Announcement • May 08
Gemtek Technology Company Ltd Announces AiPhoton Transceiver Targeting Hyperscale AI Data Centers Based on NewPhotonics 1.6T NPG10204 PIC with Integrated Laser Gemtek Technology Company Ltd. announced the AiPhoton 1.6T OSFP transceiver. Built in collaboration with NewPhotonics, the module features the NPG10204 DR8 PIC transmitter-on-chip. The latest PIC-based pluggable enables simplified manufacturing of photonic ICs delivering advanced DSP functionality in octal channel 224Gbps per lane for scale-out interconnect solutions at hyperscaler AI data centers. The multi-channel monolithic PIC with integrated laser and modulator offers single-mode PAM4 (IMDD) with low power and improved signal integrity for 200G/channel applications. The highly integrated flip chip eliminates complex optical assembly and wire-bonding steps, simplifying manufacturing challenges to improve yield maturity, reliability, and efficiencies that accelerate time to deployment. The AiPhoton 1.6Tbps DR8 OSFP module design introduces a new generation of low-power transceivers that can be produced at volume and quality scale. Combining laser-integrated PIC with high-volume manufacturing capabilities enables a new class of 200G-per-lane pluggables designed to meet the market's urgent need for 1.6T optics at hyperscale. New Risk • Mar 26
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 8.1% 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 Risk Earnings have declined by 32% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.1% average weekly change). Reported Earnings • Mar 12
Full year 2025 earnings released: NT$0.25 loss per share (vs NT$1.57 profit in FY 2024) Full year 2025 results: NT$0.25 loss per share (down from NT$1.57 profit in FY 2024). Revenue: NT$16.5b (down 36% from FY 2024). Net loss: NT$108.3m (down 117% from profit in FY 2024). Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Mar 10
Gemtek Technology Co., Ltd., Annual General Meeting, May 25, 2026 Gemtek Technology Co., Ltd., Annual General Meeting, May 25, 2026, at 09:00 Taipei Standard Time. Location: no,79 ln.1, ta chih rd., hsinchu county Taiwan Reported Earnings • Nov 11
Third quarter 2025 earnings released: EPS: NT$0.36 (vs NT$0.23 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.36 (up from NT$0.23 in 3Q 2024). Revenue: NT$3.56b (down 42% from 3Q 2024). Net income: NT$155.0m (up 63% from 3Q 2024). Profit margin: 4.4% (up from 1.5% in 3Q 2024). Revenue is forecast to grow 2.7% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 10
Second quarter 2025 earnings released: NT$0.96 loss per share (vs NT$0.74 profit in 2Q 2024) Second quarter 2025 results: NT$0.96 loss per share (down from NT$0.74 profit in 2Q 2024). Revenue: NT$4.20b (down 45% from 2Q 2024). Net loss: NT$408.1m (down 235% from profit in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. New Risk • Aug 10
New major risk - Revenue and earnings growth Earnings have declined by 17% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 17% per year over the past 5 years. Minor Risk Paying a dividend despite being loss-making. Announcement • Jul 30
Gemtek Achieves CableLabs Certification for DOCSIS 3.1, Begins Shipments, and Prepares for DOCSIS 4.0 Launch Gemtek Technology announced that its GT-DUO31 DOCSIS 3.1 Cable Modem has earned CableLabs®? certification, marking a significant milestone in its expansion into the North American market. With shipments now underway to a major North American cable operator, Gemtek is also advancing toward the launch of its next-generation DOCSIS 4.0 Cable Modem, which has been submitted for CableLabs certification. The CableLabs certification underscores Gemtek's commitment to delivering interoperable, reliable, and high-performance broadband solutions. The GT-DUO 31 DOCSIS 3.1 cable Modem offers blazing-fast download speeds of up to 4.5 Gbps and upload speeds of 1.6 Gbps--ideal for high-resolution streaming, cloud-based applications, and smart home connectivity. Equipped with dual 2.5G Ethernet ports, the GT-DUO31 enhances network efficiency and performance for modern households and businesses. Gemtek's forthcoming DOCSIS 4.0 cable Modem is engineered to redefine broadband performance, supporting downstream speeds of up to 10 Gbps and upstream speeds of 4 Gbps. Built on advanced multi-channel OFDM/OFDMA technology and the RDK-B architecture, the modem integrates data and voice services compatible with PacketCable™? 1.5 and 2.0. Gemtek anticipates completing CableLabs certification for its DOCSIS 4.0 modem in the second half of 2025, positioning the company to serve top-tier global telecom operators. With GT-DUO31 shipments underway, Gemtek is strengthening its presence in the North American DOCSIS market. The company also plans to expand its DOCSIS 3.1 and 4.0 product lines into Europe and the Asia-Pacific region, offering innovative broadband solutions and fostering new partnership opportunities worldwide. Declared Dividend • Jun 09
