Announcement • Apr 02
WPG Holdings Limited, Annual General Meeting, Jun 30, 2026 WPG Holdings Limited, Annual General Meeting, Jun 30, 2026, at 09:00 Taipei Standard Time. Location: 8 floor no,11, chung shan s. rd., jhongjheng district, taipei city Taiwan Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to NT$92.20, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 20x in the Electronic industry in Taiwan. Total returns to shareholders of 121% over the past three years. Major Estimate Revision • Mar 19
Consensus EPS estimates increase by 41% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from NT$6.11 to NT$8.63. Revenue forecast steady at NT$1.08t. Net income forecast to grow 58% next year vs 26% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$68.00 to NT$95.00. Share price rose 25% to NT$92.20 over the past week. Price Target Changed • Mar 16
Price target increased by 19% to NT$79.00 Up from NT$66.33, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of NT$81.90. Stock is up 25% over the past year. The company is forecast to post earnings per share of NT$8.54 for next year compared to NT$5.77 last year. Reported Earnings • Mar 14
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: NT$5.77 (up from NT$4.07 in FY 2024). Revenue: NT$999.1b (up 14% from FY 2024). Net income: NT$10.1b (up 48% from FY 2024). Profit margin: 1.0% (up from 0.8% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 4.2% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Dec 16
Price target decreased by 13% to NT$64.67 Down from NT$74.75, the current price target is an average from 3 analysts. New target price is 6.4% above last closing price of NT$60.80. Stock is down 11% over the past year. The company is forecast to post earnings per share of NT$5.22 for next year compared to NT$4.07 last year. New Risk • Nov 14
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: 4.8% 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 Interest payments are not well covered by earnings (2.2x net interest cover). Minor Risk Paying a dividend despite having no free cash flows. Price Target Changed • Nov 10
Price target decreased by 9.2% to NT$70.25 Down from NT$77.33, the current price target is an average from 4 analysts. New target price is 15% above last closing price of NT$61.30. Stock is down 19% over the past year. The company is forecast to post earnings per share of NT$5.37 for next year compared to NT$4.07 last year. Reported Earnings • Aug 15
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: NT$1.05 (up from NT$0.73 in 2Q 2024). Revenue: NT$250.5b (up 20% from 2Q 2024). Net income: NT$1.76b (up 43% from 2Q 2024). Profit margin: 0.7% (up from 0.6% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 9.9%. Earnings per share (EPS) missed analyst estimates by 18%. Revenue is forecast to stay flat during the next 3 years compared to a 12% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 17
Upcoming dividend of NT$3.20 per share Eligible shareholders must have bought the stock before 24 July 2025. Payment date: 21 August 2025. Payout ratio is on the higher end at 79%, however this is supported by cash flows. Trailing yield: 4.8%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (3.0%). Buy Or Sell Opportunity • Jul 04
Now 23% undervalued Over the last 90 days, the stock has risen 10% to NT$70.50. The fair value is estimated to be NT$91.66, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.6% over the last 3 years. Earnings per share has declined by 17%. Declared Dividend • Jun 26
Dividend reduced to NT$3.20 Dividend of NT$3.20 is 8.6% lower than last year. Ex-date: 24th July 2025 Payment date: 21st August 2025 Dividend yield will be 4.7%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (79% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 2.5% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 43% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 15
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: NT$1.13 (down from NT$1.16 in 1Q 2024). Revenue: NT$248.8b (up 37% from 1Q 2024). Net income: NT$1.90b (down 2.6% from 1Q 2024). Profit margin: 0.8% (down from 1.1% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 76%. Earnings per share (EPS) also missed analyst estimates by 82%. Revenue is forecast to grow 10.0% 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 17% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • May 06
WPG Holdings Limited to Report Q1, 2025 Results on May 13, 2025 WPG Holdings Limited announced that they will report Q1, 2025 results on May 13, 2025 Announcement • Apr 25
WPG Holdings Limited (TWSE:3702) completed the acquisition of 47.67% stake in Fortune Information Systems Corp (TWSE:2468) for approximately TWD 830 million. WPG Holdings Limited (TWSE:3702) proposed to acquire 51% stake in Fortune Information Systems Corp (TWSE:2468) for approximately TWD 890 million in a tender offer transaction on February 28, 2025. The transaction is subject to approval of Financial Supervisory Commission. The deal is subject to minimum tender. WPG Holdings Limited will fund the acquisition using its own funds. A special committee was formed for the tender offer. The transaction is expected to complete on April 23, 2025. As of April 14, 2025, all conditions to the Tender Offer have been fulfilled.
