New Risk • May 11
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 95% Cash payout ratio: 91% Dividend yield: 4.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 95% Cash payout ratio: 91% Earnings have declined by 3.5% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (NT$2.15b market cap, or US$68.3m). Reported Earnings • May 11
First quarter 2026 earnings released: EPS: NT$1.00 (vs NT$1.22 in 1Q 2025) First quarter 2026 results: EPS: NT$1.00. Revenue: NT$229.4m (down 7.3% from 1Q 2025). Net income: NT$33.9m (up 50% from 1Q 2025). Profit margin: 15% (up from 9.1% in 1Q 2025). New Risk • Apr 06
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 29% 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 (92% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (12% net profit margin). Market cap is less than US$100m (NT$2.24b market cap, or US$69.9m). Reported Earnings • Mar 12
Full year 2025 earnings released: EPS: NT$5.44 (vs NT$10.47 in FY 2024) Full year 2025 results: EPS: NT$5.44 (down from NT$10.47 in FY 2024). Revenue: NT$862.5m (down 3.1% from FY 2024). Net income: NT$100.6m (down 48% from FY 2024). Profit margin: 12% (down from 22% in FY 2024). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 16% 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. Declared Dividend • Mar 11
Dividend reduced to NT$5.00 Dividend of NT$5.00 is 44% lower than last year. Ex-date: 22nd July 2026 Payment date: 13th August 2026 Dividend yield will be 4.0%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (130% earnings payout ratio). However, it is covered by cash flows (63% cash payout ratio). The dividend has increased by an average of 34% per year over the past 3 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 44% to bring the payout ratio under control, which is more than the 14% EPS growth achieved over the last 5 years. New Risk • Nov 12
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 20% 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 (130% payout ratio). Large one-off items impacting financial results. Market cap is less than US$100m (NT$2.35b market cap, or US$75.6m). Reported Earnings • Nov 12
Third quarter 2025 earnings released: EPS: NT$2.35 (vs NT$2.30 in 3Q 2024) Third quarter 2025 results: EPS: NT$2.35 (up from NT$2.30 in 3Q 2024). Revenue: NT$234.1m (up 4.4% from 3Q 2024). Net income: NT$43.4m (up 2.0% from 3Q 2024). Profit margin: 19% (in line with 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 10% 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. New Risk • Aug 15
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 20% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 131% Cash payout ratio: 110% Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (NT$2.19b market cap, or US$73.0m). Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: NT$0.09 (vs NT$2.44 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.09 (down from NT$2.44 in 2Q 2024). Revenue: NT$198.5m (down 15% from 2Q 2024). Net income: NT$1.61m (down 96% from 2Q 2024). Profit margin: 0.8% (down from 19% in 2Q 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. Upcoming Dividend • Jul 09
Upcoming dividend of NT$9.00 per share Eligible shareholders must have bought the stock before 16 July 2025. Payment date: 08 August 2025. Payout ratio is on the higher end at 97%, and the cash payout ratio is above 100%. Trailing yield: 7.0%. Within top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (4.7%). Reported Earnings • May 14
First quarter 2025 earnings released: EPS: NT$1.22 (vs NT$2.45 in 1Q 2024) First quarter 2025 results: EPS: NT$1.22 (down from NT$2.45 in 1Q 2024). Revenue: NT$247.6m (up 10.0% from 1Q 2024). Net income: NT$22.6m (down 50% from 1Q 2024). Profit margin: 9.1% (down from 20% in 1Q 2024). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$130, the stock trades at a trailing P/E ratio of 12.4x. Average trailing P/E is 14x in the Consumer Durables industry in Taiwan. Total loss to shareholders of 35% over the past year. Tillkännagivande • Apr 01
FuSheng Precision Co., Ltd. (TWSE:6670) completed the acquisition of 51% stake in Proxene Tools Co., Ltd. (TPEX:6904). FuSheng Precision Co., Ltd. (TWSE:6670) proposed to acquire 51% stake in Proxene Tools Co., Ltd. (TPEX:6904) for TWD 1.5 billion on March 11, 2025. A cash consideration of TWD 1.48 billion valued at TWD 157 per share will be paid by FuSheng Precision Co., Ltd. As part of consideration, TWD 1.48 billion is paid towards common equity of Proxene Tools Co., Ltd. The transaction is subject to approval of offer by acquirer board and minimum tender. The deal has been approved by the board.
As of March 14, 2025, all conditions of the tender offer of common shares of Proxene Tools Co., Ltd. have been satisfied, and the minimum quantity has been reached.
