Semiconductor Manufacturing Corp. announced that they will report Q4, 2024 results on Feb 25, 2025 New Risk • Jan 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.6% 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. New Risk • Nov 19
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. New Risk • Nov 14
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 21% 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. Reported Earnings • Nov 08
Third quarter 2024 earnings: EPS exceeds analyst expectations Third quarter 2024 results: NT$0.69 loss per share (further deteriorated from NT$0.082 loss in 3Q 2023). Revenue: NT$11.7b (up 12% from 3Q 2023). Net loss: NT$2.88b (loss widened NT$2.55b from 3Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.0%. 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, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. Major Estimate Revision • Nov 06
Consensus EPS estimates fall by 35% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$45.6b to NT$45.1b. Losses expected to increase from NT$1.01 per share to NT$1.36. Semiconductor industry in Taiwan expected to see average net income growth of 30% next year. Consensus price target down from NT$21.50 to NT$20.75. Share price was steady at NT$18.30 over the past week. Announcement • Oct 25
Powerchip Semiconductor Manufacturing Corp. to Report Q3, 2024 Results on Nov 01, 2024 Powerchip Semiconductor Manufacturing Corp. announced that they will report Q3, 2024 results on Nov 01, 2024 Price Target Changed • Oct 23
Price target decreased by 12% to NT$21.50 Down from NT$24.50, the current price target is an average from 4 analysts. New target price is 7.5% above last closing price of NT$20.00. Stock is down 27% over the past year. The company is forecast to post a net loss per share of NT$0.16 next year compared to a net loss per share of NT$0.40 last year. Reported Earnings • Aug 16
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: NT$0.47 loss per share (down from NT$0.15 profit in 2Q 2023). Revenue: NT$11.1b (up 1.0% from 2Q 2023). Net loss: NT$1.96b (down 417% from profit in 2Q 2023). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates by 37%. 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 57% per year but the company’s share price has only fallen by 30% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jul 17
Consensus EPS estimates fall by 174% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$49.5b to NT$48.2b. Losses expected to increase from NT$0.16 per share to NT$0.45. Semiconductor industry in Taiwan expected to see average net income growth of 32% next year. Consensus price target down from NT$27.00 to NT$24.50. Share price fell 5.4% to NT$24.75 over the past week. Price Target Changed • Jul 17
Price target decreased by 9.3% to NT$24.50 Down from NT$27.00, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$24.75. Stock is down 18% over the past year. The company is forecast to post a net loss per share of NT$0.44 next year compared to a net loss per share of NT$0.40 last year. Announcement • May 23
Powerchip Semiconductor Manufacturing Corp. Announces Appointment of Brian Shieh as Vice Chairman Powerchip Semiconductor Manufacturing Corp. announced appointment of Brian Shieh as Vice Chairman. Name and Resume of the new position holder is Brian Shieh, Deputy CEO and President of Powerchip Semiconductor Manufacturing Corporation. Reason for the change: Elected by Board of Directors. Effective date of the new appointment is May 21, 2024. Reported Earnings • May 10
First quarter 2024 earnings released: NT$0.11 loss per share (vs NT$0.046 profit in 1Q 2023) First quarter 2024 results: NT$0.11 loss per share (down from NT$0.046 profit in 1Q 2023). Revenue: NT$10.8b (down 5.5% from 1Q 2023). Net loss: NT$439.2m (down 335% from profit in 1Q 2023). 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 fallen by 32% per year but the company’s share price has only fallen by 24% per year, which means it has not declined as severely as earnings. Reported Earnings • Feb 24
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: NT$0.40 loss per share (down from NT$5.80 profit in FY 2022). Revenue: NT$44.0b (down 42% from FY 2022). Net loss: NT$1.64b (down 108% from profit in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 20%. Revenue is forecast to grow 18% 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 6% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. Announcement • Feb 22
Powerchip Semiconductor Manufacturing Corp., Annual General Meeting, May 21, 2024 Powerchip Semiconductor Manufacturing Corp., Annual General Meeting, May 21, 2024. Location: No.773, Ming-Hu Rd Lakeshore Hotel B1 Hsin Chu Taiwan Agenda: To Report 2023 Earnings Distribution; to accept 2023 Business Report and Financial Statements; to accept 2023 Earnings Distribution; Report 2023 Distributable Compensation for Employees and Directors; and to discuss other matters. Major Estimate Revision • Feb 03
Consensus EPS estimates fall by 26% The consensus outlook for fiscal year 2023 has been updated. 2023 expected loss increased from -NT$0.264 to -NT$0.334 per share. Revenue forecast unchanged at NT$44.3b. Semiconductor industry in Taiwan expected to see average net income growth of 21% next year. Consensus price target of NT$26.75 unchanged from last update. Share price fell 4.5% to NT$26.70 over the past week. Major Estimate Revision • Jan 21
