Buy Or Sell Opportunity • Jul 02
Now 29% overvalued after recent price rise Over the last 90 days, the stock has risen 147% to NT$227. The fair value is estimated to be NT$175, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.3% over the last 3 years. Earnings per share has declined by 7.9%. Revenue is forecast to grow by 12% in a year. Earnings are forecast to grow by 31% in the next year. New Risk • Jun 23
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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (12% average weekly change). Minor Risk Dividend is not well covered by earnings (93% payout ratio). Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$244, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 21x in the Electronic industry in Taiwan. Total returns to shareholders of 212% over the past three years. Price Target Changed • Jun 03
Price target increased by 59% to NT$175 Up from NT$110, the current price target is an average from 2 analysts. New target price is 17% below last closing price of NT$210. Stock is up 114% over the past year. The company is forecast to post earnings per share of NT$6.38 for next year compared to NT$5.28 last year. Declared Dividend • May 30
Dividend reduced to NT$4.80 Dividend of NT$4.80 is 7.7% lower than last year. Ex-date: 16th June 2026 Payment date: 8th July 2026 Dividend yield will be 2.2%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is not adequately covered by earnings (93% earnings payout ratio). However, it is covered by cash flows (76% cash payout ratio). The dividend has increased by an average of 7.6% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 3.6% to bring the payout ratio under control. EPS is expected to grow by 17% over the next year, which is sufficient to bring the dividend into a sustainable range. Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$176, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 22x 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$122 per share. Buy Or Sell Opportunity • May 18
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 67% to NT$147. The fair value is estimated to be NT$122, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.3% over the last 3 years. Earnings per share has declined by 7.8%. Revenue is forecast to grow by 8.0% in a year. Earnings are forecast to grow by 21% in the next year. Reported Earnings • May 15
First quarter 2026 earnings released: EPS: NT$1.00 (vs NT$1.38 in 1Q 2025) First quarter 2026 results: EPS: NT$1.00 (down from NT$1.38 in 1Q 2025). Revenue: NT$3.34b (up 5.5% from 1Q 2025). Net income: NT$450.4m (down 4.5% from 1Q 2025). Profit margin: 14% (down from 15% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.4% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. New Risk • May 06
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 9.4% 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 Dividend is not well covered by earnings (93% payout ratio). Share price has been volatile over the past 3 months (9.4% average weekly change). Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$165, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 20x in the Electronic industry in Taiwan. Total returns to shareholders of 124% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$129 per share. Buy Or Sell Opportunity • Apr 20
Now 30% overvalued after recent price rise Over the last 90 days, the stock has risen 88% to NT$167. The fair value is estimated to be NT$128, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.9% over the last 3 years. Earnings per share has declined by 12%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to grow by 34% in the next 2 years. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$108, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 19x in the Electronic industry in Taiwan. Total returns to shareholders of 45% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$128 per share. Reported Earnings • Mar 14
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: NT$5.28 (down from NT$6.55 in FY 2024). Revenue: NT$13.3b (up 5.3% from FY 2024). Net income: NT$1.80b (down 16% from FY 2024). Profit margin: 14% (down from 17% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 1.9%. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Mar 10
TXC Corporation, Annual General Meeting, May 27, 2026 TXC Corporation, Annual General Meeting, May 27, 2026, at 09:30 Taipei Standard Time. Location: no,4, kung yeh 6th rd., pingjhen district, taoyuan city Taiwan Reported Earnings • Nov 13
