Valuation Update With 7 Day Price Move • May 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$36.30, the stock trades at a trailing P/E ratio of 12.8x. Average trailing P/E is 23x in the Tech industry in Taiwan. Total returns to shareholders of 121% over the past three years. Reported Earnings • May 13
First quarter 2026 earnings released: EPS: NT$1.00 (vs NT$0.33 loss in 1Q 2025) First quarter 2026 results: EPS: NT$1.00 (up from NT$0.33 loss in 1Q 2025). Revenue: NT$216.7m (up 11% from 1Q 2025). Net income: NT$44.3m (up NT$58.7m from 1Q 2025). Profit margin: 21% (up from net loss in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 27% per year whereas the company’s share price has increased by 26% per year. New Risk • Apr 05
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 392% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 100% Cash payout ratio: 201% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.0% net profit margin). Market cap is less than US$100m (NT$1.23b market cap, or US$38.5m). Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$1.50 (vs NT$2.35 in FY 2024) Full year 2025 results: EPS: NT$1.50 (down from NT$2.35 in FY 2024). Revenue: NT$940.9m (up 24% from FY 2024). Net income: NT$65.9m (down 36% from FY 2024). Profit margin: 7.0% (down from 14% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 26% per year whereas the company’s share price has increased by 29% per year. Announcement • Mar 12
Kworld Computer Co.,Ltd, Annual General Meeting, Jun 26, 2026 Kworld Computer Co.,Ltd, Annual General Meeting, Jun 26, 2026. Location: 3 floor no,113, chien erh rd., jhonghe district, new taipei city Taiwan Reported Earnings • Nov 18
Third quarter 2025 earnings released: EPS: NT$0.79 (vs NT$0.27 loss in 3Q 2024) Third quarter 2025 results: EPS: NT$0.79 (up from NT$0.27 loss in 3Q 2024). Revenue: NT$243.1m (up 37% from 3Q 2024). Net income: NT$34.6m (up NT$46.7m from 3Q 2024). Profit margin: 14% (up from net loss in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 30% per year. New Risk • Nov 18
New major risk - Revenue and earnings growth Earnings have declined by 2.8% 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. Paying a dividend despite being loss-making. Cash payout ratio: 92% Earnings have declined by 2.8% per year over the past 5 years. Minor Risk Market cap is less than US$100m (NT$1.33b market cap, or US$42.4m). Reported Earnings • Aug 15
Second quarter 2025 earnings released: NT$0.26 loss per share (vs NT$0.91 profit in 2Q 2024) Second quarter 2025 results: NT$0.26 loss per share (down from NT$0.91 profit in 2Q 2024). Revenue: NT$215.7m (up 25% from 2Q 2024). Net loss: NT$11.5m (down 129% from profit in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 24
Dividend increased to NT$1.50 Dividend of NT$1.50 is 78% higher than last year. Ex-date: 7th August 2025 Payment date: 5th September 2025 Dividend yield will be 4.1%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is not covered by earnings (157% earnings payout ratio) nor is it covered by cash flows (dividend approximately 20x free cash flows). The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. The company's earnings per share (EPS) would need to grow by 74% to bring the payout ratio under control, which is more than the 32% EPS growth achieved over the last 5 years. New Risk • May 15
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 156% Dividend per share is over 20x cash flows per share. Dividend yield: 3.7% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 156% Dividend per share is over 20x cash flows per share. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.6% net profit margin). Market cap is less than US$100m (NT$1.88b market cap, or US$62.1m). Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$46.10, the stock trades at a trailing P/E ratio of 19.6x. Average trailing P/E is 18x in the Tech industry in Taiwan. Total returns to shareholders of 213% over the past three years. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$31.60, the stock trades at a trailing P/E ratio of 13.4x. Average trailing P/E is 18x in the Tech industry in Taiwan. Total returns to shareholders of 105% over the past three years. New Risk • Mar 27
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 6.4% 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: Major Risk High level of non-cash earnings (35% accrual ratio). Minor Risks Dividend is not well covered by cash flows (dividend per share is over 16x cash flows per share). Share price has been volatile over the past 3 months (6.4% average weekly change). Market cap is less than US$100m (NT$1.76b market cap, or US$53.1m). Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$36.40, the stock trades at a trailing P/E ratio of 15.5x. Average trailing P/E is 20x in the Tech industry in Taiwan. Total returns to shareholders of 128% over the past three years. Reported Earnings • Mar 19
Full year 2024 earnings released: EPS: NT$2.35 (vs NT$0.92 in FY 2023) Full year 2024 results: EPS: NT$2.35 (up from NT$0.92 in FY 2023). Revenue: NT$761.6m (up 23% from FY 2023). Net income: NT$103.5m (up 156% from FY 2023). Profit margin: 14% (up from 6.5% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Mar 10
