Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$82.30, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 16x in the IT industry in Taiwan. Total loss to shareholders of 34% over the past three years. Announcement • Mar 11
eCloudvalley Digital Technology Co., Ltd., Annual General Meeting, Jun 12, 2026 eCloudvalley Digital Technology Co., Ltd., Annual General Meeting, Jun 12, 2026, at 09:00 Taipei Standard Time. Location: 4 floor no,6, lung men rd., sanchong district, new taipei city Taiwan Reported Earnings • Mar 11
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: NT$2.31 (up from NT$2.26 in FY 2024). Revenue: NT$12.5b (down 1.7% from FY 2024). Net income: NT$156.5m (up 1.7% from FY 2024). Profit margin: 1.3% (in line with FY 2024). Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) exceeded analyst estimates by 27%. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$72.90, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 16x in the IT industry in Taiwan. Total loss to shareholders of 47% over the past three years. Reported Earnings • Nov 14
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: NT$0.31 (down from NT$0.88 in 3Q 2024). Revenue: NT$3.00b (down 10% from 3Q 2024). Net income: NT$21.3m (down 65% from 3Q 2024). Profit margin: 0.7% (down from 1.8% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 56%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 11% growth forecast for the IT industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. New Risk • Nov 14
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: 0.9% Last year net profit margin: 1.5% 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: Minor Risks Dividend is not well covered by earnings (120% payout ratio). Profit margins are more than 30% lower than last year (0.9% net profit margin). Reported Earnings • Aug 15
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: NT$0.26 (down from NT$0.46 in 2Q 2024). Revenue: NT$3.20b (up 3.5% from 2Q 2024). Net income: NT$17.8m (down 43% from 2Q 2024). Profit margin: 0.6% (down from 1.0% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 9.7%. Earnings per share (EPS) also missed analyst estimates by 59%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 14% growth forecast for the IT industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. New Risk • Aug 15
New major risk - Revenue and earnings growth Earnings have declined by 0.3% 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 Risk Earnings have declined by 0.3% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (434% cash payout ratio). Profit margins are more than 30% lower than last year (1.3% net profit margin). Major Estimate Revision • Aug 13
Consensus revenue estimates decrease by 13% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from NT$14.7b to NT$12.8b. EPS estimate unchanged from NT$3.17 per share at last update. IT industry in Taiwan expected to see average net income growth of 20% next year. Consensus price target down from NT$101 to NT$86.50. Share price was steady at NT$80.60 over the past week. Declared Dividend • Jul 14
Dividend of NT$2.00 announced Dividend of NT$2.00 is the same as last year. Ex-date: 30th July 2025 Payment date: 21st August 2025 Dividend yield will be 2.4%, which is lower than the industry average of 3.6%. Sustainability & Growth Dividend is covered by earnings (83% earnings payout ratio) but not covered by cash flows (434% cash payout ratio). The dividend has increased by an average of 9.5% per year over the past 6 years. However, payments have been volatile during that time. EPS is expected to grow by 41% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 16
First quarter 2025 earnings: EPS exceeds analyst expectations First quarter 2025 results: EPS: NT$0.57 (up from NT$0.41 in 1Q 2024). Revenue: NT$3.20b (up 18% from 1Q 2024). Net income: NT$38.9m (up 39% from 1Q 2024). Profit margin: 1.2% (up from 1.0% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 50%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 14% growth forecast for the IT industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 28% per year, which means it is significantly lagging earnings. Announcement • May 05
eCloudvalley Digital Technology Co., Ltd. to Report Q1, 2025 Results on May 12, 2025 eCloudvalley Digital Technology Co., Ltd. announced that they will report Q1, 2025 results on May 12, 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$75.90, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 18x in the IT industry in Asia. Total loss to shareholders of 73% over the past three years. Reported Earnings • Mar 20
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: NT$2.26 (down from NT$2.71 in FY 2023). Revenue: NT$12.7b (up 29% from FY 2023). Net income: NT$153.9m (down 16% from FY 2023). Profit margin: 1.2% (down from 1.9% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.8%. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 11% growth forecast for the IT industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 30% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Mar 15
