Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$390, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 19x in the Electronic industry in Taiwan. Total returns to shareholders of 641% over the past three years. New Risk • May 09
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% 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 (21% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (12% average weekly change). Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$335, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 23x in the Electronic industry in Taiwan. Total returns to shareholders of 562% over the past three years. New Risk • Apr 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 12% 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 • Apr 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$273, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 19x in the Electronic industry in Taiwan. Total returns to shareholders of 389% over the past three years. Reported Earnings • Mar 12
Full year 2025 earnings released: EPS: NT$4.21 (vs NT$3.65 in FY 2024) Full year 2025 results: EPS: NT$4.21 (up from NT$3.65 in FY 2024). Revenue: NT$7.88b (up 16% from FY 2024). Net income: NT$1.06b (up 15% from FY 2024). Profit margin: 14% (in line with FY 2024). Revenue is forecast to grow 34% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electronic 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 increased by 58% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 09
Co-Tech Development Corporation, Annual General Meeting, Jun 08, 2026 Co-Tech Development Corporation, Annual General Meeting, Jun 08, 2026, at 09:00 Taipei Standard Time. Location: 1 floor no,392, jui kuang rd., neihu district, taipei city Taiwan Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$233, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 18x in the Electronic industry in Taiwan. Total returns to shareholders of 307% over the past three years. Valuation Update With 7 Day Price Move • Dec 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$275, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 439% over the past three years. Reported Earnings • Nov 10
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: NT$1.00 (up from NT$0.88 in 3Q 2024). Revenue: NT$1.99b (up 11% from 3Q 2024). Net income: NT$253.2m (up 14% from 3Q 2024). Profit margin: 13% (in line with 3Q 2024). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 7.5%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 64% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$257, the stock trades at a forward P/E ratio of 43x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 451% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$140 per share. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to NT$204, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 494% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$221 per share. Valuation Update With 7 Day Price Move • Sep 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$213, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 473% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$224 per share. Valuation Update With 7 Day Price Move • Aug 29
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$218, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 18x in the Electronic industry in Taiwan. Total returns to shareholders of 457% over the past three years. Buy Or Sell Opportunity • Aug 19
Now 26% undervalued Over the last 90 days, the stock has risen 214% to NT$169. The fair value is estimated to be NT$228, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.4% over the last 3 years. Earnings per share has declined by 13%. Revenue is forecast to grow by 17% in a year. Earnings are forecast to grow by 77% in the next year. Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment improves as stock rises 34% After last week's 34% share price gain to NT$153, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 277% over the past three years. Reported Earnings • Aug 09
Second quarter 2025 earnings: EPS misses analyst expectations Second quarter 2025 results: EPS: NT$0.66 (down from NT$1.15 in 2Q 2024). Revenue: NT$2.00b (up 10% from 2Q 2024). Net income: NT$167.0m (down 43% from 2Q 2024). Profit margin: 8.3% (down from 16% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 43% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$106, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 182% over the past three years. Upcoming Dividend • Jul 17
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 21 July 2025. Payment date: 20 August 2025. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (3.0%). New Risk • Jul 11
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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.6% average weekly change). Valuation Update With 7 Day Price Move • Jul 10
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$69.10, the stock trades at a trailing P/E ratio of 17.9x. Average trailing P/E is 19x in the Electronic industry in Taiwan. Total returns to shareholders of 79% over the past three years. Declared Dividend • Jul 03
