New Risk • May 06
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 9.3% 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: Minor Risks Dividend is not well covered by cash flows (100% cash payout ratio). Share price has been volatile over the past 3 months (9.3% average weekly change). Valuation Update With 7 Day Price Move • May 05
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$185, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 21x in the Electronic 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$353 per share. Reported Earnings • Apr 30
First quarter 2026 earnings: EPS exceeds analyst expectations First quarter 2026 results: EPS: NT$2.00 (down from NT$2.88 in 1Q 2025). Revenue: NT$12.6b (up 1.1% from 1Q 2025). Net income: NT$627.4m (down 26% from 1Q 2025). Profit margin: 5.0% (down from 6.8% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. New Risk • Apr 30
New major risk - Revenue and earnings growth Earnings have declined by 5.6% 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 5.6% per year over the past 5 years. Minor Risk Dividend is not well covered by cash flows (93% cash payout ratio). Announcement • Apr 23
Taiwan Surface Mounting Technology Corp. to Report Q1, 2026 Results on Apr 28, 2026 Taiwan Surface Mounting Technology Corp. announced that they will report Q1, 2026 results on Apr 28, 2026 Major Estimate Revision • Apr 22
Consensus EPS estimates fall by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from NT$53.6b to NT$52.0b. EPS estimate also fell from NT$12.92 per share to NT$10.50 per share. Net income forecast to grow 12% next year vs 28% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$126 to NT$163. Share price rose 15% to NT$158 over the past week. Price Target Changed • Apr 18
Price target increased by 21% to NT$149 Up from NT$123, the current price target is an average from 2 analysts. New target price is 5.1% below last closing price of NT$157. Stock is up 68% over the past year. The company is forecast to post earnings per share of NT$11.72 for next year compared to NT$9.39 last year. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$114, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 20x in the Electronic industry in Taiwan. Total returns to shareholders of 28% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$59.14 per share. Announcement • Mar 11
Taiwan Surface Mounting Technology Corp., Annual General Meeting, Jun 17, 2026 Taiwan Surface Mounting Technology Corp., Annual General Meeting, Jun 17, 2026. Location: 2 floor no,398, t`ao ying rd., taoyuan district, taoyuan city Taiwan Reported Earnings • Mar 11
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: NT$9.39 (down from NT$9.94 in FY 2024). Revenue: NT$49.9b (up 10% from FY 2024). Net income: NT$2.75b (down 5.5% from FY 2024). Profit margin: 5.5% (down from 6.4% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the last 3 years on average, earnings per share has fallen by 7% 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 • Dec 11
Price target increased by 14% to NT$140 Up from NT$123, the current price target is provided by 1 analyst. New target price is 40% above last closing price of NT$100.00. Stock is down 4.8% over the past year. The company is forecast to post earnings per share of NT$9.34 for next year compared to NT$9.94 last year. Reported Earnings • Nov 01
Third quarter 2025 earnings released: EPS: NT$2.38 (vs NT$2.27 in 3Q 2024) Third quarter 2025 results: EPS: NT$2.38 (up from NT$2.27 in 3Q 2024). Revenue: NT$12.8b (up 16% from 3Q 2024). Net income: NT$695.9m (up 5.1% from 3Q 2024). Profit margin: 5.4% (down from 6.0% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.0% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Reported Earnings • Aug 15
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: NT$1.64 (down from NT$2.94 in 2Q 2024). Revenue: NT$12.6b (up 9.4% from 2Q 2024). Net income: NT$480.0m (down 44% from 2Q 2024). Profit margin: 3.8% (down from 7.5% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 47%. Revenue is forecast to grow 7.7% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jul 06
Upcoming dividend of NT$5.50 per share Eligible shareholders must have bought the stock before 10 July 2025. Payment date: 08 August 2025. Payout ratio is a comfortable 52% but the company is paying out more than the cash it is generating. Trailing yield: 5.0%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (3.1%). Declared Dividend • Jun 21
Dividend increased to NT$5.50 Dividend of NT$5.50 is 10% higher than last year. Ex-date: 10th July 2025 Payment date: 8th August 2025 Dividend yield will be 5.1%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (52% earnings payout ratio) but not covered by cash flows (199% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 10% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 02
First quarter 2025 earnings: Revenues and EPS in line with analyst expectations First quarter 2025 results: EPS: NT$2.66 (up from NT$2.33 in 1Q 2024). Revenue: NT$12.4b (up 14% from 1Q 2024). Net income: NT$841.8m (up 24% from 1Q 2024). Profit margin: 6.8% (up from 6.2% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 7.5% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 18% 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 • Apr 22
