Buy Or Sell Opportunity • May 14
Now 27% overvalued after recent price rise Over the last 90 days, the stock has risen 4.3% to NT$4,150. The fair value is estimated to be NT$3,277, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 56%. Revenue is forecast to grow by 67% in a year. Earnings are forecast to grow by 127% in the next year. Price Target Changed • May 03
Price target increased by 7.0% to NT$4,895 Up from NT$4,573, the current price target is an average from 6 analysts. New target price is 42% above last closing price of NT$3,440. Stock is up 348% over the past year. The company is forecast to post earnings per share of NT$69.53 for next year compared to NT$30.41 last year. Reported Earnings • Apr 30
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: NT$10.00 (up from NT$6.75 in 1Q 2025). Revenue: NT$1.36b (up 18% from 1Q 2025). Net income: NT$341.9m (up 55% from 1Q 2025). Profit margin: 25% (up from 19% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 38% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has increased by 93% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Feb 12
Consensus EPS estimates increase by 26% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from NT$6.90b to NT$7.46b. EPS estimate increased from NT$53.74 to NT$67.62 per share. Net income forecast to grow 122% next year vs 28% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$2,750 to NT$3,939. Share price was steady at NT$3,980 over the past week. Announcement • Feb 06
Chunghwa Precision Test Tech. Co., Ltd., Annual General Meeting, May 27, 2026 Chunghwa Precision Test Tech. Co., Ltd., Annual General Meeting, May 27, 2026. Location: no,12, kung yeh 3rd rd., pingjhen district, taoyuan city Taiwan Reported Earnings • Feb 06
Full year 2025 earnings released: EPS: NT$30.41 (vs NT$15.55 in FY 2024) Full year 2025 results: EPS: NT$30.41 (up from NT$15.55 in FY 2024). Revenue: NT$4.81b (up 33% from FY 2024). Net income: NT$997.2m (up 96% from FY 2024). Profit margin: 21% (up from 14% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 39% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has increased by 85% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 02
Chunghwa Precision Test Tech. Co., Ltd. Announces Change of Chairman, Effective December 31, 2025 Chunghwa Precision Test Tech. Co., Ltd. announced the change of Chairman. The previous Chairman was Hong-Chan Ma, who held the position at Chunghwa Precision Test Tech. Co., Ltd. The new Chairman is Wei-Kuo Hong, who previously served as Senior Executive Vice President and President of Telecommunication Training Institute at Chunghwa Telecom Co., Ltd. The change occurred due to the retirement of the previous Chairman and a change of representative of the juristic person director. The effective date of the new appointment is December 31, 2025. The board of directors resolved the change on December 31, 2025. Valuation Update With 7 Day Price Move • Dec 15
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$2,335, the stock trades at a forward P/E ratio of 59x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 367% over the past three years. Valuation Update With 7 Day Price Move • Nov 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$1,785, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 254% over the past three years. Reported Earnings • Oct 29
Third quarter 2025 earnings: EPS exceeds analyst expectations Third quarter 2025 results: EPS: NT$8.41 (up from NT$3.25 in 3Q 2024). Revenue: NT$1.24b (up 36% from 3Q 2024). Net income: NT$275.6m (up 158% from 3Q 2024). Profit margin: 22% (up from 12% in 3Q 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 15%. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Electronic 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 increased by 69% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Sep 25
Price target increased by 31% to NT$1,141 Up from NT$870, the current price target is an average from 5 analysts. New target price is 37% below last closing price of NT$1,805. Stock is up 236% over the past year. The company is forecast to post earnings per share of NT$26.97 for next year compared to NT$15.55 last year. Valuation Update With 7 Day Price Move • Sep 23
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to NT$1,765, the stock trades at a forward P/E ratio of 61x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 369% over the past three years. New Risk • Sep 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 8.3% 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. Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$1,445, the stock trades at a forward P/E ratio of 50x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 227% over the past three years. Board Change • Aug 28
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Chih-Cheng Su was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$959, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 134% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$434 per share. Reported Earnings • Jul 30
