New Risk • Apr 18
New major risk - Revenue and earnings growth Earnings have declined by 54% 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 Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 54% per year over the past 5 years. New Risk • Apr 15
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 11% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 15
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: NT$0.79 loss per share (down from NT$0.46 profit in FY 2024). Revenue: NT$66.8b (down 4.6% from FY 2024). Net loss: NT$262.9m (down 268% from profit in FY 2024). Revenue missed analyst estimates by 4.8%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 8.6% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Announcement • Mar 09
General Interface Solution (GIS) Holding Limited, Annual General Meeting, May 27, 2026 General Interface Solution (GIS) Holding Limited, Annual General Meeting, May 27, 2026, at 09:00 Taipei Standard Time. Location: no,2, hou k`o s. rd., houli district, taichung city Taiwan New Risk • Mar 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 7.0% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 08
Third quarter 2025 earnings released: NT$0.29 loss per share (vs NT$0.16 loss in 3Q 2024) Third quarter 2025 results: NT$0.29 loss per share (further deteriorated from NT$0.16 loss in 3Q 2024). Revenue: NT$16.1b (down 12% from 3Q 2024). Net loss: NT$95.7m (loss widened 73% from 3Q 2024). Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 56 percentage points per year, which is a significant difference in performance. New Risk • Oct 09
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 6.6% 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. This is currently the only risk that has been identified for the company. Price Target Changed • Sep 12
Price target increased by 23% to NT$58.50 Up from NT$47.50, the current price target is an average from 2 analysts. New target price is 7.0% below last closing price of NT$62.90. Stock is up 8.6% over the past year. The company is forecast to post earnings per share of NT$1.40 for next year compared to NT$0.46 last year. Major Estimate Revision • Sep 12
Consensus EPS estimates increase by 109% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from NT$0.67 to NT$1.40. Revenue forecast steady at NT$70.0b. Net income forecast to grow 325% next year vs 22% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$47.50 to NT$58.50. Share price fell 4.6% to NT$62.90 over the past week. Reported Earnings • Aug 12
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: NT$0.12 (up from NT$0.21 loss in 2Q 2024). Revenue: NT$19.0b (up 17% from 2Q 2024). Net income: NT$42.2m (up NT$111.8m from 2Q 2024). Profit margin: 0.2% (up from net loss in 2Q 2024). Revenue exceeded analyst estimates by 4.6%. Earnings per share (EPS) missed analyst estimates by 56%. Revenue is forecast to grow 2.9% 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, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. New Risk • Aug 12
New major risk - Revenue and earnings growth Earnings have declined by 50% 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 50% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Buy Or Sell Opportunity • Jul 15
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 6.8% to NT$44.10. The fair value is estimated to be NT$35.50, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 28% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 1.9% in a year. Earnings are forecast to grow by 865% in the next year. Major Estimate Revision • Jun 27
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$71.0b to NT$70.1b. EPS estimate also fell from NT$0.815 per share to NT$0.67 per share. Net income forecast to grow 865% next year vs 19% growth forecast for Electronic industry in Taiwan. Consensus price target of NT$47.50 unchanged from last update. Share price rose 3.4% to NT$41.20 over the past week. Reported Earnings • May 14
First quarter 2025 earnings: EPS exceeds analyst expectations First quarter 2025 results: NT$0.21 loss per share (down from NT$0.15 profit in 1Q 2024). Revenue: NT$15.2b (flat on 1Q 2024). Net loss: NT$72.1m (down 241% from profit in 1Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 14%. Revenue is forecast to grow 6.0% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Announcement • May 03
General Interface Solution (GIS) Holding Limited to Report Q1, 2025 Results on May 12, 2025 General Interface Solution (GIS) Holding Limited announced that they will report Q1, 2025 results on May 12, 2025 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to NT$35.70, the stock trades at a trailing P/E ratio of 77.2x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total loss to shareholders of 58% over the past three years. New Risk • Mar 09
