New Risk • Apr 21
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 8.7% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 49% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.7% average weekly change). Reported Earnings • Apr 02
Full year 2025 earnings released: NT$22.85 loss per share (vs NT$4.57 profit in FY 2024) Full year 2025 results: NT$22.85 loss per share (down from NT$4.57 profit in FY 2024). Revenue: NT$32.8b (up 22% from FY 2024). Net loss: NT$5.63b (down NT$6.75b from profit in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Announcement • Mar 16
FIT Holding Co., Ltd., Annual General Meeting, Jun 23, 2026 FIT Holding Co., Ltd., Annual General Meeting, Jun 23, 2026. Location: 2 floor no,49, sec.4 chung yang rd., tucheng district, new taipei city Taiwan New Risk • Dec 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 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 24% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (6.4% average weekly change). Reported Earnings • Nov 18
Third quarter 2025 earnings released: NT$12.41 loss per share (vs NT$1.57 profit in 3Q 2024) Third quarter 2025 results: NT$12.41 loss per share (down from NT$1.57 profit in 3Q 2024). Revenue: NT$10.4b (up 95% from 3Q 2024). Net loss: NT$3.06b (down NT$3.44b from profit in 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Oct 30
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 24% to NT$36.80. The fair value is estimated to be NT$46.13, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Aug 19
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 29% to NT$37.15. The fair value is estimated to be NT$47.96, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Meanwhile, the company became loss making. New Risk • Aug 15
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 7.6% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Share price has been volatile over the past 3 months (6.1% average weekly change). Upcoming Dividend • Jul 17
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 24 July 2025. Payment date: 15 August 2025. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (3.0%). Declared Dividend • Jun 26
Dividend increased to NT$3.00 Dividend of NT$3.00 is 50% higher than last year. Ex-date: 24th July 2025 Payment date: 15th August 2025 Dividend yield will be 6.4%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (63% 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 12% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 43% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • May 22
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 1.3% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (1.3% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • May 13
First quarter 2025 earnings released: EPS: NT$0.93 (vs NT$0.75 in 1Q 2024) First quarter 2025 results: EPS: NT$0.93 (up from NT$0.75 in 1Q 2024). Revenue: NT$7.37b (up 91% from 1Q 2024). Net income: NT$228.3m (up 24% from 1Q 2024). Profit margin: 3.1% (down from 4.8% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Announcement • Apr 29
FIT Holding Co., Ltd. to Report Q1, 2025 Results on May 06, 2025 FIT Holding Co., Ltd. announced that they will report Q1, 2025 results on May 06, 2025 Buy Or Sell Opportunity • Apr 09
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 35% to NT$38.50. The fair value is estimated to be NT$48.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 33%. 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$42.75, the stock trades at a trailing P/E ratio of 9.4x. Average trailing P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 65% over the past three years. New Risk • Mar 22
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 27% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (27% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Announcement • Mar 11
FIT Holding Co., Ltd., Annual General Meeting, May 28, 2025 FIT Holding Co., Ltd., Annual General Meeting, May 28, 2025, at 09:00 Taipei Standard Time. Location: 2 floor no,49, sec.4 chung yang rd., tucheng district, new taipei city Taiwan Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$55.50, the stock trades at a trailing P/E ratio of 12.4x. Average trailing P/E is 23x in the Electronic industry in Taiwan. Total returns to shareholders of 114% over the past three years. Announcement • Feb 28
FIT Holding Co., Ltd. to Report Fiscal Year 2024 Results on Mar 07, 2025 FIT Holding Co., Ltd. announced that they will report fiscal year 2024 results on Mar 07, 2025 New Risk • Nov 27
