Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$224, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 15x in the Tech industry in Taiwan. Total returns to shareholders of 44% over the past three years. New Risk • May 16
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 106% The company is paying a dividend despite having no free cash flows. Dividend yield: 5.4% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 106% Paying a dividend despite having no free cash flows. Earnings have declined by 14% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (32% net profit margin). Reported Earnings • May 15
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: NT$2.00 (down from NT$4.46 in 1Q 2025). Revenue: NT$3.77b (down 13% from 1Q 2025). Net income: NT$1.48b (down 49% from 1Q 2025). Profit margin: 39% (down from 67% in 1Q 2025). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 25%. Revenue is forecast to grow 9.1% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Tech 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 remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$232, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the Tech industry in Taiwan. Total returns to shareholders of 57% over the past three years. Reported Earnings • Mar 08
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: NT$11.33 (down from NT$19.40 in FY 2024). Revenue: NT$18.7b (up 3.2% from FY 2024). Net income: NT$7.15b (down 46% from FY 2024). Profit margin: 38% (down from 73% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 5.4% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Tech industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has increased by 1% per year. New Risk • Mar 07
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 Dividend is not well covered by cash flows (dividend per share is over 80x cash flows per share). Announcement • Mar 04
Catcher Technology Co., Ltd., Annual General Meeting, May 27, 2026 Catcher Technology Co., Ltd., Annual General Meeting, May 27, 2026. Location: 2 floor no,1, huo yih rd., west central district, tainan city Taiwan Declared Dividend • Dec 10
Dividend of NT$3.16 announced Shareholders will receive a dividend of NT$3.16. Ex-date: 23rd December 2025 Payment date: 21st January 2026 Dividend yield will be 5.9%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (84% earnings payout ratio) but not covered by cash flows (dividend approximately 126x free cash flows). The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 2.6% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 07
Third quarter 2025 earnings released: EPS: NT$4.62 (vs NT$2.10 in 3Q 2024) Third quarter 2025 results: EPS: NT$4.62 (up from NT$2.10 in 3Q 2024). Revenue: NT$4.86b (down 5.0% from 3Q 2024). Net income: NT$2.88b (up 102% from 3Q 2024). Profit margin: 59% (up from 28% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Tech industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. New Risk • Aug 11
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: 37% Last year net profit margin: 74% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 97% Cash payout ratio: 351% Minor Risk Profit margins are more than 30% lower than last year (37% net profit margin). Reported Earnings • Aug 11
Second quarter 2025 earnings released: NT$1.60 loss per share (vs NT$5.05 profit in 2Q 2024) Second quarter 2025 results: NT$1.60 loss per share (down from NT$5.05 profit in 2Q 2024). Revenue: NT$5.08b (up 8.8% from 2Q 2024). Net loss: NT$1.03b (down 130% from profit in 2Q 2024). Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Tech industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Declared Dividend • Jun 20
Dividend of NT$8.33 announced Shareholders will receive a dividend of NT$8.33. Ex-date: 3rd July 2025 Payment date: 31st July 2025 Dividend yield will be 7.6%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is not adequately covered by earnings (97% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 9.6% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 8.1% to bring the payout ratio under control. However, EPS is expected to decline by 4.6% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • Jun 20
Catcher Technology Co., Ltd. Announces Cash Dividend for the 2H24, Payable on July 31, 2025 Catcher Technology Co., Ltd. announced Original Amount: TWD 5,193,160,544 (TWD 8.00 per share), Adjusted Amount: TWD 5,193,160,544 (TWD 8.32678869 per share) for the 2H24. Ex-dividend Trading Date 3 July 2025, Last Date Before Book Closure 4 July 2025, Record Date (Ex-dividend)9 July 2025 and Payment Date 31 July 2025. Major Estimate Revision • Jun 19