Consensus EPS estimates increase by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$14.5b to NT$14.7b. EPS estimate increased from NT$3.63 to NT$4.06 per share. Net income forecast to grow 36% next year vs 22% growth forecast for IT industry in Taiwan. Consensus price target down from NT$151 to NT$102. Share price was steady at NT$101 over the past week. Announcement • Mar 13
eCloudvalley Digital Technology Co., Ltd., Annual General Meeting, Jun 17, 2025 eCloudvalley Digital Technology Co., Ltd., Annual General Meeting, Jun 17, 2025, at 09:00 Taipei Standard Time. Location: 4 floor no,6, lung men rd., sanchong district, new taipei city Taiwan Price Target Changed • Mar 11
Price target decreased by 43% to NT$91.00 Down from NT$161, the current price target is provided by 1 analyst. New target price is 7.2% below last closing price of NT$98.10. Stock is down 17% over the past year. The company is forecast to post earnings per share of NT$2.54 for next year compared to NT$2.70 last year. Announcement • Mar 04
eCloudvalley Digital Technology Co., Ltd. to Report Fiscal Year 2024 Results on Mar 11, 2025 eCloudvalley Digital Technology Co., Ltd. announced that they will report fiscal year 2024 results on Mar 11, 2025 New Risk • Jan 24
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 7.8% 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. This is currently the only risk that has been identified for the company. New Risk • Dec 19
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 6.2% 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 cash flows (106% cash payout ratio). Share price has been volatile over the past 3 months (6.2% average weekly change). Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$112, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 23x in the IT industry in Asia. Total loss to shareholders of 64% over the past three years. Reported Earnings • Nov 17
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: EPS: NT$0.88 (up from NT$0.70 in 3Q 2023). Revenue: NT$3.34b (up 35% from 3Q 2023). Net income: NT$59.9m (up 26% from 3Q 2023). Profit margin: 1.8% (down from 1.9% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 7.6%. Earnings per share (EPS) missed analyst estimates by 6.4%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 17% growth forecast for the IT 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 fallen by 39% per year, which means it is performing significantly worse than earnings. Announcement • Nov 02
eCloudvalley Digital Technology Co., Ltd. to Report Q3, 2024 Results on Nov 11, 2024 eCloudvalley Digital Technology Co., Ltd. announced that they will report Q3, 2024 results on Nov 11, 2024 Reported Earnings • Aug 16
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: NT$0.46 (down from NT$0.73 in 2Q 2023). Revenue: NT$3.09b (up 29% from 2Q 2023). Net income: NT$31.4m (down 37% from 2Q 2023). Profit margin: 1.0% (down from 2.1% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 32%. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 18% growth forecast for the IT industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 30% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$89.40, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 17x in the IT industry in Asia. Total loss to shareholders of 73% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$113 per share. Buy Or Sell Opportunity • Aug 06
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to NT$89.40. The fair value is estimated to be NT$113, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 22% in a year. Earnings are forecast to grow by 17% in the next year. Announcement • Aug 04
eCloudvalley Digital Technology Co., Ltd. to Report Q2, 2024 Results on Aug 12, 2024 eCloudvalley Digital Technology Co., Ltd. announced that they will report Q2, 2024 results on Aug 12, 2024 New Risk • Aug 02
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 High level of non-cash earnings (20% accrual ratio). Minor Risks Dividend is not well covered by cash flows (149% cash payout ratio). Share price has been volatile over the past 3 months (6.6% average weekly change). Declared Dividend • Jul 13
Dividend reduced to NT$2.00 Dividend of NT$2.00 is 29% lower than last year. Ex-date: 30th July 2024 Payment date: 21st August 2024 Dividend yield will be 1.7%, which is lower than the industry average of 3.6%. Sustainability & Growth Dividend is covered by earnings (71% earnings payout ratio) but not covered by cash flows (149% cash payout ratio). The dividend has increased by an average of 12% per year over the past 5 years. However, payments have been volatile during that time. EPS is expected to grow by 18% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 12
eCloudvalley Digital Technology Co., Ltd. Announces Cash Dividend, Payable on 21 August 2024 eCloudvalley Digital Technology Co., Ltd. announced cash dividend of TWD 136,000,000 or TWD 2.0 per share. Ex-rights (ex-dividend) trading date: 31 July 2024. Ex-rights (ex-dividend) record date: 5 August 2024. Payment date of common stock cash dividend distribution: 21 August 2024. Date of the resolution by the board of directors or shareholders meeting or decision by the Company: July 11, 2024. Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$119, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 21x in the IT industry in Asia. Total loss to shareholders of 63% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$99.02 per share. Buy Or Sell Opportunity • Jul 11