Dividend of NT$1.50 announced Shareholders will receive a dividend of NT$1.50. Ex-date: 3rd July 2025 Payment date: 25th July 2025 Dividend yield will be 5.6%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is not adequately covered by earnings (99% earnings payout ratio). However, it is well covered by cash flows (35% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 9.5% to bring the payout ratio under control. However, EPS has declined by 9.1% over the last 5 years so the company would need to reverse this trend. Announcement • May 16
Gemtek Technology Co., Ltd. to Showcase 800G Optical Module, Software Cloud, and AI Router at COMPUTEX TAIPEI 2025 Gemtek Technology Co., Ltd. is set to showcase a powerful lineup of next-generation technologies at COMPUTEX TAIPEI 2025, taking place from May 20 to 23 at the Taipei Nangang Exhibition Center. Gemtek will unveil its latest ultra-fast 800G Optical Module and Software Cloud platform. Gemtek will also demonstrate the advanced capabilities of its MoAI AI Router, integrated with IntoWell Biomedical's Dr.AI platform. Together, these breakthroughs highlight Gemtek's commitment to advancing digital transformation across the fields of telecommunications, cloud services, and AI. Driven by the explosive growth of big data, cloud applications, and AI, the demand for high-bandwidth, high-speed, and low-latency transmission continues to surge exponentially, making 800G Optical Modules stand out as a crucial technology for AI Cloud Data Centers. Building on its strong foundation in telecommunications, Gemtek has invested extensively in the research and development of its 800G Optical Module, which will make its debut at this year's exhibition. As part of its broader digital transformation strategy, Gemtek has teamed up with GENIX NetworkS to launch its exclusive Software Cloud. The Software Cloud is a cloud-based platform that combines network security, traffic management, and behavioral control into a single solution. Designed to meet the growing demand for online privacy and cybersecurity, the platform offers comprehensive security features like firewalls, antivirus, anti-intrusion, and web threat defense, all powered by deep packet inspection for reliable and secure performance. Additional features such as the QoS technology optimizes key applications like video streaming and virtual meetings, while parental controls block inappropriate content. Another key collaborative achievement for Gemtek is its partnership with IntoWell Biomedical on the Dr.AI smart healthcare platform. In conjunction with Gemtek's MoAI AI Router, the two companies jointly developed the Medical Pre-Assessment system (MedPA) and the MoAI Avatar. Patients can interact with the MoAI AI Router to describe symptoms, which are then automatically transcribed via speech-to-text (STT) into a structured SOAP note. The solution helps reduce documentation workloads for healthcare providers, streamlines clinical workflows, and accelerates digital transformation in hospitals. This remarkable innovation was recently honored with the COMPUTEX 2025 Best Choice Award in the Digital Healthcare category. Reported Earnings • May 04
First quarter 2025 earnings released: EPS: NT$0.15 (vs NT$0.18 in 1Q 2024) First quarter 2025 results: EPS: NT$0.15 (down from NT$0.18 in 1Q 2024). Revenue: NT$5.15b (down 11% from 1Q 2024). Net income: NT$61.8m (down 13% from 1Q 2024). Profit margin: 1.2% (in line with 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 1% per year. Announcement • Apr 30
Gemtek Technology Co., Ltd. to Report Q1, 2025 Results on May 02, 2025 Gemtek Technology Co., Ltd. announced that they will report Q1, 2025 results on May 02, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$24.50, the stock trades at a trailing P/E ratio of 16.2x. Average forward P/E is 14x in the Communications industry in Taiwan. Total loss to shareholders of 8.3% over the past three years. Reported Earnings • Mar 19