Chao-An Tsai of PWC Legal acted as Legal advisor to WPG holdings limited.
WPG Holdings Limited (TWSE:3702) completed the acquisition of 47.67% stake in Fortune Information Systems Corp (TWSE:2468) for approximately TWD 830 million on April 23, 2025. Announcement • Apr 11
WPG Holdings Limited Proposes Cash Dividend for the Year Ended December 31, 2024 WPG Holdings Limited Board of Directors proposed dividend distribution of TWD 3.2 per Ordinary Shares for the Period which dividends belong to: January 01, 2024 to December 31, 2024. Total amount of cash distributed to shareholders: TWD 5,372,981,866. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$52.60, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 11% over the past three years. Price Target Changed • Mar 25
Price target decreased by 8.7% to NT$84.25 Down from NT$92.30, the current price target is an average from 4 analysts. New target price is 30% above last closing price of NT$65.00. Stock is down 28% over the past year. The company is forecast to post earnings per share of NT$6.44 for next year compared to NT$4.07 last year. New Risk • Mar 19
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.8% Last year net profit margin: 1.1% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.0x net interest cover). Earnings are forecast to decline by an average of 4.2% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (0.8% net profit margin). Announcement • Mar 04
WPG Holdings Limited, Annual General Meeting, May 28, 2025 WPG Holdings Limited, Annual General Meeting, May 28, 2025, at 09:00 Taipei Standard Time. Location: 3 floor building. a no,166, ching mao 2nd rd., nangang district, taipei city Taiwan Reported Earnings • Mar 03
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: NT$4.07 (down from NT$4.59 in FY 2023). Revenue: NT$880.6b (up 31% from FY 2023). Net income: NT$7.25b (down 6.0% from FY 2023). Profit margin: 0.8% (down from 1.1% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.2%. Revenue is forecast to grow 12% 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 17% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Feb 21
WPG Holdings Limited to Report Fiscal Year 2024 Results on Feb 28, 2025 WPG Holdings Limited announced that they will report fiscal year 2024 results on Feb 28, 2025 Announcement • Dec 26
Wpg Holdings Limited Announces Committee Appointments WPG Holdings Limited Board of Directors approved the establishment of Nominating Committee and appointment of the committee members. Name of the new position holder: Jack J. T. Huang; Simon Huang; Kathy Yang; Joseph Yu; Mike Chang. Resume of the New Position Holder: Jack J. T. Huang: independent Director of Wpg Holdings Limited; Simon Huang: chairman of Wpg Holdings Limited; Kathy Yang: independent Director of Wpg Holdings Limited; Joseph Yu: independent Director of Wpg Holdings Limited; Mike Chang: director and CEO of Wpg Holdings Limited. Effective date of the new member: December 24, 2024. New Risk • Dec 19
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 10% 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 Risks Interest payments are not well covered by earnings (2.0x net interest cover). Earnings are forecast to decline by an average of 10% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. New Risk • Nov 20
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 10% 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 Risks Interest payments are not well covered by earnings (2.0x net interest cover). Earnings are forecast to decline by an average of 10% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Nov 15
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: EPS: NT$1.22 (up from NT$0.95 in 3Q 2023). Revenue: NT$259.1b (up 38% from 3Q 2023). Net income: NT$2.04b (up 28% from 3Q 2023). Profit margin: 0.8% (in line with 3Q 2023). Revenue exceeded analyst estimates by 16%. Earnings per share (EPS) missed analyst estimates by 1.2%. Revenue is forecast to grow 12% p.a. on average during the next 3 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 15% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Announcement • Nov 05