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$19.0b to NT$18.8b. EPS estimate also fell from NT$15.30 per share to NT$12.68 per share. Net income forecast to shrink 25% next year vs 16% growth forecast for Tech industry in Taiwan . Consensus price target down from NT$215 to NT$208. Share price fell 2.3% to NT$209 over the past week. Reported Earnings • May 10
First quarter 2025 earnings released: EPS: NT$4.46 (vs NT$6.73 in 1Q 2024) First quarter 2025 results: EPS: NT$4.46 (down from NT$6.73 in 1Q 2024). Revenue: NT$4.35b (up 19% from 1Q 2024). Net income: NT$2.92b (down 36% from 1Q 2024). Profit margin: 67% (down from 125% in 1Q 2024). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Tech industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 01
Catcher Technology Co., Ltd. to Report Q1, 2025 Results on May 09, 2025 Catcher Technology Co., Ltd. announced that they will report Q1, 2025 results on May 09, 2025 Announcement • Apr 17
Catcher Technology Co., Ltd. Announces Dividend for the Second Half Ended December 31, 2024 Catcher Technology Co., Ltd. announced on April 16, 2025, a dividend of TWD 8 per share for second half ended December 31, 2024. Total amount of cash distributed to shareholders is TWD 5,193,160,544. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$178, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 11x in the Tech industry in Taiwan. Total returns to shareholders of 48% over the past three years. Announcement • Feb 25
Catcher Technology Co., Ltd., Annual General Meeting, May 27, 2025 Catcher Technology Co., Ltd., Annual General Meeting, May 27, 2025, at 10:00 Taipei Standard Time. Location: 2 floor no,1, huo yih rd., west central district, tainan city Taiwan Reported Earnings • Feb 25
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: NT$19.40 (up from NT$13.33 in FY 2023). Revenue: NT$18.1b (flat on FY 2023). Net income: NT$13.2b (up 44% from FY 2023). Profit margin: 73% (up from 51% in FY 2023). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 7.1%. Revenue is forecast to grow 6.4% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Tech industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 12% per year. Announcement • Feb 15
Catcher Technology Co., Ltd. to Report Q4, 2024 Results on Feb 24, 2025 Catcher Technology Co., Ltd. announced that they will report Q4, 2024 results on Feb 24, 2025 Buy Or Sell Opportunity • Dec 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 25% to NT$178. The fair value is estimated to be NT$223, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Upcoming Dividend • Dec 03
Upcoming dividend of NT$7.50 per share Eligible shareholders must have bought the stock before 10 December 2024. Payment date: 08 January 2025. Payout ratio is on the higher end at 97% but the company is not cash flow positive. Trailing yield: 7.5%. Within top quartile of Taiwanese dividend payers (4.5%). Higher than average of industry peers (3.0%). Declared Dividend • Nov 08
Dividend of NT$7.50 announced Shareholders will receive a dividend of NT$7.50. Ex-date: 10th December 2024 Payment date: 8th January 2025 Dividend yield will be 5.8%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (78% earnings payout ratio) and cash flows (65% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 4.5% over the next 2 years. However, it would need to fall by 14% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Nov 07
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: NT$2.10 (down from NT$6.59 in 3Q 2023). Revenue: NT$5.12b (up 18% from 3Q 2023). Net income: NT$1.43b (down 68% from 3Q 2023). Profit margin: 28% (down from 103% in 3Q 2023). Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) also missed analyst estimates by 44%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Tech 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 increased by 11% per year, which means it is well ahead of earnings. Announcement • Oct 30
Catcher Technology Co., Ltd. to Report Q3, 2024 Results on Nov 06, 2024 Catcher Technology Co., Ltd. announced that they will report Q3, 2024 results on Nov 06, 2024 Reported Earnings • Aug 09
