New Risk • May 20
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.15b (US$99.6m) 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 Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (125% cash payout ratio). Market cap is less than US$100m (NT$3.15b market cap, or US$99.6m). Reported Earnings • May 11
First quarter 2026 earnings released: EPS: NT$0.42 (vs NT$0.15 in 1Q 2025) First quarter 2026 results: EPS: NT$0.42 (up from NT$0.15 in 1Q 2025). Revenue: NT$1.71b (flat on 1Q 2025). Net income: NT$63.0m (up 180% from 1Q 2025). Profit margin: 3.7% (up from 1.3% in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$1.85 (vs NT$1.25 in FY 2024) Full year 2025 results: EPS: NT$1.85 (up from NT$1.25 in FY 2024). Revenue: NT$7.22b (up 8.3% from FY 2024). Net income: NT$278.0m (up 48% from FY 2024). Profit margin: 3.8% (up from 2.8% 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 41% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Duyuru • Feb 10
Ruentex Materials Co.,Ltd., Annual General Meeting, May 15, 2026 Ruentex Materials Co.,Ltd., Annual General Meeting, May 15, 2026. Location: 3 floor no,260, sec.2 pa to rd., taipei city Taiwan Reported Earnings • Nov 11
Third quarter 2025 earnings released: EPS: NT$0.93 (vs NT$0.43 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.93 (up from NT$0.43 in 3Q 2024). Revenue: NT$1.85b (up 6.3% from 3Q 2024). Net income: NT$139.2m (up 117% from 3Q 2024). Profit margin: 7.5% (up from 3.7% 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 52% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 17
Second quarter 2025 earnings released: EPS: NT$0.77 (vs NT$0.15 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.77 (up from NT$0.15 in 2Q 2024). Revenue: NT$1.83b (up 18% from 2Q 2024). Net income: NT$114.8m (up 401% from 2Q 2024). Profit margin: 6.3% (up from 1.5% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 04
Upcoming dividend of NT$1.10 per share Eligible shareholders must have bought the stock before 11 June 2025. Payment date: 30 June 2025. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 4.5%. Lower than top quartile of Taiwanese dividend payers (5.3%). In line with average of industry peers (4.7%). Duyuru • May 17
Ruentex Materials Co.,Ltd. Announces Board Changes Ruentex Materials Co. Ltd. at its regular shareholders meeting held on May 16, 2025 approved Important resolutions included the elections for the 13th Board of Directors and supervisors. The elected members are as follows: Lee, Chih-Hung as representative of Ruentex Engineering & Construction Co. Ltd.; Lin, Yi-Chieh as representative of Ruentex Industries Ltd.; Yin, Chung-En as representative of Huei Hong Investment Co. Ltd.; and independent directors: Shen, Xiao-Ling, Chang, Guo-Zhen, and Huang, Shih-Chien. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.15 (vs NT$0.38 in 1Q 2024) First quarter 2025 results: EPS: NT$0.15 (down from NT$0.38 in 1Q 2024). Revenue: NT$1.70b (up 12% from 1Q 2024). Net income: NT$22.5m (down 60% from 1Q 2024). Profit margin: 1.3% (down from 3.7% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. New Risk • Apr 09
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.06b (US$92.9m) 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 High level of debt (131% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (NT$3.06b market cap, or US$92.9m). Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to NT$20.20, the stock trades at a trailing P/E ratio of 16.2x. Average trailing P/E is 13x in the Basic Materials industry in Taiwan. Total loss to shareholders of 25% over the past three years. Reported Earnings • Mar 18
Full year 2024 earnings released: EPS: NT$1.25 (vs NT$0.77 in FY 2023) Full year 2024 results: EPS: NT$1.25 (up from NT$0.77 in FY 2023). Revenue: NT$6.67b (up 21% from FY 2023). Net income: NT$187.5m (up 63% from FY 2023). Profit margin: 2.8% (up from 2.1% 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 94% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Duyuru • Feb 08
Ruentex Materials Co.,Ltd. to Report Fiscal Year 2024 Results on Mar 12, 2025 Ruentex Materials Co.,Ltd. announced that they will report fiscal year 2024 results on Mar 12, 2025 Duyuru • Jan 23
Ruentex Materials Co.,Ltd., Annual General Meeting, May 16, 2025 Ruentex Materials Co.,Ltd., Annual General Meeting, May 16, 2025. Location: 3 floor no,260, sec.2 pa to rd., taipei city Taiwan Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: NT$0.43 (vs NT$0.26 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.43 (up from NT$0.26 in 3Q 2023). Revenue: NT$1.74b (up 25% from 3Q 2023). Net income: NT$64.0m (up 64% from 3Q 2023). Profit margin: 3.7% (up from 2.8% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Duyuru • Oct 26
Ruentex Materials Co.,Ltd. to Report Q3, 2024 Results on Nov 11, 2024 Ruentex Materials Co.,Ltd. announced that they will report Q3, 2024 results on Nov 11, 2024 Duyuru • Sep 22
