Buy Or Sell Opportunity • Apr 10
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 24% to NT$27.65. The fair value is estimated to be NT$22.61, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 9.3% over the last 3 years. Meanwhile, the company became loss making. Announcement • Mar 12
Max Echo Technology Corp., Annual General Meeting, Jun 18, 2026 Max Echo Technology Corp., Annual General Meeting, Jun 18, 2026. Location: no,15, ching k`o e. rd., nan tun district, taichung city Taiwan Reported Earnings • Mar 12
Full year 2025 earnings released: NT$0.20 loss per share (vs NT$2.11 loss in FY 2024) Full year 2025 results: NT$0.20 loss per share (improved from NT$2.11 loss in FY 2024). Revenue: NT$541.7m (up 26% from FY 2024). Net loss: NT$7.75m (loss narrowed 90% from FY 2024). Over the last 3 years on average, earnings per share has fallen by 37% 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. Board Change • Feb 24
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 2 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Director Bingshun Huang 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. Insufficient board refreshment. New Risk • Dec 04
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 8.6% 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 (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (8.6% average weekly change). Earnings have declined by 57% per year over the past 5 years. Minor Risk Market cap is less than US$100m (NT$719.3m market cap, or US$22.9m). Reported Earnings • Nov 12
Third quarter 2025 earnings released: NT$0.47 loss per share (vs NT$0.41 loss in 3Q 2024) Third quarter 2025 results: NT$0.47 loss per share (further deteriorated from NT$0.41 loss in 3Q 2024). Revenue: NT$128.8m (up 7.1% from 3Q 2024). Net loss: NT$17.8m (loss widened 15% from 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 65 percentage points per year, which is a significant difference in performance. New Risk • Aug 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (1.6% operating cash flow to total debt). Earnings have declined by 56% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.0% average weekly change). Market cap is less than US$100m (NT$669.8m market cap, or US$22.4m). Reported Earnings • Aug 13
Second quarter 2025 earnings released: NT$0.35 loss per share (vs NT$0.62 loss in 2Q 2024) Second quarter 2025 results: NT$0.35 loss per share (improved from NT$0.62 loss in 2Q 2024). Revenue: NT$134.7m (up 24% from 2Q 2024). Net loss: NT$13.2m (loss narrowed 44% from 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. New Risk • May 20
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 8.7% 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 Risks Debt is not well covered by operating cash flow (2.0% operating cash flow to total debt). Earnings have declined by 53% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.7% average weekly change). Market cap is less than US$100m (NT$620.3m market cap, or US$20.5m). Reported Earnings • May 14
First quarter 2025 earnings released: NT$0.10 loss per share (vs NT$0.80 loss in 1Q 2024) First quarter 2025 results: NT$0.10 loss per share (improved from NT$0.80 loss in 1Q 2024). Revenue: NT$121.9m (up 28% from 1Q 2024). Net loss: NT$3.64m (loss narrowed 88% from 1Q 2024). 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. Announcement • Mar 13
Max Echo Technology Corp., Annual General Meeting, Jun 19, 2025 Max Echo Technology Corp., Annual General Meeting, Jun 19, 2025. Location: no,15, ching k`o e. rd., nan tun district, taichung city Taiwan New Risk • Mar 12
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: Major Risks Debt is not well covered by operating cash flow (0.9% operating cash flow to total debt). Earnings have declined by 38% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.2% average weekly change). Market cap is less than US$100m (NT$768.7m market cap, or US$23.3m). Reported Earnings • Nov 18
Third quarter 2024 earnings released: NT$0.41 loss per share (vs NT$0.71 loss in 3Q 2023) Third quarter 2024 results: NT$0.41 loss per share (improved from NT$0.71 loss in 3Q 2023). Revenue: NT$120.3m (up 25% from 3Q 2023). Net loss: NT$15.5m (loss narrowed 42% from 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 105 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 18
Second quarter 2024 earnings released: NT$0.62 loss per share (vs NT$0.26 loss in 2Q 2023) Second quarter 2024 results: NT$0.62 loss per share (further deteriorated from NT$0.26 loss in 2Q 2023). Revenue: NT$109.0m (down 14% from 2Q 2023). Net loss: NT$23.7m (loss widened 140% from 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 101 percentage points per year, which is a significant difference in performance. Reported Earnings • May 04
First quarter 2024 earnings released: NT$0.80 loss per share (vs NT$0.20 loss in 1Q 2023) First quarter 2024 results: NT$0.80 loss per share (further deteriorated from NT$0.20 loss in 1Q 2023). Revenue: NT$95.4m (down 26% from 1Q 2023). Net loss: NT$30.6m (loss widened 292% from 1Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Announcement • Mar 30
Max Echo Technology Corp., Annual General Meeting, Jun 19, 2024 Max Echo Technology Corp., Annual General Meeting, Jun 19, 2024. Reported Earnings • Mar 14
