New Risk • Jun 09
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.12b (US$98.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (66% accrual ratio). Minor Risk Market cap is less than US$100m (NT$3.12b market cap, or US$98.7m). Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$31.75, the stock trades at a trailing P/E ratio of 14.4x. Average trailing P/E is 40x in the Electronic industry in Taiwan. Negligible returns to shareholders over past three years. Reported Earnings • May 19
First quarter 2026 earnings released: EPS: NT$2.85 (vs NT$0.95 loss in 1Q 2025) First quarter 2026 results: EPS: NT$2.85 (up from NT$0.95 loss in 1Q 2025). Revenue: NT$62.0m (down 16% from 1Q 2025). Net income: NT$287.4m (up NT$378.2m from 1Q 2025). 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. New Risk • May 15
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: Major Risks Less than 1 year of cash runway based on free cash flow trend (-NT$812m free cash flow). Earnings have declined by 57% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (9.4% average weekly change). New Risk • Apr 05
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -NT$812m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-NT$812m free cash flow). Earnings have declined by 57% per year over the past 5 years. Minor Risk Market cap is less than US$100m (NT$2.10b market cap, or US$65.6m). Reported Earnings • Mar 20
Full year 2025 earnings released: NT$1.58 loss per share (vs NT$2.09 loss in FY 2024) Full year 2025 results: NT$1.58 loss per share (improved from NT$2.09 loss in FY 2024). Revenue: NT$319.9m (down 9.6% from FY 2024). Net loss: NT$151.4m (loss narrowed 19% from FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Announcement • Mar 10
Paragon Technologies Co., Ltd., Annual General Meeting, Jun 09, 2026 Paragon Technologies Co., Ltd., Annual General Meeting, Jun 09, 2026. Location: b1 floor no,108, sec.1 nan k`an rd., lujhu district, taoyuan city Taiwan Reported Earnings • Nov 13
Third quarter 2025 earnings released: NT$0.041 loss per share (vs NT$0.67 loss in 3Q 2024) Third quarter 2025 results: NT$0.041 loss per share (improved from NT$0.67 loss in 3Q 2024). Revenue: NT$85.7m (down 8.0% from 3Q 2024). Net loss: NT$3.45m (loss narrowed 95% from 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 90 percentage points per year, which is a significant difference in performance. New Risk • Aug 19
New minor risk - Financial position The company has less than a year of cash runway based on its current free cash flow. Free cash flow: -NT$653m This is considered a minor risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 26% per year over the past 5 years. Minor Risks Less than 1 year of cash runway based on current free cash flow (-NT$653m). Share price has been volatile over the past 3 months (6.9% average weekly change). Market cap is less than US$100m (NT$2.27b market cap, or US$75.4m). Reported Earnings • May 13
First quarter 2025 earnings released: NT$0.95 loss per share (vs NT$0.56 loss in 1Q 2024) First quarter 2025 results: NT$0.95 loss per share (further deteriorated from NT$0.56 loss in 1Q 2024). Revenue: NT$74.0m (down 9.2% from 1Q 2024). Net loss: NT$90.8m (loss widened 94% from 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 109 percentage points per year, which is a significant difference in performance. Announcement • May 01
Paragon Technologies Co., Ltd. to Report Q1, 2025 Results on May 07, 2025 Paragon Technologies Co., Ltd. announced that they will report Q1, 2025 results on May 07, 2025 Reported Earnings • Mar 19
Full year 2024 earnings released: NT$2.09 loss per share (vs NT$0.59 loss in FY 2023) Full year 2024 results: NT$2.09 loss per share (further deteriorated from NT$0.59 loss in FY 2023). Revenue: NT$354.0m (down 7.5% from FY 2023). Net loss: NT$185.7m (loss widened 284% from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 112 percentage points per year, which is a significant difference in performance. Reported Earnings • Nov 18
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: NT$93.1m (down 8.0% from 3Q 2023). Net loss: NT$62.8m (loss widened 328% from 3Q 2023). Announcement • Oct 30
Paragon Technologies Co., Ltd. to Report Q3, 2024 Results on Nov 06, 2024 Paragon Technologies Co., Ltd. announced that they will report Q3, 2024 results on Nov 06, 2024 New Risk • Sep 10
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$2.98b (US$92.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.6% average weekly change). Minor Risks Shareholders have been diluted in the past year (16% increase in shares outstanding). Market cap is less than US$100m (NT$2.98b market cap, or US$92.6m). Reported Earnings • Aug 17