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 6.3% to NT$119. The fair value is estimated to be NT$99.02, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 22% in a year. Earnings are forecast to grow by 17% in the next year. Reported Earnings • May 18
First quarter 2024 earnings released: EPS: NT$0.41 (vs NT$0.32 in 1Q 2023) First quarter 2024 results: EPS: NT$0.41 (up from NT$0.32 in 1Q 2023). Revenue: NT$2.71b (up 24% from 1Q 2023). Net income: NT$28.0m (up 30% from 1Q 2023). Profit margin: 1.0% (in line with 1Q 2023). Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the IT industry in Asia. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Announcement • May 01
eCloudvalley Digital Technology Co., Ltd. to Report Q1, 2024 Results on May 09, 2024 eCloudvalley Digital Technology Co., Ltd. announced that they will report Q1, 2024 results on May 09, 2024 Reported Earnings • Mar 17
Full year 2023 earnings released: EPS: NT$2.70 (vs NT$1.61 in FY 2022) Full year 2023 results: EPS: NT$2.70 (up from NT$1.61 in FY 2022). Revenue: NT$9.82b (up 14% from FY 2022). Net income: NT$183.9m (up 83% from FY 2022). Profit margin: 1.9% (up from 1.2% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 8.8% growth forecast for the IT industry in Asia. Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 18% per year. Announcement • Mar 15
eCloudvalley Digital Technology Co., Ltd., Annual General Meeting, Jun 24, 2024 eCloudvalley Digital Technology Co., Ltd., Annual General Meeting, Jun 24, 2024. Announcement • Sep 27
eCloudvalley Digital Technology Co., Ltd. Appoints Lin, Su-Ming to the Company's Remuneration Committee eCloudvalley Digital Technology Co., Ltd. announced members of the Company's Remuneration Committee. .Name of the new position holder: Lin, Su-Ming. Resume of the new position holder:National Taiwan University AdjunctProfessor, Department of Accounting. Effective date of the new member: September 26, 2023. Reported Earnings • Aug 17
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: EPS: NT$0.73 (up from NT$0.34 in 2Q 2022). Revenue: NT$2.40b (up 11% from 2Q 2022). Net income: NT$49.8m (up 146% from 2Q 2022). Profit margin: 2.1% (up from 0.9% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) exceeded analyst estimates by 43%. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the IT industry in Asia. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jul 10
Upcoming dividend of NT$2.80 per share at 2.1% yield Eligible shareholders must have bought the stock before 17 July 2023. Payment date: 09 August 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 2.1%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (3.7%). Announcement • Jul 01
eCloudvalley Digital Technology Co., Ltd. Announces the Cash Dividend, Payable on August 9, 2023 eCloudvalley Digital Technology Co., Ltd. announced the cash dividend of TWD 190,400,000 or TWD 2.8 per share. Ex-rights (ex-dividend) trading date is July 17, 2023. Ex-rights (ex-dividend) record date is July 23, 2023. The payment date of cash dividend distribution is August 9, 2023. Announcement • May 13
eCloudvalley Digital Technology Co., Ltd. Announces Sustainable Development Committee Changes eCloudvalley Digital Technology Co., Ltd. announced the appointment of Hsieh, Ming-Hung, Corporate governance officer of ECV¡B and Director of Accounting Department, Elite Computer Co., Ltd. as Member of Sustainable Development Committee in place of Lee, Chen-Jung, Chief Financial Officer of Beijing Xunyi Innovation Electronics Co., Ltd. Both changes effective on May 11, 2023. Reported Earnings • Mar 31
Full year 2022 earnings released: EPS: NT$1.61 (vs NT$3.40 in FY 2021) Full year 2022 results: EPS: NT$1.61 (down from NT$3.40 in FY 2021). Revenue: NT$8.62b (down 15% from FY 2021). Net income: NT$100.6m (down 51% from FY 2021). Profit margin: 1.2% (down from 2.0% in FY 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 29% p.a. on average during the next 2 years, compared to a 10% growth forecast for the IT industry in Asia. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 16
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$117, the stock trades at a trailing P/E ratio of 76.4x. Average forward P/E is 19x in the IT industry in Taiwan. Total returns to shareholders of 61% over the past three years. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 18% share price gain to NT$99.70, the stock trades at a trailing P/E ratio of 65.1x. Average forward P/E is 19x in the IT industry in Taiwan. Total returns to shareholders of 4.0% over the past three years. Reported Earnings • Nov 19