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 31% 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: Major Risk Earnings have declined by 41% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. New Risk • Mar 06
New major risk - Revenue and earnings growth Earnings have declined by 41% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Announcement • Feb 25
General Interface Solution (GIS) Holding Limited, Annual General Meeting, May 22, 2025 General Interface Solution (GIS) Holding Limited, Annual General Meeting, May 22, 2025, at 09:00 Taipei Standard Time. Location: no,2, hou k`o s. rd., houli district, taichung city Taiwan Announcement • Feb 15
General Interface Solution (GIS) Holding Limited to Report Fiscal Year 2024 Results on Feb 24, 2025 General Interface Solution (GIS) Holding Limited announced that they will report fiscal year 2024 results on Feb 24, 2025 Price Target Changed • Feb 06
Price target decreased by 11% to NT$59.50 Down from NT$67.13, the current price target is an average from 2 analysts. New target price is 12% above last closing price of NT$53.30. Stock is down 11% over the past year. The company is forecast to post earnings per share of NT$5.61 next year compared to a net loss per share of NT$8.11 last year. Reported Earnings • Nov 13
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: NT$0.17 loss per share (improved from NT$2.39 loss in 3Q 2023). Revenue: NT$18.4b (up 5.6% from 3Q 2023). Net loss: NT$55.4m (loss narrowed 93% from 3Q 2023). Revenue missed analyst estimates by 14%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 76 percentage points per year, which is a significant difference in performance. New Risk • Nov 13
New major risk - Revenue and earnings growth Earnings have declined by 36% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Announcement • Nov 01
General Interface Solution (GIS) Holding Limited to Report Q3, 2024 Results on Nov 11, 2024 General Interface Solution (GIS) Holding Limited announced that they will report Q3, 2024 results on Nov 11, 2024 Board Change • Sep 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 5 highly experienced directors. Representative Director Chih-Chieh Lin was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Aug 13
Second quarter 2024 earnings: EPS misses analyst expectations Second quarter 2024 results: NT$0.20 loss per share (down from NT$0.36 profit in 2Q 2023). Revenue: NT$16.3b (down 21% from 2Q 2023). Net loss: NT$69.6m (down 157% from profit in 2Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Announcement • Aug 04
General Interface Solution (GIS) Holding Limited to Report Q2, 2024 Results on Aug 09, 2024 General Interface Solution (GIS) Holding Limited announced that they will report Q2, 2024 results on Aug 09, 2024 Reported Earnings • May 17
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: NT$0.15 (up from NT$3.44 loss in 1Q 2023). Revenue: NT$15.1b (up 5.1% from 1Q 2023). Net income: NT$51.1m (up NT$1.21b from 1Q 2023). Profit margin: 0.3% (up from net loss in 1Q 2023). Revenue exceeded analyst estimates by 7.4%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 18% 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, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. Announcement • May 08
General Interface Solution (GIS) Holding Limited to Report Q1, 2024 Results on May 14, 2024 General Interface Solution (GIS) Holding Limited announced that they will report Q1, 2024 results on May 14, 2024 Reported Earnings • Feb 29
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: NT$8.11 loss per share (down from NT$10.19 profit in FY 2022). Revenue: NT$71.3b (down 43% from FY 2022). Net loss: NT$2.74b (down 180% from profit in FY 2022). Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 28%. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Announcement • Feb 28
General Interface Solution (GIS) Holding Limited has filed a Follow-on Equity Offering in the amount of THB 400 million. General Interface Solution (GIS) Holding Limited has filed a Follow-on Equity Offering in the amount of THB 400 million.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 40,000,000
Price\Range: THB 10 Announcement • Feb 27
General Interface Solution (GIS) Holding Limited, Annual General Meeting, May 27, 2024 General Interface Solution (GIS) Holding Limited, Annual General Meeting, May 27, 2024. Location: No.2, Houke S. Road, Houli Dist., Taichung City Taiwan Agenda: To accept 2023 Business Report and Consolidated Financial Statements; To accept the Earnings Distribution Table of 2023; To approve issuance of new common shares for cash capital increase and/or global depositary receipts representing new common shares to be issued for cash; and to disuses other matters. Reported Earnings • Nov 12