Kworld Computer Co.,Ltd, Annual General Meeting, Jun 23, 2025 Kworld Computer Co.,Ltd, Annual General Meeting, Jun 23, 2025. Location: 3 floor no,113, chien erh rd., jhonghe district, hsinchu city Taiwan Board Change • Feb 06
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. 2 independent directors (3 non-independent directors). Director Ming-Min Wang is the most experienced director on the board, commencing their role in 2023. Independent Director Yao Xian Xie was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Reported Earnings • Nov 18
Third quarter 2024 earnings released: NT$0.27 loss per share (vs NT$0.15 profit in 3Q 2023) Third quarter 2024 results: NT$0.27 loss per share (down from NT$0.15 profit in 3Q 2023). Revenue: NT$177.6m (up 1.9% from 3Q 2023). Net loss: NT$12.0m (down 277% from profit in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$40.75, the stock trades at a trailing P/E ratio of 16.1x. Average trailing P/E is 22x in the Tech industry in Taiwan. Total returns to shareholders of 164% over the past three years. New Risk • Aug 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 66% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (66% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.8% average weekly change). Market cap is less than US$100m (NT$1.79b market cap, or US$55.4m). 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$32.00, the stock trades at a trailing P/E ratio of 19.4x. Average trailing P/E is 20x in the Tech industry in Taiwan. Total returns to shareholders of 81% over the past three years. Upcoming Dividend • Jul 24
Upcoming dividend of NT$0.84 per share Eligible shareholders must have bought the stock before 31 July 2024. Payment date: 29 August 2024. Trailing yield: 2.1%. Lower than top quartile of Taiwanese dividend payers (4.3%). Lower than average of industry peers (3.0%). Reported Earnings • May 19
First quarter 2024 earnings released: EPS: NT$1.07 (vs NT$0.34 in 1Q 2023) First quarter 2024 results: EPS: NT$1.07 (up from NT$0.34 in 1Q 2023). Revenue: NT$200.0m (up 89% from 1Q 2023). Net income: NT$47.0m (up 215% from 1Q 2023). Profit margin: 24% (up from 14% in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 33% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$46.00, the stock trades at a trailing P/E ratio of 50.1x. Average trailing P/E is 23x in the Tech industry in Taiwan. Total returns to shareholders of 87% over the past three years. Valuation Update With 7 Day Price Move • Apr 11
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$40.00, the stock trades at a trailing P/E ratio of 43.6x. Average trailing P/E is 25x in the Tech industry in Taiwan. Total returns to shareholders of 52% over the past three years. Announcement • Apr 04
Kworld Computer Co.,Ltd, Annual General Meeting, Jun 25, 2024 Kworld Computer Co.,Ltd, Annual General Meeting, Jun 25, 2024. Reported Earnings • Mar 20
Full year 2023 earnings released: EPS: NT$0.92 (vs NT$0.024 in FY 2022) Full year 2023 results: EPS: NT$0.92 (up from NT$0.024 in FY 2022). Revenue: NT$620.3m (up 38% from FY 2022). Net income: NT$40.4m (up NT$39.3m from FY 2022). Profit margin: 6.5% (up from 0.2% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$26.10, the stock trades at a trailing P/E ratio of 50.4x. Average trailing P/E is 21x in the Tech industry in Taiwan. Total loss to shareholders of 9.4% over the past three years. Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$23.60, the stock trades at a trailing P/E ratio of 45.5x. Average trailing P/E is 19x in the Tech industry in Taiwan. Total loss to shareholders of 9.8% over the past three years. Valuation Update With 7 Day Price Move • Sep 18
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$27.10, the stock trades at a trailing P/E ratio of 52.2x. Average trailing P/E is 21x in the Tech industry in Taiwan. Total loss to shareholders of 17% over the past three years. Reported Earnings • Aug 14
Second quarter 2023 earnings released: EPS: NT$0.03 (vs NT$0.19 loss in 2Q 2022) Second quarter 2023 results: EPS: NT$0.03 (up from NT$0.19 loss in 2Q 2022). Revenue: NT$131.2m (up 36% from 2Q 2022). Net income: NT$1.32m (up NT$9.50m from 2Q 2022). Profit margin: 1.0% (up from net loss in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$21.75, the stock trades at a trailing P/E ratio of 71.8x. Average trailing P/E is 19x in the Tech industry in Taiwan. Total returns to shareholders of 96% over the past three years. Reported Earnings • Apr 01