Taiwan Surface Mounting Technology Corp. to Report Q1, 2025 Results on Apr 29, 2025 Taiwan Surface Mounting Technology Corp. announced that they will report Q1, 2025 results on Apr 29, 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$90.90, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Electronic industry in Taiwan. Total loss to shareholders of 1.6% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$44.97 per share. Reported Earnings • Mar 12
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: NT$9.94 (up from NT$8.57 in FY 2023). Revenue: NT$45.3b (down 2.6% from FY 2023). Net income: NT$2.91b (up 16% from FY 2023). Profit margin: 6.4% (up from 5.4% in FY 2023). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.0%. Revenue is forecast to grow 6.9% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Mar 11
Taiwan Surface Mounting Technology Corp., Annual General Meeting, Jun 19, 2025 Taiwan Surface Mounting Technology Corp., Annual General Meeting, Jun 19, 2025. Location: 3 floor no,398, t`ao ying rd., taoyuan district, taoyuan city Taiwan Announcement • Feb 28
Taiwan Surface Mounting Technology Corp. to Report Fiscal Year 2024 Results on Mar 10, 2025 Taiwan Surface Mounting Technology Corp. announced that they will report fiscal year 2024 results at 9:00 AM, Taipei Standard Time on Mar 10, 2025 Reported Earnings • Nov 01
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: NT$2.26 (down from NT$3.12 in 3Q 2023). Revenue: NT$11.0b (down 14% from 3Q 2023). Net income: NT$662.4m (down 28% from 3Q 2023). Profit margin: 6.0% (down from 7.2% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 9.8%. Earnings per share (EPS) exceeded analyst estimates by 12%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Oct 22
Taiwan Surface Mounting Technology Corp. to Report Q3, 2024 Results on Oct 29, 2024 Taiwan Surface Mounting Technology Corp. announced that they will report Q3, 2024 results on Oct 29, 2024 Reported Earnings • Aug 13
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: NT$2.94 (up from NT$2.16 in 2Q 2023). Revenue: NT$11.5b (down 5.6% from 2Q 2023). Net income: NT$859.0m (up 36% from 2Q 2023). Profit margin: 7.5% (up from 5.2% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.2%. Earnings per share (EPS) exceeded analyst estimates by 35%. Revenue is forecast to grow 7.8% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Aug 02
Taiwan Surface Mounting Technology Corp. to Report Q2, 2024 Results on Aug 09, 2024 Taiwan Surface Mounting Technology Corp. announced that they will report Q2, 2024 results at 9:00 AM, Taipei Standard Time on Aug 09, 2024 Declared Dividend • Jun 24
Dividend reduced to NT$5.00 Dividend of NT$5.00 is 29% lower than last year. Ex-date: 11th July 2024 Payment date: 9th August 2024 Dividend yield will be 4.1%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (50% earnings payout ratio) and cash flows (34% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 3.1% over the next year. However, it would need to fall by 44% to increase the payout ratio to a potentially unsustainable range. Announcement • Jun 24
Taiwan Surface Mounting Technology Corp. Announces Cash Dividend, Payable on August 9, 2024 Taiwan Surface Mounting Technology Corp. announced monetary amount of cash dividend distribution for common shares is TWD 1,461,991,765 (TWD 5.0 per share). Ex-rights (ex-dividend) trading date is July 11, 2024; Ex-rights (ex-dividend) record date is July 17, 2024; Payment date of common stock cash dividend distribution is August 9, 2024. Major Estimate Revision • May 31
Consensus revenue estimates fall by 24% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$65.1b to NT$49.3b. EPS estimate fell from NT$14.95 to NT$8.83 per share. Net income forecast to shrink 9.8% next year vs 27% growth forecast for Electronic industry in Taiwan . Consensus price target broadly unchanged at NT$126. Share price was steady at NT$114 over the past week. New Risk • May 30
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 3.1% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • May 03
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: NT$2.33 (up from NT$0.97 in 1Q 2023). Revenue: NT$10.9b (up 16% from 1Q 2023). Net income: NT$681.3m (up 139% from 1Q 2023). Profit margin: 6.2% (up from 3.0% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 50%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Reported Earnings • Mar 14
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: NT$8.57 (down from NT$13.82 in FY 2022). Revenue: NT$46.5b (down 32% from FY 2022). Net income: NT$2.51b (down 38% from FY 2022). Profit margin: 5.4% (down from 5.9% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 9.8%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Mar 13
Taiwan Surface Mounting Technology Corp., Annual General Meeting, Jun 21, 2024 Taiwan Surface Mounting Technology Corp., Annual General Meeting, Jun 21, 2024. Location: No.398, Taoying Rd., Taoyuan Dist 3rd Floor Ju-I Hall of Chuto Hotel Taoyuan City Taiwan Agenda: To consider 2023 Business Report; to consider Audit Committee's Review Report on the 2023 Financial Statements; to consider Report on the Distribution of Remuneration for Employees and Directors of 2023; to consider Report on the Distribution of 2023 cash dividends; to consider 2023 Business Report and Financial Statements; to consider 2023 Earnings Distribution Proposal. Buy Or Sell Opportunity • Mar 11
