New Risk • Oct 16
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 8.5% 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 (8.5% average weekly change). Earnings have declined by 35% 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. Large one-off items impacting financial results. Market cap is less than US$100m (NT$1.11b market cap, or US$36.2m). Declared Dividend • Jun 28
Dividend reduced to NT$0.60 Dividend of NT$0.60 is 40% lower than last year. Ex-date: 11th July 2025 Payment date: 31st July 2025 Dividend yield will be 2.4%, which is lower than the industry average of 4.2%. Sustainability & Growth Dividend is not covered by earnings (111% earnings payout ratio). However, it is well covered by cash flows (14% cash payout ratio). The dividend has decreased over the past 56 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 23% to bring the payout ratio under control. However, EPS has declined by 33% over the last 5 years so the company would need to reverse this trend. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$23.50, the stock trades at a trailing P/E ratio of 68.9x. Average trailing P/E is 23x in the Consumer Services industry in Taiwan. Total loss to shareholders of 65% over the past three years. Duyuru • Mar 12
Ace Edulink Co., Ltd., Annual General Meeting, Jun 13, 2025 Ace Edulink Co., Ltd., Annual General Meeting, Jun 13, 2025. Location: 10- floor no,20 ln.609, sec.5 ch`ung hsin rd., sanchong district, new taipei city Taiwan New Risk • Feb 28
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 27% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Dividend is not well covered by earnings (293% payout ratio). Profit margins are more than 30% lower than last year (1.1% net profit margin). Market cap is less than US$100m (NT$686.0m market cap, or US$20.9m). New Risk • Aug 12
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 16% 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. Shareholders have been diluted in the past year (2.3% increase in shares outstanding). Market cap is less than US$100m (NT$819.0m market cap, or US$25.2m). Upcoming Dividend • Jul 08
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 15 July 2024. Payment date: 09 August 2024. Payout ratio is on the higher end at 79%, however this is supported by cash flows. Trailing yield: 4.2%. Within top quartile of Taiwanese dividend payers (4.2%). In line with average of industry peers (4.0%). Reported Earnings • May 04
Full year 2023 earnings released: EPS: NT$1.27 (vs NT$1.38 in FY 2022) Full year 2023 results: EPS: NT$1.27 (down from NT$1.38 in FY 2022). Revenue: NT$1.14b (up 2.7% from FY 2022). Net income: NT$47.2m (down 8.7% from FY 2022). Profit margin: 4.1% (down from 4.7% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 37% per year whereas the company’s share price has fallen by 33% per year. Duyuru • Apr 03
Ace Edulink Co., Ltd., Annual General Meeting, Jun 19, 2024 Ace Edulink Co., Ltd., Annual General Meeting, Jun 19, 2024. New Risk • Feb 28
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. 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 Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Dividend is not well covered by earnings (93% payout ratio). Profit margins are more than 30% lower than last year (4.2% net profit margin). Market cap is less than US$100m (NT$996.9m market cap, or US$31.5m). Reported Earnings • Aug 15
First half 2023 earnings released: EPS: NT$0.73 (vs NT$0.81 in 1H 2022) First half 2023 results: EPS: NT$0.73 (down from NT$0.81 in 1H 2022). Revenue: NT$555.6m (up 3.1% from 1H 2022). Net income: NT$27.1m (down 13% from 1H 2022). Profit margin: 4.9% (down from 5.8% in 1H 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 31% per year whereas the company’s share price has fallen by 34% per year. New Risk • Aug 13
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 Dividend is not well covered by earnings (103% payout ratio). Profit margins are more than 30% lower than last year (4.2% net profit margin). Market cap is less than US$100m (NT$1.36b market cap, or US$42.7m). Upcoming Dividend • Jul 03
Upcoming dividend of NT$1.20 per share at 3.2% yield Eligible shareholders must have bought the stock before 10 July 2023. Payment date: 10 August 2023. Payout ratio is on the higher end at 87%, however this is supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (3.8%). Reported Earnings • Apr 29
