Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$43.95, the stock trades at a trailing P/E ratio of 38.2x. Average forward P/E is 19x in the Communications industry in Taiwan. Total returns to shareholders of 12% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$29.90 per share. Reported Earnings • May 06
First quarter 2026 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2026 results: EPS: NT$0.29 (down from NT$0.69 in 1Q 2025). Revenue: NT$6.31b (down 10% from 1Q 2025). Net income: NT$117.1m (down 58% from 1Q 2025). Profit margin: 1.9% (down from 4.0% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 15%. Earnings per share (EPS) missed analyst estimates by 28%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 31% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 11
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: NT$1.56 (up from NT$1.41 in FY 2024). Revenue: NT$25.3b (down 2.6% from FY 2024). Net income: NT$634.1m (up 11% from FY 2024). Profit margin: 2.5% (up from 2.2% in FY 2024). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.9%. Revenue is forecast to grow 7.8% p.a. on average during the next 2 years, compared to a 30% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Mar 10
Zyxel Group Corporation, Annual General Meeting, Jun 15, 2026 Zyxel Group Corporation, Annual General Meeting, Jun 15, 2026. Location: b1 floor no,6, ch`uang hsin 2nd rd., hsinchu science park, hsinchu county Taiwan New Risk • Jan 30
New major risk - Revenue and earnings growth Earnings have declined by 5.9% 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. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$39.65, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 17x in the Communications industry in Taiwan. Total returns to shareholders of 22% over the past three years. Buy Or Sell Opportunity • Nov 27
Now 23% undervalued Over the last 90 days, the stock has risen 4.4% to NT$35.45. The fair value is estimated to be NT$45.87, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.2% over the last 3 years. Earnings per share has declined by 38%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 53% in the next 2 years. Price Target Changed • Nov 24
Price target increased by 27% to NT$42.50 Up from NT$33.50, the current price target is an average from 2 analysts. New target price is 26% above last closing price of NT$33.70. Stock is down 18% over the past year. The company is forecast to post earnings per share of NT$1.90 for next year compared to NT$1.41 last year. Reported Earnings • Nov 04
Third quarter 2025 earnings released: EPS: NT$1.37 (vs NT$0.28 loss in 3Q 2024) Third quarter 2025 results: EPS: NT$1.37 (up from NT$0.28 loss in 3Q 2024). Revenue: NT$6.42b (flat on 3Q 2024). Net income: NT$555.0m (up NT$667.5m from 3Q 2024). Profit margin: 8.6% (up from net loss in 3Q 2024). Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 25% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Oct 31
Now 20% undervalued Over the last 90 days, the stock has risen 25% to NT$35.20. The fair value is estimated to be NT$44.25, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.1% over the last 3 years. Earnings per share has declined by 36%. Revenue is forecast to grow by 1.5% in a year. Earnings are forecast to grow by 190% in the next year. Major Estimate Revision • Oct 17
Consensus EPS estimates increase by 161%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from NT$27.7b to NT$25.8b. EPS estimate rose from NT$0.61 to NT$1.59. Net income forecast to grow 190% next year vs 47% growth forecast for Communications industry in Taiwan. Consensus price target up from NT$33.50 to NT$35.00. Share price rose 6.6% to NT$35.75 over the past week. Buy Or Sell Opportunity • Sep 25
Now 22% undervalued Over the last 90 days, the stock has risen 23% to NT$34.50. The fair value is estimated to be NT$44.12, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.1% over the last 3 years. Earnings per share has declined by 36%. Revenue is forecast to grow by 5.2% in a year. Earnings are forecast to grow by 111% in the next year. New Risk • Sep 03
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 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 174% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Profit margins are more than 30% lower than last year (1.1% net profit margin). Valuation Update With 7 Day Price Move • Aug 29
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$33.95, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 17x in the Communications industry in Taiwan. Total returns to shareholders of 23% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$45.91 per share. Reported Earnings • Aug 05
