Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$139, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 24x in the Electronic industry in Taiwan. Total returns to shareholders of 135% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$97.33 per share. Upcoming Dividend • Jun 17
Upcoming dividend of NT$4.60 per share Eligible shareholders must have bought the stock before 24 June 2026. Payment date: 17 July 2026. Payout ratio is a comfortable 67% but the company is paying out more than the cash it is generating. Trailing yield: 2.9%. Lower than top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (1.3%). Declared Dividend • May 30
Dividend increased to NT$4.60 Dividend of NT$4.60 is 15% higher than last year. Ex-date: 24th June 2026 Payment date: 17th July 2026 Dividend yield will be 3.0%, 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 (152% cash payout ratio). The dividend has increased by an average of 18% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 15% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 06
First quarter 2026 earnings: EPS misses analyst expectations First quarter 2026 results: EPS: NT$1.05 (up from NT$0.79 in 1Q 2025). Revenue: NT$6.21b (up 15% from 1Q 2025). Net income: NT$294.2m (up 33% from 1Q 2025). Profit margin: 4.7% (up from 4.1% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. New Risk • May 06
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 29% 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 (29% accrual ratio). Minor Risk Dividend is not well covered by cash flows (152% cash payout ratio). Price Target Changed • Mar 10
Price target decreased by 7.0% to NT$165 Down from NT$178, the current price target is provided by 1 analyst. New target price is 31% above last closing price of NT$126. Stock is down 18% over the past year. The company posted earnings per share of NT$6.60 last year. Reported Earnings • Mar 08
Full year 2025 earnings released: EPS: NT$6.60 (vs NT$5.79 in FY 2024) Full year 2025 results: EPS: NT$6.60 (up from NT$5.79 in FY 2024). Revenue: NT$26.4b (up 15% from FY 2024). Net income: NT$1.84b (up 14% from FY 2024). Profit margin: 7.0% (in line with FY 2024). Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Announcement • Mar 05
Asia Optical Co., Inc., Annual General Meeting, May 27, 2026 Asia Optical Co., Inc., Annual General Meeting, May 27, 2026. Location: 3 floor no,1, chien kuo rd., tanzih district, taichung city Taiwan Buy Or Sell Opportunity • Jan 30
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 4.5% to NT$164. The fair value is estimated to be NT$136, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 31%. Reported Earnings • Nov 08
Third quarter 2025 earnings released: EPS: NT$1.86 (vs NT$2.45 in 3Q 2024) Third quarter 2025 results: EPS: NT$1.86 (down from NT$2.45 in 3Q 2024). Revenue: NT$7.15b (up 4.8% from 3Q 2024). Net income: NT$520.4m (down 24% from 3Q 2024). Profit margin: 7.3% (down from 10.0% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.1% 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 increased by 31% per year and the company’s share price has also increased by 31% per year. Reported Earnings • Aug 11
Second quarter 2025 earnings released: EPS: NT$2.86 (vs NT$1.60 in 2Q 2024) Second quarter 2025 results: EPS: NT$2.86 (up from NT$1.60 in 2Q 2024). Revenue: NT$6.91b (up 23% from 2Q 2024). Net income: NT$798.9m (up 79% from 2Q 2024). Profit margin: 12% (up from 7.9% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.8% 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 increased by 25% per year whereas the company’s share price has increased by 30% per year. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$154, the stock trades at a trailing P/E ratio of 24.8x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 169% over the past three years. Upcoming Dividend • Jun 17
Upcoming dividend of NT$4.00 per share Eligible shareholders must have bought the stock before 24 June 2025. Payment date: 18 July 2025. Payout ratio is a comfortable 65% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (3.3%). Declared Dividend • May 31
Dividend increased to NT$4.00 Dividend of NT$4.00 is 122% higher than last year. Ex-date: 24th June 2025 Payment date: 18th July 2025 Dividend yield will be 3.0%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by both earnings (65% earnings payout ratio) and cash flows (48% cash payout ratio). The dividend has increased by an average of 19% per year over the past 8 years. However, payments have been volatile during that time. Earnings per share has grown by 18% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • May 30
Asia Optical Co., Inc. Announces Cash Dividend, Payable on July 18, 2025 Asia Optical Co., Inc. at the board of directors or shareholders meeting or decision by the Company on May 29, 2025, Cash Dividend: TWD 1,116,975,604 (cash dividend of TWD 4 per share). Ex-rights (ex-dividend) trading date: June 24, 2025; Ex-rights (ex-dividend) record date: June 30, 2025; Payment date of common stock cash dividend distribution: July 18, 2025. Reported Earnings • May 07
