New Risk • May 21
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -NT$251m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-NT$251m free cash flow). Earnings have declined by 50% per year over the past 5 years. Minor Risk Market cap is less than US$100m (NT$1.31b market cap, or US$41.3m). Announcement • Mar 04
AboCom Systems, Inc., Annual General Meeting, May 20, 2026 AboCom Systems, Inc., Annual General Meeting, May 20, 2026, at 10:00 Taipei Standard Time. Location: b1 floor no,77, you yih rd., jhunan township, miaoli county Taiwan New Risk • Jan 22
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 7.0% 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 Risk Earnings have declined by 12% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Market cap is less than US$100m (NT$1.52b market cap, or US$48.1m). Reported Earnings • Nov 16
Third quarter 2025 earnings released: NT$0.46 loss per share (vs NT$0.30 loss in 3Q 2024) Third quarter 2025 results: NT$0.46 loss per share (further deteriorated from NT$0.30 loss in 3Q 2024). Revenue: NT$273.0m (down 25% from 3Q 2024). Net loss: NT$46.9m (loss widened 52% from 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 118 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 15
Second quarter 2025 earnings released: NT$0.90 loss per share (vs NT$0.17 loss in 2Q 2024) Second quarter 2025 results: NT$0.90 loss per share (further deteriorated from NT$0.17 loss in 2Q 2024). Revenue: NT$306.8m (down 5.6% from 2Q 2024). Net loss: NT$92.0m (loss widened 428% from 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 104 percentage points per year, which is a significant difference in performance. Reported Earnings • May 15
First quarter 2025 earnings released: NT$0.18 loss per share (vs NT$0.072 profit in 1Q 2024) First quarter 2025 results: NT$0.18 loss per share (down from NT$0.072 profit in 1Q 2024). Revenue: NT$293.6m (down 5.6% from 1Q 2024). Net loss: NT$17.9m (down 344% from profit in 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 95 percentage points per year, which is a significant difference in performance. Announcement • Apr 30
AboCom Systems, Inc. to Report Q1, 2025 Results on May 14, 2025 AboCom Systems, Inc. announced that they will report Q1, 2025 results on May 14, 2025 Buy Or Sell Opportunity • Mar 27
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 18% to NT$15.00. The fair value is estimated to be NT$18.99, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.2% over the last 3 years. Meanwhile, the company became loss making. Announcement • Mar 11
AboCom Systems, Inc., Annual General Meeting, Jun 03, 2025 AboCom Systems, Inc., Annual General Meeting, Jun 03, 2025, at 10:00 Taipei Standard Time. Location: b1 floor no,77, you yih rd., jhunan township, miaoli county Taiwan Announcement • Feb 25
AboCom Systems, Inc. to Report Q4, 2024 Results on Mar 07, 2025 AboCom Systems, Inc. announced that they will report Q4, 2024 results on Mar 07, 2025 Announcement • Nov 14
AboCom Systems, Inc. Closes Electronic Application Services Department AboCom Systems, Inc. has announced the Board of Directors' resolution to close its Electronic Application Services Department. Countermeasures: Some employees of the abolished department will remain according to needs, while the rest will have their employment contracts terminated in accordance with the Labor Standards Act and relevant laws and regulations. The termination will be reported to the competent authority and handled according to the Employment Services Act. Date of occurrence of the event: November 13, 2024. New Risk • Nov 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Profit margins are more than 30% lower than last year (0.7% net profit margin). Market cap is less than US$100m (NT$1.59b market cap, or US$49.0m). Announcement • Nov 05
AboCom Systems, Inc. to Report Q3, 2024 Results on Nov 13, 2024 AboCom Systems, Inc. announced that they will report Q3, 2024 results on Nov 13, 2024 Reported Earnings • Aug 13
Second quarter 2024 earnings released: NT$0.17 loss per share (vs NT$0.42 loss in 2Q 2023) Second quarter 2024 results: NT$0.17 loss per share (improved from NT$0.42 loss in 2Q 2023). Revenue: NT$325.1m (down 18% from 2Q 2023). Net loss: NT$17.4m (loss narrowed 59% from 2Q 2023). 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 5% per year, which means it is well ahead of earnings. Announcement • Aug 02
AboCom Systems, Inc. to Report Q2, 2024 Results on Aug 09, 2024 AboCom Systems, Inc. announced that they will report Q2, 2024 results on Aug 09, 2024 Reported Earnings • Mar 21
Full year 2023 earnings released: NT$0.16 loss per share (vs NT$1.18 profit in FY 2022) Full year 2023 results: NT$0.16 loss per share (down from NT$1.18 profit in FY 2022). Revenue: NT$1.82b (up 1.1% from FY 2022). Net loss: NT$15.9m (down 113% from profit in FY 2022). Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Mar 17
AboCom Systems, Inc., Annual General Meeting, Jun 13, 2024 AboCom Systems, Inc., Annual General Meeting, Jun 13, 2024. Location: No.77, Youyi Rd., Zhunan Township,Miaoli County 350, Taiwan (conference room on the basement floor) Taiwan Taiwan Agenda: To consider 2023 business report; to consider Audit Committee's review of the 2023 annual final accounting ledgers and statements; and to consider other matters. New Risk • Nov 25
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: 2.3% Last year net profit margin: 6.1% 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: Minor Risks Profit margins are more than 30% lower than last year (2.3% net profit margin). Market cap is less than US$100m (NT$1.39b market cap, or US$44.0m). New Risk • Aug 20