Full year 2022 earnings released: EPS: NT$0.02 (vs NT$1.14 in FY 2021) Full year 2022 results: EPS: NT$0.02 (down from NT$1.14 in FY 2021). Revenue: NT$450.1m (down 35% from FY 2021). Net income: NT$1.06m (down 98% from FY 2021). Profit margin: 0.2% (down from 7.2% in FY 2021). The decrease in margin was driven by lower revenue. 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 31% per year, which means it is well ahead of earnings. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$0.16 (vs NT$0.09 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.16 (up from NT$0.09 in 3Q 2021). Revenue: NT$125.4m (down 4.4% from 3Q 2021). Net income: NT$6.89m (up 74% from 3Q 2021). Profit margin: 5.5% (up from 3.0% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 21% per year. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: NT$0.16 (vs NT$0.09 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.16 (up from NT$0.09 in 3Q 2021). Revenue: NT$125.4m (down 4.4% from 3Q 2021). Net income: NT$6.89m (up 74% from 3Q 2021). Profit margin: 5.5% (up from 3.0% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 20% per year. Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improved over the past week After last week's 18% share price gain to NT$13.95, the stock trades at a trailing P/E ratio of 31.1x. Average trailing P/E is 12x in the Tech industry in Taiwan. Total returns to shareholders of 70% over the past three years. Reported Earnings • May 19
First quarter 2022 earnings released: EPS: NT$0.06 (vs NT$0.31 in 1Q 2021) First quarter 2022 results: EPS: NT$0.06 (down from NT$0.31 in 1Q 2021). Revenue: NT$116.4m (down 42% from 1Q 2021). Net income: NT$2.66m (down 80% from 1Q 2021). Profit margin: 2.3% (down from 6.7% 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 66% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.09 (vs NT$1.03 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$131.1m (down 43% from 3Q 2020). Net income: NT$3.95m (down 91% from 3Q 2020). Profit margin: 3.0% (down from 20% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 03
Investor sentiment improved over the past week After last week's 23% share price gain to NT$19.65, the stock trades at a trailing P/E ratio of 11.1x. Average trailing P/E is 16x in the Tech industry in Taiwan. Total returns to shareholders of 119% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$0.25 (vs NT$0.36 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: NT$181.3m (up 14% from 2Q 2020). Net income: NT$11.3m (down 29% from 2Q 2020). Profit margin: 6.2% (down from 9.9% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 112% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 16
First quarter 2021 earnings released: EPS NT$0.31 (vs NT$0.11 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$201.4m (up 95% from 1Q 2020). Net income: NT$13.5m (up 191% from 1Q 2020). Profit margin: 6.7% (up from 4.5% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 120% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 13
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$19.95, the stock trades at a trailing P/E ratio of 11.9x. Average trailing P/E is 16x in the Tech industry in Taiwan. Total returns to shareholders of 101% over the past three years. Reported Earnings • Apr 01
Full year 2020 earnings released: EPS NT$1.68 (vs NT$0.22 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$677.2m (up 59% from FY 2019). Net income: NT$73.7m (up NT$64.1m from FY 2019). Profit margin: 11% (up from 2.3% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 124% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment improved over the past week After last week's 16% share price gain to NT$30.45, the stock trades at a trailing P/E ratio of 19.4x. Average trailing P/E is 16x in the Tech industry in Taiwan. Total returns to shareholders of 143% over the past three years. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$22.45, the stock is trading at a trailing P/E ratio of 14.3x, down from the previous P/E ratio of 17.1x. This compares to an average P/E of 15x in the Tech industry in Taiwan. Total returns to shareholders over the past three years are 199%. Is New 90 Day High Low • Jan 18
New 90-day low: NT$24.65 The company is down 2.0% from its price of NT$25.10 on 21 October 2020. The Taiwanese market is up 20% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is up 12% over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS NT$1.03 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$231.4m (up 111% from 3Q 2019). Net income: NT$45.4m (up NT$43.6m from 3Q 2019). Profit margin: 20% (up from 1.6% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 121% per year but the company’s share price has only increased by 67% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 12
Market pulls back on stock over the past week After last week's 21% share price decline to NT$28.40, the stock is trading at a trailing P/E ratio of 49.2x, down from the previous P/E ratio of 62.4x. This compares to an average P/E of 16x in the Tech industry in Taiwan. Total returns to shareholders over the past three years are 349%. Is New 90 Day High Low • Nov 07
New 90-day high: NT$39.30 The company is up 108% from its price of NT$18.90 on 07 August 2020. The Taiwanese market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Tech industry, which is down 4.0% over the same period. Valuation Update With 7 Day Price Move • Nov 03
Market bids up stock over the past week After last week's 19% share price gain to NT$31.05, the stock is trading at a trailing P/E ratio of 53.8x, up from the previous P/E ratio of 45.3x. This compares to an average P/E of 16x in the Tech industry in Taiwan. Total returns to shareholders over the past three years are 364%.