Buy Or Sell Opportunity • May 06
Now 23% undervalued Over the last 90 days, the stock has risen 42% to NT$87.70. The fair value is estimated to be NT$113, 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 92%. Revenue is forecast to grow by 56% in 2 years. Earnings are forecast to grow by 87% in the next 2 years. Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$74.00, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 25x in the Electronic industry in Taiwan. Total returns to shareholders of 155% over the past three years. Price Target Changed • Apr 17
Price target increased by 11% to NT$81.00 Up from NT$73.00, the current price target is an average from 3 analysts. New target price is 23% above last closing price of NT$65.60. Stock is up 38% over the past year. The company is forecast to post earnings per share of NT$6.50 for next year compared to NT$4.35 last year. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$62.70, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 105% over the past three years. New Risk • Mar 27
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 66% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.4% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. New Risk • Mar 26
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. 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 Earnings have declined by 1.4% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Mar 12
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: NT$4.35 (up from NT$2.51 in FY 2024). Revenue: NT$10.9b (up 11% from FY 2024). Net income: NT$661.2m (up 92% from FY 2024). Profit margin: 6.1% (up from 3.5% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 1.6%. Over the last 3 years on average, earnings per share has increased by 92% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Mar 12
ACES Electronics Co., Ltd., Annual General Meeting, Jun 23, 2026 ACES Electronics Co., Ltd., Annual General Meeting, Jun 23, 2026. Location: 2 floor no,8, shu tzu rd., jhongli district, taoyuan city Taiwan New Risk • Mar 12
New major risk - Revenue and earnings growth Earnings have declined by 8.5% 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 8.5% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Announcement • Feb 05
ACES Electronics Co., Ltd. has filed a Follow-on Equity Offering. ACES Electronics Co., Ltd. has filed a Follow-on Equity Offering.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 1,650,000
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 8,250,000
Transaction Features: Reserved Share Offering; Rights Offering New Risk • Jan 08
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 19% 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 Large one-off items impacting financial results. Shareholders have been diluted in the past year (19% increase in shares outstanding). New Risk • Nov 24
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 60% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Nov 20
Now 22% overvalued Over the last 90 days, the stock has fallen 16% to NT$62.70. The fair value is estimated to be NT$51.22, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 59%. Revenue is forecast to grow by 8.4% in a year. Earnings are forecast to grow by 16% in the next year. Reported Earnings • Nov 09
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: NT$1.47 (up from NT$0.96 in 3Q 2024). Revenue: NT$2.79b (up 3.7% from 3Q 2024). Net income: NT$223.9m (up 73% from 3Q 2024). Profit margin: 8.0% (up from 4.8% in 3Q 2024). Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) exceeded analyst estimates by 4.2%. Revenue is forecast to grow 8.4% 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 59% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 28
Upcoming dividend of NT$0.72 per share Eligible shareholders must have bought the stock before 04 September 2025. Payment date: 24 September 2025. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (2.5%). New Risk • Aug 20
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 37% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 11
Second quarter 2025 earnings released: EPS: NT$0.67 (vs NT$0.50 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.67 (up from NT$0.50 in 2Q 2024). Revenue: NT$2.79b (up 14% from 2Q 2024). Net income: NT$101.4m (up 51% from 2Q 2024). Profit margin: 3.6% (up from 2.7% in 2Q 2024). 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 increased by 20% per year and the company’s share price has also increased by 20% per year. New Risk • Aug 10
New major risk - Revenue and earnings growth Earnings have declined by 26% 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 26% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Major Estimate Revision • Jul 15
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$11.7b to NT$11.2b. EPS estimate also fell from NT$4.74 per share to NT$4.22 per share. Net income forecast to grow 29% next year vs 22% growth forecast for Electronic industry in Taiwan. Consensus price target of NT$73.00 unchanged from last update. Share price rose 5.6% to NT$60.80 over the past week. Announcement • Jun 26