Third quarter 2025 earnings released: EPS: NT$1.49 (vs NT$1.50 in 3Q 2024) Third quarter 2025 results: EPS: NT$1.49 (down from NT$1.50 in 3Q 2024). Revenue: NT$3.49b (down 4.8% from 3Q 2024). Net income: NT$511.1m (flat on 3Q 2024). Profit margin: 15% (in line with 3Q 2024). Revenue is forecast to grow 6.0% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. New Risk • Aug 19
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 92% Cash payout ratio: 266% Dividend yield: 6.0% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 15
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: NT$1.08 (down from NT$1.71 in 2Q 2024). Revenue: NT$3.37b (up 15% from 2Q 2024). Net income: NT$370.3m (down 28% from 2Q 2024). Profit margin: 11% (down from 18% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 19%. Revenue is forecast to grow 6.5% 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 18% 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. Major Estimate Revision • Aug 01
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$13.8b to NT$13.6b. EPS estimate also fell from NT$6.09 per share to NT$5.42 per share. Net income forecast to shrink 5.9% next year vs 18% growth forecast for Electronic industry in Taiwan . Consensus price target down from NT$107 to NT$104. Share price rose 3.6% to NT$87.10 over the past week. Upcoming Dividend • Jun 12
Upcoming dividend of NT$5.20 per share Eligible shareholders must have bought the stock before 16 June 2025. Payment date: 10 July 2025. Payout ratio is on the higher end at 84%, and the cash payout ratio is above 100%. Trailing yield: 5.2%. Within top quartile of Taiwanese dividend payers (5.2%). Higher than average of industry peers (3.3%). Declared Dividend • May 29
Dividend increased to NT$5.20 Dividend of NT$5.20 is 16% higher than last year. Ex-date: 16th June 2025 Payment date: 10th July 2025 Dividend yield will be 5.5%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (84% earnings payout ratio) but not covered by cash flows (dividend approximately 14x free cash flows). The dividend has increased by an average of 9.0% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 5.1% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • May 28
TXC Corporation Approves Board Elections TXC Corporation approved the election of Kuo, Ya-Ping and Pan, Ching-Yi as Directors and elected Hsing-Fu, Chiu, Su-Mei and Chen, Ming-Yi as Independent Directors, at its AGM held on May 27, 2025. Reported Earnings • May 15
First quarter 2025 earnings: EPS exceeds analyst expectations First quarter 2025 results: EPS: NT$1.38 (down from NT$1.73 in 1Q 2024). Revenue: NT$3.17b (up 15% from 1Q 2024). Net income: NT$471.8m (down 12% from 1Q 2024). Profit margin: 15% (down from 20% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.5%. Revenue is forecast to grow 6.3% 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 20% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Apr 16
TXC Corporation announced a financing transaction TXC Corporation announced a private placement to issue 50,000,000 common shares on April 14, 2025. The private placement will be conducted in batches (up to two batches) within one year from the date of resolution of the shareholders' meeting. The company has received approval from the shareholders. The price shall be no less than 80% of the reference price. The shares are subject to restriction period of three years. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$78.80, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 13x in the Electronic industry in Taiwan. Negligible returns to shareholders over past three years. Price Target Changed • Mar 27
Price target decreased by 7.5% to NT$108 Down from NT$117, the current price target is an average from 4 analysts. New target price is 11% above last closing price of NT$97.10. Stock is down 15% over the past year. The company is forecast to post earnings per share of NT$5.77 for next year compared to NT$6.55 last year. Reported Earnings • Mar 19
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: NT$6.55 (up from NT$5.53 in FY 2023). Revenue: NT$12.7b (up 17% from FY 2023). Net income: NT$2.14b (up 25% from FY 2023). Profit margin: 17% (up from 16% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 5.4%. Revenue is forecast to grow 5.9% 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 21% 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 • Mar 12
TXC Corporation, Annual General Meeting, May 27, 2025 TXC Corporation, Annual General Meeting, May 27, 2025, at 09:30 Taipei Standard Time. Location: no,4, kung yeh 6th rd., pingjhen district, taoyuan city Taiwan Announcement • Mar 11