WPG Holdings Limited to Report Q3, 2024 Results on Nov 12, 2024 WPG Holdings Limited announced that they will report Q3, 2024 results on Nov 12, 2024 Major Estimate Revision • Aug 21
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$775.2b to NT$839.5b. EPS estimate increased from NT$4.28 to NT$4.73 per share. Net income forecast to shrink 19% next year vs 20% growth forecast for Electronic industry in Taiwan . Consensus price target broadly unchanged at NT$90.63. Share price fell 4.8% to NT$81.40 over the past week. New Risk • Aug 14
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 20% 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 Risks Interest payments are not well covered by earnings (2.1x net interest cover). Earnings are forecast to decline by an average of 13% per year for the foreseeable future. High level of non-cash earnings (20% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 14
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: NT$0.73 (down from NT$1.14 in 2Q 2023). Revenue: NT$208.0b (up 33% from 2Q 2023). Net income: NT$1.63b (down 15% from 2Q 2023). Profit margin: 0.8% (down from 1.2% in 2Q 2023). Revenue exceeded analyst estimates by 21%. Earnings per share (EPS) missed analyst estimates by 7.0%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Announcement • Aug 06
WPG Holdings Limited to Report Q2, 2024 Results on Aug 13, 2024 WPG Holdings Limited announced that they will report Q2, 2024 results on Aug 13, 2024 Declared Dividend • Jul 11
Dividend reduced to NT$3.50 Dividend of NT$3.50 is 9.1% lower than last year. Ex-date: 25th July 2024 Payment date: 21st August 2024 Dividend yield will be 3.8%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (65% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 3.0% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 68% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 10
WPG Holdings Limited Announces Cash Dividend, Payable on August 21, 2024 WPG Holdings Limited announced Ordinary shares cash dividends TWD 5,876,698,916; TWD 3.5 per share. Ex-rights (ex-dividend) trading date is July 25, 2024; Ex-rights (ex-dividend) record date is July 31, 2024; Payment date of common stock cash dividend distribution is August 21, 2024. Reported Earnings • May 11
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: NT$1.16 (up from NT$0.41 in 1Q 2023). Revenue: NT$181.9b (up 26% from 1Q 2023). Net income: NT$1.95b (up 185% from 1Q 2023). Profit margin: 1.1% (up from 0.5% in 1Q 2023). Revenue exceeded analyst estimates by 8.0%. Earnings per share (EPS) also surpassed analyst estimates by 72%. Revenue is forecast to grow 13% p.a. on average during the next 3 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 12% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Announcement • May 01
WPG Holdings Limited to Report Q1, 2024 Results on May 09, 2024 WPG Holdings Limited announced that they will report Q1, 2024 results on May 09, 2024 Announcement • Apr 11
WPG Holdings Limited Proposes Cash Dividend for the Year Ended December 31, 2023 WPG Holdings Limited's board of directors proposed a distribution of appropriations of earnings in cash dividend of TWD 3.5 per share for the year ended December 31, 2023. Total amount of cash distributed to shareholders is TWD 5,876,698,916. The date of the board of directors’ resolution is April 10, 2024. New Risk • Mar 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 6.1% 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: Major Risks Interest payments are not well covered by earnings (1.9x net interest cover). Earnings are forecast to decline by an average of 6.5% per year for the foreseeable future. Minor Risks Dividend is not well covered by earnings (115% payout ratio). Share price has been volatile over the past 3 months (6.1% average weekly change). Large one-off items impacting financial results. Major Estimate Revision • Mar 14
Consensus EPS estimates increase by 23% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$717.7b to NT$760.7b. EPS estimate increased from NT$3.75 to NT$4.60 per share. Net income forecast to shrink 29% next year vs 31% growth forecast for Electronic industry in Taiwan . Consensus price target up from NT$59.90 to NT$73.98. Share price fell 11% to NT$85.70 over the past week. Reported Earnings • Mar 04
