New Risk • Apr 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 8.6% 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: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.6% average weekly change). Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$51.70, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 18x in the Electronic industry in Taiwan. Total returns to shareholders of 46% over the past three years. Reported Earnings • Mar 31
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: NT$2.71 (up from NT$1.16 in FY 2024). Revenue: NT$62.8b (down 8.8% from FY 2024). Net income: NT$1.10b (up 133% from FY 2024). Profit margin: 1.8% (up from 0.7% in FY 2024). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 52%. 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 8% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$45.30, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 20x in the Electronic industry in Taiwan. Total returns to shareholders of 34% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$29.63 per share. Announcement • Mar 12
TPK Holding Co., Ltd., Annual General Meeting, Jun 26, 2026 TPK Holding Co., Ltd., Annual General Meeting, Jun 26, 2026. Location: 4 floor no,1, sec.5 shen yih rd., sinyi district, taipei city Taiwan Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$42.20, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 42% over the past three years. Reported Earnings • Nov 07
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: NT$1.09 (up from NT$0.49 in 3Q 2024). Revenue: NT$16.1b (down 13% from 3Q 2024). Net income: NT$446.0m (up 124% from 3Q 2024). Profit margin: 2.8% (up from 1.1% in 3Q 2024). Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) also surpassed analyst estimates by 114%. Revenue is expected to decline by 2.8% p.a. on average during the next 2 years, while revenues in the Electronic industry in Taiwan are expected to grow by 14%. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Nov 07
TPK Holding Co., Ltd. (TWSE:3673) signed a letter of intent to acquire 23.83% stake in ITH Corporation (TWSE:6962) from CHEN, CHU-WAN and others for TWD 5.8 billion. TPK Holding Co., Ltd. (TWSE:3673) signed a letter of intent to acquire 23.83% stake in ITH Corporation (TWSE:6962) from CHEN, CHU-WAN and others for TWD 5.8 billion on November 6, 2025. A cash consideration of TWD 5.81 billion valued at TWD 49.5 per share will be paid by TPK Holding Co., Ltd. As part of consideration, TWD 5.81 billion is paid towards common equity of ITH Corporation.
CHIU, CHI-SHENG of Crowe CPAs/Taipei acted as accountant for TPK Holding Co., Ltd. New Risk • Aug 08
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 27% 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • Aug 08
Second quarter 2025 earnings released: EPS: NT$1.07 (vs NT$0.87 in 2Q 2024) Second quarter 2025 results: EPS: NT$1.07 (up from NT$0.87 in 2Q 2024). Revenue: NT$18.6b (down 2.8% from 2Q 2024). Net income: NT$434.0m (up 23% from 2Q 2024). Profit margin: 2.3% (up from 1.8% in 2Q 2024). Revenue is expected to decline by 4.9% p.a. on average during the next 2 years, while revenues in the Electronic industry in Taiwan are expected to grow by 12%. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has increased by 2% per year. Upcoming Dividend • Jul 07
Upcoming dividend of NT$0.80 per share Eligible shareholders must have bought the stock before 14 July 2025. Payment date: 07 August 2025. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (3.1%). Announcement • Jun 13
TPK Holding Co., Ltd. Announces Committee Changes, Effective June 11, 2025 TPK Holding Co., Ltd. on June 11, 2025 announced the change in audit and remuneration committees. Name of the previous position holder: Audit Committee and Remuneration Committee- Ming-Jeng Weng Independent directors, TPK Holding Co., Ltd, Hsiu-Chun Wang, Independent directors, TPK Holding Co., Ltd. Name of the new position holder: Audit Committee- Tzu-Jung Kuo,Partner, Deloitte & Touch, John Hong-Chiun Wang,Managing Partner, WTT Investment. Effective date is June 11, 2025 and original term was form June 23, 2025 to June 22, 2025. Announcement • Jun 12
TPK Holding Co., Ltd. Announces Board Changes TPK Holding Co., Ltd. announced the newly elected directors and independent directors by the 2025 Annual General Shareholders' Meeting. The change occurred on June 11, 2025. Title, name and nationality of the previous position holder: Directors: High Focus Holdings Limited (Representative by Shih-Ming Liu): Canada; Independent directors: Ming-Jeng Weng: Taiwan; Hsiu-Chun Wang: Taiwan. Resume of the previous position holder: Directors: High Focus Holdings Limited (Representative by Shih-Ming Liu)/Director, TPK Holding Co., Ltd. Independent directors: Ming-Jeng Weng: Independent directors, TPK Holding Co., Ltd. Hsiu-Chun Wang/Independent directors,TPK Holding Co., Ltd. Title, name and nationality of the new position holder: Directors: High Focus Holdings Limited (Representative by Foster Chiang): Canada; Independent directors: Tzu-Jung Kuo: Taiwan; John Hong-Chiun Wang: Taiwan. Resume of the new position holder: Independent directors: Tzu-Jung Kuo/Partner, Deloitte & Touch; John Hong-Chiun Wang/Managing Partner, WTT Investment Ltd. Reason for the change: term expired Original term from June 23, 2022 to June 22, 2025; Effective date of the new appointment: June 11, 2025 to June 10, 2028. New Risk • May 28