Second quarter 2025 earnings released: EPS: NT$6.57 (vs NT$2.04 in 2Q 2024) Second quarter 2025 results: EPS: NT$6.57 (up from NT$2.04 in 2Q 2024). Revenue: NT$1.22b (up 68% from 2Q 2024). Net income: NT$215.6m (up 222% from 2Q 2024). Profit margin: 18% (up from 9.3% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 02
Upcoming dividend of NT$7.80 per share Eligible shareholders must have bought the stock before 09 July 2025. Payment date: 05 August 2025. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (3.2%). New Risk • Jun 26
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 10% 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. Declared Dividend • Jun 18
Dividend increased to NT$7.80 Dividend of NT$7.80 is 1,460% higher than last year. Ex-date: 9th July 2025 Payment date: 5th August 2025 Dividend yield will be 0.9%, which is lower than the industry average of 4.0%. Payout Ratios Payout ratio: 36%. Cash payout ratio: 23%. Announcement • May 30
Chunghwa Precision Test Tech. Co., Ltd. Approves Cash Dividend for the Year 2024 Chunghwa Precision Test Tech. Co., Ltd. approved the distribution of TWD 7.8 cash dividend per common share for the year 2024, at its shareholders' meeting held on May 29, 2025. New Risk • May 04
New major risk - Revenue and earnings growth Earnings have declined by 28% 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 28% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (9.5% average weekly change). Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$756, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 69% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$377 per share. Announcement • Apr 22
Chunghwa Precision Test Tech. Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Chunghwa Precision Test Tech. Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to NT$543, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 13x in the Electronic industry in Taiwan. Total returns to shareholders of 4.9% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$381 per share. Major Estimate Revision • Feb 18
Consensus revenue estimates increase by 10% The consensus outlook for revenues in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$4.19b to NT$4.61b. EPS estimate increased from NT$16.74 to NT$24.08 per share. Net income forecast to grow 58% next year vs 26% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$663 to NT$786. Share price rose 3.6% to NT$826 over the past week. Reported Earnings • Feb 13
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: NT$15.55 (up from NT$0.99 in FY 2023). Revenue: NT$3.60b (up 25% from FY 2023). Net income: NT$509.7m (up NT$477.1m from FY 2023). Profit margin: 14% (up from 1.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.2%. Earnings per share (EPS) also surpassed analyst estimates by 46%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Electronic 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 increased by 11% per year, which means it is well ahead of earnings. Announcement • Feb 12
Chunghwa Precision Test Tech. Co., Ltd., Annual General Meeting, May 29, 2025 Chunghwa Precision Test Tech. Co., Ltd., Annual General Meeting, May 29, 2025. Location: no,12, kung yeh 3rd rd., pingjhen district, taoyuan city Taiwan Announcement • Feb 04
Chunghwa Precision Test Tech. Co., Ltd. to Report Fiscal Year 2024 Results on Feb 11, 2025 Chunghwa Precision Test Tech. Co., Ltd. announced that they will report fiscal year 2024 results on Feb 11, 2025 New Risk • Dec 20
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 7.9% 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 • Nov 08
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. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Nov 07
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 57% to NT$687. The fair value is estimated to be NT$563, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 15% over the last 3 years. Earnings per share has declined by 64%. Revenue is forecast to grow by 29% in a year. Earnings are forecast to grow by 151% in the next year. Price Target Changed • Nov 04
Price target increased by 8.4% to NT$547 Up from NT$505, the current price target is an average from 5 analysts. New target price is 11% below last closing price of NT$615. Stock is up 18% over the past year. The company is forecast to post earnings per share of NT$10.30 for next year compared to NT$0.99 last year. Major Estimate Revision • Nov 01
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$3.25b to NT$3.30b. EPS estimate increased from NT$7.63 to NT$8.61 per share. Net income forecast to grow 271% next year vs 17% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$505 to NT$525. Share price rose 10% to NT$591 over the past week. Announcement • Oct 22
Chunghwa Precision Test Tech. Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Chunghwa Precision Test Tech. Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Reported Earnings • Aug 09
Second quarter 2024 earnings released: EPS: NT$2.04 (vs NT$1.07 in 2Q 2023) Second quarter 2024 results: EPS: NT$2.04 (up from NT$1.07 in 2Q 2023). Revenue: NT$722.8m (down 2.9% from 2Q 2023). Net income: NT$67.0m (up 91% from 2Q 2023). Profit margin: 9.3% (up from 4.7% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. New Risk • Aug 09