Second quarter 2025 earnings: EPS in line with expectations, revenues disappoint Second quarter 2025 results: NT$0.94 loss per share (down from NT$0.32 profit in 2Q 2024). Revenue: NT$6.19b (down 4.9% from 2Q 2024). Net loss: NT$380.0m (down 393% from profit in 2Q 2024). Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jul 19
Consensus EPS estimates fall by 73% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$28.5b to NT$27.7b. EPS estimate also fell from NT$2.29 per share to NT$0.61 per share. Net income forecast to shrink 46% next year vs 14% growth forecast for Communications industry in Taiwan . Consensus price target up from NT$32.50 to NT$33.50. Share price fell 4.5% to NT$26.75 over the past week. Declared Dividend • Jun 19
Dividend of NT$0.30 announced Shareholders will receive a dividend of NT$0.30. Ex-date: 4th July 2025 Payment date: 31st July 2025 Dividend yield will be 1.1%, which is lower than the industry average of 2.3%. Sustainability & Growth Dividend is not covered by earnings (174% earnings payout ratio) and 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 16% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 93% to bring the payout ratio under control, which is more than the 12% EPS growth achieved over the last 5 years. Reported Earnings • May 11
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: NT$0.70 (up from NT$0.11 in 1Q 2024). Revenue: NT$7.03b (up 27% from 1Q 2024). Net income: NT$281.3m (up NT$236.8m from 1Q 2024). Profit margin: 4.0% (up from 0.8% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.6%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 8.0% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$30.35, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Communications industry in Taiwan. Total returns to shareholders of 7.8% over the past three years. Buy Or Sell Opportunity • Apr 10
Now 28% overvalued Over the last 90 days, the stock has fallen 22% to NT$28.55. The fair value is estimated to be NT$22.22, 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 declined by 20%. Revenue is forecast to grow by 22% in 2 years. Earnings are forecast to grow by 88% in the next 2 years. New Risk • Apr 07
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 6.3% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 174% Paying a dividend despite having no free cash flows. High level of non-cash earnings (33% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.3% average weekly change). Profit margins are more than 30% lower than last year (2.2% net profit margin). Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$33.35, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 16x in the Communications industry in Taiwan. Total returns to shareholders of 11% over the past three years. Major Estimate Revision • Mar 12
Consensus EPS estimates fall by 39% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$29.0b to NT$28.6b. EPS estimate also fell from NT$2.96 per share to NT$1.81 per share. Net income forecast to grow 31% next year vs 45% growth forecast for Communications industry in Taiwan. Consensus price target down from NT$45.50 to NT$40.50. Share price fell 6.2% to NT$37.10 over the past week. Price Target Changed • Mar 11
Price target decreased by 15% to NT$40.50 Down from NT$47.50, the current price target is an average from 2 analysts. New target price is 8.7% above last closing price of NT$37.25. Stock is down 20% over the past year. The company is forecast to post earnings per share of NT$1.81 for next year compared to NT$1.41 last year. Reported Earnings • Mar 05
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: NT$1.41 (down from NT$3.38 in FY 2023). Revenue: NT$26.0b (down 14% from FY 2023). Net income: NT$569.7m (down 57% from FY 2023). Profit margin: 2.2% (down from 4.4% in FY 2023). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 28%. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Mar 04
Zyxel Group Corporation, Annual General Meeting, Jun 17, 2025 Zyxel Group Corporation, Annual General Meeting, Jun 17, 2025. Location: b1 floor no,6, ch`uang hsin 2nd rd., hsinchu science park, hsinchu county Taiwan Announcement • Feb 22
Zyxel Group Corporation to Report Fiscal Year 2024 Results on Mar 03, 2025 Zyxel Group Corporation announced that they will report fiscal year 2024 results at 1:30 PM, Taipei Standard Time on Mar 03, 2025 New Risk • Nov 18
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 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 177% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Profit margins are more than 30% lower than last year (1.3% net profit margin). Reported Earnings • Nov 06
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: NT$0.28 loss per share (down from NT$0.73 profit in 3Q 2023). Revenue: NT$6.40b (down 8.2% from 3Q 2023). Net loss: NT$112.5m (down 139% from profit in 3Q 2023). Revenue missed analyst estimates by 19%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Communications 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 6% per year, which means it is well ahead of earnings. Price Target Changed • Oct 30