Full year 2022 earnings released: EPS: NT$1.38 (vs NT$2.98 in FY 2021) Full year 2022 results: EPS: NT$1.38 (down from NT$2.98 in FY 2021). Revenue: NT$1.11b (up 3.0% from FY 2021). Net income: NT$51.7m (down 55% from FY 2021). Profit margin: 4.7% (down from 11% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has fallen by 30% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Aug 29
Investor sentiment improved over the past week After last week's 16% share price gain to NT$47.00, the stock trades at a trailing P/E ratio of 19x. Average trailing P/E is 17x in the Consumer Services industry in Taiwan. Total loss to shareholders of 30% over the past year. Upcoming Dividend • Aug 19
Upcoming dividend of NT$0.52 per share Eligible shareholders must have bought the stock before 26 August 2022. Payment date: 30 September 2022. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Taiwanese dividend payers (6.5%). Lower than average of industry peers (3.6%). Reported Earnings • Aug 15
First half 2022 earnings released: EPS: NT$1.02 (vs NT$1.61 in 1H 2021) First half 2022 results: EPS: NT$1.02 (down from NT$1.61 in 1H 2021). Revenue: NT$538.9m (up 2.3% from 1H 2021). Net income: NT$31.0m (down 36% from 1H 2021). Profit margin: 5.8% (down from 9.2% in 1H 2021). Buying Opportunity • May 30
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 26%. The fair value is estimated to be NT$95.06, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.2% over the last 3 years. Earnings per share has declined by 26%. Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$61.50, the stock trades at a trailing P/E ratio of 16.6x. Average trailing P/E is 16x in the Consumer Services industry in Taiwan. Total loss to shareholders of 32% over the past year. Reported Earnings • Apr 03
Full year 2021 earnings released: EPS: NT$3.75 (vs NT$4.07 in FY 2020) Full year 2021 results: EPS: NT$3.75 (down from NT$4.07 in FY 2020). Revenue: NT$1.08b (down 2.3% from FY 2020). Net income: NT$113.9m (down 7.2% from FY 2020). Profit margin: 11% (in line with FY 2020). Reported Earnings • Dec 19
Third quarter 2021 earnings: Revenues and EPS in line with analyst expectations Third quarter 2021 results: EPS: NT$1.59 (up from NT$1.05 in 3Q 2020). Revenue: NT$272.7m (down 5.4% from 3Q 2020). Net income: NT$48.3m (up 52% from 3Q 2020). Profit margin: 18% (up from 11% in 3Q 2020). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Valuation Update With 7 Day Price Move • Oct 16
Investor sentiment improved over the past week After last week's 16% share price gain to NT$100.00, the stock trades at a trailing P/E ratio of 27.5x. Average trailing P/E is 16x in the Consumer Services industry in Taiwan. Total loss to shareholders of 25% over the past year. Reported Earnings • Aug 18
First half 2021 earnings released: EPS NT$1.77 (vs NT$2.17 in 1H 2020) The company reported a poor first half result with weaker earnings and profit margins, although revenues were flat. First half 2021 results: Revenue: NT$526.6m (flat on 1H 2020). Net income: NT$48.7m (down 18% from 1H 2020). Profit margin: 9.2% (down from 11% in 1H 2020). Upcoming Dividend • Jul 29
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 05 August 2021. Payment date: 31 August 2021. Trailing yield: 1.9%. 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 01
Investor sentiment improved over the past week After last week's 23% share price gain to NT$111, the stock trades at a trailing P/E ratio of 24.8x. Average trailing P/E is 16x in the Consumer Services industry in Taiwan. Total loss to shareholders of 31% over the past year. Duyuru • Mar 18
Ace Edulink Co., Ltd., Annual General Meeting, May 31, 2021 Ace Edulink Co., Ltd., Annual General Meeting, May 31, 2021. Is New 90 Day High Low • Mar 05
New 90-day low: NT$130 The company is down 10.0% from its price of NT$145 on 04 December 2020. The Taiwanese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is down 4.0% over the same period. Valuation Update With 7 Day Price Move • Nov 16
Market bids up stock over the past week After last week's 15% share price gain to NT$149, the stock is trading at a trailing P/E ratio of 31.4x, up from the previous P/E ratio of 27.3x. This compares to an average P/E of 17x in the Consumer Services industry in Taiwan. Is New 90 Day High Low • Oct 23
New 90-day low: NT$145 The company is down 24% from its price of NT$191 on 24 July 2020. The Taiwanese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is down 8.0% over the same period. Is New 90 Day High Low • Sep 22
New 90-day low: NT$160 The company is down 1.0% from its price of NT$162 on 24 June 2020. The Taiwanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Consumer Services industry, which is down 3.0% over the same period.