TXC Corporation Proposes Cash Dividend for the Year Ended December 31, 2024 TXC Corporation Board of Directors proposed dividend distribution for the period from January 1, 2024 to December 31, 2024. Appropriations of earnings in cash dividends to shareholders: TWD 5.2 per share. Total amount of cash distributed to shareholders: TWD 1,783,563,449. Announcement • Mar 01
TXC Corporation to Report Fiscal Year 2024 Results on Mar 10, 2025 TXC Corporation announced that they will report fiscal year 2024 results on Mar 10, 2025 Buy Or Sell Opportunity • Jan 21
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 19% to NT$97.60. The fair value is estimated to be NT$123, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 11% over the last 3 years. Earnings per share has declined by 20%. Revenue is forecast to grow by 8.6% in a year. Earnings are forecast to grow by 14% in the next year. Reported Earnings • Nov 17
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: EPS: NT$1.50 (down from NT$1.93 in 3Q 2023). Revenue: NT$3.67b (up 19% from 3Q 2023). Net income: NT$513.9m (down 14% from 3Q 2023). Profit margin: 14% (down from 19% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) missed analyst estimates by 21%. Revenue is forecast to grow 9.0% 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 20% 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 • Oct 27
TXC Corporation to Report Q3, 2024 Results on Nov 04, 2024 TXC Corporation announced that they will report Q3, 2024 results on Nov 04, 2024 Buy Or Sell Opportunity • Oct 22
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to NT$117. The fair value is estimated to be NT$96.11, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has declined by 16%. Revenue is forecast to grow by 11% in a year. Earnings are forecast to grow by 7.3% in the next year. New Risk • Sep 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 11% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (128% cash payout ratio). Shareholders have been diluted in the past year (11% increase in shares outstanding). Price Target Changed • Aug 17
Price target increased by 11% to NT$117 Up from NT$106, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of NT$112. Stock is up 19% over the past year. The company is forecast to post earnings per share of NT$7.06 for next year compared to NT$5.53 last year. Reported Earnings • Aug 16
Second quarter 2024 earnings: Revenues and EPS in line with analyst expectations Second quarter 2024 results: EPS: NT$1.67 (up from NT$1.36 in 2Q 2023). Revenue: NT$2.92b (up 21% from 2Q 2023). Net income: NT$517.3m (up 23% from 2Q 2023). Profit margin: 18% (in line with 2Q 2023). 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 2% per year, which means it is well ahead of earnings. Announcement • Jul 27
TXC Corporation to Report Q2, 2024 Results on Aug 05, 2024 TXC Corporation announced that they will report Q2, 2024 results on Aug 05, 2024 Major Estimate Revision • Jul 20
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$12.7b to NT$12.3b. EPS estimate also fell from NT$7.53 per share to NT$6.73 per share. Net income forecast to grow 16% next year vs 25% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$106 to NT$111. Share price fell 4.4% to NT$109 over the past week. Price Target Changed • Jul 19
Price target increased by 7.8% to NT$111 Up from NT$103, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of NT$109. Stock is up 20% over the past year. The company is forecast to post earnings per share of NT$6.73 for next year compared to NT$5.53 last year. Upcoming Dividend • Jun 13
Upcoming dividend of NT$4.50 per share Eligible shareholders must have bought the stock before 20 June 2024. Payment date: 12 July 2024. Payout ratio is a comfortable 71% but the company is paying out more than the cash it is generating. Trailing yield: 3.8%. Lower than top quartile of Taiwanese dividend payers (4.3%). Higher than average of industry peers (2.8%). Announcement • May 25
TXC Corporation Announces Cash Dividend, Payable on July 12, 2024 TXC Corporation announced common stock dividend distribution of TWD 1,393,910,640 of cash dividends, TWD 4.5 per share. Ex-rights (ex-dividend) trading date: June 20, 2024. Ex-rights (ex-dividend) record date: June 28, 2024. Payment date of common stock cash dividend distribution: July 12, 2024. Date of the resolution by the board of directors or shareholders meeting or decision by the Company is May 23, 2024. If the dividends cannot be distributed on July 12, 2024 owing to the change of actual working process, the Company will then announce the updated distribution date accordingly. Reported Earnings • May 11