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 7.0% to NT$102. The fair value is estimated to be NT$83.21, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 12%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Buy Or Sell Opportunity • Jan 25
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 4.6% to NT$92.80. The fair value is estimated to be NT$77.13, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 12%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Major Estimate Revision • Nov 12
Consensus revenue estimates fall by 16% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$56.3b to NT$47.1b. EPS estimate fell from NT$10.98 to NT$8.56 per share. Net income forecast to grow 42% next year vs 9.7% growth forecast for Electronic industry in Taiwan. Consensus price target broadly unchanged at NT$128. Share price was steady at NT$92.40 over the past week. Reported Earnings • Oct 29
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: NT$3.13 (down from NT$3.62 in 3Q 2022). Revenue: NT$12.7b (down 27% from 3Q 2022). Net income: NT$913.2m (down 14% from 3Q 2022). Profit margin: 7.2% (up from 6.1% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 23%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Major Estimate Revision • Sep 01
Consensus EPS estimates increase by 22% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from NT$9.03 to NT$10.98. Revenue forecast steady at NT$56.3b. Net income forecast to grow 31% next year vs 5.8% growth forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$134 to NT$127. Share price was steady at NT$90.90 over the past week. Reported Earnings • Aug 05
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: EPS: NT$2.16 (down from NT$2.87 in 2Q 2022). Revenue: NT$12.2b (down 21% from 2Q 2022). Net income: NT$631.9m (down 25% from 2Q 2022). Profit margin: 5.2% (down from 5.5% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) exceeded analyst estimates by 24%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 06
Upcoming dividend of NT$7.00 per share at 6.9% yield Eligible shareholders must have bought the stock before 13 July 2023. Payment date: 11 August 2023. Payout ratio is a comfortable 66% and this is well supported by cash flows. Trailing yield: 6.9%. Within top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (3.2%). Major Estimate Revision • Jun 01
Consensus EPS estimates fall by 28% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$59.5b to NT$56.0b. EPS estimate also fell from NT$12.57 per share to NT$9.03 per share. Net income forecast to grow 0.2% next year vs 9.2% decline forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$126. Share price was steady at NT$99.10 over the past week. Reported Earnings • May 10
First quarter 2023 earnings: EPS misses analyst expectations First quarter 2023 results: EPS: NT$0.97 (down from NT$4.18 in 1Q 2022). Revenue: NT$9.41b (down 48% from 1Q 2022). Net income: NT$284.7m (down 77% from 1Q 2022). Profit margin: 3.0% (down from 6.7% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.0%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Price Target Changed • Feb 04
Price target decreased by 11% to NT$121 Down from NT$136, the current price target is an average from 3 analysts. New target price is 29% above last closing price of NT$93.50. Stock is down 28% over the past year. The company is forecast to post earnings per share of NT$14.47 for next year compared to NT$12.70 last year. Announcement • Dec 31
Taiwan Surface Mounting Technology Corp. Announces President Changes, with Effect from January 1, 2023 Taiwan Surface Mounting Technology Corp. announced the president changes as follows: Name of the previous position holder: Wu,Kai-Yun; Resume of the previous position holder: TSMT-Chairperson and President; Name of the new position holder: Wu,Yun-Chung; Resume of the new position holder: TSMT-Deputy President of Advanced Process Business Office; Reason for the change: job relocation; Effective date of the new appointment: 01 January 2023. Price Target Changed • Nov 16
Price target decreased to NT$160 Down from NT$180, the current price target is provided by 1 analyst. New target price is 71% above last closing price of NT$93.60. Stock is down 24% over the past year. The company is forecast to post earnings per share of NT$15.01 for next year compared to NT$12.70 last year. Reported Earnings • Oct 30
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: NT$3.63 (down from NT$3.83 in 3Q 2021). Revenue: NT$17.3b (down 7.5% from 3Q 2021). Net income: NT$1.06b (down 5.3% from 3Q 2021). Profit margin: 6.1% (up from 6.0% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) also missed analyst estimates by 12%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 9.8% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$2.87 (vs NT$3.00 in 2Q 2021) Second quarter 2022 results: EPS: NT$2.87 (down from NT$3.00 in 2Q 2021). Revenue: NT$15.4b (down 2.4% from 2Q 2021). Net income: NT$839.8m (down 4.3% from 2Q 2021). Profit margin: 5.5% (down from 5.6% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 3.7%, compared to a 20% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 07
Upcoming dividend of NT$6.00 per share Eligible shareholders must have bought the stock before 14 July 2022. Payment date: 12 August 2022. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 7.6%. Within top quartile of Taiwanese dividend payers (6.8%). Higher than average of industry peers (4.1%). Valuation Update With 7 Day Price Move • Jul 01
