Buy Or Sell Opportunity • Jul 22
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 15% to NT$203. The fair value is estimated to be NT$168, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 3.0% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 9.7% in a year. Earnings are forecast to grow by 14% in the next year. Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$204, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 20x in the Electronic industry in Taiwan. Total returns to shareholders of 65% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$171 per share. Price Target Changed • Jul 04
Price target increased by 13% to NT$208 Up from NT$184, the current price target is an average from 3 analysts. New target price is 26% below last closing price of NT$279. Stock is up 162% over the past year. The company is forecast to post earnings per share of NT$7.20 for next year compared to NT$7.64 last year. New Risk • Jun 19
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 9.5% 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. Declared Dividend • May 27
Dividend of NT$3.00 announced Dividend of NT$3.00 is the same as last year. Ex-date: 10th June 2026 Payment date: 3rd July 2026 Dividend yield will be 1.2%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is well covered by both earnings (45% earnings payout ratio) and cash flows (17% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 17% over the next year, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to NT$227, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 22x in the Electronic industry in Taiwan. Total returns to shareholders of 84% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$166 per share. Buy Or Sell Opportunity • May 21
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 35% to NT$206. The fair value is estimated to be NT$166, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 3.0% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 9.6% in a year. Earnings are forecast to grow by 21% in the next year. New Risk • May 03
New major risk - Revenue and earnings growth Earnings have declined by 14% 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 14% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.2% average weekly change). Large one-off items impacting financial results. New Risk • Mar 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.7% average weekly change). Large one-off items impacting financial results. Reported Earnings • Mar 12
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: NT$7.64 (down from NT$8.20 in FY 2024). Revenue: NT$11.5b (down 4.5% from FY 2024). Net income: NT$1.60b (down 6.8% from FY 2024). Profit margin: 14% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.8%. Revenue is forecast to grow 7.2% 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 11% per year but the company’s share price has remained flat, which means it is well ahead of earnings. New Risk • Mar 12
New major risk - Revenue and earnings growth Earnings have declined by 10% 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 10% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.8% average weekly change). New Risk • Mar 09
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 9.7% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.7% average weekly change). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Tillkännagivande • Feb 26
Tong Hsing Electronic Industries, Ltd., Annual General Meeting, May 25, 2026 Tong Hsing Electronic Industries, Ltd., Annual General Meeting, May 25, 2026. Location: no,398, t`ao ying rd., taoyuan district, taoyuan city Taiwan Price Target Changed • Feb 26
Price target increased by 31% to NT$149 Up from NT$114, the current price target is an average from 4 analysts. New target price is 16% below last closing price of NT$177. Stock is up 40% over the past year. The company is forecast to post earnings per share of NT$7.09 for next year compared to NT$8.20 last year. Valuation Update With 7 Day Price Move • Feb 25
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$189, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 19x in the Electronic industry in Taiwan. Total returns to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$299 per share. New Risk • Feb 04
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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.1% average weekly change). New Risk • Feb 02
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.3% 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 0.3% 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. Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$153, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 18x in the Electronic industry in Taiwan. Total returns to shareholders of 3.6% over the past three years. Reported Earnings • Nov 01
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: NT$2.28 (down from NT$2.53 in 3Q 2024). Revenue: NT$2.85b (down 7.1% from 3Q 2024). Net income: NT$477.7m (down 9.8% from 3Q 2024). Profit margin: 17% (in line with 3Q 2024). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 49%. Revenue is forecast to grow 6.7% 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, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Price Target Changed • Oct 22