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: NT$1.73 (up from NT$0.93 in 1Q 2023). Revenue: NT$2.75b (up 20% from 1Q 2023). Net income: NT$537.2m (up 87% from 1Q 2023). Profit margin: 20% (up from 13% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.7%. Earnings per share (EPS) also surpassed analyst estimates by 16%. Revenue is forecast to grow 11% 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 increased by 6% per year, which means it is well ahead of earnings. Announcement • Apr 28
TXC Corporation to Report Q1, 2024 Results on May 06, 2024 TXC Corporation announced that they will report Q1, 2024 results on May 06, 2024 Buy Or Sell Opportunity • Mar 18
Now 21% undervalued Over the last 90 days, the stock has risen 17% to NT$115. The fair value is estimated to be NT$145, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.7% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 25% in 2 years. Earnings are forecast to grow by 49% in the next 2 years. Reported Earnings • Mar 14
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: NT$5.53 (down from NT$9.06 in FY 2022). Revenue: NT$10.9b (down 18% from FY 2022). Net income: NT$1.71b (down 39% from FY 2022). Profit margin: 16% (down from 21% in FY 2022). 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. Revenue is forecast to grow 11% 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 2% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Price Target Changed • Mar 01
Price target increased by 9.2% to NT$107 Up from NT$97.60, the current price target is an average from 5 analysts. New target price is 7.8% above last closing price of NT$98.90. Stock is up 12% over the past year. The company is forecast to post earnings per share of NT$5.54 for next year compared to NT$9.06 last year. Price Target Changed • Nov 13
Price target increased by 7.3% to NT$98.00 Up from NT$91.33, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of NT$96.70. Stock is up 19% over the past year. The company is forecast to post earnings per share of NT$5.83 for next year compared to NT$9.06 last year. Reported Earnings • Nov 13
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: NT$1.94 (down from NT$2.75 in 3Q 2022). Revenue: NT$3.09b (down 10% from 3Q 2022). Net income: NT$598.3m (down 30% from 3Q 2022). Profit margin: 19% (down from 25% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Electronic 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 7% per year. Buying Opportunity • Nov 08
Now 20% undervalued Over the last 90 days, the stock is up 8.2%. The fair value is estimated to be NT$122, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 16% in 2 years. Earnings is forecast to grow by 16% in the next 2 years. Reported Earnings • Aug 15
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: NT$1.35 (down from NT$2.71 in 2Q 2022). Revenue: NT$2.43b (down 31% from 2Q 2022). Net income: NT$420.7m (down 50% from 2Q 2022). Profit margin: 17% (down from 24% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 9.5%. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 12
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: NT$0.93 (down from NT$2.16 in 1Q 2022). Revenue: NT$2.30b (down 29% from 1Q 2022). Net income: NT$286.8m (down 57% from 1Q 2022). Profit margin: 13% (down from 21% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 39%. Revenue is forecast to grow 5.2% 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 33% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 27
Upcoming dividend of NT$7.00 per share at 7.4% yield Eligible shareholders must have bought the stock before 04 July 2023. Payment date: 28 July 2023. Payout ratio and cash payout ratio are on the higher end at 89% and 91% respectively. Trailing yield: 7.4%. Within top quartile of Taiwanese dividend payers (5.5%). Higher than average of industry peers (4.2%). Announcement • Jun 06
TXC Corporation Announces Dividend, Payable on July 28, 2023 TXC Corporation, at its AGM held on June 5, 2023, announced ex-dividend distribution of TWD 2,168,299,280 of cash dividends, TWD 7 per share. Ex-rights (ex-dividend) record date is July 10, 2023, payment date of cash dividend distribution is July 28, 2023. Major Estimate Revision • Jun 06
Consensus EPS estimates fall by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$11.8b to NT$10.7b. EPS estimate also fell from NT$7.10 per share to NT$5.15 per share. Net income forecast to shrink 26% next year vs 7.9% decline forecast for Electronic industry in Taiwan. Consensus price target up from NT$86.80 to NT$89.80. Share price rose 3.0% to NT$92.10 over the past week. Major Estimate Revision • May 10