Price target increased by 7.4% to NT$48.33 Up from NT$45.00, the current price target is an average from 3 analysts. New target price is 15% above last closing price of NT$42.05. Stock is down 22% over the past year. The company is forecast to post earnings per share of NT$0.88 for next year compared to NT$3.38 last year. Major Estimate Revision • Oct 30
Consensus EPS estimates fall by 16% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from NT$1.04 to NT$0.875 per share. Revenue forecast steady at NT$25.5b. Net income forecast to grow 7.7% next year vs 26% growth forecast for Communications industry in Taiwan. Consensus price target up from NT$45.00 to NT$48.33. Share price rose 6.2% to NT$42.05 over the past week. Valuation Update With 7 Day Price Move • Oct 29
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$41.70, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 18x in the Communications industry in Taiwan. Total returns to shareholders of 31% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$23.23 per share. Announcement • Oct 26
Zyxel Group Corporation to Report Q3, 2024 Results on Nov 04, 2024 Zyxel Group Corporation announced that they will report Q3, 2024 results on Nov 04, 2024 Major Estimate Revision • Oct 19
Consensus EPS estimates fall by 27% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from NT$1.43 to NT$1.04 per share. Revenue forecast steady at NT$25.6b. Net income forecast to grow 14% next year vs 28% growth forecast for Communications industry in Taiwan. Consensus price target down from NT$47.33 to NT$45.00. Share price was steady at NT$35.75 over the past week. Price Target Changed • Oct 10
Price target decreased by 9.0% to NT$47.33 Down from NT$52.00, the current price target is an average from 3 analysts. New target price is 28% above last closing price of NT$37.00. Stock is down 22% over the past year. The company is forecast to post earnings per share of NT$1.43 for next year compared to NT$3.38 last year. Buy Or Sell Opportunity • Sep 30
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.4% to NT$37.20. The fair value is estimated to be NT$46.63, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years. Earnings per share has declined by 3.2%. Revenue is forecast to grow by 7.8% in a year. Earnings are forecast to grow by 49% in the next year. Buy Or Sell Opportunity • Sep 05
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.6% to NT$37.20. The fair value is estimated to be NT$46.92, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years. Earnings per share has declined by 3.2%. Revenue is forecast to grow by 7.8% in a year. Earnings are forecast to grow by 49% in the next year. New Risk • Aug 13
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.8% net profit margin). Shareholders have been diluted in the past year (2.1% increase in shares outstanding). Reported Earnings • Aug 07
Second quarter 2024 earnings released: EPS: NT$0.32 (vs NT$0.77 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.32 (down from NT$0.77 in 2Q 2023). Revenue: NT$6.51b (down 8.6% from 2Q 2023). Net income: NT$129.9m (down 57% from 2Q 2023). Profit margin: 2.0% (down from 4.3% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Jul 27
Zyxel Group Corporation to Report Q2, 2024 Results on Aug 05, 2024 Zyxel Group Corporation announced that they will report Q2, 2024 results on Aug 05, 2024 Major Estimate Revision • Jul 17
Consensus EPS estimates fall by 36% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$28.8b to NT$26.5b. EPS estimate also fell from NT$3.29 per share to NT$2.12 per share. Net income forecast to grow 7.4% next year vs 20% growth forecast for Communications industry in Taiwan. Consensus price target down from NT$52.00 to NT$50.67. Share price was steady at NT$40.30 over the past week. Price Target Changed • Jul 05
Price target decreased by 15% to NT$52.00 Down from NT$61.00, the current price target is an average from 3 analysts. New target price is 30% above last closing price of NT$40.15. Stock is down 26% over the past year. The company is forecast to post earnings per share of NT$3.29 for next year compared to NT$3.38 last year. Upcoming Dividend • Jun 28
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 05 July 2024. Payment date: 31 July 2024. Payout ratio is a comfortable 65% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Taiwanese dividend payers (4.3%). Higher than average of industry peers (2.5%). New Risk • Jun 04
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.2% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (3.4% net profit margin). Shareholders have been diluted in the past year (2.2% increase in shares outstanding). Announcement • May 08