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: NT$4.59 (down from NT$6.02 in FY 2022). Revenue: NT$671.9b (down 13% from FY 2022). Net income: NT$7.71b (down 24% from FY 2022). Profit margin: 1.1% (down from 1.3% in FY 2022). Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) exceeded analyst estimates by 3.2%. Revenue is forecast to grow 7.4% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Announcement • Mar 01
WPG Holdings Limited, Annual General Meeting, May 24, 2024 WPG Holdings Limited, Annual General Meeting, May 24, 2024. Location: Conference Hall, 8F., No. 11, Zhongshan S. Rd., Zhongzheng Dist., Taipei City Taiwan Agenda: To consider and approve 2023 Business Report; Audit Committee's Review Report; 2023 employees' and directors' compensation; 2023 Directors' Remuneration Report; and to discuss other matters. Announcement • Dec 29
WPG Holdings Limited Announces Change of Chief Information Security Officer, Effective January 1, 2024 WPG Holdings Limited announced the change of Chief Information Security Officer. Name, title, and resume of the previous position holder: Jazz Chuang, Vice President of WPG Holdings Limited. Name, title, and resume of the new position holder: Mike Chang, Chief Executive Officer of WPG Holdings Limited. Effective date is January 1, 2024. Price Target Changed • Nov 17
Price target increased by 11% to NT$52.50 Up from NT$47.50, the current price target is an average from 4 analysts. New target price is 26% below last closing price of NT$71.20. Stock is up 55% over the past year. The company is forecast to post earnings per share of NT$4.84 for next year compared to NT$6.02 last year. Reported Earnings • Nov 15
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: NT$0.95 (down from NT$1.65 in 3Q 2022). Revenue: NT$187.4b (down 1.3% from 3Q 2022). Net income: NT$1.59b (down 42% from 3Q 2022). Profit margin: 0.8% (down from 1.5% in 3Q 2022). Revenue exceeded analyst estimates by 12%. Earnings per share (EPS) also surpassed analyst estimates by 30%. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Announcement • Oct 14
WPG Holdings Limited Announces Chief Marketing & Sales Officer Changes WPG Holdings Limited announced that IJ Hsu, Chief Marketing & Sales Officer, Global Business Group CEO and Chief Global Business Officer, passed away on October 12, 2023. The company announced the appointment of Mike Chang as Chief Marketing & Sales Officer, effective October 13, 2023. Mike Chang is Chief Executive Officer of the company. Announcement • Sep 15
Wpg Holdings Limited Announces Not to Distribute Dividends for the Second Quarter of 2023 WPG Holdings Limited announced not to distribute dividends for the second quarter of 2023 profit. Major Estimate Revision • Aug 23
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$654.9b to NT$646.3b. EPS estimate also fell from NT$3.43 per share to NT$3.08 per share. Net income forecast to shrink 2.6% next year vs 5.2% growth forecast for Electronic industry in Taiwan . Consensus price target up from NT$45.93 to NT$47.18. Share price rose 5.7% to NT$55.50 over the past week. Reported Earnings • Aug 12
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: NT$1.14 (down from NT$1.49 in 2Q 2022). Revenue: NT$156.7b (down 21% from 2Q 2022). Net income: NT$2.32b (down 7.2% from 2Q 2022). Profit margin: 1.5% (up from 1.3% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) also surpassed analyst estimates by 10%. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 8% per year. Valuation Update With 7 Day Price Move • Jul 25
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$50.10, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 48% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$26.77 per share. Upcoming Dividend • Jul 18
Upcoming dividend of NT$3.85 per share at 6.6% yield Eligible shareholders must have bought the stock before 25 July 2023. Payment date: 21 August 2023. Payout ratio is on the higher end at 88%, however this is supported by cash flows. Trailing yield: 6.6%. Within top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (4.1%). Announcement • Jul 12
