New Risk • Aug 12
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (21% accrual ratio). Minor Risks Dividend is not well covered by cash flows (273% cash payout ratio). Share price has been volatile over the past 3 months (9.8% average weekly change). Reported Earnings • Aug 12
Second quarter 2026 earnings: EPS and revenues miss analyst expectations Second quarter 2026 results: EPS: NT$1.83 (up from NT$1.06 in 2Q 2025). Revenue: NT$2.70b (up 3.2% from 2Q 2025). Net income: NT$309.9m (up 84% from 2Q 2025). Profit margin: 12% (up from 6.4% in 2Q 2025). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 8.8%. Earnings per share (EPS) also missed analyst estimates by 30%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Electrical industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 60% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to NT$232, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 21x in the Electrical industry in Taiwan. Total returns to shareholders of 313% over the past three years. Upcoming Dividend • Jul 16
Upcoming dividend of NT$6.19 per share Eligible shareholders must have bought the stock before 23 July 2026. Payment date: 19 August 2026. Payout ratio is a comfortable 70% but the company is paying out more than the cash it is generating. Trailing yield: 2.4%. Lower than top quartile of Taiwanese dividend payers (5.0%). In line with average of industry peers (2.6%). Declared Dividend • Jun 27
Dividend increased to NT$6.20 Dividend of NT$6.20 is 24% higher than last year. Ex-date: 23rd July 2026 Payment date: 19th August 2026 Dividend yield will be 2.1%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is covered by earnings (70% earnings payout ratio) but not covered by cash flows (130% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 8.6% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$302, the stock trades at a trailing P/E ratio of 35x. Average trailing P/E is 25x in the Electrical industry in Taiwan. Total returns to shareholders of 478% over the past three years. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$332, the stock trades at a trailing P/E ratio of 38.5x. Average trailing P/E is 24x in the Electrical industry in Taiwan. Total returns to shareholders of 560% over the past three years. Reported Earnings • May 09
First quarter 2026 earnings released: EPS: NT$2.00 (vs NT$2.57 in 1Q 2025) First quarter 2026 results: EPS: NT$2.00. Revenue: NT$2.61b (up 12% from 1Q 2025). Net income: NT$453.2m (up 11% from 1Q 2025). Profit margin: 17% (in line with 1Q 2025). Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment improves as stock rises 35% After last week's 35% share price gain to NT$317, the stock trades at a trailing P/E ratio of 38x. Average trailing P/E is 28x in the Electrical industry in Taiwan. Total returns to shareholders of 484% over the past three years. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$221, the stock trades at a trailing P/E ratio of 26.5x. Average trailing P/E is 27x in the Electrical industry in Taiwan. Total returns to shareholders of 253% over the past three years. Reported Earnings • Mar 11
Full year 2025 earnings released: EPS: NT$8.73 (vs NT$6.41 in FY 2024) Full year 2025 results: EPS: NT$8.73 (up from NT$6.41 in FY 2024). Revenue: NT$10.2b (up 26% from FY 2024). Net income: NT$1.41b (up 39% from FY 2024). Profit margin: 14% (up from 13% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has increased by 47% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Mar 10
Longwell Company, Annual General Meeting, May 25, 2026 Longwell Company, Annual General Meeting, May 25, 2026, at 09:00 Taipei Standard Time. Location: 5 floor no,2, sec.3 pa to rd., songshan district, taipei city Taiwan Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$227, the stock trades at a trailing P/E ratio of 27.8x. Average trailing P/E is 25x in the Electrical industry in Taiwan. Total returns to shareholders of 249% over the past three years. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$187, the stock trades at a trailing P/E ratio of 22.9x. Average trailing P/E is 24x in the Electrical industry in Taiwan. Total returns to shareholders of 230% over the past three years. Reported Earnings • Nov 11
Third quarter 2025 earnings released: EPS: NT$2.57 (vs NT$0.75 in 3Q 2024) Third quarter 2025 results: EPS: NT$2.57 (up from NT$0.75 in 3Q 2024). Revenue: NT$2.53b (up 18% from 3Q 2024). Net income: NT$411.2m (up 247% from 3Q 2024). Profit margin: 16% (up from 5.5% in 3Q 2024). 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 49% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$179, the stock trades at a trailing P/E ratio of 27.7x. Average trailing P/E is 28x in the Electrical industry in Taiwan. Total returns to shareholders of 284% over the past three years. Reported Earnings • Aug 09