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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.4% average weekly change). Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: NT$1.57 (vs NT$1.13 in 3Q 2023) Third quarter 2024 results: EPS: NT$1.57 (up from NT$1.13 in 3Q 2023). Revenue: NT$5.34b (up 27% from 3Q 2023). Net income: NT$387.0m (up 40% from 3Q 2023). Profit margin: 7.3% (up from 6.6% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year whereas the company’s share price has increased by 24% per year. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$57.60, the stock trades at a trailing P/E ratio of 14.3x. Average trailing P/E is 23x in the Electronic industry in Taiwan. Total returns to shareholders of 94% over the past three years. Announcement • Nov 06
FIT Holding Co., Ltd. to Report Q3, 2024 Results on Nov 13, 2024 FIT Holding Co., Ltd. announced that they will report Q3, 2024 results on Nov 13, 2024 Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: NT$1.02 (vs NT$0.065 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.02 (up from NT$0.065 in 2Q 2023). Revenue: NT$5.91b (up 83% from 2Q 2023). Net income: NT$250.6m (up NT$234.5m from 2Q 2023). Profit margin: 4.2% (up from 0.5% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 23% per year. Upcoming Dividend • Jul 15
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 22 July 2024. Payment date: 16 August 2024. Trailing yield: 2.4%. Lower than top quartile of Taiwanese dividend payers (4.2%). In line with average of industry peers (2.5%). Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$67.10, the stock trades at a trailing P/E ratio of 43.6x. Average trailing P/E is 26x in the Electronic industry in Taiwan. Total returns to shareholders of 93% over the past three years. Declared Dividend • Jun 28
Dividend of NT$2.00 announced Dividend of NT$2.00 is the same as last year. Ex-date: 22nd July 2024 Payment date: 16th August 2024 Dividend yield will be 3.6%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is not covered by earnings (130% 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 4.1% 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 44% to bring the payout ratio under control, which is more than the 41% EPS growth achieved over the last 5 years. Announcement • Jun 27
FIT Holding Co., Ltd. Approves Cash Dividend, Payable on August 16, 2024 FIT Holding Co., Ltd. announced at shareholders meeting held on June 26, 2024, approved cash dividend of TWD 2 per share (cash dividend from earnings is TWD 1.5 per share and cash distribution from capital surplus is TWD 0.5 per share). Ex-rights (ex-dividend) trading date is July 22, 2024. Ex-rights (ex-dividend) record date is July 28, 2024. Payment date of cash dividend distribution is August 16, 2024. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$58.60, the stock trades at a trailing P/E ratio of 38.1x. Average trailing P/E is 25x in the Electronic industry in Taiwan. Total returns to shareholders of 123% over the past three years. New Risk • May 31
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 130% Paying a dividend despite having no free cash flows. High level of non-cash earnings (24% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Profit margins are more than 30% lower than last year (2.7% net profit margin). Announcement • May 29
FIT Holding Co., Ltd. Appoints Lu Hong Te as Independent Director FIT Holding Co., Ltd. announced at annual general shareholders meeting held on May 27, 2024, appointed Lu Hong Te as independent director of the company. Resume of the new position holder: Adjunct Professor, Chung Yuan Christian University, Department of Business Administration. Effective date of the new appointment: May 27, 2024. Announcement • May 09
FIT Holding Co., Ltd. to Report Q1, 2024 Results on May 14, 2024 FIT Holding Co., Ltd. announced that they will report Q1, 2024 results on May 14, 2024 Announcement • Mar 08
FIT Holding Co., Ltd., Annual General Meeting, May 27, 2024 FIT Holding Co., Ltd., Annual General Meeting, May 27, 2024. Location: No.49, Section 4, Zhongyang Road, Tucheng District Conference Room, 2nd floor New Taipei City Taiwan Agenda: To consider Company's business report for the year 2023;to consider Audit Committee's review of the 2022 annual final accounting books and statements;to consider Report on the Company's distribution of earnings and capital reserve in cash for the year 2023;to consider Report on the Company's distribution of remuneration of employees and directors for the year 2023;and to consider other matters. Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$45.70, the stock trades at a trailing P/E ratio of 29.7x. Average trailing P/E is 22x in the Electronic industry in Taiwan. Total returns to shareholders of 79% over the past three years. New Risk • Feb 19