First quarter 2025 earnings released: EPS: NT$0.79 (vs NT$0.40 in 1Q 2024) First quarter 2025 results: EPS: NT$0.79 (up from NT$0.40 in 1Q 2024). Revenue: NT$5.41b (up 26% from 1Q 2024). Net income: NT$220.6m (up 99% from 1Q 2024). Profit margin: 4.1% (up from 2.6% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.1% 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 increased by 12% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 24
Asia Optical Co., Inc. to Report Q1, 2025 Results on May 02, 2025 Asia Optical Co., Inc. announced that they will report Q1, 2025 results on May 02, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$121, the stock trades at a trailing P/E ratio of 20.9x. Average forward P/E is 13x in the Electronic industry in Taiwan. Total returns to shareholders of 83% over the past three years. New Risk • Mar 28
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.6% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining 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 Share price has been highly volatile over the past 3 months (7.9% average weekly change). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Mar 19
Full year 2024 earnings released: EPS: NT$5.79 (vs NT$2.78 in FY 2023) Full year 2024 results: EPS: NT$5.79 (up from NT$2.78 in FY 2023). Revenue: NT$23.0b (up 29% from FY 2023). Net income: NT$1.62b (up 108% from FY 2023). Profit margin: 7.0% (up from 4.4% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 12% 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 24% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to NT$155, the stock trades at a trailing P/E ratio of 28.4x. Average forward P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 132% over the past three years. Announcement • Mar 05
Asia Optical Co., Inc., Annual General Meeting, May 29, 2025 Asia Optical Co., Inc., Annual General Meeting, May 29, 2025. Location: 3 floor no,1, chien kuo rd., tanzih district, taichung city Taiwan Announcement • Feb 25
Asia Optical Co., Inc. to Report Q4, 2024 Results on Mar 04, 2025 Asia Optical Co., Inc. announced that they will report Q4, 2024 results on Mar 04, 2025 Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$185, the stock trades at a trailing P/E ratio of 34x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 138% over the past three years. New Risk • Dec 18
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 8.2% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Share price has been highly volatile over the past 3 months (8.2% average weekly change). 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 Share price has been volatile over the past 3 months (7.4% average weekly change). Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$128, the stock trades at a trailing P/E ratio of 23.5x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 59% over the past three years. Reported Earnings • Nov 09
Third quarter 2024 earnings released: EPS: NT$2.46 (vs NT$0.65 in 3Q 2023) Third quarter 2024 results: EPS: NT$2.46 (up from NT$0.65 in 3Q 2023). Revenue: NT$6.83b (up 45% from 3Q 2023). Net income: NT$684.7m (up 277% from 3Q 2023). Profit margin: 10.0% (up from 3.9% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 13% 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 fallen by 9% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Oct 24
Asia Optical Co., Inc. to Report Q3, 2024 Results on Nov 01, 2024 Asia Optical Co., Inc. announced that they will report Q3, 2024 results on Nov 01, 2024 New Risk • Sep 26
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 9.4% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Sep 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$132, the stock trades at a trailing P/E ratio of 36.2x. Average forward P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 97% over the past three years. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to NT$118, the stock trades at a trailing P/E ratio of 32.3x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 69% over the past three years. New Risk • Aug 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 7.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 09
Second quarter 2024 earnings released: EPS: NT$1.59 (vs NT$1.06 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.59 (up from NT$1.06 in 2Q 2023). Revenue: NT$5.61b (up 26% from 2Q 2023). Net income: NT$446.1m (up 50% from 2Q 2023). Profit margin: 7.9% (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 16% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Jul 24
Asia Optical Co., Inc. to Report Q2, 2024 Results on Aug 01, 2024 Asia Optical Co., Inc. announced that they will report Q2, 2024 results on Aug 01, 2024 Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$79.50, the stock trades at a trailing P/E ratio of 25.6x. Average forward P/E is 18x in the Electronic industry in Taiwan. Total loss to shareholders of 1.3% over the past three years. Declared Dividend • Jun 03