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: NT$2.39 loss per share (down from NT$4.58 profit in 3Q 2022). Revenue: NT$17.4b (down 51% from 3Q 2022). Net loss: NT$806.5m (down 152% from profit in 3Q 2022). Revenue missed analyst estimates by 26%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Price Target Changed • Sep 05
Price target decreased by 12% to NT$68.32 Down from NT$77.92, the current price target is an average from 5 analysts. New target price is 8.8% above last closing price of NT$62.80. Stock is down 20% over the past year. The company is forecast to post a net loss per share of NT$1.94 compared to earnings per share of NT$10.19 last year. Price Target Changed • Aug 23
Price target decreased by 7.8% to NT$74.92 Down from NT$81.28, the current price target is an average from 5 analysts. New target price is 20% above last closing price of NT$62.30. Stock is down 23% over the past year. The company is forecast to post a net loss per share of NT$2.00 compared to earnings per share of NT$10.19 last year. New Risk • Aug 06
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 97% Dividend per share is over 12x cash flows per share. Dividend yield: 5.2% 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 Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 97% Dividend per share is over 12x cash flows per share. Minor Risk Profit margins are more than 30% lower than last year (1.2% net profit margin). Reported Earnings • Aug 05
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: EPS: NT$0.36 (down from NT$2.49 in 2Q 2022). Revenue: NT$20.7b (down 29% from 2Q 2022). Net income: NT$122.8m (down 85% from 2Q 2022). Profit margin: 0.6% (down from 2.9% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 8.0%. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has fallen by 20% per year, which means it is performing significantly worse than earnings. Announcement • Aug 05
General Interface Solution (GIS) Holding Limited Announces Change of Corporate Governance Officer General Interface Solution (GIS) Holding Limited announced change of corporate governance officer. Name, title, and resume of the previous position holder: Lin Yuan-Pin (Scotty Lin), CFO and spokesperson of the Company. Name, title, and resume of the new position holder: Chiou Jeou-Jen (JJ Chiou), Manager of Corporate Governance and Securities Management Department of the Company. Effective date: August 4, 2023. Announcement • Jun 21
General Interface Solution (GIS) Holding Limited Replaces Hsien-Ying Chou with Tung-Chao Hsu of the Company as President General Interface Solution (GIS) Holding Limited replaced Hsien-Ying Chou with Tung-Chao Hsu, Director and Vice President of the Company as President with effect from June 19, 2023. The original Chairman also served as President. In order to improve corporate governance, the board of directors approved the appointment of a new president. Mr. Hsien-Ying Chou resigned from the post of President, but is still the Chairman of the Company. Upcoming Dividend • May 23
Upcoming dividend of NT$3.50 per share at 4.6% yield Eligible shareholders must have bought the stock before 30 May 2023. Payment date: 29 June 2023. Payout ratio is a comfortable 34% but the company is not cash flow positive. Trailing yield: 4.6%. Lower than top quartile of Taiwanese dividend payers (5.7%). In line with average of industry peers (4.4%). Price Target Changed • May 08
Price target decreased by 14% to NT$82.88 Down from NT$96.40, the current price target is an average from 5 analysts. New target price is 7.5% above last closing price of NT$77.10. Stock is down 14% over the past year. The company is forecast to post earnings per share of NT$9.25 for next year compared to NT$10.19 last year. Major Estimate Revision • May 06
Consensus revenue estimates decrease by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from NT$108.9b to NT$95.4b. EPS estimate unchanged from NT$9.25 per share at last update. Electronic industry in Taiwan expected to see average net income decline 9.2% next year. Consensus price target down from NT$96.40 to NT$93.20. Share price fell 3.0% to NT$77.10 over the past week. Price Target Changed • May 05
Price target decreased by 9.5% to NT$93.20 Down from NT$103, the current price target is an average from 5 analysts. New target price is 21% above last closing price of NT$77.10. Stock is down 17% over the past year. The company is forecast to post earnings per share of NT$9.25 for next year compared to NT$10.19 last year. Major Estimate Revision • Apr 14