ACES Electronics Co., Ltd. Announces Board Changes ACES Electronics Co., Ltd. announced the board changes. Title and name of the previous position holder: Director: Weiji Investment Co., Ltd; Independent Director: Lee An-Chen; Independent Director: Liaw Dar-Lii; Independent Director: Sheen Gwo-Ji. Resume of the previous position holder: Weiji Investment Co., Ltd.: Director of Aces Electronics Co., Ltd. Mr. Lee An-Chen: Lifetime Chair Professor, Mechanical Engineering, National Yang-Ming Chiao Tung University. Mr. Liaw Dar-Lii: Independent Director of Aces Electronics Co. Ltd. Mr. Sheen Gwo-Ji: Professor, Department of Business Administration and Industrial Management, National Central University. Title and name of the new position holder: Director: Huang Wen-Cheng; Independent Director: Hong Kuo-Ching; Independent Director: Wu Shiang-Shiang; Independent Director: Lin Huei-Zih. Resume of the new position holder: Mr. Huang Wen-Cheng: Chairman, Global Fortune Investment Co., Ltd. Mr. Hong Kuo-Ching: Consultant of Inventec Corporation. Ms. Wu Shiang-Shiang: Director of Kinsus Interconnect Technology Corp. Director of Eslite Corporation. Ms. Lin Huei-Zih: General Manager of CORETRONIC CORP. Chairman of YOUNG OPTICS INC. Effective date of the new appointment is on June 25, 2025. New Risk • May 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 49% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 23% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Reported Earnings • May 10
First quarter 2025 earnings: EPS exceeds analyst expectations First quarter 2025 results: EPS: NT$1.37 (up from NT$0.023 in 1Q 2024). Revenue: NT$2.58b (up 33% from 1Q 2024). Net income: NT$201.9m (up NT$198.8m from 1Q 2024). Profit margin: 7.8% (up from 0.2% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 104%. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • May 01
ACES Electronics Co., Ltd. to Report Q1, 2025 Results on May 09, 2025 ACES Electronics Co., Ltd. announced that they will report Q1, 2025 results on May 09, 2025 Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$48.15, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 16% over the past three years. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$55.10, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 14x in the Electronic industry in Taiwan. Total returns to shareholders of 25% over the past three years. Reported Earnings • Mar 19
Full year 2024 earnings released: EPS: NT$2.51 (vs NT$1.98 loss in FY 2023) Full year 2024 results: EPS: NT$2.51 (up from NT$1.98 loss in FY 2023). Revenue: NT$9.77b (up 15% from FY 2023). Net income: NT$344.1m (up NT$610.6m from FY 2023). Profit margin: 3.5% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Announcement • Mar 18
ACES Electronics Co., Ltd., Annual General Meeting, Jun 25, 2025 ACES Electronics Co., Ltd., Annual General Meeting, Jun 25, 2025, at 09:00 Taipei Standard Time. Location: 3 floor no,398, min ch`uan rd., jhongli district, taoyuan city Taiwan Announcement • Mar 07
ACES Electronics Co., Ltd. to Report Fiscal Year 2024 Results on Mar 14, 2025 ACES Electronics Co., Ltd. announced that they will report fiscal year 2024 results on Mar 14, 2025 Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$53.80, the stock trades at a trailing P/E ratio of 67.9x. Average forward P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 23% over the past three years. 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 Risks No financial data reported. Share price has been highly volatile over the past 3 months (8.0% average weekly change). Reported Earnings • Nov 12
Third quarter 2024 earnings released: EPS: NT$0.96 (vs NT$0.24 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.96 (up from NT$0.24 in 3Q 2023). Revenue: NT$2.69b (up 22% from 3Q 2023). Net income: NT$129.3m (up 297% from 3Q 2023). Profit margin: 4.8% (up from 1.5% 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, 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 • Sep 27
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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.4% average weekly change). Earnings have declined by 34% per year over the past 5 years. Minor Risks High level of debt (45% net debt to equity). Large one-off items impacting financial results. Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: NT$0.50 (vs NT$0.34 loss in 2Q 2023) Second quarter 2024 results: EPS: NT$0.50 (up from NT$0.34 loss in 2Q 2023). Revenue: NT$2.45b (up 18% from 2Q 2023). Net income: NT$67.1m (up NT$112.2m from 2Q 2023). Profit margin: 2.7% (up from net loss in 2Q 2023). 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. Announcement • Aug 07
ACES Electronics Co., Ltd. announced that it has received TWD 1.005 billion in funding ACES Electronics Co., Ltd. announced a private placement of 3rd domestic unsecured convertible bonds for gross proceeds of TWD 1,005,000,000 on August 5, 2024. The transaction has been approved by the board of directors of the company. New Risk • May 13
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 42% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 31% per year over the past 5 years. Minor Risks High level of debt (42% net debt to equity). Share price has been volatile over the past 3 months (7.2% average weekly change). Reported Earnings • May 13