Investor sentiment deteriorated over the past week After last week's 18% share price decline to NT$81.40, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 9x in the Semiconductor industry in Taiwan. Total returns to shareholders of 45% over the past three years. Price Target Changed • Jun 18
Price target increased to NT$180 Up from NT$164, the current price target is an average from 2 analysts. New target price is 73% above last closing price of NT$104. Stock is down 18% over the past year. The company is forecast to post earnings per share of NT$16.01 for next year compared to NT$12.70 last year. Reported Earnings • May 02
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: NT$4.18 (up from NT$1.37 in 1Q 2021). Revenue: NT$18.1b (up 57% from 1Q 2021). Net income: NT$1.22b (up 205% from 1Q 2021). Profit margin: 6.7% (up from 3.5% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.9%. Over the next year, revenue is forecast to grow 3.5%, compared to a 24% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Mar 28
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.5%. The fair value is estimated to be NT$148, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% per annum over the last 3 years. Earnings per share has grown by 37% per annum over the last 3 years. Reported Earnings • Mar 17
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: NT$12.70 (up from NT$7.50 in FY 2020). Revenue: NT$65.7b (up 59% from FY 2020). Net income: NT$3.71b (up 69% from FY 2020). Profit margin: 5.6% (up from 5.3% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.9%. Over the next year, revenue is forecast to grow 12%, compared to a 24% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 11
Second quarter 2021 earnings released: EPS NT$3.00 (vs NT$1.77 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$15.8b (up 64% from 2Q 2020). Net income: NT$877.2m (up 70% from 2Q 2020). Profit margin: 5.6% (up from 5.4% 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 41% per year but the company’s share price has increased by 68% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Aug 10
Upcoming dividend of NT$3.30 per share Eligible shareholders must have bought the stock before 17 August 2021. Payment date: 15 September 2021. Trailing yield: 2.8%. Lower than top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (2.1%). Price Target Changed • Jul 22
Price target increased to NT$156 Up from NT$145, the current price target is an average from 3 analysts. New target price is 32% above last closing price of NT$118. Stock is down 21% over the past year. Valuation Update With 7 Day Price Move • May 14
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$98.70, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 14x in the Semiconductor industry in Taiwan. Total returns to shareholders of 300% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$194 per share. Reported Earnings • May 02
First quarter 2021 earnings released: EPS NT$1.37 (vs NT$0.55 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$11.5b (up 38% from 1Q 2020). Net income: NT$400.9m (up 149% from 1Q 2020). Profit margin: 3.5% (up from 1.9% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has increased by 65% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Mar 20
Full year 2020 earnings released: EPS NT$7.50 (vs NT$6.96 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: NT$41.4b (up 9.2% from FY 2019). Net income: NT$2.19b (up 7.8% from FY 2019). Profit margin: 5.3% (down from 5.4% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has increased by 63% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Feb 24
New 90-day low: NT$117 The company is down 1.0% from its price of NT$119 on 26 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 33% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$218 per share. Is New 90 Day High Low • Jan 04
New 90-day high: NT$138 The company is up 31% from its price of NT$105 on 06 October 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 25% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$224 per share. Is New 90 Day High Low • Dec 02
New 90-day high: NT$130 The company is up 7.0% from its price of NT$121 on 03 September 2020. The Taiwanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 16% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$188 per share. Valuation Update With 7 Day Price Move • Nov 06
Market bids up stock over the past week After last week's 16% share price gain to NT$109, the stock is trading at a trailing P/E ratio of 15.3x, up from the previous P/E ratio of 13.2x. This compares to an average P/E of 23x in the Semiconductor industry in Taiwan. Total returns to shareholders over the past three years are 302%. Reported Earnings • Oct 31
Third quarter earnings released Over the last 12 months the company has reported total profits of NT$2.08b, up 13% from the prior year. Total revenue was NT$39.1b over the last 12 months, up 5.1% from the prior year. Is New 90 Day High Low • Oct 29
New 90-day low: NT$98.20 The company is down 27% from its price of NT$135 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 Semiconductor industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$177 per share. Is New 90 Day High Low • Sep 22
New 90-day low: NT$114 The company is down 13% from its price of NT$130 on 24 June 2020. The Taiwanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 28% over the same period.