Consensus revenue estimates fall by 15% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$127.6b to NT$108.9b. EPS estimate fell from NT$10.79 to NT$9.25 per share. Net income forecast to shrink 9.2% next year vs 7.3% decline forecast for Electronic industry in Taiwan. Consensus price target down from NT$103 to NT$96.40. Share price was steady at NT$83.80 over the past week. Price Target Changed • Apr 13
Price target decreased by 11% to NT$96.40 Down from NT$108, the current price target is an average from 5 analysts. New target price is 17% above last closing price of NT$82.60. Stock is down 12% over the past year. The company is forecast to post earnings per share of NT$9.25 for next year compared to NT$10.19 last year. Reported Earnings • Feb 25
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: NT$10.19 (down from NT$12.97 in FY 2021). Revenue: NT$125.5b (down 5.2% from FY 2021). Net income: NT$3.44b (down 21% from FY 2021). Profit margin: 2.7% (down from 3.3% in FY 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) also missed analyst estimates by 13%. Revenue is expected to decline by 2.6% p.a. on average during the next 2 years, while revenues in the Electronic industry in Taiwan are expected to grow by 6.2%. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Price Target Changed • Feb 16
Price target decreased by 7.5% to NT$103 Down from NT$111, the current price target is an average from 5 analysts. New target price is 19% above last closing price of NT$86.90. Stock is down 7.0% over the past year. The company is forecast to post earnings per share of NT$11.55 for next year compared to NT$12.97 last year. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Chang-Po Chao was the last independent director to join the board, commencing their role in 2016. 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 06
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: NT$4.58 (up from NT$4.44 in 3Q 2021). Revenue: NT$35.5b (down 1.8% from 3Q 2021). Net income: NT$1.55b (up 3.0% from 3Q 2021). Profit margin: 4.4% (up from 4.2% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 17%. Revenue is forecast to stay flat during the next 3 years compared to a 7.3% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 07
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: NT$2.49 (down from NT$4.04 in 2Q 2021). Revenue: NT$29.0b (down 20% from 2Q 2021). Net income: NT$842.2m (down 38% from 2Q 2021). Profit margin: 2.9% (down from 3.8% in 2Q 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) also surpassed analyst estimates by 42%. Over the next year, revenue is forecast to stay flat compared to a 8.7% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Price Target Changed • Jul 08
Price target decreased to NT$112 Down from NT$124, the current price target is an average from 5 analysts. New target price is 55% above last closing price of NT$72.50. Stock is down 40% over the past year. The company is forecast to post earnings per share of NT$11.13 for next year compared to NT$12.97 last year. Upcoming Dividend • May 24
Upcoming dividend of NT$5.00 per share Eligible shareholders must have bought the stock before 31 May 2022. Payment date: 29 June 2022. Payout ratio is a comfortable 38% but the company is not cash flow positive. Trailing yield: 5.8%. Lower than top quartile of Taiwanese dividend payers (6.0%). Higher than average of industry peers (4.3%). Price Target Changed • May 17
Price target decreased to NT$127 Down from NT$140, the current price target is an average from 4 analysts. New target price is 51% above last closing price of NT$84.00. Stock is down 13% over the past year. The company is forecast to post earnings per share of NT$11.22 for next year compared to NT$12.97 last year. Reported Earnings • May 08
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: NT$1.01 (up from NT$0.67 in 1Q 2021). Revenue: NT$28.1b (up 12% from 1Q 2021). Net income: NT$339.9m (up 50% from 1Q 2021). Profit margin: 1.2% (up from 0.9% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) also surpassed analyst estimates by 1.0%. Over the next year, revenue is forecast to stay flat compared to a 10% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Apr 27
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. 5 experienced directors. 2 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Chang-Po Chao was the last independent director to join the board, commencing their role in 2016. 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 • Mar 07
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: NT$12.97 (up from NT$11.04 in FY 2020). Revenue: NT$132.4b (up 4.1% from FY 2020). Net income: NT$4.38b (up 18% from FY 2020). Profit margin: 3.3% (up from 2.9% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) exceeded analyst estimates by 4.9%. Over the next year, revenue is forecast to stay flat compared to a 9.1% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Price Target Changed • Jan 28