Second quarter 2025 earnings released: EPS: NT$1.06 (vs NT$1.86 in 2Q 2024) Second quarter 2025 results: EPS: NT$1.06 (down from NT$1.86 in 2Q 2024). Revenue: NT$2.61b (up 36% from 2Q 2024). Net income: NT$168.3m (down 43% from 2Q 2024). Profit margin: 6.4% (down from 15% in 2Q 2024). The decrease in margin was driven by higher expenses. 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 24% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jul 17
Upcoming dividend of NT$5.00 per share Eligible shareholders must have bought the stock before 24 July 2025. Payment date: 20 August 2025. Payout ratio is a comfortable 69% but the company is not cash flow positive. Trailing yield: 4.8%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (2.7%). New Risk • Jul 11
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 6.7% 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 High level of non-cash earnings (29% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.7% average weekly change). Declared Dividend • Jun 28
Dividend of NT$5.00 announced Shareholders will receive a dividend of NT$5.00. Ex-date: 24th July 2025 Payment date: 20th August 2025 Dividend yield will be 5.3%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is covered by earnings (69% 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 increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 5.5% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • May 12
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 5.8% to NT$93.20. The fair value is estimated to be NT$74.63, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 21%. Reported Earnings • May 10
First quarter 2025 earnings released: EPS: NT$2.56 (vs NT$1.70 in 1Q 2024) First quarter 2025 results: EPS: NT$2.56 (up from NT$1.70 in 1Q 2024). Revenue: NT$2.34b (up 35% from 1Q 2024). Net income: NT$407.6m (up 54% from 1Q 2024). Profit margin: 17% (up from 15% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 20% per year. Duyuru • May 01
Longwell Company to Report Q1, 2025 Results on May 09, 2025 Longwell Company announced that they will report Q1, 2025 results on May 09, 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$68.10, the stock trades at a trailing P/E ratio of 10.7x. Average trailing P/E is 17x in the Electrical industry in Taiwan. Total returns to shareholders of 53% over the past three years. Buy Or Sell Opportunity • Mar 26
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 22% to NT$89.90. The fair value is estimated to be NT$73.78, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 21%. Duyuru • Mar 14
Longwell Company, Annual General Meeting, May 28, 2025 Longwell Company, Annual General Meeting, May 28, 2025, at 09:00 Taipei Standard Time. Location: 5 floor no,2, sec.3 pa to rd., songshan district, taipei city Taiwan Reported Earnings • Mar 14
Full year 2024 earnings released: EPS: NT$6.41 (vs NT$4.17 in FY 2023) Full year 2024 results: EPS: NT$6.41 (up from NT$4.17 in FY 2023). Revenue: NT$8.04b (up 9.2% from FY 2023). Net income: NT$1.01b (up 59% from FY 2023). Profit margin: 13% (up from 8.6% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 19% per year. Duyuru • Mar 11
Longwell Company announced that it expects to receive TWD 800 million in funding Longwell Company announced a private placemen to issue Zero Coupon Series 10 Unsecured Convertible Bond for gross proceeds of TWD 800,000,000 on March 10, 2025. The transaction has been approved by shareholders of company. The bonds bears zero coupon rate, matures after 3 years. Duyuru • Mar 01
Longwell Company to Report Q4, 2024 Results on Mar 10, 2025 Longwell Company announced that they will report Q4, 2024 results on Mar 10, 2025 Reported Earnings • Nov 14
Third quarter 2024 earnings released: EPS: NT$0.75 (vs NT$2.64 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.75 (down from NT$2.64 in 3Q 2023). Revenue: NT$2.15b (up 7.3% from 3Q 2023). Net income: NT$118.6m (down 71% from 3Q 2023). Profit margin: 5.5% (down from 20% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. New Risk • Aug 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.9% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (2.9% increase in shares outstanding). Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$1.86 (vs NT$0.76 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.86 (up from NT$0.76 in 2Q 2023). Revenue: NT$1.92b (up 7.4% from 2Q 2023). Net income: NT$294.8m (up 152% from 2Q 2023). Profit margin: 15% (up from 6.6% in 2Q 2023). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 17% per year. Duyuru • Aug 02
Longwell Company to Report Q2, 2024 Results on Aug 09, 2024 Longwell Company announced that they will report Q2, 2024 results on Aug 09, 2024 Board Change • Aug 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. 6 highly experienced directors. Director Yu-Mi Huang 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. Upcoming Dividend • Jul 17
Upcoming dividend of NT$2.97 per share Eligible shareholders must have bought the stock before 24 July 2024. Payment date: 21 August 2024. Payout ratio is a comfortable 56% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Taiwanese dividend payers (4.2%). Higher than average of industry peers (2.2%). Declared Dividend • Jun 28