Dividend of NT$1.50 announced Shareholders will receive a dividend of NT$1.50. Ex-date: 21st July 2025 Payment date: 20th August 2025 Dividend yield will be 2.6%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by both earnings (42% earnings payout ratio) and cash flows (73% cash payout ratio). The dividend has decreased over the past 76 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 16% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jun 25
Co-Tech Development Corporation Announces Board Changes Co-Tech Development Corporation announced the board changes. Title and name of the previous position holder: Dasong Investment Co., Ltd; Representative Raymond Soong Chairman; Chan, Chi-Che Director; George Chen Independent Director; Sun Chin-Su Independent Director; Hsieh Fa-Jung Independent Director. Resume of the previous position holder: Dasong Investment Co.,Ltd. Representative Raymond Soong Chairman Chairman of the Board of Directors. Chan, Chi-Che Director Co-Tech Development Corp. George Chen Independent Director Co-Tech Development Corp. Sun Chin-Su Independent Director Co-Tech Development Corp. Hsieh Fa-Jung Independent Director Co-Tech Development Corp. Title and name of the new position holder: Raymond Soong Chairman. Liang Yann Ping Independent Director. Wang Lii Gang Independent Director. Ho Chien Lung Independent Director. Tseng Huan Hsiung Independent Director. Resume of the new position holder: Raymond Soong Chairman Chairman of the Board of Directors. Liang Yann Ping Independent Director Uni-President Securities Corporation. Wang Lii Gang Independent Director Deputy General Manager, Marketing Center, Elite Electronic Material Corporation. Ho Chien Lung Independent Director Deputy General Manager, Taiwan Union Technology Corporation Group. Tseng Huan Hsiung Independent Director Chairman and CEO, Solid State Storage Technology Corp. Effective date of the new appointment is on June 23, 2025. Reported Earnings • May 10
First quarter 2025 earnings released: EPS: NT$1.05 (vs NT$0.84 in 1Q 2024) First quarter 2025 results: EPS: NT$1.05 (up from NT$0.84 in 1Q 2024). Revenue: NT$1.73b (up 15% from 1Q 2024). Net income: NT$265.0m (up 25% from 1Q 2024). Profit margin: 15% (up from 14% in 1Q 2024). The increase in margin was driven by higher revenue. 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 5% per year, which means it has not declined as severely as earnings. Announcement • May 01
Co-Tech Development Corporation to Report Q1, 2025 Results on May 09, 2025 Co-Tech Development Corporation announced that they will report Q1, 2025 results on May 09, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$42.80, the stock trades at a trailing P/E ratio of 11.7x. Average trailing P/E is 17x in the Electronic industry in Taiwan. Total loss to shareholders of 26% over the past three years. Reported Earnings • Feb 25
Full year 2024 earnings released: EPS: NT$3.65 (vs NT$2.11 in FY 2023) Full year 2024 results: EPS: NT$3.65 (up from NT$2.11 in FY 2023). Revenue: NT$6.82b (up 11% from FY 2023). Net income: NT$921.8m (up 73% from FY 2023). Profit margin: 14% (up from 8.6% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Announcement • Feb 24
Co-Tech Development Corporation, Annual General Meeting, Jun 23, 2025 Co-Tech Development Corporation, Annual General Meeting, Jun 23, 2025. Location: 1 floor no,392, jui kuang rd., neihu district, taipei city Taiwan Announcement • Feb 14
Co-Tech Development Corporation to Report Q4, 2024 Results on Feb 21, 2025 Co-Tech Development Corporation announced that they will report Q4, 2024 results on Feb 21, 2025 New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 12
Third quarter 2024 earnings released: EPS: NT$0.88 (vs NT$0.36 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.88 (up from NT$0.36 in 3Q 2023). Revenue: NT$1.79b (up 27% from 3Q 2023). Net income: NT$222.7m (up 141% from 3Q 2023). Profit margin: 12% (up from 6.5% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 33% 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. Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: NT$1.15 (vs NT$0.33 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.15 (up from NT$0.33 in 2Q 2023). Revenue: NT$1.82b (up 45% from 2Q 2023). Net income: NT$291.5m (up 248% from 2Q 2023). Profit margin: 16% (up from 6.7% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Jul 24
Co-Tech Development Corporation to Report Q2, 2024 Results on Aug 09, 2024 Co-Tech Development Corporation announced that they will report Q2, 2024 results on Aug 09, 2024 Declared Dividend • Jun 24
Dividend reduced to NT$1.50 Dividend of NT$1.50 is 40% lower than last year. Ex-date: 9th July 2024 Payment date: 8th August 2024 Dividend yield will be 2.1%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (67% earnings payout ratio) but not covered by cash flows (282% cash payout ratio). The dividend has decreased over the past 66 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 26% to shift the payout ratio to a potentially unsustainable range, which is more than the 2.3% EPS decline seen over the last 5 years. Reported Earnings • May 15
First quarter 2024 earnings released: EPS: NT$0.84 (vs NT$0.71 in 1Q 2023) First quarter 2024 results: EPS: NT$0.84 (up from NT$0.71 in 1Q 2023). Revenue: NT$1.51b (down 14% from 1Q 2023). Net income: NT$212.5m (up 19% from 1Q 2023). Profit margin: 14% (up from 10% in 1Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • May 12