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.5% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • May 09
First quarter 2025 earnings released: EPS: NT$0.40 (vs NT$0.29 in 1Q 2024) First quarter 2025 results: EPS: NT$0.40 (up from NT$0.29 in 1Q 2024). Revenue: NT$13.7b (down 11% from 1Q 2024). Net income: NT$162.0m (up 39% from 1Q 2024). Profit margin: 1.2% (up from 0.8% in 1Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • May 01
TPK Holding Co., Ltd. to Report Q1, 2025 Results on May 08, 2025 TPK Holding Co., Ltd. announced that they will report Q1, 2025 results on May 08, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$28.90, the stock trades at a trailing P/E ratio of 24.8x. Average trailing P/E is 17x in the Electronic industry in Taiwan. Total loss to shareholders of 15% over the past three years. Announcement • Mar 14
TPK Holding Co., Ltd., Annual General Meeting, Jun 11, 2025 TPK Holding Co., Ltd., Annual General Meeting, Jun 11, 2025. Location: 4 floor no,1, sec.5 shen yih rd., sinyi district, taipei city Taiwan Reported Earnings • Mar 08
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: NT$1.16 (up from NT$0.51 in FY 2023). Revenue: NT$68.9b (down 1.4% from FY 2023). Net income: NT$473.0m (up 127% from FY 2023). Profit margin: 0.7% (up from 0.3% in FY 2023). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 17%. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Mar 06
TPK Holding Co., Ltd. to Report Q4, 2024 Results on Mar 13, 2025 TPK Holding Co., Ltd. announced that they will report Q4, 2024 results on Mar 13, 2025 New Risk • Nov 06
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 20% 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 are forecast to decline by an average of 15% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. New Risk • Nov 03
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 20% 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 are forecast to decline by an average of 15% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. Announcement • Oct 31
TPK Holding Co., Ltd. to Report Q3, 2024 Results on Nov 06, 2024 TPK Holding Co., Ltd. announced that they will report Q3, 2024 results on Nov 06, 2024 New Risk • Aug 19
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 4.1% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 are forecast to decline by an average of 4.1% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 16
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: NT$0.87 (up from NT$0.078 in 2Q 2023). Revenue: NT$19.1b (up 18% from 2Q 2023). Net income: NT$354.0m (up NT$322.1m from 2Q 2023). Profit margin: 1.8% (up from 0.2% in 2Q 2023). Revenue exceeded analyst estimates by 23%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 9.1% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Aug 06
TPK Holding Co., Ltd. to Report Q2, 2024 Results on Aug 14, 2024 TPK Holding Co., Ltd. announced that they will report Q2, 2024 results on Aug 14, 2024 New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 7.1% 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 Share price has been volatile over the past 3 months (7.1% average weekly change). Large one-off items impacting financial results. Buy Or Sell Opportunity • Jul 19
Now 22% undervalued Over the last 90 days, the stock has risen 37% to NT$49.80. The fair value is estimated to be NT$63.60, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 17% over the last 3 years. Earnings per share has declined by 61%. Revenue is forecast to grow by 12% in a year. Earnings are forecast to grow by 294% in the next year. Reported Earnings • May 03
First quarter 2024 earnings: EPS exceeds analyst expectations First quarter 2024 results: EPS: NT$0.29 (up from NT$0.25 in 1Q 2023). Revenue: NT$15.3b (down 12% from 1Q 2023). Net income: NT$116.0m (up 14% from 1Q 2023). Profit margin: 0.8% (up from 0.6% in 1Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 10% 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 61% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Mar 12