New major risk - Revenue and earnings growth Earnings have declined by 15% 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 15% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (2.7% net profit margin). Major Estimate Revision • Aug 02
Consensus EPS estimates increase by 22% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from NT$7.30 to NT$8.92. Revenue forecast steady at NT$3.25b. Net income forecast to grow 337% next year vs 22% growth forecast for Electronic industry in Taiwan. Consensus price target of NT$497 unchanged from last update. Share price rose 6.1% to NT$459 over the past week. Announcement • Jul 23
Chunghwa Precision Test Tech. Co., Ltd. to Report Q2, 2024 Results on Jul 30, 2024 Chunghwa Precision Test Tech. Co., Ltd. announced that they will report Q2, 2024 results on Jul 30, 2024 Upcoming Dividend • Jul 05
Upcoming dividend of NT$0.50 per share Eligible shareholders must have bought the stock before 09 July 2024. Payment date: 05 August 2024. Payout ratio is a comfortable 21% but the company is not cash flow positive. Trailing yield: 0.1%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (2.6%). Price Target Changed • Jun 21
Price target decreased by 8.2% to NT$497 Down from NT$542, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$482. Stock is down 15% over the past year. The company is forecast to post earnings per share of NT$6.37 for next year compared to NT$0.99 last year. Declared Dividend • Jun 20
Dividend reduced to NT$0.50 Dividend of NT$0.50 is 96% lower than last year. Ex-date: 9th July 2024 Payment date: 5th August 2024 Dividend yield will be 0.1%, which is lower than the industry average of 4.0%. Announcement • May 15
Chunghwa Precision Test Tech. Co., Ltd. Receives the Complaint of A Patent Infringement Lawsuit Filed by Technoprobe S.P.A. in Taiwan Chunghwa Precision Test Tech. Co., Ltd. received the complaint of a patent infringement lawsuit filed by Technoprobe S.P.A. (Italian Company) in Taiwan. Parties to the legal matter: Plaintiff: Technoprobe S.P.A. (Technoprobe). Defendant: Chunghwa Precision Test Tech. Co., Ltd.(Company). Name of the court or punishing agency of the legal matter: Intellectual Property and Commercial Court. Reference/Case number of relevant documents of the legal matter: Year 2024 Min Chuan Su Zi No. 25. Details of occurrence (including the matter under dispute): (1) Technoprobe claimed that the Company infringed its patent right of the Republic of China Patent No. I705249 ” SEMI-FINISHED PRODUCT COMPRISING A PLURALITY OF CONTACT PROBES FOR A TESTING HEAD AND RELATED MANUFACTURING METHOD” (hereinafter called ”Patent in dispute”), filed a civil lawsuit with the Intellectual Property and Commercial Court, and requested the Company to compensate for the damage it suffered, with the requested amount being TWD 31.65 million. (2) After investigation, Technoprobe’s claimed Patent in dispute was issued on September 21, 2020, and its main basis for claiming patent infringement was the Company’s presentation material announced at the Semiconductor Wafer Test Workshop (SWTW) in June 2018. However, when the disputed briefing was presented, Technoprobe's Patent in dispute had not yet been issued, and the Company had no way of infringing upon Technoprobe's Patent in dispute. In addition, the content of the briefing presented by the Company only involved cost and material analysis, not manufacturing methods. It has nothing to do with laser cutting, so Technoprobe's claim that the Company has infringed its Patent in dispute based on the presentation material released by the Company is completely unfounded. What's more, the Company's manufacturing method is significantly different from the manufacturing method of the Patent in dispute. (3) The company has always attached great importance to intellectual property rights and focused on independent research and development. By the end of 2023, it had obtained a total of 396 global patent rights. This is because the Company's products have applied for patent protection during the research and development process. However, in order to prevent competitors from knowing the Company's trade secrets, the Company carefully retains the manufacturing methods, material characteristics, etc. and protects them as trade secrets. Major Estimate Revision • May 02
Consensus EPS estimates fall by 26% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$3.46b to NT$3.31b. EPS estimate also fell from NT$12.77 per share to NT$9.39 per share. Net income forecast to grow 844% next year vs 33% growth forecast for Electronic industry in Taiwan. Consensus price target of NT$542 unchanged from last update. Share price rose 4.7% to NT$471 over the past week. Board Change • Mar 14
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Chung-Fern Wu was the last independent director to join the board, commencing their role in 2017. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 06