Price target decreased by 7.5% to NT$108 Down from NT$117, the current price target is an average from 3 analysts. New target price is 8.6% below last closing price of NT$119. Stock is down 16% over the past year. The company is forecast to post earnings per share of NT$6.43 for next year compared to NT$8.20 last year. Board Change • Sep 09
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. 4 non-independent directors. Independent Director Kenneth Tai was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Aug 06
Consensus EPS estimates fall by 32% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from NT$12.4b to NT$11.8b. EPS estimate also fell from NT$8.78 per share to NT$6.00 per share. Net income forecast to shrink 4.9% next year vs 19% growth forecast for Electronic industry in Taiwan . Consensus price target of NT$117 unchanged from last update. Share price fell 3.8% to NT$103 over the past week. New Risk • Aug 04
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 24% 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 Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Jul 31
Second quarter 2025 earnings: EPS misses analyst expectations Second quarter 2025 results: EPS: NT$0.34 (down from NT$2.11 in 2Q 2024). Revenue: NT$2.97b (down 3.3% from 2Q 2024). Net income: NT$70.3m (down 84% from 2Q 2024). Profit margin: 2.4% (down from 14% in 2Q 2024). The decrease in margin was primarily driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 82%. Revenue is forecast to grow 6.8% p.a. on average during the next 3 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 28% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jun 06
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 13 June 2025. Payment date: 04 July 2025. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (3.3%). Price Target Changed • Apr 19
Price target decreased by 8.7% to NT$126 Down from NT$138, the current price target is an average from 5 analysts. New target price is 26% above last closing price of NT$99.60. Stock is down 30% over the past year. The company is forecast to post earnings per share of NT$8.72 for next year compared to NT$8.20 last year. Major Estimate Revision • Apr 18
Consensus EPS estimates increase by 21% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$12.6b to NT$13.0b. EPS estimate increased from NT$8.37 to NT$10.14 per share. Net income forecast to grow 24% next year vs 23% growth forecast for Electronic industry in Taiwan. Consensus price target down from NT$138 to NT$132. Share price rose 6.8% to NT$101 over the past week. Tillkännagivande • Apr 10
Tong Hsing Electronic Industries, Ltd. to Report Q1, 2025 Results on Apr 17, 2025 Tong Hsing Electronic Industries, Ltd. announced that they will report Q1, 2025 results on Apr 17, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$93.20, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Electronic industry in Taiwan. Total loss to shareholders of 54% over the past three years. Tillkännagivande • Mar 04
Tong Hsing Electronic Industries, Ltd., Annual General Meeting, May 28, 2025 Tong Hsing Electronic Industries, Ltd., Annual General Meeting, May 28, 2025, at 09:00 Taipei Standard Time. Location: no,398, t`ao ying rd., taoyuan district, taoyuan city Taiwan Reported Earnings • Mar 01
Full year 2024 earnings released: EPS: NT$8.20 (vs NT$5.50 in FY 2023) Full year 2024 results: EPS: NT$8.20 (up from NT$5.50 in FY 2023). Revenue: NT$12.1b (up 4.4% from FY 2023). Net income: NT$1.71b (up 49% from FY 2023). Profit margin: 14% (up from 9.9% in FY 2023). Revenue is forecast to grow 6.7% 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 33% 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. Tillkännagivande • Feb 20
Tong Hsing Electronic Industries, Ltd. to Report Fiscal Year 2024 Results on Feb 27, 2025 Tong Hsing Electronic Industries, Ltd. announced that they will report fiscal year 2024 results at 9:00 AM, Taipei Standard Time on Feb 27, 2025 Price Target Changed • Nov 03
Price target decreased by 7.1% to NT$146 Down from NT$157, the current price target is an average from 6 analysts. New target price is 15% above last closing price of NT$127. Stock is down 11% over the past year. The company is forecast to post earnings per share of NT$7.98 for next year compared to NT$5.50 last year. Reported Earnings • Nov 01
Third quarter 2024 earnings: EPS exceeds analyst expectations Third quarter 2024 results: EPS: NT$2.53 (up from NT$1.34 in 3Q 2023). Revenue: NT$3.07b (up 15% from 3Q 2023). Net income: NT$529.4m (up 89% from 3Q 2023). Profit margin: 17% (up from 11% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 28%. Revenue is forecast to grow 6.4% 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, earnings per share has fallen by 31% 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. Tillkännagivande • Oct 22
Tong Hsing Electronic Industries, Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Tong Hsing Electronic Industries, Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Reported Earnings • Aug 02
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: NT$2.11 (up from NT$0.059 in 2Q 2023). Revenue: NT$3.07b (up 7.9% from 2Q 2023). Net income: NT$440.7m (up NT$428.3m from 2Q 2023). Profit margin: 14% (up from 0.4% in 2Q 2023). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) exceeded analyst estimates by 11%. Revenue is forecast to grow 8.5% 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, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. New Risk • Jul 26