Consensus EPS estimates fall by 319% The consensus outlook for fiscal year 2023 has been updated. 2023 expected loss increased from -NT$0.063 to -NT$0.264 per share. Revenue forecast unchanged at NT$44.3b. Semiconductor industry in Taiwan expected to see average net income growth of 21% next year. Consensus price target of NT$26.75 unchanged from last update. Share price fell 5.9% to NT$27.25 over the past week. Major Estimate Revision • Jan 05
Consensus EPS estimates fall from profit to NT$0.0089 loss The consensus outlook for fiscal year 2023 has been updated. Expected to report loss instead of -NT$0.0089 instead of NT$0.1224 per share profit previously forecast. Revenue forecast unchanged at NT$44.2b Semiconductor industry in Taiwan expected to see average net income growth of 20% next year. Consensus price target up from NT$24.25 to NT$26.75. Share price rose 4.8% to NT$30.85 over the past week. Reported Earnings • Nov 11
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: NT$0.082 loss per share (down from NT$1.61 profit in 3Q 2022). Revenue: NT$10.4b (down 46% from 3Q 2022). Net loss: NT$333.5m (down 106% from profit in 3Q 2022). Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 22%. 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. Major Estimate Revision • Oct 19
Consensus EPS estimates fall by 10% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from NT$0.226 to NT$0.203 per share. Revenue forecast steady at NT$44.2b. Net income forecast to shrink 81% next year vs 6.0% growth forecast for Semiconductor industry in Taiwan . Consensus price target of NT$25.13 unchanged from last update. Share price was steady at NT$27.35 over the past week. Announcement • Sep 26
Powerchip Semiconductor Manufacturing Corp. Announces Board of Directors's Resolved to Establish the Nominating Committee and the Appointment of Its Members Powerchip Semiconductor Manufacturing Corp. announced that Board of Directors's resolved to establish the nominating committee and the appointment of its members. Name of the functional committees: Nominating Committee. Name of the new position holder: Frank Huang; Chong-Yu Wu; and Jia-Lin Chang. Resume of the new position holder: Frank Huang: Chairman and CEO of Powerchip Semiconductor Manufacturing Corporation; Chong-Yu Wu: Chairman and CTO of A-Neuron Electronic Corporation; Jia-Lin Chang: Chairman of Changing. AI Inc. Effective date of the new member: September 25, 2023. Price Target Changed • Aug 16
Price target decreased by 11% to NT$24.70 Down from NT$27.63, the current price target is an average from 5 analysts. New target price is 8.0% below last closing price of NT$26.85. Stock is down 26% over the past year. The company is forecast to post earnings per share of NT$0.24 for next year compared to NT$5.80 last year. New Risk • Aug 12
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: 16% Last year net profit margin: 30% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 12% per year for the foreseeable future. High level of non-cash earnings (52% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (16% net profit margin). Shareholders have been diluted in the past year (3.0% increase in shares outstanding). Reported Earnings • Aug 12
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: NT$0.15 (down from NT$1.95 in 2Q 2022). Revenue: NT$11.0b (down 50% from 2Q 2022). Net income: NT$617.0m (down 91% from 2Q 2022). Profit margin: 5.6% (down from 32% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Taiwan. Major Estimate Revision • Jul 20
Consensus EPS estimates fall by 58% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$46.8b to NT$45.7b. EPS estimate also fell from NT$0.52 per share to NT$0.22 per share. Net income forecast to shrink 91% next year vs 14% decline forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$27.13. Share price was steady at NT$29.80 over the past week. Announcement • May 31
Powerchip Semiconductor Manufacturing Corp. Announces Management Changes Powerchip Semiconductor Manufacturing Corp. announced the resignation of Xian-Ming Lin as member of Remuneration Committee, effective May 30, 2023. Xian-Ming Lin is Chairman and CSO of Wistron Corporation. The company announced the appointment of Chun-Shen Chen as member of Remuneration Committee, effective May 30, 2023. Chun-Shen Chen is Chairman and CEO of Acer Incorporated. Reported Earnings • May 18
First quarter 2023 earnings: EPS misses analyst expectations First quarter 2023 results: EPS: NT$0.05 (down from NT$1.85 in 1Q 2022). Revenue: NT$11.4b (down 45% from 1Q 2022). Net income: NT$186.8m (down 97% from 1Q 2022). Profit margin: 1.6% (down from 32% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Semiconductor industry in Taiwan. Major Estimate Revision • Apr 19
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$53.1b to NT$51.7b. EPS estimate also fell from NT$1.80 per share to NT$1.57 per share. Net income forecast to shrink 69% next year vs 23% decline forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$27.63. Share price fell 3.6% to NT$32.10 over the past week. Upcoming Dividend • Mar 06