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: NT$0.99 (down from NT$23.50 in FY 2022). Revenue: NT$2.88b (down 34% from FY 2022). Net income: NT$32.6m (down 96% from FY 2022). Profit margin: 1.1% (down from 18% in FY 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 15%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. 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 13% per year, which means it has not declined as severely as earnings. Buying Opportunity • Dec 01
Now 21% undervalued Over the last 90 days, the stock is up 11%. The fair value is estimated to be NT$726, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.7% over the last 3 years. Earnings per share has declined by 24%. Revenue is forecast to grow by 43% in 2 years. Earnings is forecast to grow by 309% in the next 2 years. Major Estimate Revision • Nov 01
Consensus EPS estimates fall by 54% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$2.97b to NT$2.85b. EPS estimate also fell from NT$2.81 per share to NT$1.30 per share. Net income forecast to grow 84% next year vs 8.1% growth forecast for Electronic industry in Taiwan. Consensus price target down from NT$551 to NT$526. Share price fell 12% to NT$493 over the past week. New Risk • Oct 29
New major risk - Revenue and earnings growth Earnings have declined by 1.9% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 200% Cash payout ratio: 114% Earnings have declined by 1.9% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (5.9% average weekly change). Profit margins are more than 30% lower than last year (5.9% net profit margin). New Risk • Oct 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 5.9% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 200% Cash payout ratio: 114% Minor Risks Share price has been volatile over the past 3 months (5.9% average weekly change). Profit margins are more than 30% lower than last year (5.9% net profit margin). Reported Earnings • Oct 27
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: NT$0.33 (down from NT$6.99 in 3Q 2022). Revenue: NT$692.4m (down 44% from 3Q 2022). Net income: NT$10.9m (down 95% from 3Q 2022). Profit margin: 1.6% (down from 19% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.8%. Earnings per share (EPS) also missed analyst estimates by 59%. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Oct 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$493, the stock trades at a forward P/E ratio of 53x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total loss to shareholders of 21% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$365 per share. Price Target Changed • Sep 14
Price target increased by 7.6% to NT$543 Up from NT$504, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of NT$539. Stock is up 18% over the past year. The company is forecast to post earnings per share of NT$3.16 for next year compared to NT$23.50 last year. Major Estimate Revision • Sep 14
Consensus EPS estimates fall by 28% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$3.04b to NT$3.00b. EPS estimate also fell from NT$4.37 per share to NT$3.16 per share. Net income forecast to shrink 6.4% next year vs 5.6% growth forecast for Electronic industry in Taiwan . Consensus price target of NT$538 unchanged from last update. Share price was steady at NT$539 over the past week. Major Estimate Revision • Aug 03
Consensus revenue estimates fall by 19% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$3.75b to NT$3.04b. EPS estimate fell from NT$17.55 to NT$4.37 per share. Net income forecast to shrink 0.4% next year vs 3.6% decline forecast for Electronic industry in Taiwan. Consensus price target up from NT$504 to NT$538. Share price fell 8.5% to NT$507 over the past week. Price Target Changed • Jul 31
Price target increased by 7.1% to NT$521 Up from NT$486, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of NT$515. Stock is up 16% over the past year. The company is forecast to post earnings per share of NT$5.39 for next year compared to NT$23.50 last year. New Risk • Jul 30
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: 11% Last year net profit margin: 20% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Jul 29
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: NT$1.07 (down from NT$7.65 in 2Q 2022). Revenue: NT$744.3m (down 37% from 2Q 2022). Net income: NT$35.0m (down 86% from 2Q 2022). Profit margin: 4.7% (down from 21% in 2Q 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 36%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 13% per year. Announcement • Jul 28
Chunghwa Precision Test Tech. Co., Ltd. Announces Executive Changes Chunghwa Precision Test Tech. Co., Ltd. announced important personnel change. Name, title, and resume of the previous position holder: Cheng-Rui Lin, senior vice president of the Company, chief information security officer, and president of Hsinchu Office. Name, title, and resume of the new position holder: Chief information security officer:Wen-Cong Li, vice president of the Company President of Hsinchu Office: Chih-Shen Chien, vice president of the Company, Effective date is July 27, 2023. Major Estimate Revision • Jul 13