Full year 2024 earnings released: EPS: NT$1.56 (vs NT$1.55 in FY 2023) Full year 2024 results: EPS: NT$1.56 (up from NT$1.55 in FY 2023). Revenue: NT$25.6b (down 1.9% from FY 2023). Net income: NT$647.3m (up 6.3% from FY 2023). Profit margin: 2.5% (up from 2.3% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Mar 13
Gemtek Technology Co., Ltd., Annual General Meeting, May 28, 2025 Gemtek Technology Co., Ltd., Annual General Meeting, May 28, 2025, at 09:00 Taipei Standard Time. Location: no,79 ln.1, ta chih rd., hsinchu county Taiwan Announcement • Mar 11
Gemtek Technology Co., Ltd. Announces Chief Marketing Officer Changes Gemtek Technology Co., Ltd. announced Chief Marketing Officer changes. Name, title, and resume of the previous position holder: Rock Zheng/Chief Marketing Officer. Name, title, and resume of the new position holder: James Li, General Manager of company (temporary agent). Reason for the change: retirement. Effective date: March 17, 2025. Announcement • Feb 28
Gemtek Technology Co., Ltd. to Report Fiscal Year 2024 Results on Mar 10, 2025 Gemtek Technology Co., Ltd. announced that they will report fiscal year 2024 results on Mar 10, 2025 New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (4.3% increase in shares outstanding). New Risk • Nov 09
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: 1.4% Last year net profit margin: 3.6% 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: Minor Risks Dividend is not well covered by earnings (172% payout ratio). Profit margins are more than 30% lower than last year (1.4% net profit margin). Shareholders have been diluted in the past year (4.3% increase in shares outstanding). Announcement • Oct 06
Gemtek Technology Co., Ltd. Approves Executive Changes Gemtek Technology Co., Ltd. approved executive changes. Name, title, and resume of the previous position holder: COO: Rong Chang Li/Gemtek Technology Co., Ltd./President. Name, title, and resume of the new position holder: King Wang /Gemtek Technology Co., Ltd./COO and Rick Chen /Gemtek Technology Co., Ltd./CPO. Effective date: 7 October 2024. Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: NT$0.74 (vs NT$0.79 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.74 (down from NT$0.79 in 2Q 2023). Revenue: NT$7.61b (up 8.5% from 2Q 2023). Net income: NT$302.9m (down 2.5% from 2Q 2023). Profit margin: 4.0% (down from 4.4% in 2Q 2023). 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 16% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (95% payout ratio). Share price has been volatile over the past 3 months (7.1% average weekly change). Shareholders have been diluted in the past year (4.4% increase in shares outstanding). Announcement • Aug 02
Gemtek Technology Co., Ltd. to Report Q2, 2024 Results on Aug 09, 2024 Gemtek Technology Co., Ltd. announced that they will report Q2, 2024 results on Aug 09, 2024 Price Target Changed • Jul 25
Price target increased by 8.4% to NT$45.00 Up from NT$41.50, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of NT$43.45. Stock is up 37% over the past year. The company posted earnings per share of NT$1.55 last year. Declared Dividend • May 31
Dividend of NT$1.50 announced Dividend of NT$1.50 is the same as last year. Ex-date: 26th June 2024 Payment date: 19th July 2024 Dividend yield will be 4.1%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is not adequately covered by earnings (96% earnings payout ratio). However, it is well covered by cash flows (28% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 6.8% to bring the payout ratio under control, which is less than the 98% EPS growth achieved over the last 5 years. Announcement • May 30
Gemtek Technology Co., Ltd. Announces Cash Dividend, Payable on July 19, 2024 Gemtek Technology Co., Ltd. announced Cash dividends of TWD 615,575,792 (TWD 1.5 per share) of common stock. Ex-rights (ex-dividend) record date is July 2, 2024. Payment date of cash dividend distribution is July 19, 2024. Ex-rights (ex-dividend) trading date is June 26, 2024. Reported Earnings • May 18
First quarter 2024 earnings released: EPS: NT$0.18 (vs NT$0.47 in 1Q 2023) First quarter 2024 results: EPS: NT$0.18 (down from NT$0.47 in 1Q 2023). Revenue: NT$5.76b (down 18% from 1Q 2023). Net income: NT$71.0m (down 62% from 1Q 2023). Profit margin: 1.2% (down from 2.6% in 1Q 2023). Revenue is forecast to grow 18% 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 26% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • May 03
Gemtek Technology Co., Ltd. to Report Q1, 2024 Results on May 10, 2024 Gemtek Technology Co., Ltd. announced that they will report Q1, 2024 results on May 10, 2024 New Risk • Apr 17
