Reported Earnings • Nov 18
Third quarter 2024 earnings released: NT$0.26 loss per share (vs NT$18.31 loss in 3Q 2023) Third quarter 2024 results: NT$0.26 loss per share (improved from NT$18.31 loss in 3Q 2023). Revenue: NT$355.2m (down 51% from 3Q 2023). Net loss: NT$14.5m (loss narrowed 99% from 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$5.24 (vs NT$3.14 in 2Q 2023) Second quarter 2024 results: EPS: NT$5.24 (up from NT$3.14 in 2Q 2023). Revenue: NT$274.5m (down 74% from 2Q 2023). Net income: NT$289.6m (up 77% from 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Reported Earnings • May 18
First quarter 2024 earnings released: NT$0.95 loss per share (vs NT$3.10 profit in 1Q 2023) First quarter 2024 results: NT$0.95 loss per share (down from NT$3.10 profit in 1Q 2023). Revenue: NT$70.6m (down 93% from 1Q 2023). Net loss: NT$52.7m (down 133% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Duyuru • Apr 17
Advanced International Multitech Co., Ltd. (TPEX:8938) agreed to acquire remaining 48.35% stake in Launch Technologies Co., Ltd. (TPEX:8420) for TWD1.1 billion. Advanced International Multitech Co., Ltd. (TPEX:8938) agreed to acquire remaining 48.35% stake in Launch Technologies Co., Ltd. (TPEX:8420) for TWD1.1 billion on April 15, 2024. Transaction is expected to close with Advanced International Multitech Co., Ltd. (TPEX:8938) board approval. The transaction is expected to close on September 30, 2024. New Risk • Mar 26
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 58% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 1.5% per year over the past 5 years. Minor Risks High level of debt (58% net debt to equity). Shareholders have been diluted in the past year (8.3% increase in shares outstanding). Market cap is less than US$100m (NT$3.18b market cap, or US$99.6m). Reported Earnings • Mar 23
Full year 2023 earnings released: NT$17.40 loss per share (vs NT$11.55 profit in FY 2022) Full year 2023 results: NT$17.40 loss per share (down from NT$11.55 profit in FY 2022). Revenue: NT$2.81b (down 22% from FY 2022). Net loss: NT$930.1m (down 258% from profit in FY 2022). Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 28% per year, which means it is well ahead of earnings. Duyuru • Mar 14
Launch Technologies Co., Ltd., Annual General Meeting, May 27, 2024 Launch Technologies Co., Ltd., Annual General Meeting, May 27, 2024. New Risk • Feb 14
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.15b (US$99.7m) 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: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 98% Minor Risks Shareholders have been diluted in the past year (8.3% increase in shares outstanding). Market cap is less than US$100m (NT$3.15b market cap, or US$99.7m). New Risk • Dec 04
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 7.2% 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 Risks Share price has been highly volatile over the past 3 months (7.2% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 98% Minor Risk Shareholders have been diluted in the past year (7.3% increase in shares outstanding). Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$58.70, the stock trades at a trailing P/E ratio of 4.8x. Average trailing P/E is 12x in the Leisure industry in Taiwan. Total returns to shareholders of 179% over the past three years. New Risk • Oct 19
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.23b (US$99.7m) 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 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 (6.6% average weekly change). Shareholders have been diluted in the past year (7.3% increase in shares outstanding). Market cap is less than US$100m (NT$3.23b market cap, or US$99.7m). New Risk • Oct 05
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 6.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. 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 (6.0% average weekly change). Shareholders have been diluted in the past year (7.3% increase in shares outstanding). Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to NT$68.30, the stock trades at a trailing P/E ratio of 5.6x. Average trailing P/E is 12x in the Leisure industry in Taiwan. Total returns to shareholders of 226% over the past three years. Buying Opportunity • Aug 08
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 9.8%. The fair value is estimated to be NT$110, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Earnings per share has grown by 76%. Buying Opportunity • Aug 08
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 9.8%. The fair value is estimated to be NT$110, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Earnings per share has grown by 76%. Reported Earnings • Aug 05
Second quarter 2023 earnings released: EPS: NT$3.14 (vs NT$2.93 in 2Q 2022) Second quarter 2023 results: EPS: NT$3.14 (up from NT$2.93 in 2Q 2022). Revenue: NT$1.06b (up 17% from 2Q 2022). Net income: NT$163.8m (up 9.5% from 2Q 2022). Profit margin: 16% (down from 17% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 64% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of NT$5.97 per share at 6.4% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 04 May 2023. Payout ratio is a comfortable 53% and this is well supported by cash flows. Trailing yield: 6.4%. Within top quartile of Taiwanese dividend payers (6.0%). Higher than average of industry peers (4.7%). Reported Earnings • Feb 26
Full year 2022 earnings released: EPS: NT$11.55 (vs NT$4.65 in FY 2021) Full year 2022 results: EPS: NT$11.55 (up from NT$4.65 in FY 2021). Revenue: NT$3.60b (up 38% from FY 2021). Net income: NT$588.7m (up 149% from FY 2021). Profit margin: 16% (up from 9.1% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 51% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
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. 5 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Nov 05