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.7% 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: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (9.8% net profit margin). Tillkännagivande • Jul 23
Tong Hsing Electronic Industries, Ltd. to Report Q2, 2024 Results on Jul 30, 2024 Tong Hsing Electronic Industries, Ltd. announced that they will report Q2, 2024 results on Jul 30, 2024 Upcoming Dividend • Jun 20
Upcoming dividend of NT$2.40 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 19 July 2024. Payout ratio is a comfortable 44% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (2.7%). Tillkännagivande • Jun 08
Tong Hsing Electronic Industries, Ltd. Announces Change of Representative of Juristic-Person Director Tong Hsing Electronic Industries, Ltd. announced the change of the representative of juristic-person director. Name of legal person is Huan Tai Co., Ltd. Name and Resume of the previous position holder: Chang Chia-Shuai, General manager of Advanced Power Electronics Co., Ltd. Name and Resume of the new position holder: Chia-Li Huang, COO & CFO of the Company. Effective date of the new appointment is June 6, 2024. Declared Dividend • Jun 01
Dividend of NT$2.40 announced Shareholders will receive a dividend of NT$2.40. Ex-date: 27th June 2024 Payment date: 19th July 2024 Dividend yield will be 1.6%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 100% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Tillkännagivande • Jun 01
Tong Hsing Electronic Industries, Ltd. Announces General Manager Changes Tong Hsing Electronic Industries, Ltd. announced the change of General manager of the Company. Name of the previous position holder: Chang Chia-Shuai, Name of the new position holder:Shao-Pin Ru, Chairperson, Kaimei Electronic Corporation. Reason for the change:Mr. Chang Chia-Shuai will dedicate himself exclusively to the role of General manager at Advanced Power Electronics Co., Ltd. to focus fully on the development of MOSFET, IGBT, and POWER ICs businesses. Effective date of the new appointment is May 30, 2024. Reported Earnings • Apr 22
First quarter 2024 earnings: EPS exceeds analyst expectations First quarter 2024 results: EPS: NT$1.74 (down from NT$1.78 in 1Q 2023). Revenue: NT$2.97b (up 2.4% from 1Q 2023). Net income: NT$364.6m (down 2.0% from 1Q 2023). Profit margin: 12% (in line with 1Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.2%. Revenue is forecast to grow 9.9% p.a. on average during the next 3 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 17% 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. Tillkännagivande • Apr 12
Tong Hsing Electronic Industries, Ltd. to Report Q1, 2024 Results on Apr 18, 2024 Tong Hsing Electronic Industries, Ltd. announced that they will report Q1, 2024 results on Apr 18, 2024 Reported Earnings • Mar 06
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: NT$5.50 (down from NT$15.37 in FY 2022). Revenue: NT$11.6b (down 18% from FY 2022). Net income: NT$1.15b (down 63% from FY 2022). Profit margin: 9.9% (down from 22% in FY 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) also surpassed analyst estimates by 9.5%. Revenue is forecast to grow 8.4% 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 and the company’s share price has also fallen by 4% per year. Buy Or Sell Opportunity • Mar 04
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.9% to NT$153. The fair value is estimated to be NT$193, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Earnings per share has grown by 8.2%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 68% in the next 2 years. Price Target Changed • Dec 23
Price target increased by 11% to NT$154 Up from NT$139, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of NT$155. Stock is down 0.07% over the past year. The company is forecast to post earnings per share of NT$4.98 for next year compared to NT$15.36 last year. New Risk • Nov 29
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 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 101% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (5.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (9.6% net profit margin). New Risk • Nov 03
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 34% 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: 101% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (9.6% net profit margin). Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: NT$1.34 (vs NT$3.70 in 3Q 2022) Third quarter 2023 results: EPS: NT$1.34 (down from NT$3.70 in 3Q 2022). Revenue: NT$2.67b (down 28% from 3Q 2022). Net income: NT$279.6m (down 64% from 3Q 2022). Profit margin: 11% (down from 21% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.9% 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 9% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. New Risk • Aug 03
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 28% 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 cash flows (137% cash payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (13% net profit margin). New Risk • Jul 27
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: 13% Last year net profit margin: 25% 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 cash flows (137% cash payout ratio). Profit margins are more than 30% lower than last year (13% net profit margin). Reported Earnings • Jul 27