Full year 2023 earnings released: NT$2.00 loss per share (vs NT$1.38 profit in FY 2022) Full year 2023 results: NT$2.00 loss per share (down from NT$1.38 profit in FY 2022). Revenue: NT$442.3m (down 36% from FY 2022). Net loss: NT$76.1m (down 252% from profit in FY 2022). Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Reported Earnings • Nov 10
Third quarter 2023 earnings released: NT$0.71 loss per share (vs NT$0.36 profit in 3Q 2022) Third quarter 2023 results: NT$0.71 loss per share (down from NT$0.36 profit in 3Q 2022). Revenue: NT$96.2m (down 44% from 3Q 2022). Net loss: NT$26.9m (down 294% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Upcoming Dividend • Aug 11
Upcoming dividend of NT$0.30 per share at 1.3% yield Eligible shareholders must have bought the stock before 18 August 2023. Payment date: 15 September 2023. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 1.3%. Lower than top quartile of Taiwanese dividend payers (5.6%). Lower than average of industry peers (4.2%). Reported Earnings • Aug 08
Second quarter 2023 earnings released: NT$0.26 loss per share (vs NT$0.18 profit in 2Q 2022) Second quarter 2023 results: NT$0.26 loss per share (down from NT$0.18 profit in 2Q 2022). Revenue: NT$126.9m (down 28% from 2Q 2022). Net loss: NT$9.86m (down 251% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jul 13
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: 3.5% Last year net profit margin: 9.1% 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 Risk Interest payments are not well covered by earnings (2.4x net interest cover). Minor Risks Profit margins are more than 30% lower than last year (3.5% net profit margin). Market cap is less than US$100m (NT$871.5m market cap, or US$28.1m). Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improved over the past week After last week's 16% share price gain to NT$23.50, the stock trades at a trailing P/E ratio of 16.6x. Average forward P/E is 10x in the Electronic industry in Taiwan. Total returns to shareholders of 103% over the past three years. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$0.36 (vs NT$0.46 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.36 (down from NT$0.46 in 3Q 2021). Revenue: NT$172.7m (down 4.9% from 3Q 2021). Net income: NT$13.9m (down 11% from 3Q 2021). Profit margin: 8.0% (down from 8.6% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: NT$0.36 (vs NT$0.46 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.36 (down from NT$0.46 in 3Q 2021). Revenue: NT$172.7m (down 4.9% from 3Q 2021). Net income: NT$13.9m (down 11% from 3Q 2021). Profit margin: 8.0% (down from 8.6% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 18% share price decline to NT$20.15, the stock trades at a trailing P/E ratio of 13.8x. Average forward P/E is 9x in the Electronic industry in Taiwan. Total returns to shareholders of 73% over the past three years. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment improved over the past week After last week's 17% share price gain to NT$25.00, the stock trades at a trailing P/E ratio of 17.1x. Average forward P/E is 10x in the Electronic industry in Taiwan. Total returns to shareholders of 128% over the past three years. Upcoming Dividend • Aug 16
Upcoming dividend of NT$0.44 per share Eligible shareholders must have bought the stock before 23 August 2022. Payment date: 16 September 2022. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Taiwanese dividend payers (6.5%). Lower than average of industry peers (4.4%). Reported Earnings • Aug 15
Second quarter 2022 earnings released Second quarter 2022 results: EPS: NT$0.18. Net income: NT$6.51m (up NT$6.51m from 2Q 2021). Over the next year, revenue is forecast to grow 20%, compared to a 8.6% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Apr 02
Max Echo Technology Corp., Annual General Meeting, Jun 24, 2022 Max Echo Technology Corp., Annual General Meeting, Jun 24, 2022. Reported Earnings • Dec 11
Third quarter 2021 earnings: Revenues and EPS in line with analyst expectations Third quarter 2021 results: EPS: NT$0.46 (up from NT$0.26 in 3Q 2020). Revenue: NT$181.6m (up 46% from 3Q 2020). Net income: NT$15.6m (up 82% from 3Q 2020). Profit margin: 8.6% (up from 6.9% in 3Q 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 21
Upcoming dividend of NT$0.20 per share Eligible shareholders must have bought the stock before 28 September 2021. Payment date: 19 October 2021. Trailing yield: 0.8%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (3.2%). Reported Earnings • Apr 27
Full year 2020 earnings released: EPS NT$0.87 (vs NT$0.66 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$510.8m (up 19% from FY 2019). Net income: NT$29.3m (up NT$51.4m from FY 2019). Profit margin: 5.7% (up from net loss in FY 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 19
New 90-day high: NT$16.55 The company is up 22% from its price of NT$13.60 on 19 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Electronic industry, which is up 24% over the same period. Is New 90 Day High Low • Feb 02
New 90-day high: NT$15.90 The company is up 17% from its price of NT$13.55 on 05 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 24% over the same period. Is New 90 Day High Low • Jan 08
New 90-day high: NT$15.80 The company is up 22% from its price of NT$12.90 on 08 October 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company outperformed over that time. However, its price trend is similar to the Electronic industry, which is also up 22% over the same period.