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.8% 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 Dividend is not well covered by earnings (97% payout ratio). Large one-off items impacting financial results. Shareholders have been diluted in the past year (2.8% increase in shares outstanding). New Risk • Apr 04
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 35% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (97% payout ratio). Large one-off items impacting financial results. Reported Earnings • Mar 22
Full year 2023 earnings released: EPS: NT$1.55 (vs NT$1.70 in FY 2022) Full year 2023 results: EPS: NT$1.55 (down from NT$1.70 in FY 2022). Revenue: NT$26.1b (down 6.3% from FY 2022). Net income: NT$609.2m (down 8.4% from FY 2022). Profit margin: 2.3% (down from 2.4% in FY 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Price Target Changed • Aug 09
Price target increased by 47% to NT$50.00 Up from NT$34.00, the current price target is an average from 2 analysts. New target price is 49% above last closing price of NT$33.55. Stock is up 14% over the past year. The company posted earnings per share of NT$1.70 last year. Reported Earnings • Aug 05
Second quarter 2023 earnings released: EPS: NT$0.79 (vs NT$0.14 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.79 (up from NT$0.14 in 2Q 2022). Revenue: NT$7.01b (up 8.0% from 2Q 2022). Net income: NT$310.6m (up 451% from 2Q 2022). Profit margin: 4.4% (up from 0.9% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.6% p.a. on average during the next 2 years, compared to a 7.8% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 07
Upcoming dividend of NT$1.50 per share at 4.7% yield Eligible shareholders must have bought the stock before 14 June 2023. Payment date: 13 July 2023. Payout ratio is on the higher end at 89% but the company is not cash flow positive. Trailing yield: 4.7%. Lower than top quartile of Taiwanese dividend payers (5.6%). Higher than average of industry peers (3.0%). Announcement • May 30
Gemtek Technology Co., Ltd. Announces Cash Dividend, Payable on July 13, 2023 Gemtek Technology Co., Ltd. announced Cash dividends of TWD 591,711,716 (TWD 1.5 per share) of common stock. Ex-rights (ex-dividend) record date is June 20, 2023. Payment date of cash dividend distribution is July 13, 2023. Ex-rights (ex-dividend) trading date is June 14, 2023. Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: NT$1.70 (vs NT$1.89 in FY 2021) Full year 2022 results: EPS: NT$1.70 (down from NT$1.89 in FY 2021). Revenue: NT$27.9b (up 22% from FY 2021). Net income: NT$664.7m (down 2.2% from FY 2021). Profit margin: 2.4% (down from 3.0% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 02
Gemtek Technology Co., Ltd. Announces COO Changes Gemtek Technology Co., Ltd. appointed Rong Chang Li/Gemtek Technology Co., Ltd./President in the place of Lin, Tien Jin /Gemtek Technology Co., Ltd./COO, as COO, effective from November 30, 2022. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Zhi Yang Chang 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. Insufficient board refreshment. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: NT$0.57 (vs NT$0.28 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.57 (up from NT$0.28 in 3Q 2021). Revenue: NT$7.70b (up 39% from 3Q 2021). Net income: NT$223.3m (up 124% from 3Q 2021). Profit margin: 2.9% (up from 1.8% in 3Q 2021). Revenue is forecast to grow 8.5% 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 19% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$26.05, the stock trades at a trailing P/E ratio of 21x. Average forward P/E is 11x in the Communications industry in Taiwan. Total returns to shareholders of 13% over the past three years. Reported Earnings • Aug 07
Second quarter 2022 earnings released: EPS: NT$0.14 (vs NT$0.51 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.14 (down from NT$0.51 in 2Q 2021). Revenue: NT$6.49b (flat on 2Q 2021). Net income: NT$56.4m (down 69% from 2Q 2021). Profit margin: 0.9% (down from 2.8% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 1% 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$26.10, the stock trades at a trailing P/E ratio of 16.8x. Average forward P/E is 12x in the Communications industry in Taiwan. Total returns to shareholders of 10.0% over the past three years. Upcoming Dividend • Jun 27
Upcoming dividend of NT$1.54 per share Eligible shareholders must have bought the stock before 04 July 2022. Payment date: 28 July 2022. Payout ratio is on the higher end at 89%, and the cash payout ratio is above 100%. Trailing yield: 4.8%. Lower than top quartile of Taiwanese dividend payers (6.3%). Higher than average of industry peers (3.1%). Announcement • Jun 18