First quarter 2024 earnings released: EPS: NT$0.02 (vs NT$1.21 loss in 1Q 2023) First quarter 2024 results: EPS: NT$0.02 (up from NT$1.21 loss in 1Q 2023). Revenue: NT$1.94b (down 4.8% from 1Q 2023). Net income: NT$3.03m (up NT$165.4m from 1Q 2023). Profit margin: 0.2% (up from net loss in 1Q 2023). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Announcement • May 05
ACES Electronics Co., Ltd. to Report Q1, 2024 Results on May 10, 2024 ACES Electronics Co., Ltd. announced that they will report Q1, 2024 results on May 10, 2024 Announcement • Mar 14
ACES Electronics Co., Ltd., Annual General Meeting, Jun 25, 2024 ACES Electronics Co., Ltd., Annual General Meeting, Jun 25, 2024. Location: Peach Blossom Hall, Kuva Chateau Hotel, 3F, No.398, Minquan Rd, Zhongli District, Taoyuan City Taiwan Agenda: To consider 2023 Business Report; to consider Audit Committee's Review Report on the 2023 Financial Statements; to consider Report of the related party transactions of 2023; to consider 2023 Business Report and Financial Statements; and to consider 2023 Earnings Distribution. Reported Earnings • Mar 13
Full year 2023 earnings released: NT$1.98 loss per share (vs NT$1.68 profit in FY 2022) Full year 2023 results: NT$1.98 loss per share (down from NT$1.68 profit in FY 2022). Revenue: NT$8.49b (down 18% from FY 2022). Net loss: NT$266.5m (down 218% from profit in FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. New Risk • Mar 01
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 5.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 15% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (5.6% average weekly change). New Risk • Aug 14
New major risk - Revenue and earnings growth Earnings have declined by 1.8% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 14
Second quarter 2023 earnings released: NT$0.34 loss per share (vs NT$0.89 profit in 2Q 2022) Second quarter 2023 results: NT$0.34 loss per share (down from NT$0.89 profit in 2Q 2022). Revenue: NT$2.07b (down 24% from 2Q 2022). Net loss: NT$45.1m (down 138% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 35% 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. Upcoming Dividend • Aug 10
Upcoming dividend of NT$0.55 per share at 1.9% yield Eligible shareholders must have bought the stock before 17 August 2023. Payment date: 08 September 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.9%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (4.1%). Reported Earnings • Mar 29
Full year 2022 earnings released: EPS: NT$1.68 (vs NT$4.16 in FY 2021) Full year 2022 results: EPS: NT$1.68 (down from NT$4.16 in FY 2021). Revenue: NT$10.4b (down 1.7% from FY 2021). Net income: NT$225.3m (down 56% from FY 2021). Profit margin: 2.2% (down from 4.8% in FY 2021). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$0.80 (vs NT$1.06 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.80 (down from NT$1.06 in 3Q 2021). Revenue: NT$2.62b (down 6.6% from 3Q 2021). Net income: NT$108.1m (down 17% from 3Q 2021). Profit margin: 4.1% (down from 4.6% in 3Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 19% 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 • Nov 12
Third quarter 2022 earnings released: EPS: NT$0.80 (vs NT$1.06 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.80 (down from NT$1.06 in 3Q 2021). Revenue: NT$2.62b (down 6.6% from 3Q 2021). Net income: NT$108.1m (down 17% from 3Q 2021). Profit margin: 4.1% (down from 4.6% in 3Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$28.60, the stock trades at a trailing P/E ratio of 8.3x. Average forward P/E is 9x in the Electronic industry in Taiwan. Total returns to shareholders of 34% over the past three years. Reported Earnings • Aug 12
Second quarter 2022 earnings released: EPS: NT$0.89 (vs NT$1.47 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.89 (down from NT$1.47 in 2Q 2021). Revenue: NT$2.72b (down 1.9% from 2Q 2021). Net income: NT$118.9m (down 34% from 2Q 2021). Profit margin: 4.4% (down from 6.5% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 21% per year. Upcoming Dividend • Aug 09
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 16 August 2022. Payment date: 02 September 2022. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 3.9%. Lower than top quartile of Taiwanese dividend payers (6.6%). Lower than average of industry peers (4.6%). Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$33.55, the stock trades at a trailing P/E ratio of 8.6x. Average forward P/E is 9x in the Electronic industry in Taiwan. Total returns to shareholders of 64% over the past three years. Reported Earnings • May 15
First quarter 2022 earnings released: EPS: NT$1.22 (vs NT$1.24 in 1Q 2021) First quarter 2022 results: EPS: NT$1.22. Revenue: NT$2.82b (up 22% from 1Q 2021). Net income: NT$163.6m (up 7.5% from 1Q 2021). Profit margin: 5.8% (down from 6.6% in 1Q 2021). The decrease in margin was driven by higher expenses. Price Target Changed • Apr 27
Price target decreased to NT$63.00 Down from NT$73.00, the current price target is provided by 1 analyst. New target price is 53% above last closing price of NT$41.15. Stock is down 10% over the past year. The company posted earnings per share of NT$4.16 last year. Announcement • Apr 02