Zyxel Group Corporation announced a financing transaction Zyxel Group Corporation announced a private placement to issue not exceeding 20,000,000 shares on May 6, 2024. The transaction has been approved by the shareholders of the company. Reported Earnings • May 08
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: NT$0.11 (down from NT$1.17 in 1Q 2023). Revenue: NT$5.56b (down 37% from 1Q 2023). Net income: NT$44.4m (down 90% from 1Q 2023). Profit margin: 0.8% (down from 5.2% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 6.3%. Earnings per share (EPS) also missed analyst estimates by 43%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 10% per year. Announcement • Apr 28
Zyxel Group Corporation to Report Q1, 2024 Results on May 06, 2024 Zyxel Group Corporation announced that they will report Q1, 2024 results on May 06, 2024 Price Target Changed • Mar 19
Price target decreased by 8.3% to NT$58.00 Down from NT$63.25, the current price target is an average from 4 analysts. New target price is 22% above last closing price of NT$47.45. Stock is up 30% over the past year. The company is forecast to post earnings per share of NT$3.32 for next year compared to NT$3.38 last year. Reported Earnings • Mar 06
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: NT$3.38 (down from NT$3.87 in FY 2022). Revenue: NT$30.4b (flat on FY 2022). Net income: NT$1.34b (down 17% from FY 2022). Profit margin: 4.4% (down from 5.3% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.4%. Revenue is forecast to grow 5.5% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Jan 09
Zyxel Communications to Highlight Future-Proofed, Flexible Technologies At Ces 2024 Zyxel Communications will showcase products built for the future of Internet accessibility at CES 2024. Attendees will get a glimpse at Zyxel's latest line of indoor and outdoor CPE, hear from experts about the innovations powering Zyxel's next-gen technologies, and see how Zyxel is making strides toward more sustainable operations. Wi-Fi 7: After laying out a product roadmap at CES 2023, Zyxel will introduce its first series of Wi-Fi 7-enabled gateways/extenders - PE6601, EE6601, EE6510 and WE4400 - at this year's show. These 10G gateways offer unprecedented speed and stability, ensuring users harness Wi-Fi 7's full power on day 1. In addition, the gateways/extenders are enhanced with embedded capabilities, allowing for remote management, Wi-Fi analytics and parental control over the cloud. TR-369 & OpenSync: Zyxel will demonstrate the TR-369 protocol, or User Services Platform (USP), which allows for precise and frequent monitoring of subscribers' networks, improving service quality and customer satisfaction. In addition, Zyxel will demonstrate how Plume's OpenSync framework, pre-integrated in select Zyxel CPE, offers service providers maximum deployment preferences. Support for TR-369 and OpenSync, service providers gain unparalleled flexibility in deploying Zyxel CPE within a standards-based network environment. Future PON/50G-PON: Zyxel experts will be there to help service providers explore which XGS-PON ONT solutions are the right fit for their customer base. Zyxel's upcoming 50G-PON systems allow service providers to deliver lightning-fast connectivity, can be managed remotely, and are future-proofed to support rapid technological advances without additional upgrade costs. Fixed wireless 5G NR outdoor and indoor CPE: Zyxel will display its broad portfolio of fixed wireless CPE, each allowing service providers to cost-effectively expand 5G services to communities where laying fiber and wired technology isn't feasible. Minimal ID Series: Zyxel introduces its new Minimal ID Series products, designed with simplicity and sustainability in mind. The Minimal ID Series offers a subtle, unobtrusive, and compact design, and comes with minimal ongoing maintenance needs. Crafted from up to 100% recycled plastics, the Minimal ID Series significantly reduces CO2 emissions by 80% or more vs. ABS plastic. Price Target Changed • Dec 01
Price target increased by 7.2% to NT$65.75 Up from NT$61.33, the current price target is an average from 4 analysts. New target price is 22% above last closing price of NT$53.90. Stock is up 65% over the past year. The company is forecast to post earnings per share of NT$3.19 for next year compared to NT$3.87 last year. Reported Earnings • Nov 12
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: NT$0.73 (down from NT$1.88 in 3Q 2022). Revenue: NT$6.97b (down 20% from 3Q 2022). Net income: NT$290.0m (down 62% from 3Q 2022). Profit margin: 4.2% (down from 8.8% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 7.6%. Earnings per share (EPS) also surpassed analyst estimates by 140%. Revenue is forecast to grow 1.4% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$55.50, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 17x in the Communications industry in Taiwan. Total returns to shareholders of 125% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$29.94 per share. New Risk • Aug 20