WPG Holdings Limited Announces Ordinary Cash Dividend, Payable on August 21, 2023 WPG Holdings Limited announced ordinary shares cash dividend of TWD 6,464,368,807 and TWD 3.85 per share. Ex-rights (ex-dividend) trading date: July 25, 2023. Ex-rights (ex-dividend) record date: July 31, 2023. Payment date of cash dividend distribution: August 21, 2023. Date of the resolution by the board of directors or shareholders meeting or decision by the company: July 10, 2023. Major Estimate Revision • May 23
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$690.9b to NT$625.6b. EPS estimate also fell from NT$3.46 per share to NT$3.06 per share. Net income forecast to shrink 11% next year vs 6.6% decline forecast for Electronic industry in Taiwan. Consensus price target of NT$42.67 unchanged from last update. Share price rose 3.8% to NT$52.20 over the past week. Major Estimate Revision • Mar 09
Consensus EPS estimates fall by 20% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$747.0b to NT$690.9b. EPS estimate also fell from NT$4.33 per share to NT$3.46 per share. Net income forecast to shrink 40% next year vs 3.9% growth forecast for Electronic industry in Taiwan . Consensus price target of NT$42.67 unchanged from last update. Share price was steady at NT$49.75 over the past week. Reported Earnings • Mar 03
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: NT$6.02 (down from NT$6.61 in FY 2021). Revenue: NT$775.2b (flat on FY 2021). Net income: NT$10.5b (down 5.3% from FY 2021). Profit margin: 1.4% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.6%. Revenue is expected to decline by 1.0% p.a. on average during the next 2 years, while revenues in the Electronic industry in Taiwan are expected to grow by 6.1%. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Price Target Changed • Dec 08
Price target decreased to NT$46.33 Down from NT$52.00, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of NT$47.75. Stock is down 4.9% over the past year. The company is forecast to post earnings per share of NT$6.29 for next year compared to NT$6.61 last year. Reported Earnings • Nov 16
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: NT$1.65 (down from NT$1.90 in 3Q 2021). Revenue: NT$189.8b (down 6.0% from 3Q 2021). Net income: NT$2.76b (down 13% from 3Q 2021). Profit margin: 1.5% (down from 1.6% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 17%. Earnings per share (EPS) exceeded analyst estimates by 17%. Revenue is expected to decline by 9.3% p.a. on average during the next 3 years, while revenues in the Electronic industry in Taiwan are expected to grow by 7.1%. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 5 independent directors on the board. The company's board is composed of: 5 independent directors. 6 non-independent directors. Independent Director Kathy Yang was the last independent director to join the board, commencing their role in 2021. 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: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: NT$1.64 (down from NT$1.90 in 3Q 2021). Revenue: NT$189.8b (down 6.0% from 3Q 2021). Net income: NT$2.76b (down 13% from 3Q 2021). Profit margin: 1.5% (down from 1.6% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 17%. Earnings per share (EPS) exceeded analyst estimates by 17%. Revenue is expected to decline by 9.3% p.a. on average during the next 3 years, while revenues in the Electronic industry in Taiwan are expected to grow by 7.2%. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Sep 28
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be NT$58.11, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 25%. Reported Earnings • Aug 13
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: NT$1.49. Revenue: NT$199.1b (flat on 2Q 2021). Net income: NT$2.90b (up 3.9% from 2Q 2021). Profit margin: 1.5% (up from 1.4% in 2Q 2021). Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 5.4%. Over the next year, revenue is expected to shrink by 2.2% compared to a 8.6% growth forecast for the industry in Taiwan. Upcoming Dividend • Jul 12