Dividend increased to NT$3.00 Dividend of NT$3.00 is 42% higher than last year. Ex-date: 24th July 2024 Payment date: 21st August 2024 Dividend yield will be 3.4%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is covered by both earnings (56% earnings payout ratio) and cash flows (43% cash payout ratio). The dividend has increased by an average of 7.0% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 20% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • May 18
First quarter 2024 earnings released: EPS: NT$1.70 (vs NT$0.49 in 1Q 2023) First quarter 2024 results: EPS: NT$1.70 (up from NT$0.49 in 1Q 2023). Revenue: NT$1.74b (up 9.4% from 1Q 2023). Net income: NT$264.3m (up 264% from 1Q 2023). Profit margin: 15% (up from 4.6% in 1Q 2023). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 10% per year. Duyuru • Apr 28
Longwell Company to Report Q1, 2024 Results on May 06, 2024 Longwell Company announced that they will report Q1, 2024 results on May 06, 2024 New Risk • Apr 18
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 8.4% 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 (8.4% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (5.8% increase in shares outstanding). Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$106, the stock trades at a trailing P/E ratio of 25.6x. Average trailing P/E is 25x in the Electrical industry in Taiwan. Total returns to shareholders of 66% over the past three years. Reported Earnings • Mar 18
Full year 2023 earnings released: EPS: NT$4.17 (vs NT$5.50 in FY 2022) Full year 2023 results: EPS: NT$4.17 (down from NT$5.50 in FY 2022). Revenue: NT$7.36b (down 5.5% from FY 2022). Net income: NT$636.5m (down 22% from FY 2022). Profit margin: 8.6% (down from 10% in FY 2022). The decrease in margin was driven by lower 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. Duyuru • Mar 12
Longwell Company, Annual General Meeting, Jun 18, 2024 Longwell Company, Annual General Meeting, Jun 18, 2024. Location: No. 2, Sec. 3, Bade Rd., Songshan Dist., TCA Convention Center Taipei City Taiwan Agenda: To consider 2023 Business Report; to consider Audit committee' review report for the year of 2023; to consider Report on 2023 Employees Compensation and Directors Remuneration; to consider adoption of 2023 Financial Statements; to consider adoption of the Proposal of 2023 Earnings Distribution; to consider discussions of the Amendments to the Company's Articles of Incorporation; and to consider other matters. New Risk • Mar 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 6.1% 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 (6.1% average weekly change). Shareholders have been diluted in the past year (4.1% increase in shares outstanding). Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$78.90, the stock trades at a trailing P/E ratio of 15.1x. Average trailing P/E is 20x in the Electrical industry in Taiwan. Total returns to shareholders of 63% over the past three years. Reported Earnings • Nov 14
Third quarter 2023 earnings released: EPS: NT$2.64 (vs NT$1.91 in 3Q 2022) Third quarter 2023 results: EPS: NT$2.64 (up from NT$1.91 in 3Q 2022). Revenue: NT$2.01b (down 2.3% from 3Q 2022). Net income: NT$405.7m (up 44% from 3Q 2022). Profit margin: 20% (up from 14% in 3Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 4% per year. Reported Earnings • Aug 13
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: NT$0.76 (down from NT$1.18 in 2Q 2022). Revenue: NT$1.79b (down 13% from 2Q 2022). Net income: NT$117.1m (down 33% from 2Q 2022). Profit margin: 6.6% (down from 8.6% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 41%. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 17
Upcoming dividend of NT$2.11 per share at 3.2% yield Eligible shareholders must have bought the stock before 24 July 2023. Payment date: 18 August 2023. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Taiwanese dividend payers (5.5%). In line with average of industry peers (3.0%). New Risk • Jun 10
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (4.1% increase in shares outstanding). Reported Earnings • Mar 27
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: NT$5.50 (up from NT$3.05 in FY 2021). Revenue: NT$7.79b (down 3.1% from FY 2021). Net income: NT$812.9m (up 80% from FY 2021). Profit margin: 10% (up from 5.6% in FY 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 3.2%. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$70.30, the stock trades at a trailing P/E ratio of 15.5x. Average trailing P/E is 13x in the Electrical industry in Taiwan. Total returns to shareholders of 34% over the past three years. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Ouyang Hong was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$1.18 (vs NT$1.03 in 2Q 2021) Second quarter 2022 results: EPS: NT$1.18 (up from NT$1.03 in 2Q 2021). Revenue: NT$2.04b (up 2.0% from 2Q 2021). Net income: NT$174.9m (up 14% from 2Q 2021). Profit margin: 8.6% (up from 7.6% in 2Q 2021). 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 5% per year, which means it has not declined as severely as earnings. Duyuru • Aug 13