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: NT$5.05 (down from NT$6.59 in 2Q 2023). Revenue: NT$4.67b (down 32% from 2Q 2023). Net income: NT$3.44b (down 23% from 2Q 2023). Profit margin: 74% (up from 65% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Tech industry in Taiwan. 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 8% per year, which means it is well ahead of earnings. Announcement • Aug 01
Catcher Technology Co., Ltd. to Report Q2, 2024 Results on Aug 08, 2024 Catcher Technology Co., Ltd. announced that they will report Q2, 2024 results on Aug 08, 2024 Upcoming Dividend • Jun 30
Upcoming dividend of NT$5.00 per share Eligible shareholders must have bought the stock before 04 July 2024. Payment date: 31 July 2024. Payout ratio is a comfortable 53% but the company is paying out more than the cash it is generating. Trailing yield: 4.3%. Within top quartile of Taiwanese dividend payers (4.2%). Higher than average of industry peers (2.8%). Declared Dividend • Jun 15
Dividend of NT$5.00 announced Shareholders will receive a dividend of NT$5.00. Ex-date: 4th July 2024 Payment date: 31st July 2024 Dividend yield will be 4.3%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (53% earnings payout ratio) but not covered by cash flows (135% cash payout ratio). The dividend has increased by an average of 5.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 41% to increase the payout ratio to a potentially unsustainable range. Major Estimate Revision • May 17
Consensus EPS estimates increase by 36%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from NT$19.9b to NT$18.8b. EPS estimate rose from NT$14.87 to NT$20.22. Net income forecast to shrink 1.0% next year vs 26% growth forecast for Tech industry in Taiwan . Consensus price target up from NT$176 to NT$189. Share price was steady at NT$224 over the past week. Price Target Changed • May 14
Price target increased by 7.4% to NT$189 Up from NT$176, the current price target is an average from 5 analysts. New target price is 18% below last closing price of NT$232. Stock is up 24% over the past year. The company is forecast to post earnings per share of NT$20.22 for next year compared to NT$13.33 last year. Reported Earnings • May 12
First quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2024 results: EPS: NT$6.73 (up from NT$1.25 in 1Q 2023). Revenue: NT$3.66b (up 3.3% from 1Q 2023). Net income: NT$4.58b (up 418% from 1Q 2023). Revenue missed analyst estimates by 6.7%. Earnings per share (EPS) exceeded analyst estimates by 81%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Tech industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • May 03
Catcher Technology Co., Ltd. to Report Q1, 2024 Results on May 10, 2024 Catcher Technology Co., Ltd. announced that they will report Q1, 2024 results on May 10, 2024 Reported Earnings • Feb 24
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: NT$13.33 (down from NT$15.14 in FY 2022). Revenue: NT$18.1b (down 35% from FY 2022). Net income: NT$9.15b (down 16% from FY 2022). Profit margin: 51% (up from 39% in FY 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) also missed analyst estimates by 24%. Revenue is forecast to grow 9.8% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Tech 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 increased by 1% per year, which means it is well ahead of earnings. Announcement • Feb 23
Catcher Technology Co., Ltd., Annual General Meeting, May 30, 2024 Catcher Technology Co., Ltd., Annual General Meeting, May 30, 2024. Location: Silks Place Tainan 2F, No. 1, Heyi Rd., West Central Dist., Tainan City, R.O.C Tainan Taiwan Agenda: To discuss 2023 business report; to discuss 2023 Audit Committee's review report; to discuss 2023 distribution of employees and directors' compensation; to discuss Distribution of 2023 profits; and to discuss other matters. Price Target Changed • Jan 31
Price target increased by 8.4% to NT$164 Up from NT$151, the current price target is an average from 6 analysts. New target price is 16% below last closing price of NT$195. Stock is up 4.9% over the past year. The company is forecast to post earnings per share of NT$17.63 for next year compared to NT$15.14 last year. Upcoming Dividend • Nov 30
Upcoming dividend of NT$5.00 per share at 5.1% yield Eligible shareholders must have bought the stock before 07 December 2023. Payment date: 05 January 2024. The company is paying out more than 100% of its profits and is paying out 90% of its cash flow. Trailing yield: 5.1%. Lower than top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (3.5%). Reported Earnings • Nov 14