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$12.3b to NT$11.3b. EPS estimate also fell from NT$7.42 per share to NT$6.48 per share. Net income forecast to shrink 26% next year vs 11% decline forecast for Electronic industry in Taiwan. Consensus price target of NT$86.80 unchanged from last update. Share price was steady at NT$85.10 over the past week. Reported Earnings • Mar 17
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: NT$9.06 (down from NT$10.06 in FY 2021). Revenue: NT$13.2b (down 14% from FY 2021). Net income: NT$2.81b (down 10.0% from FY 2021). Profit margin: 21% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.6%. Revenue is forecast to stay flat during the next 2 years compared to a 5.7% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Price Target Changed • Feb 21
Price target decreased by 7.9% to NT$87.00 Down from NT$94.50, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of NT$87.20. Stock is down 8.4% over the past year. The company is forecast to post earnings per share of NT$9.36 for next year compared to NT$10.06 last year. 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. 10 experienced directors. 1 highly experienced director. 4 independent directors (7 non-independent directors). Independent Director Shang-Wu Yu 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. Price Target Changed • Oct 14
Price target decreased to NT$96.83 Down from NT$107, the current price target is an average from 6 analysts. New target price is 32% above last closing price of NT$73.50. Stock is down 25% over the past year. The company is forecast to post earnings per share of NT$9.69 for next year compared to NT$10.06 last year. Reported Earnings • Aug 13
Second quarter 2022 earnings: EPS exceeds analyst expectations Second quarter 2022 results: EPS: NT$2.72 (down from NT$2.97 in 2Q 2021). Revenue: NT$3.51b (down 19% from 2Q 2021). Net income: NT$840.1m (down 8.7% from 2Q 2021). Profit margin: 24% (up from 21% in 2Q 2021). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 15%. Over the next year, revenue is forecast to grow 3.4%, compared to a 8.6% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 08
Upcoming dividend of NT$7.50 per share Eligible shareholders must have bought the stock before 15 July 2022. Payment date: 10 August 2022. Payout ratio is a comfortable 74% and this is well supported by cash flows. Trailing yield: 8.5%. Within top quartile of Taiwanese dividend payers (6.8%). Higher than average of industry peers (4.9%). Announcement • Jun 01
TXC Corporation Approves Cash Dividends for 2021 TXC Corporation approved cash dividend to shareholders for the year 2021 of TWD 7.5 per share. Total amount of cash distributed to shareholders of TWD 2,323,177,800, at its shareholders meeting held on May 31, 2022. Reported Earnings • May 17
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: NT$2.16 (up from NT$2.04 in 1Q 2021). Revenue: NT$3.22b (down 2.8% from 1Q 2021). Net income: NT$670.3m (up 6.1% from 1Q 2021). Profit margin: 21% (up from 19% in 1Q 2021). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.5%. Over the next year, revenue is forecast to grow 1.2%, compared to a 9.7% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 40% 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 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Director Shang-Wu Yu 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 • Mar 28
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: NT$10.06 (up from NT$4.61 in FY 2020). Revenue: NT$15.2b (up 38% from FY 2020). Net income: NT$3.12b (up 118% from FY 2020). Profit margin: 20% (up from 13% 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 1.5%, compared to a 10% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 47% per year, which means it is significantly lagging earnings growth. Announcement • Mar 10
TXC Corporation Proposes Cash Dividend for the Year Ending on December 31, 2021 TXC Corporation proposed cash dividend to shareholders for the year ended December 31, 2021 of TWD 7.5 per share. Total amount of cash distributed to shareholders of TWD 2,323,177,800. Price Target Changed • Mar 09