Longwell Company Appoints Sandy Ning as Chief Information Security Officer Longwell Company appointed Sandy Ning /Chief Financial and Accounting Officer as Chief Information Security Officer. Effective date is August 12, 2022. Upcoming Dividend • Jul 21
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 28 July 2022. Payment date: 26 August 2022. Payout ratio is a comfortable 73% but the company is not cash flow positive. Trailing yield: 3.7%. Lower than top quartile of Taiwanese dividend payers (6.7%). In line with average of industry peers (3.7%). Reported Earnings • May 16
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: NT$1.00 (down from NT$1.31 in 1Q 2021). Revenue: NT$1.84b (up 2.6% from 1Q 2021). Net income: NT$148.4m (down 23% from 1Q 2021). Profit margin: 8.1% (down from 11% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 22%. Earnings per share (EPS) exceeded analyst estimates by 16%. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Board Change • Apr 27
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. 7 highly experienced directors. Supervisor Ronnie Chang was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Mar 31
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: NT$3.05 (down from NT$4.71 in FY 2020). Revenue: NT$8.04b (up 22% from FY 2020). Net income: NT$451.2m (down 34% from FY 2020). Profit margin: 5.6% (down from 10% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 22%. Earnings per share (EPS) exceeded analyst estimates by 16%. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.29 (vs NT$1.48 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: NT$2.07b (up 12% from 3Q 2020). Net income: NT$42.9m (down 80% from 3Q 2020). Profit margin: 2.1% (down from 12% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 28% per year and the company’s share price has also increased by 28% per year. Reported Earnings • Aug 15
Second quarter 2021 earnings released: EPS NT$1.03 (vs NT$1.50 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$2.00b (up 16% from 2Q 2020). Net income: NT$152.8m (down 29% from 2Q 2020). Profit margin: 7.6% (down from 13% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 28
Upcoming dividend of NT$3.50 per share Eligible shareholders must have bought the stock before 04 August 2021. Payment date: 31 August 2021. Trailing yield: 4.5%. Lower than top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (3.3%). Valuation Update With 7 Day Price Move • Jul 26
Investor sentiment improved over the past week After last week's 25% share price gain to NT$82.20, the stock trades at a trailing P/E ratio of 14.5x. Average trailing P/E is 15x in the Electrical industry in Taiwan. Total returns to shareholders of 111% over the past three years. Reported Earnings • May 14
First quarter 2021 earnings released: EPS NT$1.31 (vs NT$0.34 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$1.79b (up 44% from 1Q 2020). Net income: NT$193.4m (up 301% from 1Q 2020). Profit margin: 11% (up from 3.9% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 05
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$63.60, the stock trades at a trailing P/E ratio of 13.5x. Average trailing P/E is 19x in the Electrical industry in Taiwan. Total returns to shareholders of 88% over the past three years. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improved over the past week After last week's 16% share price gain to NT$72.70, the stock trades at a trailing P/E ratio of 15.4x. Average trailing P/E is 17x in the Electrical industry in Taiwan. Total returns to shareholders of 76% over the past three years. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS NT$4.71 (vs NT$6.35 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$6.60b (down 5.9% from FY 2019). Net income: NT$685.7m (down 24% from FY 2019). Profit margin: 10% (down from 13% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 23
New 90-day high: NT$56.50 The company is up 3.0% from its price of NT$54.70 on 25 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 14% over the same period. Is New 90 Day High Low • Jan 20
New 90-day low: NT$50.80 The company is down 3.0% from its price of NT$52.60 on 23 October 2020. The Taiwanese market is up 22% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 10.0% over the same period. Reported Earnings • Nov 12
Third quarter 2020 earnings released: EPS NT$1.48 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: NT$1.84b (up 4.5% from 3Q 2019). Net income: NT$217.1m (down 21% from 3Q 2019). Profit margin: 12% (down from 16% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Oct 30
New 90-day low: NT$51.20 The company is down 6.0% from its price of NT$54.30 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 Electrical industry, which is up 14% over the same period. Is New 90 Day High Low • Sep 25
New 90-day low: NT$52.00 The company is down 8.0% from its price of NT$56.70 on 24 June 2020. The Taiwanese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 9.0% over the same period.