ACES Electronics Co., Ltd., Annual General Meeting, Jun 29, 2022 ACES Electronics Co., Ltd., Annual General Meeting, Jun 29, 2022. Reported Earnings • Apr 01
Full year 2021 earnings released: EPS: NT$4.16 (vs NT$2.26 in FY 2020) Full year 2021 results: EPS: NT$4.16 (up from NT$2.26 in FY 2020). Revenue: NT$10.6b (up 31% from FY 2020). Net income: NT$510.9m (up 85% from FY 2020). Profit margin: 4.8% (up from 3.4% in FY 2020). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 15%, compared to a 11% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 23% per year and the company’s share price has also increased by 23% per year. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$1.06 (vs NT$0.95 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: NT$2.81b (up 23% from 3Q 2020). Net income: NT$129.7m (up 11% from 3Q 2020). Profit margin: 4.6% (down from 5.1% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 31% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Aug 19
Upcoming dividend of NT$0.70 per share Eligible shareholders must have bought the stock before 26 August 2021. Payment date: 30 September 2021. Trailing yield: 1.4%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (3.2%). Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS NT$1.47 (vs NT$1.08 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$2.77b (up 34% from 2Q 2020). Net income: NT$179.6m (up 36% from 2Q 2020). Profit margin: 6.5% (up from 6.4% 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 29% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 19% share price gain to NT$54.30, the stock trades at a trailing P/E ratio of 14.8x. Average forward P/E is 13x in the Electronic industry in Taiwan. Total returns to shareholders of 179% over the past three years. Valuation Update With 7 Day Price Move • May 23
Investor sentiment improved over the past week After last week's 17% share price gain to NT$40.75, the stock trades at a trailing P/E ratio of 11.1x. Average forward P/E is 11x in the Electronic industry in Taiwan. Total returns to shareholders of 103% over the past three years. Reported Earnings • May 11
First quarter 2021 earnings released: EPS NT$1.24 (vs NT$0.18 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$2.30b (up 45% from 1Q 2020). Net income: NT$152.2m (up NT$174.1m from 1Q 2020). Profit margin: 6.6% (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 increased by 35% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 30
Full year 2020 earnings released: EPS NT$2.26 (vs NT$2.55 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: NT$8.06b (up 10% from FY 2019). Net income: NT$276.4m (down 11% from FY 2019). Profit margin: 3.4% (down from 4.3% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 22
New 90-day high: NT$47.25 The company is up 49% from its price of NT$31.75 on 24 November 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 23% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$159 per share. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment improved over the past week After last week's 22% share price gain to NT$37.70, the stock is trading at a trailing P/E ratio of 15.6x, up from the previous P/E ratio of 12.8x. This compares to an average P/E of 17x in the Electronic industry in Taiwan. Total returns to shareholders over the past three years are 62%. Is New 90 Day High Low • Dec 22
New 90-day high: NT$37.70 The company is up 22% from its price of NT$30.90 on 23 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 13% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$150 per share. Announcement • Dec 19
ACES Electronics Co., Ltd. (TSEC:3605) entered in a definitive agreement to acquire Genesis Connected Solutions. ACES Electronics Co., Ltd. (TSEC:3605) entered in a definitive agreement to acquire Genesis Connected Solutions on December 17, 2020. ACES Electronics Co. will acquire 100% equity of Genesis in an all-cash transaction. Genesis will officially become a subsidiary of the Company. The transaction is subjected to approval from boards of both companies and subject to certain regulatory approvals and closing conditions. As of December 17, 2020, the transaction has been unanimously approved by the boards of both companies. The acquisition is expected to close by the end of March 2021. Reported Earnings • Nov 13
Third quarter 2020 earnings released: EPS NT$0.95 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: NT$2.28b (up 11% from 3Q 2019). Net income: NT$116.6m (down 24% from 3Q 2019). Profit margin: 5.1% (down from 7.4% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Nov 13
Revenue beats expectations Revenue exceeded analyst estimates by 1.3%. Over the next year, revenue is forecast to grow 6.4%, compared to a 10% growth forecast for the Electronic industry in Taiwan. Is New 90 Day High Low • Nov 09
New 90-day high: NT$36.30 The company is up 29% from its price of NT$28.20 on 11 August 2020. The Taiwanese market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$173 per share. Is New 90 Day High Low • Oct 13
New 90-day high: NT$34.15 The company is up 29% from its price of NT$26.50 on 15 July 2020. The Taiwanese market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$171 per share.