FuSheng Precision Co., Ltd. (TWSE:6670) completed the acquisition of 51% stake in Proxene Tools Co., Ltd. (TPEX:6904) on March 31, 2025. New Risk • Mar 28
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 149% Dividend yield: 5.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. 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 Revenue has declined by 2.8% over the past year. Minor Risks Dividend is not well covered by cash flows (149% cash payout ratio). Market cap is less than US$100m (NT$2.91b market cap, or US$87.8m). Tillkännagivande • Mar 21
Proxene Tools Co., Ltd., Annual General Meeting, Jun 19, 2025 Proxene Tools Co., Ltd., Annual General Meeting, Jun 19, 2025. Location: no,160, wen cheng st., shengang district, taichung city Taiwan Reported Earnings • Mar 18
Full year 2024 earnings released: EPS: NT$10.47 (vs NT$10.21 in FY 2023) Full year 2024 results: EPS: NT$10.47 (up from NT$10.21 in FY 2023). Revenue: NT$889.6m (down 2.8% from FY 2023). Net income: NT$193.7m (up 14% from FY 2023). Profit margin: 22% (up from 19% in FY 2023). The increase in margin was driven by lower expenses. Declared Dividend • Mar 15
Dividend increased to NT$9.00 Dividend of NT$9.00 is 120% higher than last year. Ex-date: 16th July 2025 Payment date: 8th August 2025 Dividend yield will be 5.7%, which is higher than the industry average of 4.1%. Sustainability & Growth Dividend is covered by both earnings (42% earnings payout ratio) and cash flows (53% cash payout ratio). The dividend has increased by an average of 5.3% per year over the past 2 years and payments have been stable during that time. Earnings per share has grown by 4.7% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Tillkännagivande • Mar 14
Proxene Tools Co., Ltd. announces Annual dividend, payable on August 08, 2025 Proxene Tools Co., Ltd. announced Annual dividend of TWD 9.0000 per share payable on August 08, 2025, ex-date on July 16, 2025 and record date on July 17, 2025. Tillkännagivande • Mar 13
FuSheng Precision Co., Ltd. (TWSE:6670) proposed to acquire 51% stake in Proxene Tools Co., Ltd. (TPEX:6904) for TWD 1.5 billion. FuSheng Precision Co., Ltd. (TWSE:6670) proposed to acquire 51% stake in Proxene Tools Co., Ltd. (TPEX:6904) for TWD 1.5 billion on March 11, 2025. A cash consideration of TWD 1.48 billion valued at TWD 157 per share will be paid by FuSheng Precision Co., Ltd. As part of consideration, TWD 1.48 billion is paid towards common equity of Proxene Tools Co., Ltd. The transaction is subject to approval of offer by acquirer board and minimum tender. The deal has been approved by the board. Reported Earnings • Nov 18
Third quarter 2024 earnings released: EPS: NT$2.30 (vs NT$3.47 in 3Q 2023) Third quarter 2024 results: EPS: NT$2.30 (down from NT$3.47 in 3Q 2023). Revenue: NT$224.2m (down 10% from 3Q 2023). Net income: NT$42.6m (down 26% from 3Q 2023). Profit margin: 19% (down from 23% in 3Q 2023). The decrease in margin was driven by lower revenue. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$2.44 (vs NT$2.51 in 2Q 2023) Second quarter 2024 results: EPS: NT$2.44. Revenue: NT$233.8m (up 3.9% from 2Q 2023). Net income: NT$45.2m (up 9.0% from 2Q 2023). Profit margin: 19% (in line with 2Q 2023). Upcoming Dividend • Jul 02
Upcoming dividend of NT$4.10 per share Eligible shareholders must have bought the stock before 09 July 2024. Payment date: 30 July 2024. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (3.3%). New Risk • May 29
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.14b (US$96.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Short dividend paying track record (1 year of continuous dividend payments). Market cap is less than US$100m (NT$3.14b market cap, or US$96.8m). Valuation Update With 7 Day Price Move • May 17
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$183, the stock trades at a trailing P/E ratio of 19.8x. Average trailing P/E is 18x in the Consumer Durables industry in Taiwan. Total returns to shareholders of 37% over the past year. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$240, the stock trades at a trailing P/E ratio of 24.6x. Average trailing P/E is 17x in the Consumer Durables industry in Taiwan. Total returns to shareholders of 73% over the past year. Tillkännagivande • Mar 22
Proxene Tools Co., Ltd., Annual General Meeting, Jun 21, 2024 Proxene Tools Co., Ltd., Annual General Meeting, Jun 21, 2024. New Risk • Feb 21
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 12% 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: Major Risk No financial data reported. Minor Risks Share price has been volatile over the past 3 months (6.1% average weekly change). Shareholders have been diluted in the past year (12% increase in shares outstanding). New Risk • Nov 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 5.6% 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. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risks Share price has been volatile over the past 3 months (5.6% average weekly change). Market cap is less than US$100m (NT$2.45b market cap, or US$77.6m).