Third quarter 2022 earnings released: EPS: NT$0.18 (vs NT$0.85 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.18 (down from NT$0.85 in 3Q 2021). Revenue: NT$2.15b (down 15% from 3Q 2021). Net income: NT$10.8m (down 79% from 3Q 2021). Profit margin: 0.5% (down from 2.0% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 10% growth forecast for the IT industry in Asia. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. No experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Chao-Long Chen is the most experienced director on the board, commencing their role in 2021. Independent Director Han-Fei Lin was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • Nov 12
eCloudvalley Digital Technology Co., Ltd. Announces Executive Appointments eCloudvalley Digital Technology Co., Ltd. appointed Lee, Chen-Jung/vice president, Vice-President, Financial Center,Chief Financial Officer, Beijing Orbbit Innovative Electronics Co., Ltd. as Corporate governance officer and appointed Hsu, Keng-Wei/Assistant vice president/Head of Information Security Department of the Company as Chief information security officer. Effective date: November 11, 2022. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$110, the stock trades at a trailing P/E ratio of 51.6x. Average forward P/E is 18x in the IT industry in Taiwan. Total loss to shareholders of 2.9% over the past three years. Valuation Update With 7 Day Price Move • Sep 19
Investor sentiment improved over the past week After last week's 19% share price gain to NT$170, the stock trades at a trailing P/E ratio of 70.4x. Average forward P/E is 18x in the IT industry in Taiwan. Total returns to shareholders of 37% over the past three years. Announcement • Sep 14
eCloudvalley Digital Technology Co., Ltd. has completed a Follow-on Equity Offering in the amount of TWD 885.7856 million. eCloudvalley Digital Technology Co., Ltd. has completed a Follow-on Equity Offering in the amount of TWD 885.7856 million.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 5,040,000
Price\Range: TWD 136.64
Security Name: Shares
Security Type: Common Stock
Securities Offered: 1,760,000
Price\Range: TWD 112 Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$172, the stock trades at a trailing P/E ratio of 71.5x. Average trailing P/E is 15x in the IT industry in Taiwan. Total returns to shareholders of 58% over the past three years. Reported Earnings • Aug 19
Second quarter 2022 earnings released: EPS: NT$0.34 (vs NT$1.33 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.34 (down from NT$1.33 in 2Q 2021). Revenue: NT$2.15b (down 29% from 2Q 2021). Net income: NT$20.3m (down 75% from 2Q 2021). Profit margin: 0.9% (down from 2.6% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 14
eCloudvalley Digital Technology Co., Ltd. Approves the Change of the Accounting Officer eCloudvalley Digital Technology Co., Ltd. announced that the Board of Directors of the Company has approved the change of the accounting officer. The company appointed Hsieh, Ming-Hung/Associate Manager/Head of Accounting of the Company, Director of Accounting Department of Elitegroup Computer Systems Co.,Ltd., in place of Lee, Chen-Jung/vice president/Vice-President, Financial and Accounting Center, Chief Financial Officer, Beijing Orbbit Innovative Electronics Co., Ltd. The date of occurrence of the change is July 13, 2022. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment deteriorated over the past week After last week's 18% share price decline to NT$188, the stock trades at a trailing P/E ratio of 55.3x. Average trailing P/E is 17x in the IT industry in Taiwan. Total returns to shareholders of 82% over the past three years. Upcoming Dividend • Jul 04
Upcoming dividend of NT$2.50 per share Eligible shareholders must have bought the stock before 11 July 2022. Payment date: 29 July 2022. Payout ratio is a comfortable 74% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (5.1%). Announcement • Jun 25
eCloudvalley Digital Technology Co., Ltd. Approves Dividend Distribution, Payable on July 29, 2022 eCloudvalley Digital Technology Co., Ltd. approved dividend distribution at its shareholders meeting held on June 23, 2022. Type and monetary amount of dividend distribution: Cash dividends TWD 150,000,000(TWD 2.5 per share). Ex-rights (Ex-dividend) date is July 11, 2022. Last date before book closure is July 12, 2022. Book closure starting date is July 13, 2022. Book closure ending date is July 17, 2022. Ex-rights (Ex-dividend) record date is July 17, 2022. Payment date of cash dividend distribution is July 29, 2022. Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$242, the stock trades at a trailing P/E ratio of 71.2x. Average trailing P/E is 17x in the IT industry in Taiwan. Total returns to shareholders of 141% over the past three years. Buying Opportunity • Jun 15
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 7.7%. The fair value is estimated to be NT$356, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 25% over the last 3 years. Earnings per share has grown by 14%. Reported Earnings • May 20
First quarter 2022 earnings released: EPS: NT$0.64 (vs NT$0.98 in 1Q 2021) First quarter 2022 results: EPS: NT$0.64 (down from NT$0.98 in 1Q 2021). Revenue: NT$2.04b (down 24% from 1Q 2021). Net income: NT$38.3m (down 35% from 1Q 2021). Profit margin: 1.9% (down from 2.2% in 1Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 13