Consensus EPS estimates increase by 69% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from NT$1.07 to NT$1.81. Revenue forecast steady at NT$74.6b. Net income forecast to grow 253% next year vs 30% growth forecast for Electronic industry in Taiwan. Consensus price target down from NT$38.43 to NT$37.57. Share price was steady at NT$35.00 over the past week. Announcement • Mar 08
TPK Holding Co., Ltd., Annual General Meeting, Jun 18, 2024 TPK Holding Co., Ltd., Annual General Meeting, Jun 18, 2024. Location: 4F, No.1 Hsin-Yi Rd., Sec.5, Taipei City, Taiwan (Taipei International Convention Center 4F VIP Hall) Taipei City Taiwan Agenda: To consider and approve 2023 Business Report; to consider and approve Audit Committee's Review Report on 2023 Financial Statements; to consider and approve the distribution of employees' and directors' compensation of 2023; to approve 2023 Business Report and Consolidated Financial Statements; to approve 2023 Profit Distribution Proposal; and to discuss other matters. Reported Earnings • Mar 06
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: NT$0.51 (down from NT$1.34 in FY 2022). Revenue: NT$69.9b (down 28% from FY 2022). Net income: NT$208.0m (down 62% from FY 2022). Profit margin: 0.3% (down from 0.6% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 40%. Revenue is forecast to grow 7.5% 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 52% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Feb 23
Now 22% undervalued The stock has been flat over the last 90 days, currently trading at NT$35.70. The fair value is estimated to be NT$45.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 14% over the last 3 years. Earnings per share has declined by 37%. Revenue is forecast to grow by 1.6% in 2 years. Earnings are forecast to grow by 111% in the next 2 years. New Risk • Nov 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 24% 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: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Price Target Changed • Sep 19
Price target increased by 7.2% to NT$38.58 Up from NT$36.00, the current price target is an average from 4 analysts. New target price is 12% above last closing price of NT$34.35. Stock is down 2.4% over the past year. The company is forecast to post earnings per share of NT$0.86 for next year compared to NT$1.34 last year. Reported Earnings • Aug 11
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: NT$0.08 (down from NT$0.16 in 2Q 2022). Revenue: NT$16.2b (down 27% from 2Q 2022). Net income: NT$32.0m (down 51% from 2Q 2022). Profit margin: 0.2% (down from 0.3% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 61%. Revenue is forecast to grow 1.0% p.a. on average during the next 3 years, compared to a 8.1% 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 13% per year, which means it has not declined as severely as earnings. Buying Opportunity • Aug 10
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 7.1%. The fair value is estimated to be NT$45.47, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 13% over the last 3 years, while earnings per share has been flat. Revenue is forecast to decline by 6.7% in 2 years. Earnings is forecast to grow by 68% in the next 2 years. Announcement • Jul 29
TPK Holding Co., Ltd. to Report Q2, 2023 Results on Aug 09, 2023 TPK Holding Co., Ltd. announced that they will report Q2, 2023 results on Aug 09, 2023 Upcoming Dividend • Jul 18
Upcoming dividend of NT$0.50 per share at 1.2% yield Eligible shareholders must have bought the stock before 25 July 2023. Payment date: 15 August 2023. Payout ratio is a comfortable 50% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Taiwanese dividend payers (5.4%). Lower than average of industry peers (4.1%). Announcement • Jul 07
Tpk Holding Co., Ltd. Announces Cash Dividend, Payable on 15 August 2023 TPK Holding Co., Ltd. announced cash dividend of TWD 0.5 per share. Ex-rights (ex-dividend) trading date is 26 July 2023. Ex-rights (ex-dividend) record date is 31 July 2023, Payment date of cash dividend distribution is 15 August 2023. Reported Earnings • May 08
First quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2023 results: EPS: NT$0.25 (down from NT$0.58 in 1Q 2022). Revenue: NT$17.3b (down 31% from 1Q 2022). Net income: NT$102.0m (down 57% from 1Q 2022). Profit margin: 0.6% (down from 0.9% in 1Q 2022). Revenue missed analyst estimates by 6.4%. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 3% per year. Reported Earnings • Mar 01
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: NT$1.34 (down from NT$2.63 in FY 2021). Revenue: NT$97.2b (down 5.7% from FY 2021). Net income: NT$544.0m (down 49% from FY 2021). Profit margin: 0.6% (down from 1.0% in FY 2021). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 31%. Revenue is forecast to stay flat during the next 2 years compared to a 6.3% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Major Estimate Revision • Feb 24