Second quarter 2023 earnings released: EPS: NT$0.08 (vs NT$6.21 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.08 (down from NT$6.21 in 2Q 2022). Revenue: NT$2.84b (down 21% from 2Q 2022). Net income: NT$12.3m (down 99% from 2Q 2022). Profit margin: 0.4% (down from 28% in 2Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Price Target Changed • Jul 26
Price target decreased by 7.7% to NT$166 Down from NT$180, the current price target is an average from 6 analysts. New target price is 5.5% above last closing price of NT$158. Stock is down 25% over the past year. The company is forecast to post earnings per share of NT$8.18 for next year compared to NT$19.97 last year. Major Estimate Revision • Jul 26
Consensus EPS estimates fall by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$12.6b to NT$12.0b. EPS estimate also fell from NT$10.98 per share to NT$8.93 per share. Net income forecast to shrink 53% next year vs 3.8% decline forecast for Electronic industry in Taiwan. Consensus price target down from NT$180 to NT$173. Share price fell 10% to NT$158 over the past week. Upcoming Dividend • Jun 27
Upcoming dividend of NT$7.77 per share at 4.2% yield Eligible shareholders must have bought the stock before 04 July 2023. Payment date: 21 July 2023. Payout ratio is a comfortable 47% but the company is paying out more than the cash it is generating. Trailing yield: 4.2%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (4.2%). Tillkännagivande • Jun 07
Tong Hsing Electronic Industries, Ltd. Approves Cash Dividend, Payable on July 21, 2023 Tong Hsing Electronic Industries, Ltd. at its shareholders meeting held on June 6, 2023, approved cash dividend of TWD 1,249,536,520 (TWD 7.77007957 per share). The dividend is payable on July 21, 2023 with Ex-rights (ex-dividend) trading date of July 4, 2023 and Ex-rights (ex-dividend) record date of July 10, 2023. Reported Earnings • Apr 30
First quarter 2023 earnings released: EPS: NT$2.31 (vs NT$5.65 in 1Q 2022) First quarter 2023 results: EPS: NT$2.31 (down from NT$5.65 in 1Q 2022). Revenue: NT$2.90b (down 16% from 1Q 2022). Net income: NT$372.1m (down 59% from 1Q 2022). Profit margin: 13% (down from 26% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 28
Price target decreased by 29% to NT$182 Down from NT$255, the current price target is an average from 6 analysts. New target price is 7.2% above last closing price of NT$170. Stock is down 35% over the past year. The company is forecast to post earnings per share of NT$11.69 for next year compared to NT$19.97 last year. Major Estimate Revision • Apr 21
Consensus EPS estimates fall by 14%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from NT$12.8b to NT$13.2b. EPS estimate fell from NT$15.62 to NT$13.49 per share. Net income forecast to shrink 29% next year vs 7.3% decline forecast for Electronic industry in Taiwan. Consensus price target down from NT$255 to NT$213. Share price fell 14% to NT$166 over the past week. Price Target Changed • Mar 23
Price target decreased by 7.5% to NT$255 Down from NT$276, the current price target is an average from 5 analysts. New target price is 26% above last closing price of NT$202. Stock is down 37% over the past year. The company is forecast to post earnings per share of NT$17.37 for next year compared to NT$19.98 last year. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$242, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 10x in the Electronic industry in Taiwan. Total returns to shareholders of 20% over the past three years. Upcoming Dividend • Nov 24
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 01 December 2022. Payment date: 16 December 2022. Payout ratio is a comfortable 47% and the cash payout ratio is 78%. Trailing yield: 4.6%. Lower than top quartile of Taiwanese dividend payers (6.9%). In line with average of industry peers (4.6%). Reported Earnings • Nov 16
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: NT$4.32 (down from NT$5.18 in 3Q 2021). Revenue: NT$3.71b (down 1.7% from 3Q 2021). Net income: NT$771.9m (down 17% from 3Q 2021). Profit margin: 21% (down from 25% in 3Q 2021). The decrease in margin was primarily driven by higher expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 1.2%. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 13
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: NT$4.32 (down from NT$5.18 in 3Q 2021). Revenue: NT$3.71b (down 1.7% from 3Q 2021). Net income: NT$771.9m (down 17% from 3Q 2021). Profit margin: 21% (down from 25% in 3Q 2021). The decrease in margin was primarily driven by higher expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 1.2%. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 43% 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 • Sep 26
Investor sentiment deteriorated over the past week After last week's 18% share price decline to NT$172, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 9x in the Electronic industry in Taiwan. Total returns to shareholders of 14% over the past three years. Price Target Changed • Aug 17
Price target decreased to NT$280 Down from NT$304, the current price target is an average from 8 analysts. New target price is 40% above last closing price of NT$200. Stock is down 21% over the past year. The company is forecast to post earnings per share of NT$18.64 for next year compared to NT$15.49 last year. Reported Earnings • Aug 15