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.7% 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 2.7% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.4% average weekly change). Shareholders have been diluted in the past year (13% increase in shares outstanding). Upcoming Dividend • Aug 18
Upcoming dividend of NT$1.24 per share at 2.7% yield Eligible shareholders must have bought the stock before 25 August 2023. Payment date: 21 September 2023. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Taiwanese dividend payers (5.6%). In line with average of industry peers (2.7%). New Risk • Aug 17
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 13% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.7% average weekly change). Shareholders have been diluted in the past year (13% increase in shares outstanding). Reported Earnings • Aug 08
Second quarter 2023 earnings: EPS in line with expectations, revenues disappoint Second quarter 2023 results: EPS: NT$0.77 (up from NT$0.19 in 2Q 2022). Revenue: NT$7.12b (up 14% from 2Q 2022). Net income: NT$304.1m (up 312% from 2Q 2022). Profit margin: 4.3% (up from 1.2% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is expected to decline by 1.7% p.a. on average during the next 2 years, while revenues in the Communications industry in Taiwan are expected to grow by 7.8%. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$65.70, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 16x in the Communications industry in Taiwan. Total returns to shareholders of 266% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$107 per share. Valuation Update With 7 Day Price Move • Jul 03
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$51.10, the stock trades at a trailing P/E ratio of 11.5x. Average forward P/E is 19x in the Communications industry in Taiwan. Total returns to shareholders of 165% over the past three years. Announcement • May 26
Unizyx Holding Corporation Announces Death of Independent Director and Audit Committee and Remuneration Committee ,Feng Chia Unizyx Holding Corporation announced death of Independent Director and Audit Committee and Remuneration Committee Feng Chia Committee. Company was informed on 25 May,2023. By-election will be held with relevant laws and regulations. Reported Earnings • May 09
First quarter 2023 earnings released: EPS: NT$1.17 (vs NT$0.82 in 1Q 2022) First quarter 2023 results: EPS: NT$1.17 (up from NT$0.82 in 1Q 2022). Revenue: NT$8.85b (up 26% from 1Q 2022). Net income: NT$461.3m (up 42% from 1Q 2022). Profit margin: 5.2% (up from 4.6% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$43.90, the stock trades at a trailing P/E ratio of 10.6x. Average forward P/E is 15x in the Communications industry in Taiwan. Total returns to shareholders of 226% over the past three years. Reported Earnings • Mar 16
Full year 2022 earnings released: EPS: NT$3.87 (vs NT$2.77 in FY 2021) Full year 2022 results: EPS: NT$3.87 (up from NT$2.77 in FY 2021). Revenue: NT$30.5b (up 19% from FY 2021). Net income: NT$1.62b (up 48% from FY 2021). Profit margin: 5.3% (up from 4.3% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target decreased to NT$36.74 Down from NT$44.54, the current price target is provided by 1 analyst. New target price is 16% above last closing price of NT$31.75. Stock is down 13% over the past year. The company posted earnings per share of NT$2.77 last year. 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 Chin-Liang Wang 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 10
Third quarter 2022 earnings released: EPS: NT$1.88 (vs NT$1.08 in 3Q 2021) Third quarter 2022 results: EPS: NT$1.88 (up from NT$1.08 in 3Q 2021). Revenue: NT$8.66b (up 37% from 3Q 2021). Net income: NT$762.5m (up 78% from 3Q 2021). Profit margin: 8.8% (up from 6.8% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improved over the past week After last week's 15% share price gain to NT$29.95, the stock trades at a trailing P/E ratio of 10.5x. Average forward P/E is 10x in the Communications industry in Taiwan. Total returns to shareholders of 46% over the past three years. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$24.20, the stock trades at a trailing P/E ratio of 9.4x. Average forward P/E is 11x in the Communications industry in Taiwan. Total returns to shareholders of 21% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of NT$1.02 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 18 October 2022. Trailing yield: 1.7%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (2.8%). Announcement • Sep 20
Unizyx Holding Corporation Announces Redesignation of Denise Lin from Chief Operating Officer to Chief Sustainability Officer Unizyx Holding Corporation announced redesignation of Denise Lin from Chief operating officer to Chief Sustainability Officer. Upcoming Dividend • Aug 18