Third quarter 2022 earnings released: EPS: NT$3.18 (vs NT$1.52 in 3Q 2021) Third quarter 2022 results: EPS: NT$3.18 (up from NT$1.52 in 3Q 2021). Revenue: NT$944.6m (up 33% from 3Q 2021). Net income: NT$162.0m (up 109% from 3Q 2021). Profit margin: 17% (up from 11% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improved over the past week After last week's 15% share price gain to NT$77.70, the stock trades at a trailing P/E ratio of 10x. Average trailing P/E is 14x in the Leisure industry in Taiwan. Total returns to shareholders of 188% over the past three years. Reported Earnings • Aug 05
Second quarter 2022 earnings released: EPS: NT$2.93 (vs NT$1.16 in 2Q 2021) Second quarter 2022 results: EPS: NT$2.93 (up from NT$1.16 in 2Q 2021). Revenue: NT$903.1m (up 44% from 2Q 2021). Net income: NT$149.5m (up 153% from 2Q 2021). Profit margin: 17% (up from 9.4% in 2Q 2021). The increase in margin was driven by higher revenue. 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 30% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 17
Upcoming dividend of NT$2.50 per share Eligible shareholders must have bought the stock before 24 June 2022. Payment date: 20 July 2022. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 4.6%. Lower than top quartile of Taiwanese dividend payers (6.1%). In line with average of industry peers (4.2%). Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 17% share price gain to NT$59.50, the stock trades at a trailing P/E ratio of 10x. Average trailing P/E is 13x in the Leisure industry in Taiwan. Total returns to shareholders of 148% over the past three years. Reported Earnings • May 06
First quarter 2022 earnings released: EPS: NT$1.75 (vs NT$0.43 in 1Q 2021) First quarter 2022 results: EPS: NT$1.75 (up from NT$0.43 in 1Q 2021). Revenue: NT$717.5m (up 35% from 1Q 2021). Net income: NT$89.4m (up 309% from 1Q 2021). Profit margin: 13% (up from 4.1% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. 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. 5 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Feb 28
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: NT$4.64 (up from NT$1.48 in FY 2020). Revenue: NT$2.61b (up 64% from FY 2020). Net income: NT$236.8m (up 214% from FY 2020). Profit margin: 9.1% (up from 4.8% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 22%. 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. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment improved over the past week After last week's 16% share price gain to NT$38.05, the stock trades at a trailing P/E ratio of 12.3x. Average trailing P/E is 15x in the Leisure industry in Taiwan. Total returns to shareholders of 117% over the past three years. Valuation Update With 7 Day Price Move • Aug 11
Investor sentiment improved over the past week After last week's 15% share price gain to NT$38.30, the stock trades at a trailing P/E ratio of 11.9x. Average trailing P/E is 20x in the Leisure industry in Taiwan. Total returns to shareholders of 136% over the past three years. Reported Earnings • Aug 06
Second quarter 2021 earnings released: EPS NT$1.16 (vs NT$0.21 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$628.2m (up 164% from 2Q 2020). Net income: NT$59.1m (up NT$69.7m from 2Q 2020). Profit margin: 9.4% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jul 21
Upcoming dividend of NT$0.80 per share Eligible shareholders must have bought the stock before 28 July 2021. Payment date: 20 August 2021. Trailing yield: 2.4%. Lower than top quartile of Taiwanese dividend payers (5.0%). Lower than average of industry peers (2.8%). Valuation Update With 7 Day Price Move • Jul 15
Investor sentiment improved over the past week After last week's 16% share price gain to NT$34.00, the stock trades at a trailing P/E ratio of 19.6x. Average trailing P/E is 19x in the Leisure industry in Taiwan. Total returns to shareholders of 103% over the past three years. Reported Earnings • May 09
First quarter 2021 earnings released: EPS NT$0.43 (vs NT$0.17 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$531.5m (up 30% from 1Q 2020). Net income: NT$21.9m (up 145% from 1Q 2020). Profit margin: 4.1% (up from 2.2% 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 16% per year and the company’s share price has also increased by 16% per year. Duyuru • Mar 11
Launch Technologies Co., Ltd., Annual General Meeting, May 31, 2021 Launch Technologies Co., Ltd., Annual General Meeting, May 31, 2021. Is New 90 Day High Low • Mar 04
New 90-day high: NT$28.25 The company is up 14% from its price of NT$24.75 on 04 December 2020. The Taiwanese market is up 15% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Leisure industry, which is up 7.0% over the same period. Reported Earnings • Feb 27
Full year 2020 earnings released: EPS NT$1.48 (vs NT$2.53 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$1.59b (down 13% from FY 2019). Net income: NT$75.5m (down 42% from FY 2019). Profit margin: 4.8% (down from 7.1% 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 29% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Jan 27
New 90-day high: NT$27.05 The company is up 11% from its price of NT$24.40 on 29 October 2020. The Taiwanese market is up 23% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Leisure industry, which is up 5.0% over the same period. Is New 90 Day High Low • Jan 08
New 90-day high: NT$25.95 The company is up 2.0% from its price of NT$25.40 on 08 October 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Leisure industry, which is up 4.0% over the same period. Is New 90 Day High Low • Dec 15
New 90-day low: NT$23.75 The company is down 4.0% from its price of NT$24.65 on 17 September 2020. The Taiwanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Leisure industry, which is up 1.0% over the same period. Reported Earnings • Nov 08
Third quarter 2020 earnings released: EPS NT$0.72 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$427.0m (down 8.2% from 3Q 2019). Net income: NT$36.7m (down 14% from 3Q 2019). Profit margin: 8.6% (down from 9.2% in 3Q 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Oct 06
New 90-day high: NT$25.15 The company is up 17% from its price of NT$21.50 on 08 July 2020. The Taiwanese market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Leisure industry, which is up 9.0% over the same period.