Upcoming dividend of NT$3.50 per share Eligible shareholders must have bought the stock before 19 July 2022. Payment date: 15 August 2022. Payout ratio is a comfortable 48% but the company is not cash flow positive. Trailing yield: 6.8%. Within top quartile of Taiwanese dividend payers (6.7%). Higher than average of industry peers (4.9%). Reported Earnings • May 13
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: NT$2.05 (up from NT$1.44 in 1Q 2021). Revenue: NT$209.9b (up 19% from 1Q 2021). Net income: NT$3.44b (up 42% from 1Q 2021). Profit margin: 1.6% (up from 1.4% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 58%. Over the next year, revenue is expected to shrink by 3.3% compared to a 9.8% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 24% 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 • Mar 03
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: NT$6.61 (up from NT$4.77 in FY 2020). Revenue: NT$778.6b (up 28% from FY 2020). Net income: NT$11.5b (up 44% from FY 2020). Profit margin: 1.5% (up from 1.3% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 1.2%. Over the next year, revenue is expected to shrink by 2.8% compared to a 9.2% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 14% per year. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$1.90 (vs NT$1.34 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$201.9b (up 19% from 3Q 2020). Net income: NT$3.19b (up 41% from 3Q 2020). Profit margin: 1.6% (up from 1.3% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 12% per year. Price Target Changed • Aug 17
Price target increased to NT$46.00 Up from NT$42.50, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of NT$47.60. Stock is up 17% over the past year. Reported Earnings • Aug 15
Second quarter 2021 earnings released: EPS NT$1.90 (vs NT$1.19 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$200.2b (up 34% from 2Q 2020). Net income: NT$3.19b (up 59% from 2Q 2020). Profit margin: 1.6% (up from 1.3% 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 9% per year whereas the company’s share price has increased by 4% per year. Upcoming Dividend • Aug 04
Upcoming dividend of NT$3.10 per share Eligible shareholders must have bought the stock before 11 August 2021. Payment date: 31 August 2021. Trailing yield: 5.6%. Within top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (3.0%). Price Target Changed • Jul 02
Price target decreased to NT$42.50 Down from NT$48.17, the current price target is provided by 1 analyst. New target price is 17% below last closing price of NT$51.10. Stock is up 25% over the past year. Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$1.49 (vs NT$0.99 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$177.1b (up 35% from 1Q 2020). Net income: NT$2.49b (up 50% from 1Q 2020). Profit margin: 1.4% (up from 1.3% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 2% per year. Major Estimate Revision • Apr 10
Consensus EPS estimates increase to NT$5.40 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from NT$649.4b to NT$673.7b. EPS estimate increased from NT$4.73 to NT$5.40 per share. Net income forecast to grow 1.2% next year vs 26% growth forecast for Electronic industry in Taiwan. Consensus price target broadly unchanged at NT$48.17. Share price fell 3.8% to NT$46.95 over the past week. Reported Earnings • Apr 01
Full year 2020 earnings released: EPS NT$4.77 (vs NT$3.84 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: NT$609.9b (up 16% from FY 2019). Net income: NT$8.12b (up 26% from FY 2019). Profit margin: 1.3% (in line with FY 2019). Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Mar 02
New 90-day high: NT$45.90 The company is up 10.0% from its price of NT$41.60 on 02 December 2020. The Taiwanese market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$37.91 per share. Is New 90 Day High Low • Jan 25
New 90-day high: NT$45.60 The company is up 15% from its price of NT$39.50 on 27 October 2020. The Taiwanese market is up 23% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 27% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$38.22 per share. Is New 90 Day High Low • Jan 07
New 90-day high: NT$43.30 The company is up 9.0% from its price of NT$39.75 on 08 October 2020. The Taiwanese market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 20% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$38.09 per share. 