Upcoming dividend of NT$0.30 per share at 3.1% yield Eligible shareholders must have bought the stock before 13 March 2023. Payment date: 14 April 2023. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Taiwanese dividend payers (6.1%). In line with average of industry peers (3.4%). Reported Earnings • Feb 25
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: NT$5.80 (up from NT$4.92 in FY 2021). Revenue: NT$76.1b (up 16% from FY 2021). Net income: NT$21.6b (up 34% from FY 2021). Profit margin: 28% (up from 25% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 7.6%. Revenue is expected to decline by 11% p.a. on average during the next 2 years, while revenues in the Semiconductor industry in Taiwan are expected to grow by 8.1%. Major Estimate Revision • Jan 17
Consensus EPS estimates fall by 23% The consensus outlook for earnings per share (EPS) in 2023 has deteriorated. 2023 revenue forecast decreased from NT$57.0b to NT$53.1b. EPS estimate also fell from NT$2.35 per share to NT$1.80 per share. Net income forecast to shrink 58% next year vs 17% decline forecast for Semiconductor industry in Taiwan. Consensus price target up from NT$26.25 to NT$27.25. Share price fell 5.0% to NT$32.30 over the past week. Board Change • Nov 16
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 3 experienced directors. 1 highly experienced director. VP, CFO & Director Jerry Shao is the most experienced director on the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 08
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: NT$1.61 (up from NT$1.30 in 3Q 2021). Revenue: NT$19.2b (up 11% from 3Q 2021). Net income: NT$6.07b (up 37% from 3Q 2021). Profit margin: 32% (up from 26% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.0%. Earnings per share (EPS) also missed analyst estimates by 1.5%. Revenue is expected to decline by 5.4% p.a. on average during the next 3 years, while revenues in the Semiconductor industry in Taiwan are expected to grow by 9.8%. Announcement • Nov 01
Powerchip Semiconductor Manufacturing Corp. Announces the Appointment of Peter Chen as Chief Information Security Officer Powerchip Semiconductor Manufacturing Corp. announced the appointment of Peter Chen as Chief Information Security Officer of the company, with effect from October 31, 2022. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment improved over the past week After last week's 15% share price gain to NT$31.00, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Semiconductor industry in Taiwan. Total loss to shareholders of 49% over the past year. Simply Wall St's valuation model estimates the intrinsic value at NT$14.15 per share. Price Target Changed • Oct 13
Price target decreased to NT$28.90 Down from NT$31.75, the current price target is an average from 4 analysts. New target price is 7.2% above last closing price of NT$26.95. Stock is down 57% over the past year. The company is forecast to post earnings per share of NT$6.29 for next year compared to NT$4.92 last year. Upcoming Dividend • Aug 16
Upcoming dividend of NT$0.73 per share Eligible shareholders must have bought the stock before 23 August 2022. Payment date: 21 September 2022. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 5.6%. Lower than top quartile of Taiwanese dividend payers (6.5%). Higher than average of industry peers (3.5%). Announcement • Aug 06
Powerchip Semiconductor Manufacturing Corp. Announces of Cash Dividend Distribution Ratio Adjustment Powerchip Semiconductor Manufacturing Corp. at its shareholder's meeting held on August 4, 2022, made an announcement of cash dividend distribution ratio adjustment. Type and monetary amount of original dividend distribution: Cash dividend TWD 2,877,435,794, each common share is entitled to receive TWD 0.80000011. Type and monetary amount of dividend distribution after the change: Cash dividend TWD 2,877,435,794, each common share is entitled to receive TWD 0.72903734. Reason for the change: Due to issue of new common shares for cash to sponsor issuance of GDR and exercised employee stock options to convert common share, the number of outstanding common shares changed accordingly, resulting in the adjustment of cash dividend ratio, and to authorize the Chairman to handle all relevant matters in accordance with the Board of Directors in July 25, 2022. Reported Earnings • Jul 30
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: NT$1.95 (up from NT$1.07 in 2Q 2021). Revenue: NT$21.8b (up 42% from 2Q 2021). Net income: NT$7.02b (up 109% from 2Q 2021). Profit margin: 32% (up from 22% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) missed analyst estimates by 8.1%. Over the next year, revenue is expected to shrink by 4.0% compared to a 22% growth forecast for the industry in Taiwan. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$35.25, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Semiconductor industry in Taiwan. Total loss to shareholders of 46% over the past year. Simply Wall St's valuation model estimates the intrinsic value at NT$25.91 per share. Announcement • Jul 27