Co-Tech Development Corporation Proposes Cash Dividend for the Year Ended December 31, 2023 The board of directors of Co-Tech Development Corporation proposed to distribute cash dividends to shareholders of TWD 1.5 per share for the year ended December 31, 2023. Total amount of cash dividends to shareholders TWD 378,882,000. Date of the board of directors resolution is May 10, 2024. Announcement • May 03
Co-Tech Development Corporation to Report Q1, 2024 Results on May 10, 2024 Co-Tech Development Corporation announced that they will report Q1, 2024 results on May 10, 2024 Announcement • May 01
Co-Tech Development Corporation Announces Resignation of Yang,Cheng-Ping as Marketing Department Director Co-Tech Development Corporation announced resignation of Marketing Department Director. Date of occurrence of the change: April 30, 2024. Name, title, and resume of the previous position holder: Yang, Cheng-Ping Director of Marketing Department. Name, title, and resume of the new position holder: Position currently vacant. Type of change: resignation. Reason for the change: Resignation. Effective date is April 30, 2024. Buy Or Sell Opportunity • Apr 20
Now 21% undervalued Over the last 90 days, the stock has risen 4.2% to NT$62.30. The fair value is estimated to be NT$78.44, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.8% over the last 3 years. Earnings per share has declined by 10%. Revenue is forecast to grow by 46% in 2 years. Earnings are forecast to grow by 94% in the next 2 years. Reported Earnings • Mar 10
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: NT$2.11 (down from NT$3.83 in FY 2022). Revenue: NT$6.17b (down 17% from FY 2022). Net income: NT$532.9m (down 45% from FY 2022). Profit margin: 8.6% (down from 13% in FY 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 6.0%. Earnings per share (EPS) also surpassed analyst estimates by 3.9%. 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 10% 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. Reported Earnings • Nov 14
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: NT$0.37 (down from NT$0.46 in 3Q 2022). Revenue: NT$1.41b (down 2.6% from 3Q 2022). Net income: NT$92.3m (down 21% from 3Q 2022). Profit margin: 6.5% (down from 8.0% in 3Q 2022). Revenue exceeded analyst estimates by 9.0%. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 10% per year, which means it is tracking significantly ahead of earnings growth. Buying Opportunity • Oct 18
Now 23% undervalued Over the last 90 days, the stock is up 3.9%. The fair value is estimated to be NT$83.56, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.6% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 25% in 2 years. Earnings is forecast to grow by 68% in the next 2 years. Major Estimate Revision • Sep 21
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$6.53b to NT$5.82b. EPS estimate fell from NT$2.56 to NT$2.03 per share. Net income forecast to grow 21% next year vs 5.2% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$50.00 to NT$52.50. Share price fell 6.6% to NT$62.40 over the past week. Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$65.80, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 103% over the past three years. New Risk • Aug 13
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 116% The company is paying a dividend despite having no free cash flows. Dividend yield: 4.3% 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 Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 116% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (6.3% average weekly change). Profit margins are more than 30% lower than last year (8.5% net profit margin). Reported Earnings • Aug 12
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: NT$0.33 (down from NT$1.21 in 2Q 2022). Revenue: NT$1.25b (down 34% from 2Q 2022). Net income: NT$83.8m (down 73% from 2Q 2022). Profit margin: 6.7% (down from 16% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 37%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 8.0% growth forecast for the Electronic industry in Taiwan. 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 14% per year. New Risk • Aug 10
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 6.3% 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 Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.3% average weekly change). Profit margins are more than 30% lower than last year (11% net profit margin). Upcoming Dividend • Jun 30
Upcoming dividend of NT$2.50 per share at 4.1% yield Eligible shareholders must have bought the stock before 07 July 2023. Payment date: 08 August 2023. Payout ratio is a comfortable 65% but the company is not cash flow positive. Trailing yield: 4.1%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (4.2%). Announcement • Jun 21
Co-Tech Development Corporation Announces Cash Dividend, Payable on August 8, 2023 Co-Tech Development Corporation announced the company’s shareholders’ meeting held on June 19, 2023, announced Earnings Distribution Cash Dividends of TWD 631,470,000. Ex-rights (Ex-dividend) date is July 7, 2023. Ex-rights (Ex-dividend) record date is July 15, 2023. Payment date of cash dividend distribution is August 8, 2023. Announcement • May 06