Dividend reduced to NT$1.80 Dividend of NT$1.80 is 5.3% lower than last year. Ex-date: 20th June 2024 Payment date: 19th July 2024 Dividend yield will be 2.7%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (19% cash payout ratio). The dividend has increased by an average of 8.8% per year over the past 7 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 36% to shift the payout ratio to a potentially unsustainable range, which is more than the 4.5% EPS decline seen over the last 5 years. Announcement • Jun 01
Asia Optical Co., Inc. Declares Dividend, Payable on July 19, 2024 Asia Optical Co., Inc. declares dividend of TWD 1.8 per share, payable on July 19, 2024. Ex-rights (ex-dividend) trading date is June 20, 2024. Ex-rights (ex-dividend) record date is June 28, 2024. Reported Earnings • May 11
First quarter 2024 earnings released: EPS: NT$0.40 (vs NT$0.073 in 1Q 2023) First quarter 2024 results: EPS: NT$0.40 (up from NT$0.073 in 1Q 2023). Revenue: NT$4.29b (up 12% from 1Q 2023). Net income: NT$110.8m (up 446% from 1Q 2023). Profit margin: 2.6% (up from 0.5% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 13% 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. New Risk • Mar 13
New major risk - Revenue and earnings growth Earnings have declined by 1.1% 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 1.1% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Mar 13
Full year 2023 earnings released: EPS: NT$2.78 (vs NT$3.29 in FY 2022) Full year 2023 results: EPS: NT$2.78 (down from NT$3.29 in FY 2022). Revenue: NT$17.8b (down 6.5% from FY 2022). Net income: NT$777.0m (down 16% from FY 2022). Profit margin: 4.4% (down from 4.8% in FY 2022). The decrease in margin was driven by lower revenue. 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 11% per year, which means it is performing significantly worse than earnings. Announcement • Mar 02
Asia Optical Co., Inc., Annual General Meeting, Jun 18, 2024 Asia Optical Co., Inc., Annual General Meeting, Jun 18, 2024. Location: 7th Floor, Conference Room, NO. 158, Fengli Road, Tanzi District, Taichung City Taichung City Taiwan Agenda: To consider 2023 Business Report ; to Supervisors' Review Report; to Report for 2023 compensation Distribution to Employees and Directors ; to 2023 Business Report and Financial Report ; to 2023 Profit Appropriation ; and to consider other matters if any. Reported Earnings • Nov 04
Third quarter 2023 earnings released: EPS: NT$0.65 (vs NT$1.62 in 3Q 2022) Third quarter 2023 results: EPS: NT$0.65 (down from NT$1.62 in 3Q 2022). Revenue: NT$4.72b (down 7.5% from 3Q 2022). Net income: NT$181.8m (down 60% from 3Q 2022). Profit margin: 3.9% (down from 8.9% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 03
Second quarter 2023 earnings released: EPS: NT$1.07 (vs NT$1.00 in 2Q 2022) Second quarter 2023 results: EPS: NT$1.07 (up from NT$1.00 in 2Q 2022). Revenue: NT$4.45b (down 8.7% from 2Q 2022). Net income: NT$296.7m (up 5.5% from 2Q 2022). Profit margin: 6.7% (up from 5.8% in 2Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jun 23
Upcoming dividend of NT$1.90 per share at 2.8% yield Eligible shareholders must have bought the stock before 30 June 2023. Payment date: 25 July 2023. Payout ratio is a comfortable 62% and the cash payout ratio is 76%. Trailing yield: 2.8%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (4.2%). Announcement • Jun 14
Asia Optical Co., Inc. Declares Dividend, Payable on July 25, 2023 Asia Optical Co., Inc. declares dividend of TWD 1.9 per share, payable on July 25, 2023. Ex-rights (ex-dividend) trading date is June 30, 2023. Ex-rights (ex-dividend) record date is July 8, 2023. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. 2 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Deng-Ke Zhong was the last independent director to join the board, commencing their role in 2019. 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 05
Third quarter 2022 earnings released: EPS: NT$1.62 (vs NT$1.31 in 3Q 2021) Third quarter 2022 results: EPS: NT$1.62 (up from NT$1.31 in 3Q 2021). Revenue: NT$5.10b (down 5.1% from 3Q 2021). Net income: NT$454.7m (up 24% from 3Q 2021). Profit margin: 8.9% (up from 6.8% 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 21% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 05
Second quarter 2022 earnings released: EPS: NT$1.00 (vs NT$1.36 in 2Q 2021) Second quarter 2022 results: EPS: NT$1.00 (down from NT$1.36 in 2Q 2021). Revenue: NT$4.87b (down 6.8% from 2Q 2021). Net income: NT$281.1m (down 27% from 2Q 2021). Profit margin: 5.8% (down from 7.3% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jun 30
Upcoming dividend of NT$3.70 per share Eligible shareholders must have bought the stock before 07 July 2022. Payment date: 29 July 2022. Payout ratio is on the higher end at 82%, however this is supported by cash flows. Trailing yield: 6.0%. Lower than top quartile of Taiwanese dividend payers (6.4%). Higher than average of industry peers (4.6%). Reported Earnings • May 08
First quarter 2022 earnings released: EPS: NT$0.28 (vs NT$1.08 in 1Q 2021) First quarter 2022 results: EPS: NT$0.28 (down from NT$1.08 in 1Q 2021). Revenue: NT$4.49b (down 5.1% from 1Q 2021). Net income: NT$77.9m (down 74% from 1Q 2021). Profit margin: 1.7% (down from 6.4% in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Deng-Ke Zhong 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 • Mar 28