Third quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2023 results: EPS: NT$6.59 (down from NT$7.06 in 3Q 2022). Revenue: NT$4.33b (down 50% from 3Q 2022). Net income: NT$4.49b (down 11% from 3Q 2022). Revenue missed analyst estimates by 22%. Earnings per share (EPS) exceeded analyst estimates by 27%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Tech industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 17% 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. Announcement • Nov 11
Catcher Technology Co., Ltd. Announces Cash Dividend, Payable on January 5, 2024 Catcher Technology Co., Ltd. announced the cash dividends distributed to common shareholders are TWD 3,401,820,340 (TWD 5 per share). Ex-rights (ex-dividend) trading date: December 7, 2023. Ex-rights (ex-dividend) record date: December 13, 2023. Payment date of cash dividend distribution: January 5, 2024. Major Estimate Revision • Sep 19
Consensus EPS estimates increase by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from NT$13.26 to NT$14.79. Revenue forecast unchanged at NT$21.1b. Net income forecast to shrink 16% next year vs 9.3% growth forecast for Tech industry in Taiwan . Consensus price target down from NT$151 to NT$145. Share price was steady at NT$184 over the past week. Reported Earnings • Aug 09
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: NT$6.59 (up from NT$4.88 in 2Q 2022). Revenue: NT$6.89b (up 31% from 2Q 2022). Net income: NT$4.48b (up 28% from 2Q 2022). Profit margin: 65% (down from 67% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) also surpassed analyst estimates by 141%. Revenue is forecast to stay flat during the next 3 years compared to a 10% growth forecast for the Tech industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Aug 08
Consensus EPS estimates increase by 29%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from NT$23.2b to NT$22.6b. EPS estimate rose from NT$10.26 to NT$13.21. Net income forecast to shrink 12% next year vs 5.1% growth forecast for Tech industry in Taiwan . Consensus price target broadly unchanged at NT$154. Share price was steady at NT$176 over the past week. Upcoming Dividend • Jun 22
Upcoming dividend of NT$10.00 per share at 5.3% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 31 July 2023. Payout ratio is a comfortable 73% and this is well supported by cash flows. Trailing yield: 5.3%. Lower than top quartile of Taiwanese dividend payers (5.5%). Higher than average of industry peers (3.9%). Reported Earnings • Jun 18
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: NT$1.25 (down from NT$2.81 in 1Q 2022). Revenue: NT$3.54b (down 51% from 1Q 2022). Net income: NT$883.8m (down 57% from 1Q 2022). Profit margin: 25% (down from 28% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 26%. Earnings per share (EPS) also missed analyst estimates by 26%. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Tech industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 12% 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 • Jun 13
Catcher Technology Co., Ltd. Announces Cash Dividend, Payable on July 31, 2023 Catcher Technology Co., Ltd. announced the cash dividends distributed to common shareholders are TWD 6,803,640,680 (TWD 10 per share). Ex-rights (ex-dividend) trading date: June 29, 2023. Ex-rights (ex-dividend) record date: July 6, 2023. Payment date of cash dividend distribution: July 31, 2023. Reported Earnings • Mar 01
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: NT$15.14 (up from NT$11.31 in FY 2021). Revenue: NT$27.8b (down 32% from FY 2021). Net income: NT$10.9b (up 27% from FY 2021). Profit margin: 39% (up from 21% in FY 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 1.9% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Tech industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 8% per year. Major Estimate Revision • Nov 19
Consensus EPS estimates increase by 37% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from NT$29.4b to NT$31.8b. EPS estimate increased from NT$12.63 to NT$17.25 per share. Net income forecast to shrink 40% next year vs 5.8% decline forecast for Tech industry in Taiwan. Consensus price target of NT$153 unchanged from last update. Share price rose 2.2% to NT$184 over the past week. Reported Earnings • Nov 16
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: NT$7.06 (up from NT$2.64 in 3Q 2021). Revenue: NT$8.68b (down 12% from 3Q 2021). Net income: NT$5.05b (up 151% from 3Q 2021). Profit margin: 58% (up from 20% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 50%. Revenue is forecast to stay flat during the next 3 years compared to a 5.2% growth forecast for the Tech 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 12% per year, which means it is performing significantly worse than earnings. Reported Earnings • Nov 11