Consensus EPS estimates fall by 67% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$4.07b to NT$3.92b. EPS estimate also fell from NT$16.28 per share to NT$5.39 per share. Net income forecast to shrink 45% next year vs 3.6% decline forecast for Electronic industry in Taiwan. Consensus price target up from NT$486 to NT$504. Share price was steady at NT$593 over the past week. Upcoming Dividend • Jun 29
Upcoming dividend of NT$11.75 per share at 2.0% yield Eligible shareholders must have bought the stock before 06 July 2023. Payment date: 04 August 2023. Payout ratio is a comfortable 61% but the company is paying out more than the cash it is generating. Trailing yield: 2.0%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (4.3%). Board Change • Jun 25
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Chung-Fern Wu was the last independent director to join the board, commencing their role in 2017. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$575, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total loss to shareholders of 8.8% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$656 per share. Reported Earnings • May 13
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: NT$0.94 loss per share (down from NT$3.43 profit in 1Q 2022). Revenue: NT$675.3m (down 19% from 1Q 2022). Net loss: NT$30.8m (down 127% from profit in 1Q 2022). Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Electronic 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 9% per year, which means it is performing significantly worse than earnings. Price Target Changed • Apr 28
Price target decreased by 7.5% to NT$544 Down from NT$588, the current price target is an average from 5 analysts. New target price is 14% above last closing price of NT$475. Stock is up 0.5% over the past year. The company is forecast to post earnings per share of NT$23.50 for next year compared to NT$23.50 last year. Price Target Changed • Apr 24
Price target decreased by 7.5% to NT$544 Down from NT$588, the current price target is an average from 5 analysts. New target price is 11% above last closing price of NT$491. Stock is down 5.2% over the past year. The company is forecast to post earnings per share of NT$23.50 for next year compared to NT$23.50 last year. Buying Opportunity • Apr 24
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be NT$622, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.3% over the last 3 years. Earnings per share has grown by 4.3%. Revenue is forecast to grow by 20% in 2 years. Earnings is forecast to grow by 40% in the next 2 years. Buying Opportunity • Feb 12
Now 21% undervalued Over the last 90 days, the stock is up 39%. The fair value is estimated to be NT$736, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.7% over the last 3 years. Earnings per share has grown by 9.0%. Revenue is forecast to grow by 14% in 2 years. Earnings is forecast to grow by 16% in the next 2 years. Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improved over the past week After last week's 15% share price gain to NT$491, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 10x in the Electronic industry in Taiwan. Total loss to shareholders of 42% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$455 per share. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Chung-Fern Wu was the last independent director to join the board, commencing their role in 2017. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: NT$6.99 (vs NT$6.94 in 3Q 2021) Third quarter 2022 results: EPS: NT$6.99 (up from NT$6.94 in 3Q 2021). Revenue: NT$1.23b (up 11% from 3Q 2021). Net income: NT$229.3m (flat on 3Q 2021). Profit margin: 19% (down from 21% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.4% p.a. on average during the next 3 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 9% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$369, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 9x in the Electronic industry in Taiwan. Total loss to shareholders of 52% over the past three years. Price Target Changed • Sep 10
Price target decreased to NT$538 Down from NT$617, the current price target is an average from 5 analysts. New target price is 23% above last closing price of NT$439. Stock is down 25% over the past year. The company is forecast to post earnings per share of NT$26.32 for next year compared to NT$27.20 last year. Reported Earnings • Jul 31
Second quarter 2022 earnings: EPS exceeds analyst expectations Second quarter 2022 results: EPS: NT$7.65 (up from NT$6.60 in 2Q 2021). Revenue: NT$1.19b (up 13% from 2Q 2021). Net income: NT$251.0m (up 16% from 2Q 2021). Profit margin: 21% (in line with 2Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.0%. Over the next year, revenue is forecast to grow 9.1%, compared to a 9.5% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Upcoming Dividend • Jun 30
Upcoming dividend of NT$13.60 per share Eligible shareholders must have bought the stock before 07 July 2022. Payment date: 05 August 2022. Payout ratio is a comfortable 53% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Taiwanese dividend payers (6.4%). Lower than average of industry peers (4.6%). Price Target Changed • May 03