Upcoming dividend of NT$0.51 per share Eligible shareholders must have bought the stock before 25 August 2022. Payment date: 23 September 2022. Trailing yield: 1.7%. Lower than top quartile of Taiwanese dividend payers (6.4%). Lower than average of industry peers (2.7%). Reported Earnings • Aug 10
Second quarter 2022 earnings released: EPS: NT$0.17 (vs NT$0.83 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.17 (down from NT$0.83 in 2Q 2021). Revenue: NT$6.23b (up 2.4% from 2Q 2021). Net income: NT$73.9m (down 80% from 2Q 2021). Profit margin: 1.2% (down from 6.0% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 23%, compared to a 20% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. 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$23.75, the stock trades at a trailing P/E ratio of 7.8x. Average forward P/E is 12x in the Communications industry in Taiwan. Total returns to shareholders of 11% over the past three years. Announcement • Jun 16
Unizyx Holding Corporation Announces Committee Changes Unizyx Holding Corporation announced members of the company's 2nd audit committee. Name of the previous position holder: K.C. Shih, Feng Chian, Chin-Tang Liu. Resume of the previous position holder: K.C. Shih, Chairperson of Chuanyi Investment Co. Ltd., Feng Chian, Director of Unizyx Holding Corporation., Chin-Tang Liu, CPA, KPMG. Name of the new position holder: Feng Chian, Chin-Tang Liu, Chin-Liang Wang. Resume of the new position holder: Feng Chian, Director of Unizyx Holding Corporation, Chin-Tang Liu, CPA, KPMG, Chin-Liang Wang,Distinguished Professor, Department of Electrical Engineering and Institute of Communications Engineering, National Tsing Hua University. Effective date of the new member is June 15, 2022. New term is from June 15, 2022 to June 14, 2025. Reported Earnings • May 06
First quarter 2022 earnings released: EPS: NT$0.74 (vs NT$0.29 in 1Q 2021) First quarter 2022 results: EPS: NT$0.74 (up from NT$0.29 in 1Q 2021). Revenue: NT$7.03b (up 2.2% from 1Q 2021). Net income: NT$325.7m (up 157% from 1Q 2021). Profit margin: 4.6% (up from 1.8% in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target increased to NT$39.50 Up from NT$25.00, the current price target is an average from 2 analysts. New target price is 42% above last closing price of NT$27.90. Stock is down 31% over the past year. The company posted earnings per share of NT$2.49 last year. Board Change • Apr 27
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 Chin-Tang Liu was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 16
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: NT$2.49 (up from NT$1.91 in FY 2020). Revenue: NT$25.7b (up 15% from FY 2020). Net income: NT$1.10b (up 33% from FY 2020). Profit margin: 4.3% (up from 3.7% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 12%, compared to a 13% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 07
Third quarter 2021 earnings released: EPS NT$0.97 (vs NT$0.87 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$6.32b (up 5.0% from 3Q 2020). Net income: NT$427.9m (up 14% from 3Q 2020). Profit margin: 6.8% (up from 6.3% 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 108% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 27
Investor sentiment improved over the past week After last week's 22% share price gain to NT$30.10, the stock trades at a trailing P/E ratio of 10.2x. Average forward P/E is 15x in the Communications industry in Taiwan. Total returns to shareholders of 195% over the past three years. Upcoming Dividend • Aug 19
Upcoming dividend of NT$0.50 per share Eligible shareholders must have bought the stock before 26 August 2021. Payment date: 15 September 2021. Trailing yield: 2.0%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (3.3%). Reported Earnings • Aug 11
Second quarter 2021 earnings released: EPS NT$0.84 (vs NT$0.38 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$6.08b (up 24% from 2Q 2020). Net income: NT$367.2m (up 124% from 2Q 2020). Profit margin: 6.0% (up from 3.3% 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 109% 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 • May 11
First quarter 2021 earnings released: EPS NT$0.29 (vs NT$0.33 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$6.88b (up 65% from 1Q 2020). Net income: NT$126.9m (up NT$267.3m from 1Q 2020). Profit margin: 1.8% (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 98% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 04
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$34.15, the stock trades at a trailing P/E ratio of 17.8x. Average forward P/E is 13x in the Communications industry in Taiwan. Total returns to shareholders of 158% over the past three years.