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: NT$7.06 (up from NT$2.64 in 3Q 2021). Revenue: NT$8.68b (down 12% from 3Q 2021). Net income: NT$5.05b (up 151% from 3Q 2021). Profit margin: 58% (up from 20% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 50%. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Tech 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 13% per year, which means it is performing significantly worse than earnings. Price Target Changed • Sep 13
Price target increased to NT$144 Up from NT$132, the current price target is an average from 10 analysts. New target price is 16% below last closing price of NT$172. Stock is up 8.2% over the past year. The company is forecast to post earnings per share of NT$11.94 for next year compared to NT$11.31 last year. Upcoming Dividend • Aug 29
Upcoming dividend of NT$10.21 per share Eligible shareholders must have bought the stock before 05 September 2022. Payment date: 30 September 2022. Payout ratio is a comfortable 69% and this is well supported by cash flows. Trailing yield: 5.5%. Lower than top quartile of Taiwanese dividend payers (6.4%). Lower than average of industry peers (7.3%). Major Estimate Revision • Aug 15
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from NT$34.9b to NT$29.7b. EPS estimate increased from NT$11.15 to NT$12.01 per share. Net income forecast to shrink 29% next year vs 3.5% decline forecast for Tech industry in Taiwan. Consensus price target up from NT$132 to NT$137. Share price rose 2.3% to NT$175 over the past week. Reported Earnings • Aug 09
Second quarter 2022 earnings released: EPS: NT$4.88 (vs NT$0.90 in 2Q 2021) Second quarter 2022 results: EPS: NT$4.88 (up from NT$0.90 in 2Q 2021). Revenue: NT$5.28b (down 49% from 2Q 2021). Net income: NT$3.51b (up 416% from 2Q 2021). Profit margin: 67% (up from 6.6% in 2Q 2021). Over the next year, revenue is forecast to grow 16%, compared to a 3.9% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 6% per year. Reported Earnings • May 12
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: NT$2.81 (down from NT$3.30 in 1Q 2021). Revenue: NT$7.22b (down 43% from 1Q 2021). Net income: NT$2.06b (down 18% from 1Q 2021). Profit margin: 28% (up from 20% in 1Q 2021). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) exceeded analyst estimates by 27%. Over the next year, revenue is expected to shrink by 1.9% compared to a 7.1% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 12% per year. Board Change • May 11
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 Tsung-chu Liang was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 27
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: NT$11.31 (down from NT$27.65 in FY 2020). Revenue: NT$41.1b (down 50% from FY 2020). Net income: NT$8.58b (down 59% from FY 2020). Profit margin: 21% (down from 26% in FY 2020). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 10%. Over the next year, revenue is forecast to grow 2.5%, compared to a 7.2% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 15% per year and the company’s share price has also fallen by 15% per year. Reported Earnings • Nov 11
Third quarter 2021 earnings released: EPS NT$2.64 (vs NT$0.75 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: NT$9.87b (down 58% from 3Q 2020). Net income: NT$2.01b (up 254% from 3Q 2020). Profit margin: 20% (up from 2.4% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 13% per year. Upcoming Dividend • Aug 24
Upcoming dividend of NT$12.00 per share Eligible shareholders must have bought the stock before 31 August 2021. Payment date: 30 September 2021. Trailing yield: 6.8%. Within top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (5.4%). Major Estimate Revision • Aug 13
Consensus revenue estimates fall to NT$46.5b The consensus outlook for revenues in 2021 has deteriorated. 2021 revenue forecast decreased from NT$52.4b to NT$46.5b. EPS estimate fell from NT$14.07 to NT$10.99 per share. Net income forecast to shrink 46% next year vs 16% growth forecast for Tech industry in Taiwan . Consensus price target down from NT$185 to NT$178. Share price fell 3.5% to NT$180 over the past week. Reported Earnings • Aug 09