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: NT$5.59 (up from NT$3.52 in 2Q 2021). Revenue: NT$3.61b (up 5.0% from 2Q 2021). Net income: NT$998.1m (up 59% from 2Q 2021). Profit margin: 28% (up from 18% in 2Q 2021). The increase in margin was primarily driven by lower expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) exceeded analyst estimates by 33%. Over the next year, revenue is forecast to grow 3.8%, compared to a 8.6% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jul 11
Price target decreased to NT$304 Down from NT$333, the current price target is an average from 8 analysts. New target price is 62% above last closing price of NT$188. Stock is down 23% over the past year. The company is forecast to post earnings per share of NT$18.88 for next year compared to NT$15.49 last year. Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment deteriorated over the past week After last week's 15% share price decline to NT$181, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 9x in the Electronic industry in Taiwan. Total returns to shareholders of 41% over the past three years. Upcoming Dividend • Jun 27
Upcoming dividend of NT$9.00 per share Eligible shareholders must have bought the stock before 04 July 2022. Payment date: 22 July 2022. Payout ratio is a comfortable 50% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of Taiwanese dividend payers (6.3%). Lower than average of industry peers (4.6%). Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$208, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 10x in the Electronic industry in Taiwan. Total returns to shareholders of 61% over the past three years. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: NT$5.08 (up from NT$2.69 in 1Q 2021). Revenue: NT$3.47b (up 10% from 1Q 2021). Net income: NT$907.8m (up 90% from 1Q 2021). Profit margin: 26% (up from 15% in 1Q 2021). The increase in margin was primarily driven by higher revenue. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 28%. Over the next year, revenue is forecast to grow 11%, compared to a 10% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. 1 experienced director. 3 highly experienced directors. 3 independent directors (6 non-independent directors). Supervisor Yu-Chin Tsai is the most experienced director on the board, commencing their role in 2007. Independent Director George Yang was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 16
Third quarter 2021 earnings released: EPS NT$5.18 (vs NT$2.38 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$3.78b (up 31% from 3Q 2020). Net income: NT$924.8m (up 137% from 3Q 2020). Profit margin: 25% (up from 14% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Nov 15
Price target increased to NT$304 Up from NT$282, the current price target is an average from 7 analysts. New target price is approximately in line with last closing price of NT$303. Stock is up 64% over the past year. The company is forecast to post earnings per share of NT$14.48 for next year compared to NT$8.12 last year. Valuation Update With 7 Day Price Move • Oct 20
Investor sentiment improved over the past week After last week's 16% share price gain to NT$252, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 11x in the Electronic industry in Taiwan. Total returns to shareholders of 129% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$441 per share. Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment deteriorated over the past week After last week's 21% share price decline to NT$216, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 129% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$413 per share. Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improved over the past week After last week's 17% share price gain to NT$280, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 183% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$410 per share. Major Estimate Revision • Aug 18
Consensus EPS estimates increase to NT$13.37 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from NT$13.5b to NT$13.9b. EPS estimate increased from NT$12.11 to NT$13.37 per share. Net income forecast to grow 32% next year vs 25% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$247 to NT$277. Share price rose 7.0% to NT$254 over the past week. Price Target Changed • Aug 16
Price target increased to NT$277 Up from NT$247, the current price target is an average from 5 analysts. New target price is 16% above last closing price of NT$239. Stock is up 27% over the past year. Reported Earnings • Aug 15
Second quarter 2021 earnings released: EPS NT$3.52 (vs NT$2.26 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$3.43b (up 67% from 2Q 2020). Net income: NT$628.3m (up 111% from 2Q 2020). Profit margin: 18% (up from 14% 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 7% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jul 26
Upcoming dividend of NT$5.50 per share Eligible shareholders must have bought the stock before 02 August 2021. Payment date: 20 August 2021. Trailing yield: 2.1%. Lower than top quartile of Taiwanese dividend payers (4.9%). Lower than average of industry peers (3.0%). Reported Earnings • May 01
First quarter 2021 earnings released: EPS NT$2.68 (vs NT$2.18 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$3.14b (up 61% from 1Q 2020). Net income: NT$479.1m (up 76% from 1Q 2020). Profit margin: 15% (up from 14% 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 1% per year but the company’s share price has increased by 11% per year, which means it is tracking significantly ahead of earnings growth.