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2022 has been updated. 2022 EPS estimate fell from NT$1.93 to NT$1.69 per share. Revenue forecast steady at NT$96.8b. Net income forecast to grow 1.1% next year vs 2.9% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$34.63 to NT$36.00. Share price rose 9.6% to NT$34.20 over the past week. Announcement • Feb 15
TPK Holding Co., Ltd. to Report Q4, 2022 Results on Feb 23, 2023 TPK Holding Co., Ltd. announced that they will report Q4, 2022 results on Feb 23, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Yen-Wei Cheng was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: NT$0.55 (down from NT$0.69 in 3Q 2021). Revenue: NT$28.0b (up 11% from 3Q 2021). Net income: NT$222.8m (down 20% from 3Q 2021). Profit margin: 0.8% (down from 1.1% in 3Q 2021). Revenue exceeded analyst estimates by 14%. Earnings per share (EPS) missed analyst estimates by 36%. Revenue is forecast to stay flat 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 26% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 07
Price target decreased to NT$34.63 Down from NT$37.25, the current price target is an average from 4 analysts. New target price is 16% above last closing price of NT$29.90. Stock is down 27% over the past year. The company is forecast to post earnings per share of NT$2.14 for next year compared to NT$2.63 last year. Price Target Changed • Sep 27
Price target decreased to NT$37.25 Down from NT$41.32, the current price target is an average from 4 analysts. New target price is 16% above last closing price of NT$32.25. Stock is down 15% over the past year. The company is forecast to post earnings per share of NT$2.02 for next year compared to NT$2.63 last year. Reported Earnings • Aug 17
Second quarter 2022 earnings: Revenues exceed analyst expectations Second quarter 2022 results: Revenue: NT$22.3b (down 9.2% from 2Q 2021). Net income: NT$66.0m (down 80% from 2Q 2021). Profit margin: 0.3% (down from 1.3% in 2Q 2021). Revenue exceeded analyst estimates by 8.1%. Over the next year, revenue is expected to shrink by 1.9% compared to a 7.6% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Major Estimate Revision • Aug 15
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from NT$100.5b to NT$94.5b. EPS estimate also fell from NT$2.43 per share to NT$2.02 per share. Net income forecast to shrink 2.6% next year vs 7.8% growth forecast for Electronic industry in Taiwan . Consensus price target down from NT$41.32 to NT$39.42. Share price was steady at NT$33.80 over the past week. Upcoming Dividend • Jul 14
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 21 July 2022. Payment date: 15 August 2022. Payout ratio is a comfortable 64% and this is well supported by cash flows. Trailing yield: 4.4%. Lower than top quartile of Taiwanese dividend payers (6.8%). Lower than average of industry peers (4.9%). 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. 8 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Director Albert Weng was the last independent director to join the board, commencing their role in 2013. 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 • Feb 28
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: NT$2.63 (up from NT$2.54 in FY 2020). Revenue: NT$103.1b (down 10.0% from FY 2020). Net income: NT$1.07b (up 3.7% from FY 2020). Profit margin: 1.0% (up from 0.9% in FY 2020). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.4%. Over the next year, revenue is expected to shrink by 7.5% compared to a 9.1% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Major Estimate Revision • Feb 27
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from NT$97.6b to NT$95.3b. EPS estimate also fell from NT$2.87 per share to NT$2.56 per share. Net income forecast to shrink 9.0% next year vs 19% growth forecast for Electronic industry in Taiwan . Consensus price target down from NT$47.40 to NT$45.27. Share price fell 3.5% to NT$38.45 over the past week. Reported Earnings • Nov 01
Third quarter 2021 earnings released: EPS NT$0.69 (vs NT$1.09 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$25.2b (down 23% from 3Q 2020). Net income: NT$279.0m (down 37% from 3Q 2020). Profit margin: 1.1% (down from 1.3% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improved over the past week After last week's 17% share price gain to NT$44.30, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total loss to shareholders of 12% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$74.66 per share. Price Target Changed • Oct 06
Price target decreased to NT$47.27 Down from NT$50.88, the current price target is an average from 7 analysts. New target price is 25% above last closing price of NT$37.75. Stock is down 24% over the past year. Major Estimate Revision • Aug 17