Powerchip Semiconductor Manufacturing Corp. Approves First Half of 2022 Cash Dividend, Payable on September 21, 2022 The board of directors of Powerchip Semiconductor Manufacturing Corp. approved first half of 2022 cash dividend of TWD 2,877,435,794, each common share is entitled to receive TWD 0.80000011. Ex-rights (ex-dividend) trading date is August 23, 2022. Ex-rights (ex-dividend) record date is August 29, 2022. Dividends distribution date is September 21, 2022. Price Target Changed • Jul 13
Price target decreased to NT$55.60 Down from NT$61.20, the current price target is an average from 5 analysts. New target price is 42% above last closing price of NT$39.25. Stock is down 42% over the past year. The company is forecast to post earnings per share of NT$7.22 for next year compared to NT$4.92 last year. Announcement • Jun 18
Powerchip Semiconductor Manufacturing Corp. Appoints Chun-Shen Chen as Member of Audit Committee Powerchip Semiconductor Manufacturing Corp. appointed Mr. Chun-Shen Chen, Chairman and CEO of Acer Incorporated. as member of Audit Committee, effective June 17, 2022. Reported Earnings • May 05
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: NT$1.85 (up from NT$0.68 in 1Q 2021). Revenue: NT$20.7b (up 56% from 1Q 2021). Net income: NT$6.62b (up 214% from 1Q 2021). Profit margin: 32% (up from 16% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 14%, compared to a 24% growth forecast for the industry in Taiwan. Price Target Changed • Apr 27
Price target decreased to NT$64.00 Down from NT$74.00, the current price target is an average from 5 analysts. New target price is 25% above last closing price of NT$51.10. Stock is down 27% over the past year. The company is forecast to post earnings per share of NT$7.46 for next year compared to NT$4.92 last year. Board Change • Apr 27
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 2 experienced directors. 1 highly experienced director. VP, CFO & Director Jerry Shao is the most experienced director on the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Apr 22
Powerchip Semiconductor Manufacturing Corp. (TWSE:6770) completed the acquisition of Manufacture facilities from CHIEN YUEH TECHNOLOGY ENGINEERING CO., LTD. for TWD 1034 million. Powerchip Semiconductor Manufacturing Corp. (TWSE:6770) agreed to acquire Manufacture facilities from CHIEN YUEH TECHNOLOGY ENGINEERING CO., LTD. for TWD 1034 million on June 11, 2021.
Powerchip Semiconductor Manufacturing Corp. (TWSE:6770) completed the acquisition of Manufacture facilities from CHIEN YUEH TECHNOLOGY ENGINEERING CO., LTD. on April 21, 2022. Announcement • Apr 19
Powerchip Semiconductor Manufacturing Corp. Announces Resignation of Burn J, Lin as Independent Director and Audit Committee Member Powerchip Semiconductor Manufacturing Corp. announced resignation of Burn J, Lin as Independent director and Audit Committee Member. Date of occurrence of the change is April 18, 2022. Major Estimate Revision • Apr 13
Consensus EPS estimates increase by 10% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from NT$81.2b to NT$83.7b. EPS estimate increased from NT$6.70 to NT$7.39 per share. Net income forecast to grow 62% next year vs 26% growth forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$74.00 to NT$66.80. Share price fell 4.6% to NT$51.80 over the past week. Upcoming Dividend • Feb 17
Upcoming dividend of NT$1.18 per share Eligible shareholders must have bought the stock before 24 February 2022. Payment date: 22 March 2022. Payout ratio is a comfortable 37% and this is well supported by cash flows. Trailing yield: 4.0%. Lower than top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (2.0%). Reported Earnings • Feb 15
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: NT$4.92 (up from NT$1.23 in FY 2020). Revenue: NT$65.6b (up 44% from FY 2020). Net income: NT$16.1b (up 323% from FY 2020). Profit margin: 25% (up from 8.3% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.6%. Over the next year, revenue is forecast to grow 24%, compared to a 24% growth forecast for the industry in Taiwan. Reported Earnings • Oct 27
Third quarter 2021 earnings released: EPS NT$1.30 (vs NT$0.29 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$17.3b (up 47% from 3Q 2020). Net income: NT$4.42b (up 396% from 3Q 2020). Profit margin: 26% (up from 7.6% in 3Q 2020). The increase in margin was driven by higher revenue. Reported Earnings • Aug 02
First quarter 2021 earnings released: EPS NT$0.68 (vs NT$0.33 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$13.2b (up 19% from 1Q 2020). Net income: NT$2.11b (up 108% from 1Q 2020). Profit margin: 16% (up from 9.1% in 1Q 2020). The increase in margin was driven by higher revenue. Reported Earnings • Mar 13
Full year 2020 earnings released: EPS NT$1.23 (vs NT$0.94 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$45.7b (up 27% from FY 2019). Net income: NT$3.81b (up NT$6.45b from FY 2019). Profit margin: 8.3% (up from net loss in FY 2019). The move to profitability was driven by higher revenue. Announcement • Mar 11
Powerchip Semiconductor Manufacturing Corporation, Annual General Meeting, Jun 09, 2021 Powerchip Semiconductor Manufacturing Corporation, Annual General Meeting, Jun 09, 2021. 