Co-Tech Development Corp. Approves Dividend Co-Tech Development Corporation announced that at the board meeting held on May 5, 2023, the company approved appropriations of earnings in cash dividends to shareholders TWD 2.5 per share. Buying Opportunity • Mar 23
Now 21% undervalued Over the last 90 days, the stock is up 17%. The fair value is estimated to be NT$76.04, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 42%. Revenue is forecast to grow by 18% in 2 years. Earnings is forecast to grow by 15% in the next 2 years. Reported Earnings • Mar 15
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: NT$3.83 (down from NT$6.03 in FY 2021). Revenue: NT$7.41b (down 17% from FY 2021). Net income: NT$967.2m (down 37% from FY 2021). Profit margin: 13% (down from 17% in FY 2021). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.5%. Revenue is forecast to grow 8.5% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jan 04
Consensus revenue estimates increase by 12% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from NT$6.57b to NT$7.38b. EPS estimate increased from NT$3.78 to NT$4.01 per share. Net income forecast to shrink 34% next year vs 3.5% growth forecast for Electronic industry in Taiwan . Consensus price target up from NT$40.00 to NT$50.00. Share price rose 14% to NT$57.00 over the past week. Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improved over the past week After last week's 15% share price gain to NT$59.00, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 10x in the Electronic industry in Taiwan. Total returns to shareholders of 55% over the past three years. Board Change • Nov 16
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. 6 experienced directors. 3 highly experienced directors. 3 independent directors (7 non-independent directors). Independent Director George Chen was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: NT$0.46 (down from NT$1.74 in 3Q 2021). Revenue: NT$1.45b (down 40% from 3Q 2021). Net income: NT$116.2m (down 74% from 3Q 2021). Profit margin: 8.0% (down from 18% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) missed analyst estimates by 16%. Revenue is forecast to grow 2.1% p.a. on average during the next 3 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 51% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 31
Investor sentiment improved over the past week After last week's 18% share price gain to NT$43.60, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 8x in the Electronic industry in Taiwan. Total returns to shareholders of 19% over the past three years. Major Estimate Revision • Aug 25
Consensus revenue estimates fall by 16% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from NT$7.82b to NT$6.57b. EPS estimate fell from NT$5.93 to NT$3.78 per share. Net income forecast to shrink 49% next year vs 4.6% growth forecast for Electronic industry in Taiwan . Consensus price target down from NT$61.00 to NT$40.00. Share price fell 2.6% to NT$42.80 over the past week. Reported Earnings • Aug 07
Second quarter 2022 earnings: Revenues and EPS in line with analyst expectations Second quarter 2022 results: EPS: NT$1.21 (down from NT$1.54 in 2Q 2021). Revenue: NT$1.90b (down 15% from 2Q 2021). Net income: NT$305.7m (down 21% from 2Q 2021). Profit margin: 16% (down from 18% in 2Q 2021). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is expected to shrink by 3.7% compared to a 8.7% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 11
Upcoming dividend of NT$4.20 per share Eligible shareholders must have bought the stock before 18 July 2022. Payment date: 16 August 2022. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 9.1%. Within top quartile of Taiwanese dividend payers (6.7%). Higher than average of industry peers (4.8%). Reported Earnings • May 08
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: NT$1.51 (up from NT$0.92 in 1Q 2021). Revenue: NT$2.10b (up 15% from 1Q 2021). Net income: NT$381.7m (up 64% from 1Q 2021). Profit margin: 18% (up from 13% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.5%. Earnings per share (EPS) exceeded analyst estimates by 4.1%. Over the next year, revenue is forecast to grow 10%, compared to a 10% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 26% 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. 7 non-independent directors. Independent Director George Chen was the last independent director to join the board, commencing their role in 2016. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 24
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: NT$6.03 (up from NT$2.14 in FY 2020). Revenue: NT$8.91b (up 48% from FY 2020). Net income: NT$1.52b (up 181% from FY 2020). Profit margin: 17% (up from 9.0% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is forecast to grow 9.0%, compared to a 8.7% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 31% per year whereas the company’s share price has increased by 32% per year. Announcement • Feb 07