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast fell from NT$108.2b to NT$106.7b. EPS estimate rose from NT$2.60 to NT$2.87. Net income forecast to shrink 14% next year vs 27% growth forecast for Electronic industry in Taiwan . Consensus price target down from NT$50.88 to NT$47.37. Share price fell 6.7% to NT$38.70 over the past week. Upcoming Dividend • Jul 19
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 26 July 2021. Payment date: 13 August 2021. Trailing yield: 2.2%. Lower than top quartile of Taiwanese dividend payers (4.9%). Lower than average of industry peers (2.9%). Valuation Update With 7 Day Price Move • May 17
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$43.40, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 11x in the Electronic industry in Taiwan. Total loss to shareholders of 30% over the past three years. Major Estimate Revision • May 10
Consensus EPS estimates increase to NT$2.77 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from NT$104.2b to NT$111.2b. EPS estimate increased from NT$2.16 to NT$2.77 per share. Net income forecast to grow 9.3% next year vs 25% growth forecast for Electronic industry in Taiwan. Consensus price target broadly unchanged at NT$49.76. Share price fell 5.0% to NT$51.60 over the past week. Major Estimate Revision • Mar 04
Analysts increase revenue estimates to NT$114.0b The 2021 consensus revenue estimate increased from NT$101.8b. Earning per share (EPS) estimate also increased from NT$2.00 to NT$2.50 for the same period. Net income is expected to grow by 2.1% next year compared to 27% growth forecast for the Electronic industry in Taiwan. The consensus price target increased from NT$48.38 to NT$49.63. Share price is up 10.0% to NT$50.20 over the past week. Analyst Estimate Surprise Post Earnings • Mar 02
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.5%. Earnings per share (EPS) exceeded analyst estimates by 4.5%. Over the next year, revenue is expected to shrink by 2.8% compared to a 16% growth forecast for the Electronic industry in Taiwan. Reported Earnings • Mar 02
Full year 2020 earnings released: EPS NT$2.53 (vs NT$0.51 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: NT$114.6b (down 16% from FY 2019). Net income: NT$1.03b (up 394% from FY 2019). Profit margin: 0.9% (up from 0.2% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 26
New 90-day high: NT$50.20 The company is up 7.0% from its price of NT$46.70 on 27 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company underperformed over that time. It also underperformed 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$147 per share. Price Target Changed • Feb 02
Price target lowered to NT$48.38 Down from NT$52.58, the current price target is an average from 7 analysts. The new target price is 13% above the current share price of NT$42.65. As of last close, the stock is down 10% over the past year. Is New 90 Day High Low • Jan 20
New 90-day low: NT$43.45 The company is down 17% from its price of NT$52.10 on 22 October 2020. The Taiwanese market is up 22% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 25% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$129 per share. Is New 90 Day High Low • Dec 11
New 90-day low: NT$44.20 The company is down 11% from its price of NT$49.70 on 11 September 2020. The Taiwanese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed 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$129 per share. Reported Earnings • Nov 16
Third quarter 2020 earnings released: EPS NT$1.09 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: NT$32.9b (down 18% from 3Q 2019). Net income: NT$442.7m (up 94% from 3Q 2019). Profit margin: 1.3% (up from 0.6% in 3Q 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 76% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Nov 16
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 3.1%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Over the next year, revenue is expected to shrink by 18% compared to a 11% growth forecast for the Electronic industry in Taiwan. Is New 90 Day High Low • Nov 09
New 90-day low: NT$46.35 The company is down 16% from its price of NT$55.30 on 11 August 2020. The Taiwanese market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed 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$59.74 per share. Major Estimate Revision • Nov 06
Analysts update estimates The 2020 consensus earning per share (EPS) estimate increased from NT$1.88 to NT$2.09. Revenue estimate for the same period was approximately flat at NT$115.6b. Net income is expected to grow by 104% next year compared to 22% growth forecast for the Electronic industry in Taiwan. The consensus price target was lowered from NT$52.58 to NT$52.00. Share price is down by 4.4% to NT$48.20 over the past week.