Price target decreased to NT$120 Down from NT$129, the current price target is an average from 6 analysts. New target price is 24% above last closing price of NT$96.90. Stock is up 1.9% over the past year. The company is forecast to post earnings per share of NT$9.96 for next year compared to NT$4.61 last year. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$2.84 (vs NT$1.35 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$4.10b (up 31% from 3Q 2020). Net income: NT$878.5m (up 110% from 3Q 2020). Profit margin: 21% (up from 13% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 49% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 15
Second quarter 2021 earnings released: EPS NT$2.97 (vs NT$1.19 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$4.34b (up 72% from 2Q 2020). Net income: NT$920.3m (up 149% from 2Q 2020). Profit margin: 21% (up from 15% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 46% per year whereas the company’s share price has increased by 50% per year. Upcoming Dividend • Aug 13
Upcoming dividend of NT$3.80 per share Eligible shareholders must have bought the stock before 20 August 2021. Payment date: 10 September 2021. Trailing yield: 3.2%. Lower than top quartile of Taiwanese dividend payers (5.1%). In line with average of industry peers (3.1%). Price Target Changed • Jul 30
Price target increased to NT$143 Up from NT$131, the current price target is an average from 7 analysts. New target price is 19% above last closing price of NT$120. Stock is up 60% over the past year. Major Estimate Revision • Jul 16
Consensus EPS estimates increase to NT$10.32 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from NT$15.4b to NT$15.7b. EPS estimate increased from NT$9.26 to NT$10.32 per share. Net income forecast to grow 62% next year vs 20% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$131 to NT$134. Share price rose 8.1% to NT$134 over the past week. Valuation Update With 7 Day Price Move • May 31
Investor sentiment improved over the past week After last week's 17% share price gain to NT$111, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 11x in the Electronic industry in Taiwan. Total returns to shareholders of 237% over the past three years. Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$2.04 (vs NT$0.83 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$3.31b (up 54% from 1Q 2020). Net income: NT$631.9m (up 146% from 1Q 2020). Profit margin: 19% (up from 12% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 35% per year whereas the company’s share price has increased by 37% per year. Major Estimate Revision • May 12
Consensus EPS estimates increase to NT$8.96 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from NT$14.3b to NT$15.2b. EPS estimate increased from NT$8.02 to NT$8.96 per share. Net income forecast to grow 94% next year vs 26% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$127 to NT$134. Share price fell 15% to NT$91.40 over the past week. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improved over the past week After last week's 18% share price gain to NT$128, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 14x in the Electronic industry in Taiwan. Total returns to shareholders of 311% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$255 per share. Price Target Changed • Apr 15
Price target increased to NT$125 Up from NT$115, the current price target is an average from 5 analysts. New target price is 21% above last closing price of NT$104. Stock is up 88% over the past year. Major Estimate Revision • Apr 15
Consensus EPS estimates increase to NT$7.86 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from NT$13.3b to NT$14.2b. EPS estimate increased from NT$6.86 to NT$7.86 per share. Net income forecast to grow 62% next year vs 26% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$106 to NT$115. Share price was steady at NT$104 over the past week. Reported Earnings • Mar 30
Full year 2020 earnings released: EPS NT$4.61 (vs NT$2.17 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$11.0b (up 31% from FY 2019). Net income: NT$1.43b (up 113% from FY 2019). Profit margin: 13% (up from 8.0% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Mar 26
Price target increased to NT$111 Up from NT$101, the current price target is an average from 7 analysts. New target price is 11% above last closing price of NT$100.00. Stock is up 140% over the past year. Valuation Update With 7 Day Price Move • Feb 19
Investor sentiment improved over the past week After last week's 18% share price gain to NT$109, the stock is trading at a trailing P/E ratio of 26.6x, up from the previous P/E ratio of 22.6x. This compares to an average P/E of 18x in the Electronic industry in Taiwan. Total returns to shareholders over the past three years are 224%.