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 7.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (7.4% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 130% Paying a dividend despite having no free cash flows. High level of non-cash earnings (24% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (2.7% net profit margin). New Risk • Jan 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 5.8% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 130% Paying a dividend despite having no free cash flows. High level of non-cash earnings (24% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (5.8% average weekly change). Profit margins are more than 30% lower than last year (2.7% net profit margin). Reported Earnings • Nov 14
Third quarter 2023 earnings released: EPS: NT$1.13 (vs NT$0.86 in 3Q 2022) Third quarter 2023 results: EPS: NT$1.13 (up from NT$0.86 in 3Q 2022). Revenue: NT$4.21b (up 68% from 3Q 2022). Net income: NT$277.4m (up 32% from 3Q 2022). Profit margin: 6.6% (down from 8.4% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. New Risk • Aug 13
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 161% Paying a dividend despite having no free cash flows. High level of non-cash earnings (25% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (2.5% net profit margin). Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: NT$0.06 (vs NT$0.39 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.06 (down from NT$0.39 in 2Q 2022). Revenue: NT$3.22b (up 4.0% from 2Q 2022). Net income: NT$16.1m (down 83% from 2Q 2022). Profit margin: 0.5% (down from 3.1% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Aug 03
FIT Holding Co., Ltd. Announces the Resignation of Wei-Lin Wang as Member of the Company's Audit Committee?Remuneration Committee and Corporate Governance and Sustainable Management Committee FIT Holding Co., Ltd. announced the resignation of Wei-Lin Wang as member of the company's Audit Committee?Remuneration Committee and Corporate Governance and Sustainable Management Committee. Resume of the previous position holder: Independent Director of the company. Reason for the change: Personal Job Factors. Date of occurrence of the change: August 2, 2023. Upcoming Dividend • Jul 18
Upcoming dividend of NT$2.00 per share at 5.3% yield Eligible shareholders must have bought the stock before 25 July 2023. Payment date: 18 August 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 5.3%. Lower than top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (4.1%). Announcement • Jul 01
FIT Holding Co., Ltd. Approves Cash Dividend, Payable on August 18, 2023 FIT Holding Co., Ltd. announced at shareholders meeting held on June 30, 2023, approved cash dividend of TWD 2 per share (cash dividend from earnings is TWD 1.5 per share and cash distribution from capital surplus is TWD 0.5 per share). Ex-rights (ex-dividend) trading date is July 25, 2023. Ex-rights (ex-dividend) record date is July 31, 2023. Payment date of cash dividend distribution is August 18, 2023. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to NT$38.50, the stock trades at a trailing P/E ratio of 14.8x. Average trailing P/E is 13x in the Electronic industry in Taiwan. Total returns to shareholders of 207% over the past three years. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: NT$0.86 (vs NT$0.42 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.86 (up from NT$0.42 in 3Q 2021). Revenue: NT$2.51b (up 9.1% from 3Q 2021). Net income: NT$210.8m (up 104% from 3Q 2021). Profit margin: 8.4% (up from 4.5% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 104% 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 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Chen-Rong Chian 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 • Nov 13
Third quarter 2022 earnings released: EPS: NT$0.86 (vs NT$0.42 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.86 (up from NT$0.42 in 3Q 2021). Revenue: NT$2.51b (up 9.1% from 3Q 2021). Net income: NT$210.8m (up 104% from 3Q 2021). Profit margin: 8.4% (up from 4.5% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$0.38 (vs NT$0.12 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.38 (up from NT$0.12 in 2Q 2021). Revenue: NT$3.10b (up 81% from 2Q 2021). Net income: NT$95.1m (up 215% from 2Q 2021). Profit margin: 3.1% (up from 1.8% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 113% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 28
Upcoming dividend of NT$1.50 per share Eligible shareholders must have bought the stock before 04 August 2022. Payment date: 31 August 2022. Payout ratio is on the higher end at 79% but the company is not cash flow positive. Trailing yield: 5.2%. Lower than top quartile of Taiwanese dividend payers (6.7%). Higher than average of industry peers (4.6%). Announcement • Jun 30