Co-Tech Development Corporation Announces That Legal Person Director Reassignment of Legal Representative Co-Tech Development Corporation announced company's legal person director reassignment of legal representative: Date of occurrence of the change:2022/01/28; Name of legal person: HUA ENG WIRE AND CABLE CO., LTD.; Name of the previous position holder:Lin Min-Shiang; Resume of the previous position holder: Director of HUA ENG WIRE AND CABLE CO., LTD.; Name of the new position holder: Liu Hsiu-Mei; Resume of the new position holder: Accounting Office Manager of HUA ENG WIRE AND CABLE CO., LTD.; Reason for the change: Change of representative of corporate director; Effective date of the new appointment:2022/02/01 Any other matters that need to be specified: HUA ENG WIRE AND CABLE CO., LTD. issued a reassignment letter on January 28, 2022 to change the representative, and the effective date was February 1, 2022. Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$66.00, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 11x in the Electronic industry in Taiwan. Total returns to shareholders of 163% over the past three years. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment deteriorated over the past week After last week's 18% share price decline to NT$69.30, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 143% over the past three years. Upcoming Dividend • Aug 18
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 25 August 2021. Payment date: 23 September 2021. Trailing yield: 2.7%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (3.3%). Reported Earnings • Aug 03
Second quarter 2021 earnings released: EPS NT$1.54 (vs NT$0.62 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$2.23b (up 48% from 2Q 2020). Net income: NT$388.9m (up 147% from 2Q 2020). Profit margin: 18% (up from 10% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 15% share price gain to NT$78.60, the stock trades at a trailing P/E ratio of 32.1x. Average trailing P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 142% over the past three years. Reported Earnings • May 08
First quarter 2021 earnings released: EPS NT$0.92 (vs NT$0.62 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$1.83b (up 25% from 1Q 2020). Net income: NT$233.1m (up 49% from 1Q 2020). Profit margin: 13% (up from 11% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 05
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$67.30, the stock trades at a trailing P/E ratio of 31.4x. Average trailing P/E is 19x in the Electronic industry in Taiwan. Total returns to shareholders of 113% over the past three years. Reported Earnings • Apr 04
Full year 2020 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$6.04b (up 16% from FY 2019). Net income: NT$541.6m (up 37% from FY 2019). Profit margin: 9.0% (up from 7.6% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Feb 06
New 90-day high: NT$57.90 The company is up 50% from its price of NT$38.50 on 06 November 2020. The Taiwanese market is up 20% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 25% over the same period. Announcement • Jan 28
Co-Tech Development Corporation, Annual General Meeting, Jun 28, 2021 Co-Tech Development Corporation, Annual General Meeting, Jun 28, 2021. Location: Conference Room of Lite-on Building 1F, No. 392, Ruey Kuang Rd, Neihu, Taipei Taipei Guangdong Province Taiwan Agenda: To consider Audit Committee's Review Report of 2020 Financial Statements; to consider Compensation of Employees and Directors for 2020; to consider adoption of 2020 Business Report and Financial Statements; to consider adoption of the Proposal of earning distribution for 2020; to discuss Cash Distribution from Capital Surplus for 2020; and to consider other matters. Reported Earnings • Jan 28
Full year 2020 earnings released: EPS NT$2.14 (vs NT$1.57 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$6.04b (up 16% from FY 2019). Net income: NT$541.6m (up 37% from FY 2019). Profit margin: 9.0% (up from 7.6% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Dec 28
Investor sentiment improved over the past week After last week's 25% share price gain to NT$55.50, the stock is trading at a trailing P/E ratio of 25.2x, up from the previous P/E ratio of 20.2x. This compares to an average P/E of 17x in the Electronic industry in Taiwan. Total returns to shareholders over the past three years are 64%. Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improved over the past week After last week's 19% share price gain to NT$51.50, the stock is trading at a trailing P/E ratio of 23.4x, up from the previous P/E ratio of 19.7x. This compares to an average P/E of 17x in the Electronic industry in Taiwan. Total returns to shareholders over the past three years are 54%. Is New 90 Day High Low • Dec 23
New 90-day high: NT$48.80 The company is up 32% from its price of NT$37.05 on 25 September 2020. The Taiwanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 12% over the same period. Reported Earnings • Nov 16
Third quarter 2020 earnings released: EPS NT$0.51 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$1.47b (up 6.5% from 3Q 2019). Net income: NT$128.4m (up 41% from 3Q 2019). Profit margin: 8.7% (up from 6.6% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Nov 12
New 90-day high: NT$41.90 The company is up 7.0% from its price of NT$39.15 on 14 August 2020. The Taiwanese market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 1.0% over the same period. Reported Earnings • Nov 06
Third quarter 2020 earnings released: EPS NT$0.51 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$1.47b (up 6.5% from 3Q 2019). Net income: NT$128.4m (up 41% from 3Q 2019). Profit margin: 8.7% (up from 6.6% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 41% 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.