Price target decreased to NT$142 Down from NT$153, the current price target is an average from 4 analysts. New target price is 49% above last closing price of NT$95.10. Stock is down 15% over the past year. The company is forecast to post earnings per share of NT$11.87 for next year compared to NT$11.04 last year. Reported Earnings • Nov 07
Third quarter 2021 earnings released: EPS NT$4.44 (vs NT$1.30 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$36.2b (up 11% from 3Q 2020). Net income: NT$1.50b (up 242% from 3Q 2020). Profit margin: 4.2% (up from 1.3% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has remained flat. Reported Earnings • Aug 12
Second quarter 2021 earnings released: EPS NT$4.04 (vs NT$5.59 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: NT$36.1b (up 6.5% from 2Q 2020). Net income: NT$1.36b (down 28% from 2Q 2020). Profit margin: 3.8% (down from 5.6% in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 15% per year. Upcoming Dividend • May 21
Upcoming dividend of NT$4.00 per share Eligible shareholders must have bought the stock before 28 May 2021. Payment date: 28 June 2021. Trailing yield: 4.2%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (3.3%). Valuation Update With 7 Day Price Move • May 14
Investor sentiment deteriorated over the past week After last week's 20% share price decline to NT$93.50, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 11x in the Electronic industry in Taiwan. Total loss to shareholders of 45% over the past three years. Reported Earnings • May 08
First quarter 2021 earnings released: EPS NT$0.67 (vs NT$0.31 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$25.2b (up 11% from 1Q 2020). Net income: NT$226.9m (up 117% from 1Q 2020). Profit margin: 0.9% (up from 0.5% in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 14% per year. Major Estimate Revision • Mar 15
Analysts increase EPS estimates to NT$12.19 The 2021 consensus revenue estimate increased from NT$120.4b to NT$132.0b. The earnings per share estimate also received an upgrade from NT$8.79 to NT$12.19 for the same period. Net income is expected to grow by 3.9% next year compared to 26% growth forecast for the Electronic industry in Taiwan. The consensus price target increased from NT$138 to NT$148. Share price is up 13% to NT$130 over the past week. Price Target Changed • Mar 09
Price target raised to NT$148 Up from NT$138, the current price target is an average from 4 analysts. The new target price is 20% above the current share price of NT$123. As of last close, the stock is up 37% over the past year. Reported Earnings • Mar 09
Full year 2020 earnings released: EPS NT$11.04 (vs NT$10.02 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$127.1b (up 6.2% from FY 2019). Net income: NT$3.73b (up 10% from FY 2019). Profit margin: 2.9% (up from 2.8% in FY 2019). The increase in margin 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 12% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Mar 09
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Over the next year, revenue is forecast to grow 3.9%, compared to a 16% growth forecast for the Electronic industry in Taiwan. Major Estimate Revision • Nov 13
Analysts update estimates The 2020 consensus revenue estimate increased from NT$115.5b to NT$122.7b. Earnings per share (EPS) estimate was lowered from NT$11.82 to NT$10.05 for the same period. Net income is expected to shrink by 1.4% next year compared to 24% growth forecast for the Electronic industry in Taiwan . The consensus price target was lowered from NT$142 to NT$136. Share price is down by 5.7% to NT$108 over the past week. Reported Earnings • Nov 07
Third quarter 2020 earnings released: EPS NT$1.30 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were flat. Third quarter 2020 results: Revenue: NT$32.7b (flat on 3Q 2019). Net income: NT$438.7m (up 15% from 3Q 2019). Profit margin: 1.3% (up from 1.2% in 3Q 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Nov 07
Revenue and earnings miss expectations Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) also missed analyst estimates by 60%. Over the next year, revenue is forecast to stay flat compared to a 11% growth forecast for the Electronic industry in Taiwan. Is New 90 Day High Low • Oct 30
New 90-day low: NT$114 The company is down 17% from its price of NT$138 on 31 July 2020. The Taiwanese market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic 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$236 per share.