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 12% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (8.9% average weekly change). Minor Risk Market cap is less than US$100m (NT$1.23b market cap, or US$38.5m). New Risk • Jul 11
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 8.4% 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 Risk Share price has been highly volatile over the past 3 months (8.4% average weekly change). Minor Risk Market cap is less than US$100m (NT$1.53b market cap, or US$48.8m). Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$15.05, the stock trades at a trailing P/E ratio of 16.4x. Average trailing P/E is 21x in the Communications industry in Taiwan. Negligible returns to shareholders over past three years. Valuation Update With 7 Day Price Move • May 30
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to NT$11.90, the stock trades at a trailing P/E ratio of 13x. Average trailing P/E is 20x in the Communications industry in Taiwan. Total loss to shareholders of 20% over the past three years. Reported Earnings • Mar 30
Full year 2022 earnings released: EPS: NT$1.18 (vs NT$0.12 in FY 2021) Full year 2022 results: EPS: NT$1.18 (up from NT$0.12 in FY 2021). Revenue: NT$1.80b (up 2.0% from FY 2021). Net income: NT$120.0m (up NT$107.7m from FY 2021). Profit margin: 6.7% (up from 0.7% in FY 2021). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 12
Investor sentiment improved over the past week After last week's 24% share price gain to NT$17.80, the stock trades at a trailing P/E ratio of 17.3x. Average trailing P/E is 14x in the Communications industry in Taiwan. Total loss to shareholders of 18% over the past three years. Reported Earnings • Nov 20
Third quarter 2022 earnings released: EPS: NT$0.50 (vs NT$0.11 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.50 (up from NT$0.11 in 3Q 2021). Revenue: NT$404.8m (down 8.1% from 3Q 2021). Net income: NT$50.9m (up 343% from 3Q 2021). Profit margin: 13% (up from 2.6% in 3Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 21
Second quarter 2022 earnings released: EPS: NT$0.01 (vs NT$0.06 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.01 (down from NT$0.06 in 2Q 2021). Revenue: NT$395.6m (up 2.8% from 2Q 2021). Net income: NT$768.0k (down 87% from 2Q 2021). Profit margin: 0.2% (down from 1.6% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 01
Investor sentiment improved over the past week After last week's 17% share price gain to NT$13.55, the stock trades at a trailing P/E ratio of 19.5x. Average trailing P/E is 21x in the Communications industry in Taiwan. Total loss to shareholders of 29% over the past three years. Reported Earnings • May 16
First quarter 2022 earnings released: EPS: NT$0.31 (vs NT$0.27 loss in 1Q 2021) First quarter 2022 results: EPS: NT$0.31 (up from NT$0.27 loss in 1Q 2021). Revenue: NT$425.0m (down 4.3% from 1Q 2021). Net income: NT$31.1m (up NT$58.2m from 1Q 2021). Profit margin: 7.3% (up from net loss in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 01
Full year 2021 earnings released: EPS: NT$0.12 (vs NT$0.93 loss in FY 2020) Full year 2021 results: EPS: NT$0.12 (up from NT$0.93 loss in FY 2020). Revenue: NT$1.77b (flat on FY 2020). Net income: NT$12.2m (up NT$107.0m from FY 2020). Profit margin: 0.7% (up from net loss in FY 2020). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.11 (vs NT$0.12 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and revenues, although profit margins were improved. Third quarter 2021 results: Revenue: NT$440.5m (down 12% from 3Q 2020). Net income: NT$11.5m (down 5.6% from 3Q 2020). Profit margin: 2.6% (up from 2.4% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$0.06 (vs NT$1.08 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$384.9m (up 11% from 2Q 2020). Net income: NT$6.09m (up NT$115.6m from 2Q 2020). Profit margin: 1.6% (up from net loss in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 31
Full year 2020 earnings released: NT$0.93 loss per share (vs NT$0.26 loss in FY 2019) The company reported a soft full year result with increased losses and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: NT$1.77b (up 13% from FY 2019). Net loss: NT$94.8m (loss widened 256% from FY 2019). 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 20% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Jan 12
New 90-day high: NT$16.65 The company is up 9.0% from its price of NT$15.25 on 14 October 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is up 24% over the same period. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS NT$0.12 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: NT$497.9m (up 10% from 3Q 2019). Net income: NT$12.2m (down 24% from 3Q 2019). Profit margin: 2.4% (down from 3.5% in 3Q 2019). The decrease in margin was driven by higher expenses. 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 28% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Oct 16
New 90-day high: NT$15.50 The company is up 4.0% from its price of NT$14.95 on 17 July 2020. The Taiwanese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Communications industry, which is up 1.0% over the same period. Is New 90 Day High Low • Sep 24
New 90-day low: NT$13.80 The company is down 8.0% from its price of NT$15.00 on 24 June 2020. The Taiwanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is up 2.0% over the same period.