Price target decreased to NT$715 Down from NT$778, the current price target is an average from 6 analysts. New target price is 51% above last closing price of NT$473. Stock is down 34% over the past year. The company is forecast to post earnings per share of NT$27.38 for next year compared to NT$27.20 last year. Reported Earnings • May 02
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: NT$3.43 (down from NT$5.11 in 1Q 2021). Revenue: NT$829.1m (up 2.2% from 1Q 2021). Net income: NT$112.4m (down 33% from 1Q 2021). Profit margin: 14% (down from 21% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 5.1%. Earnings per share (EPS) also missed analyst estimates by 27%. Over the next year, revenue is forecast to grow 14%, compared to a 10% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Chung-Fern Wu was the last independent director to join the board, commencing their role in 2017. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Buying Opportunity • Mar 08
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 9.5%. The fair value is estimated to be NT$756, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% per annum over the last 3 years. Earnings per share has grown by 15% per annum over the last 3 years. Reported Earnings • Feb 10
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: NT$27.20 (down from NT$28.48 in FY 2020). Revenue: NT$4.24b (flat on FY 2020). Net income: NT$891.8m (down 4.5% from FY 2020). Profit margin: 21% (down from 22% in FY 2020). Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 8.3%. Over the next year, revenue is forecast to grow 14%, compared to a 8.5% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 15% per year and the company’s share price has also increased by 15% per year. Reported Earnings • Oct 29
Third quarter 2021 earnings released: EPS NT$6.93 (vs NT$8.75 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$1.11b (down 7.7% from 3Q 2020). Net income: NT$227.5m (down 21% from 3Q 2020). Profit margin: 21% (down from 24% in 3Q 2020). 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 21% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Sep 16
Investor sentiment improved over the past week After last week's 16% share price gain to NT$659, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 44% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$559 per share. Upcoming Dividend • Aug 06
Upcoming dividend of NT$12.00 per share Eligible shareholders must have bought the stock before 13 August 2021. Payment date: 10 September 2021. Trailing yield: 1.8%. Lower than top quartile of Taiwanese dividend payers (5.0%). Lower than average of industry peers (3.0%). Price Target Changed • Aug 03
Price target decreased to NT$776 Down from NT$838, the current price target is an average from 9 analysts. New target price is 15% above last closing price of NT$674. Stock is down 20% over the past year. Price Target Changed • Jul 29
Price target decreased to NT$776 Down from NT$838, the current price target is an average from 9 analysts. New target price is 23% above last closing price of NT$630. Stock is down 23% over the past year. Reported Earnings • Jul 28
Second quarter 2021 earnings released: EPS NT$6.61 (vs NT$7.11 in 2Q 2020) The company reported a poor second quarter result with weaker earnings and profit margins, although revenues were flat. Second quarter 2021 results: Revenue: NT$1.05b (flat on 2Q 2020). Net income: NT$216.5m (down 7.2% from 2Q 2020). Profit margin: 21% (down from 22% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • May 16
First quarter 2021 earnings released: EPS NT$5.11 (vs NT$5.46 in 1Q 2020) The company reported a poor first quarter result with weaker earnings and revenues, although profit margins were flat. First quarter 2021 results: Revenue: NT$811.4m (down 9.9% from 1Q 2020). Net income: NT$167.7m (down 6.3% from 1Q 2020). Profit margin: 21% (in line with 1Q 2020). 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 6% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 28
First quarter 2021 earnings released: EPS NT$5.11 (vs NT$5.46 in 1Q 2020) The company reported a poor first quarter result with weaker earnings and revenues, although profit margins were flat. First quarter 2021 results: Revenue: NT$811.4m (down 9.9% from 1Q 2020). Net income: NT$167.7m (down 6.3% from 1Q 2020). Profit margin: 21% (in line with 1Q 2020). 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 2% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 15
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$765, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 14x in the Electronic industry in Taiwan. Total returns to shareholders of 2.0% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$553 per share. Price Target Changed • Apr 15
Price target decreased to NT$908 Down from NT$1,026, the current price target is an average from 10 analysts. New target price is 19% above last closing price of NT$765. Stock is up 14% over the past year.