Second quarter 2024 earnings released: NT$0.55 loss per share (vs NT$0.003 profit in 2Q 2023) Second quarter 2024 results: NT$0.55 loss per share (down from NT$0.003 profit in 2Q 2023). Revenue: NT$93.6m (down 8.4% from 2Q 2023). Net loss: NT$45.6m (down NT$45.9m from profit in 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 110 percentage points per year, which is a significant difference in performance. Announcement • Aug 02
Paragon Technologies Co., Ltd. to Report Q2, 2024 Results on Aug 09, 2024 Paragon Technologies Co., Ltd. announced that they will report Q2, 2024 results on Aug 09, 2024 Announcement • Jul 12
Paragon Technologies Co., Ltd. announced that it has received TWD 300 million in funding Paragon Technologies Co., Ltd. announced a private placement to issue 12,000,000 shares at an issue price of TWD 25 per share for the gross proceeds of TWD 300,000,000 on July 10, 2024. The transaction has been approved by shareholders. New Risk • Jun 10
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.1% 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 Shareholders have been diluted in the past year (4.1% increase in shares outstanding). Market cap is less than US$100m (NT$2.57b market cap, or US$79.3m). Reported Earnings • May 19
First quarter 2024 earnings released: NT$0.57 loss per share (vs NT$0.095 profit in 1Q 2023) First quarter 2024 results: NT$0.57 loss per share (down from NT$0.095 profit in 1Q 2023). Revenue: NT$81.5m (down 13% from 1Q 2023). Net loss: NT$46.9m (down NT$54.6m from profit in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • May 03
Paragon Technologies Co., Ltd. to Report Q1, 2024 Results on May 08, 2024 Paragon Technologies Co., Ltd. announced that they will report Q1, 2024 results on May 08, 2024 New Risk • Apr 16
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 96% The company is paying a dividend despite having no free cash flows. Dividend yield: 1.8% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 96% Paying a dividend despite having no free cash flows. Minor Risk Market cap is less than US$100m (NT$2.31b market cap, or US$71.1m). Reported Earnings • Mar 28
Full year 2023 earnings released: NT$0.59 loss per share (vs NT$0.31 profit in FY 2022) Full year 2023 results: NT$0.59 loss per share (down from NT$0.31 profit in FY 2022). Revenue: NT$382.6m (down 16% from FY 2022). Net loss: NT$48.4m (down 293% from profit in FY 2022). Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Mar 15
Paragon Technologies Co., Ltd. has filed a Follow-on Equity Offering in the amount of TWD 300 million. Paragon Technologies Co., Ltd. has filed a Follow-on Equity Offering in the amount of TWD 300 million.
Security Name: Shares
Security Type: Common Stock
Transaction Features: Reserved Share Offering; Rights Offering Announcement • Mar 14
Paragon Technologies Co., Ltd., Annual General Meeting, Jun 18, 2024 Paragon Technologies Co., Ltd., Annual General Meeting, Jun 18, 2024. Location: No. 2, Fuxing 1st Road, Guishan District FULLON HOTELS Coral Hall on the third floor Taoyuan City Taiwan Agenda: To consider 2023 business report; to consider Audit Committee's review of the 2023 annual final accounting books and statements; to consider Report on the handling of private placed common shares in 2023; to consider 2023 Annual Endorsement Guarantee Report; to consider Report on 2023 directors' remuneration; to accept 2023 Business Report and Financial Statements; to approve the proposal for distribution of 2023 earnings. New Risk • Nov 22
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 32% 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 (32% accrual ratio). Minor Risks Shareholders have been diluted in the past year (4.1% increase in shares outstanding). Market cap is less than US$100m (NT$3.10b market cap, or US$98.6m). Reported Earnings • Aug 11
Second quarter 2023 earnings released: EPS: NT$0.003 (vs NT$0.073 loss in 2Q 2022) Second quarter 2023 results: EPS: NT$0.003 (up from NT$0.073 loss in 2Q 2022). Revenue: NT$102.2m (down 15% from 2Q 2022). Net income: NT$236.0k (up NT$6.05m from 2Q 2022). Profit margin: 0.2% (up from net loss in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 123% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 24
Upcoming dividend of NT$0.50 per share at 1.5% yield Eligible shareholders must have bought the stock before 30 June 2023. Payment date: 20 July 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 1.5%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (4.2%). Buying Opportunity • May 04