Gemtek Technology Co., Ltd. Announces Cash Dividend, Payable on July 28, 2022 Gemtek Technology Co., Ltd. announced Cash dividends of TWD 607,738,466 (TWD 1.53929 per share) of common stock. Ex-rights (ex-dividend) trading date is July 4, 2022. Ex-rights (ex-dividend) record date is July 10, 2022. The cash dividend will be paid on July 28, 2022. Reported Earnings • May 07
First quarter 2022 earnings released: EPS: NT$0.17 (vs NT$0.36 in 1Q 2021) First quarter 2022 results: EPS: NT$0.17 (down from NT$0.36 in 1Q 2021). Revenue: NT$5.17b (down 1.3% from 1Q 2021). Net income: NT$63.7m (down 50% from 1Q 2021). Profit margin: 1.2% (down from 2.4% in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 53% 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 • 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 Zhi Yang Chang 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. Buying Opportunity • Feb 10
Now 23% undervalued Over the last 90 days, the stock is up 11%. The fair value is estimated to be NT$40.29, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.9% per annum over the last 3 years. The company has become profitable over the last 3 years. Price Target Changed • Jan 26
Price target increased to NT$30.50 Up from NT$25.00, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of NT$31.00. Stock is up 11% over the past year. The company posted earnings per share of NT$3.86 last year. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.28 (vs NT$3.48 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$5.54b (down 18% from 3Q 2020). Net income: NT$99.8m (down 92% from 3Q 2020). Profit margin: 1.8% (down from 18% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 93% 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 • Aug 15
Second quarter 2021 earnings released: EPS NT$0.51 (vs NT$0.43 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$6.52b (up 15% from 2Q 2020). Net income: NT$181.2m (up 20% from 2Q 2020). Profit margin: 2.8% (up from 2.7% in 2Q 2020). 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 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$27.65, the stock trades at a trailing P/E ratio of 6x. Average forward P/E is 13x in the Communications industry in Taiwan. Total returns to shareholders of 30% over the past three years. Upcoming Dividend • Jul 28
Upcoming dividend of NT$1.96 per share Eligible shareholders must have bought the stock before 04 August 2021. Payment date: 25 August 2021. Trailing yield: 6.0%. Within top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (2.8%). Valuation Update With 7 Day Price Move • May 17
Investor sentiment deteriorated over the past week After last week's 19% share price decline to NT$26.00, the stock trades at a trailing P/E ratio of 5.7x. Average forward P/E is 12x in the Communications industry in Taiwan. Total returns to shareholders of 6.9% over the past three years. Reported Earnings • May 08
First quarter 2021 earnings released: EPS NT$0.36 (vs NT$0.35 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$5.24b (up 99% from 1Q 2020). Net income: NT$128.3m (up NT$252.4m from 1Q 2020). Profit margin: 2.4% (up from net loss in 1Q 2020). 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 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS NT$3.86 (vs NT$0.57 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$19.9b (up 10% from FY 2019). Net income: NT$1.37b (up NT$1.17b from FY 2019). Profit margin: 6.9% (up from 1.1% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Jan 05
New 90-day high: NT$32.50 The company is up 24% from its price of NT$26.15 on 07 October 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company outperformed over that time. However, its price trend is similar to the Communications industry, which is also up 24% over the same period. Reported Earnings • Nov 07
Third quarter 2020 earnings released: EPS NT$3.48 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$6.75b (up 49% from 3Q 2019). Net income: NT$1.23b (up NT$1.14b from 3Q 2019). Profit margin: 18% (up from 2.0% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Nov 02
New 90-day high: NT$30.50 The company is up 21% from its price of NT$25.15 on 04 August 2020. The Taiwanese market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Communications industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$40.72 per share.