Second quarter 2021 earnings released: EPS NT$0.89 (vs NT$3.63 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$10.4b (down 54% from 2Q 2020). Net income: NT$681.4m (down 75% from 2Q 2020). Profit margin: 6.6% (down from 12% in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 23% per year whereas the company’s share price has fallen by 21% per year. Major Estimate Revision • May 14
Consensus EPS estimates fall to NT$15.28 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from NT$59.2b to NT$53.9b. EPS estimate also fell from NT$18.04 to NT$15.28. Net income forecast to shrink 40% next year vs 17% growth forecast for Tech industry in Taiwan . Consensus price target down from NT$196 to NT$192. Share price fell 6.6% to NT$178 over the past week. Reported Earnings • May 06
First quarter 2021 earnings released: EPS NT$3.30 (vs NT$5.09 in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$12.6b (down 28% from 1Q 2020). Net income: NT$2.51b (down 36% from 1Q 2020). Profit margin: 20% (down from 22% in 1Q 2020). 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 18% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Mar 16
Analysts lower EPS estimates to NT$16.73 The 2021 consensus revenue estimate was lowered from NT$64.4b to NT$58.0b. Earning per share (EPS) estimate was also lowered from NT$18.99 to NT$16.73 for the same period. Net income is expected to shrink by 40% next year compared to 18% growth forecast for the Tech industry in Taiwan . The consensus price target increased from NT$197 to NT$202. Share price is up 4.6% to NT$203 over the past week. Reported Earnings • Mar 11
Full year 2020 earnings released: EPS NT$27.65 (vs NT$14.63 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: NT$82.5b (down 10.0% from FY 2019). Net income: NT$21.1b (up 88% from FY 2019). Profit margin: 26% (up from 12% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Mar 11
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 6.4%. Earnings per share (EPS) exceeded analyst estimates by 22%. Over the next year, revenue is expected to shrink by 27% compared to a 6.6% growth forecast for the Tech industry in Taiwan. Is New 90 Day High Low • Jan 06
New 90-day high: NT$208 The company is up 17% from its price of NT$178 on 08 October 2020. The Taiwanese market is also up 17% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Tech industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$182 per share. Major Estimate Revision • Jan 02
Analysts update estimates The 2020 consensus revenue estimate was lowered from NT$89.9b to NT$88.9b. Earnings per share (EPS) increased from NT$18.37 to NT$20.61 for the same period. Net income is expected to grow by 47% next year compared to 16% growth forecast for the Tech industry in Taiwan. The consensus price target was lowered from NT$201 to NT$200. Share price is up 1.7% to NT$206 over the past week. Is New 90 Day High Low • Dec 03
New 90-day high: NT$196 The company is up 1.0% from its price of NT$195 on 04 September 2020. The Taiwanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Tech industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$140 per share. Reported Earnings • Nov 18
Third quarter 2020 earnings released: EPS NT$0.75 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$23.7b (down 15% from 3Q 2019). Net income: NT$568.6m (down 83% from 3Q 2019). Profit margin: 2.4% (down from 12% in 3Q 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Nov 18
Revenue and earnings miss expectations Revenue missed analyst estimates by 5.9%. Earnings per share (EPS) also missed analyst estimates by 86%. Over the next year, revenue is expected to shrink by 23% compared to a 5.0% growth forecast for the Tech industry in Taiwan. Analyst Estimate Surprise Post Earnings • Oct 29
Third-quarter earnings released: Revenue and earnings miss expectations Third-quarter revenue missed analyst estimates by 5.8% at NT$23.7b. Earnings per share (EPS) also missed analyst estimates by 86% at NT$0.75. Revenue is expected to shrink by 22% over the next year, compared to a 6.3% growth forecast for the Tech industry in Taiwan. Reported Earnings • Oct 29
Third quarter earnings released Over the last 12 months the company has reported total profits of NT$10.7b, down 27% from the prior year. Total revenue was NT$95.8b over the last 12 months, up 7.7% from the prior year. Is New 90 Day High Low • Sep 24
New 90-day low: NT$178 The company is down 20% from its price of NT$223 on 24 June 2020. The Taiwanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$135 per share.