Now 23% undervalued Over the last 90 days, the stock is up 51%. The fair value is estimated to be NT$42.42, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.1% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • Mar 30
Full year 2022 earnings released: EPS: NT$0.31 (vs NT$0.52 in FY 2021) Full year 2022 results: EPS: NT$0.31 (down from NT$0.52 in FY 2021). Revenue: NT$457.2m (down 43% from FY 2021). Net income: NT$25.1m (down 39% from FY 2021). Profit margin: 5.5% (up from 5.2% in FY 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 120% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. 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. No experienced directors. 9 highly experienced directors. 2 independent directors (5 non-independent directors). Independent Director Zi Xin Zhang was the last independent director to join the board, commencing their role in 2012. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$20.30, the stock trades at a trailing P/E ratio of 43.7x. Average trailing P/E is 11x in the Electronic industry in Taiwan. Total loss to shareholders of 6.8% over the past three years. Valuation Update With 7 Day Price Move • Aug 31
Investor sentiment improved over the past week After last week's 18% share price gain to NT$27.75, the stock trades at a trailing P/E ratio of 59.8x. Average trailing P/E is 13x in the Electronic industry in Taiwan. Total returns to shareholders of 30% over the past three years. Upcoming Dividend • Jun 16
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 23 June 2022. Payment date: 28 July 2022. The company last paid an ordinary dividend in August 2011. The average dividend yield among industry peers is 4.3%. Reported Earnings • May 17
First quarter 2022 earnings released: EPS: NT$0.09 (vs NT$0.081 loss in 1Q 2021) First quarter 2022 results: EPS: NT$0.09 (up from NT$0.081 loss in 1Q 2021). Revenue: NT$171.8m (down 10% from 1Q 2021). Net income: NT$6.97m (up NT$13.4m from 1Q 2021). Profit margin: 4.1% (up from net loss in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
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. No experienced directors. 9 highly experienced directors. 2 independent directors (5 non-independent directors). Independent Director Zi Xin Zhang was the last independent director to join the board, commencing their role in 2012. 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 • Mar 31
Full year 2021 earnings released: EPS: NT$0.52 (vs NT$0.71 loss in FY 2020) Full year 2021 results: EPS: NT$0.52 (up from NT$0.71 loss in FY 2020). Revenue: NT$800.1m (up 17% from FY 2020). Net income: NT$41.3m (up NT$97.2m from FY 2020). Profit margin: 5.2% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 80% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Mar 23
Paragon Technologies Co., Ltd., Annual General Meeting, Jun 08, 2022 Paragon Technologies Co., Ltd., Annual General Meeting, Jun 08, 2022. Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS NT$0.02 (vs NT$0.058 loss 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$169.1m (down 7.7% from 3Q 2020). Net income: NT$1.44m (up NT$6.04m from 3Q 2020). Profit margin: 0.9% (up from net loss in 3Q 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$0.15 (vs NT$0.066 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$216.8m (up 14% from 2Q 2020). Net income: NT$12.1m (up NT$17.3m from 2Q 2020). Profit margin: 5.6% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • May 09
First quarter 2021 earnings released: NT$0.08 loss per share (vs NT$0.53 loss in 1Q 2020) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: NT$191.1m (up 97% from 1Q 2020). Net loss: NT$6.40m (loss narrowed 85% from 1Q 2020). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 27
Full year 2020 earnings released: NT$0.71 loss per share (vs NT$2.50 loss in FY 2019) The company reported a solid full year result with reduced losses, improved revenues and improved control over expenses. Full year 2020 results: Revenue: NT$684.6m (up 25% from FY 2019). Net loss: NT$55.9m (loss narrowed 72% from FY 2019). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Nov 18
New 90-day high: NT$30.20 The company is up 3.0% from its price of NT$29.25 on 20 August 2020. The Taiwanese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Electronic industry, which is flat over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: NT$0.06 loss per share The company reported a solid third quarter result with reduced losses and improved revenues and control over expenses. Third quarter 2020 results: Revenue: NT$183.3m (up 31% from 3Q 2019). Net loss: NT$4.59m (loss narrowed 89% from 3Q 2019). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. 