Full year 2021 earnings released: EPS: NT$5.34 (vs NT$1.41 in FY 2020) Full year 2021 results: EPS: NT$5.34 (up from NT$1.41 in FY 2020). Revenue: NT$21.0b (up 33% from FY 2020). Net income: NT$1.50b (up 278% from FY 2020). Profit margin: 7.2% (up from 2.5% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 7% per year, which means it is performing significantly worse than earnings. Announcement • Jan 26
Asia Optical Co., Inc. Reaches Settlement Agreement with Samsung Electronics Japan Co., Ltd. Regarding Patent Infringement Lawsuit Related Cases Asia Optical Co., Inc. announced that the company has filed a patent infringement lawsuit against Samsung Electronics Japan Co., Ltd. at the Tokyo District Court on August 3rd, 2020, and now both parties have reached a settlement agreement with confidentiality clause. The Company will withdraw its relevant claims against Samsung Electronics Japan Co., Ltd. pursuant to the settlement agreement. Other contents of settlement shall keep confidential due to both parties' confidential information. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$1.31 (vs NT$0.66 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$5.37b (up 18% from 3Q 2020). Net income: NT$367.9m (up 97% from 3Q 2020). Profit margin: 6.8% (up from 4.1% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Reported Earnings • Aug 09
Second quarter 2021 earnings released: EPS NT$1.36 (vs NT$0.59 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$5.23b (up 35% from 2Q 2020). Net income: NT$382.9m (up 129% from 2Q 2020). Profit margin: 7.3% (up from 4.3% 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 15% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 28
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 04 August 2021. Payment date: 31 August 2021. Trailing yield: 1.2%. Lower than top quartile of Taiwanese dividend payers (4.9%). Lower than average of industry peers (3.0%). Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improved over the past week After last week's 16% share price gain to NT$92.50, the stock trades at a trailing P/E ratio of 31.9x. Average forward P/E is 13x in the Electronic industry in Taiwan. Total returns to shareholders of 9.9% over the past three years. Reported Earnings • May 07
First quarter 2021 earnings released: EPS NT$1.08 (vs NT$0.41 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$4.73b (up 62% from 1Q 2020). Net income: NT$304.0m (up NT$418.4m from 1Q 2020). Profit margin: 6.4% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • May 05
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$77.00, the stock trades at a trailing P/E ratio of 54.5x. Average trailing P/E is 19x in the Electronic industry in Taiwan. Total loss to shareholders of 8.3% over the past three years. Announcement • Mar 20
Asia Optical Co., Inc., Annual General Meeting, Jun 25, 2021 Asia Optical Co., Inc., Annual General Meeting, Jun 25, 2021. Location: 7th Floor, Conference Room, NO.158, Fengli Road, Tanzi Dist Taichung City Taiwan Agenda: To consider 2020 business report; to supervisors' review report; to the company's accumulated loss as of 2020 was amounted to one-half of the paid-up capital; to 2020 business report and financial reports; and to 2020 loss appropriation. Reported Earnings • Mar 20
Full year 2020 earnings released: EPS NT$1.41 (vs NT$3.41 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$15.8b (down 13% from FY 2019). Net income: NT$396.9m (down 59% from FY 2019). Profit margin: 2.5% (down from 5.3% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 18
New 90-day high: NT$85.50 The company is up 22% from its price of NT$70.00 on 20 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company outperformed over that time. However, its price trend is similar to the Electronic industry, which is also up 22% over the same period. Is New 90 Day High Low • Dec 09
New 90-day high: NT$78.80 The company is up 22% from its price of NT$64.40 on 10 September 2020. The Taiwanese market is up 13% 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. Is New 90 Day High Low • Nov 17
New 90-day high: NT$69.40 The company is up 1.0% from its price of NT$68.50 on 19 August 2020. The Taiwanese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Electronic industry, which is down 1.0% over the same period. Reported Earnings • Nov 06
Third quarter 2020 earnings released: EPS NT$0.66 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$4.56b (down 8.3% from 3Q 2019). Net income: NT$186.7m (down 52% from 3Q 2019). Profit margin: 4.1% (down from 7.8% 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 2% per year but the company’s share price has fallen by 17% per year, which means it is performing significantly worse than earnings. Is New 90 Day High Low • Sep 25
New 90-day low: NT$62.20 The company is down 11% from its price of NT$70.20 on 24 June 2020. The Taiwanese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is down 3.0% over the same period.