Fit Holding Co., Ltd. Announces Cash Distribution from 2021, Payable on August 31, 2022 FIT Holding Co., Ltd. announces cash distribution from 2021 of TWD 1.5 per share(cash dividend from earnings is TWD 0.5 per share and cash distribution from capital surplus is TWD 1 per share. Ex-rights (ex-dividend) trading date Is August 4, 2022. Ex-rights (ex-dividend) record date is August 12, 2022. Cash dividend will be paid on August 31, 2022. Reported Earnings • May 14
First quarter 2022 earnings released: EPS: NT$0.54 (vs NT$0.39 in 1Q 2021) First quarter 2022 results: EPS: NT$0.54 (up from NT$0.39 in 1Q 2021). Revenue: NT$2.59b (up 15% from 1Q 2021). Net income: NT$132.3m (up 37% from 1Q 2021). Profit margin: 5.1% (up from 4.3% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 116% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. 5 experienced directors. No highly experienced directors. 3 independent directors (6 non-independent directors). Manager & Chairman Tai Qiang Gou is the most experienced director on the board, commencing their role in 2018. Independent Director Chen-Rong Chian was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Mar 30
Full year 2021 earnings released: EPS: NT$1.76 (vs NT$0.34 in FY 2020) Full year 2021 results: EPS: NT$1.76 (up from NT$0.34 in FY 2020). Revenue: NT$11.2b (up 59% from FY 2020). Net income: NT$434.0m (up 419% from FY 2020). Profit margin: 3.9% (up from 1.2% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 111% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.43 (vs NT$0.045 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$2.30b (up 51% from 3Q 2020). Net income: NT$103.5m (up NT$114.7m from 3Q 2020). Profit margin: 4.5% (up from net loss in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$31.85, the stock trades at a trailing P/E ratio of 21.3x. Average trailing P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 88% over the past three years. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improved over the past week After last week's 19% share price gain to NT$36.05, the stock trades at a trailing P/E ratio of 24.1x. Average trailing P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 51% over the past three years. Reported Earnings • Aug 15
Second quarter 2021 earnings released: EPS NT$0.12 (vs NT$0.30 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$1.71b (up 20% from 2Q 2020). Net income: NT$30.1m (up NT$104.8m from 2Q 2020). Profit margin: 1.8% (up from net loss in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 29
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 05 August 2021. Payment date: 27 August 2021. Trailing yield: 2.8%. Lower than top quartile of Taiwanese dividend payers (5.0%). In line with average of industry peers (3.0%). Valuation Update With 7 Day Price Move • Jul 03
Investor sentiment improved over the past week After last week's 20% share price gain to NT$34.30, the stock trades at a trailing P/E ratio of 32.2x. Average trailing P/E is 18x in the Electronic industry in Taiwan. Total loss to shareholders of 1.4% over the past three years. Reported Earnings • May 19
First quarter 2021 earnings released: EPS NT$0.39 (vs NT$0.34 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$2.25b (up 40% from 1Q 2020). Net income: NT$96.6m (up NT$179.3m from 1Q 2020). Profit margin: 4.3% (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 fallen by 26% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • May 17
Investor sentiment deteriorated over the past week After last week's 20% share price decline to NT$23.60, the stock trades at a trailing P/E ratio of 69.4x. Average trailing P/E is 15x in the Electronic industry in Taiwan. Total loss to shareholders of 31% over the past three years. Reported Earnings • Apr 02
Full year 2020 earnings released: EPS NT$0.34 (vs NT$0.84 loss 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$7.05b (down 20% from FY 2019). Net income: NT$83.6m (up NT$290.6m from FY 2019). Profit margin: 1.2% (up from net loss in FY 2019). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 54 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Jan 15
New 90-day low: NT$27.55 The company is down 26% from its price of NT$37.40 on 16 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 29% over the same period. Is New 90 Day High Low • Dec 22
New 90-day low: NT$33.00 The company is down 16% from its price of NT$39.25 on 23 September 2020. The Taiwanese market is up 13% 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. Is New 90 Day High Low • Oct 29
New 90-day low: NT$36.50 The company is down 9.0% from its price of NT$40.05 on 31 July 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 2.0% over the same period.