eCloudvalley Digital Technology Co., Ltd. to Report Q1, 2022 Results on May 12, 2022 eCloudvalley Digital Technology Co., Ltd. announced that they will report Q1, 2022 results on May 12, 2022 Buying Opportunity • May 03
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 6.0%. The fair value is estimated to be NT$315, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 16%. Board Change • Apr 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. No experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Chao-Long Chen is the most experienced director on the board, commencing their role in 2021. Independent Director Han-Fei Lin was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 04
Full year 2021 earnings released: EPS: NT$3.40 (vs NT$2.54 in FY 2020) Full year 2021 results: EPS: NT$3.40 (up from NT$2.54 in FY 2020). Revenue: NT$10.1b (up 45% from FY 2020). Net income: NT$203.8m (up 34% from FY 2020). Profit margin: 2.0% (down from 2.2% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Dec 15
Investor sentiment deteriorated over the past week After last week's 23% share price decline to NT$271, the stock trades at a trailing P/E ratio of 77.7x. Average trailing P/E is 16x in the IT industry in Taiwan. Total returns to shareholders of 239% over the past three years. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.85 (vs NT$0.60 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$2.53b (up 15% from 3Q 2020). Net income: NT$51.1m (up 42% from 3Q 2020). Profit margin: 2.0% (up from 1.6% 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 19% per year but the company’s share price has increased by 74% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 18
First half 2021 earnings released: EPS NT$1.97 (vs NT$1.33 in 1H 2020) The company reported a solid first half result with improved earnings and revenues, although profit margins were weaker. First half 2021 results: Revenue: NT$5.35b (up 103% from 1H 2020). Net income: NT$117.9m (up 47% from 1H 2020). Profit margin: 2.2% (down from 3.0% in 1H 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 60% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Aug 05
Upcoming dividend of NT$1.10 per share Eligible shareholders must have bought the stock before 12 August 2021. Payment date: 30 September 2021. Trailing yield: 0.3%. Lower than top quartile of Taiwanese dividend payers (4.9%). Lower than average of industry peers (3.4%). Reported Earnings • Apr 11
Full year 2020 earnings released: EPS NT$3.09 (vs NT$3.03 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$7.03b (up 3.9% from FY 2019). Net income: NT$152.2m (up 11% from FY 2019). Profit margin: 2.2% (up from 2.0% in FY 2019). The increase in margin was driven by higher revenue. Announcement • Mar 17
eCloudvalley Digital Technology Co., Ltd., Annual General Meeting, May 31, 2021 eCloudvalley Digital Technology Co., Ltd., Annual General Meeting, May 31, 2021. Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment improved over the past week After last week's 15% share price gain to NT$241, the stock is trading at a trailing P/E ratio of 76.2x, up from the previous P/E ratio of 66.1x. This compares to an average P/E of 16x in the IT industry in Taiwan. Total returns to shareholders over the past year are 123%. Is New 90 Day High Low • Mar 09
New 90-day high: NT$235 The company is up 41% from its price of NT$167 on 09 December 2020. The Taiwanese market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 4.0% over the same period. Announcement • Feb 05
eCloudvalley Supports AISA's Multilingual Translation Solution with Well-Architected Deployment on AWS eCloudvalley provided AISA with a well-architected solution which gave them an edge on improvising their multilingual translation services. AISA Digital, a Singaporean technology startup, combines the AI translation engines, cloud-based technology and talented human translators, offering the most comprehensive and cost-effective contextual translation solutions in major ASEAN languages. With the rapid expansion of AISA's business and product development, they leveraged AWS for their business resources. Due to AISA's limited knowledge on AWS, eCloudvalley stepped in to save the day with their AWS cloud expertise. In order to manage their production and Staging Environment system, AISA ensured the systems were in good hands of eCloudvalley to resolve any potential technical issues surrounding the system. eCloudvalley's Next-Generation Managed Service support plan provided AISA with 7 x 24 technical support on their AWS infrastructure, marking out the essential AWS applications for their cloud projects, and hosting proprietary machine translation engines on AWS Cloud for providing automatic multi-lingual translation. Is New 90 Day High Low • Jan 28
New 90-day high: NT$195 The company is up 16% from its price of NT$168 on 30 October 2020. The Taiwanese market is up 23% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is up 5.0% over the same period. Is New 90 Day High Low • Jan 11
New 90-day high: NT$178 The company is up 3.0% from its price of NT$173 on 14 October 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 6.0% over the same period.