Ruentex Materials Co.,Ltd. (TWSE:8463) agreed to acquire Teh Hsin Enterprise Co., Ltd. for TWD 1.8 billion. Ruentex Materials Co.,Ltd. (TWSE:8463) agreed to acquire Teh Hsin Enterprise Co., Ltd. for TWD 1.8 billion on September 20, 2024. A cash consideration of TWD 1.79 billion will be paid by Ruentex Materials Co.,Ltd. As part of consideration, TWD 1.79 billion is paid towards common equity of Teh Hsin Enterprise Co., Ltd. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$0.15 (vs NT$0.25 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.15 (down from NT$0.25 in 2Q 2023). Revenue: NT$1.55b (up 18% from 2Q 2023). Net income: NT$22.9m (down 40% from 2Q 2023). Profit margin: 1.5% (down from 2.9% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Duyuru • Jul 25
Ruentex Materials Co.,Ltd. to Report Q2, 2024 Results on Aug 09, 2024 Ruentex Materials Co.,Ltd. announced that they will report Q2, 2024 results on Aug 09, 2024 Declared Dividend • Jun 15
Dividend increased to NT$0.65 Dividend of NT$0.65 is 183% higher than last year. Ex-date: 1st July 2024 Payment date: 16th July 2024 Dividend yield will be 2.2%, which is lower than the industry average of 3.4%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (24% cash payout ratio). The dividend has decreased over the past 96 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 7.0% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Duyuru • May 25
Ruentex Materials Co.,Ltd. Approves Cash Dividend for the Year 2023 Ruentex Materials Co.,Ltd. announced that at the Company's 2024 regular shareholders meeting held on May 24, 2024 approved cash dividend of TWD 0.65 per share for the year 2023. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: NT$0.38 (vs NT$0.028 in 1Q 2023) First quarter 2024 results: EPS: NT$0.38 (up from NT$0.028 in 1Q 2023). Revenue: NT$1.52b (up 30% from 1Q 2023). Net income: NT$56.6m (up NT$52.4m from 1Q 2023). Profit margin: 3.7% (up from 0.4% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Duyuru • Apr 28
Ruentex Materials Co.,Ltd. to Report Q1, 2024 Results on May 13, 2024 Ruentex Materials Co.,Ltd. announced that they will report Q1, 2024 results on May 13, 2024 Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$30.40, the stock trades at a trailing P/E ratio of 39.7x. Average trailing P/E is 18x in the Basic Materials industry in Taiwan. Total loss to shareholders of 19% over the past three years. New Risk • Mar 22
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: 2.7% 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: Major Risks Debt is not well covered by operating cash flow (8.8% operating cash flow to total debt). Earnings have declined by 13% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Mar 19
Full year 2023 earnings released: EPS: NT$0.77 (vs NT$0.25 in FY 2022) Full year 2023 results: EPS: NT$0.77 (up from NT$0.25 in FY 2022). Revenue: NT$5.50b (up 33% from FY 2022). Net income: NT$115.0m (up 202% from FY 2022). Profit margin: 2.1% (up from 0.9% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Duyuru • Mar 14
Ruentex Materials Co.,Ltd. Approves the Dividend Distribution for the Year Ended December 31, 2023 Ruentex Materials Co.,Ltd. approved the dividend distribution of TWD 0.65 per share for the year ended December 31, 2023. Total amount of cash distributed to shareholders is TWD 97,500,000. Duyuru • Feb 02
Ruentex Materials Co.,Ltd., Annual General Meeting, May 24, 2024 Ruentex Materials Co.,Ltd., Annual General Meeting, May 24, 2024. Reported Earnings • Nov 11
Third quarter 2023 earnings released: EPS: NT$0.26 (vs NT$0.42 in 3Q 2022) Third quarter 2023 results: EPS: NT$0.26 (down from NT$0.42 in 3Q 2022). Revenue: NT$1.40b (up 23% from 3Q 2022). Net income: NT$39.1m (down 38% from 3Q 2022). Profit margin: 2.8% (down from 5.5% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 14% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 13
Second quarter 2023 earnings released: EPS: NT$0.25 (vs NT$0.06 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.25 (up from NT$0.06 in 2Q 2022). Revenue: NT$1.32b (up 42% from 2Q 2022). Net income: NT$37.9m (up 322% from 2Q 2022). Profit margin: 2.9% (up from 1.0% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jul 03
Upcoming dividend of NT$0.23 per share at 0.9% yield Eligible shareholders must have bought the stock before 10 July 2023. Payment date: 28 July 2023. Trailing yield: 0.9%. Lower than top quartile of Taiwanese dividend payers (5.5%). Lower than average of industry peers (3.2%). Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: NT$0.25 (vs NT$0.69 loss in FY 2021) Full year 2022 results: EPS: NT$0.25 (up from NT$0.69 loss in FY 2021). Revenue: NT$4.25b (up 28% from FY 2021). Net income: NT$38.1m (up NT$141.8m from FY 2021). Profit margin: 0.9% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 62 percentage points per year, which is a significant difference in performance. Duyuru • Jan 19
Ruentex Materials Co.,Ltd., Annual General Meeting, May 22, 2023 Ruentex Materials Co.,Ltd., Annual General Meeting, May 22, 2023. Location: 3F.,No.260, Sec.2, Bade Rd Bade Rd., Zhongshan Dist., Taipei City 104097 Taipei Taiwan Agenda: To consider 2022 business report; to consider audit Committee's review of the 2022 annual final accounting books and statements; to consider report on 2022 employees' remuneration; to consider The amendments to the Corporate Governance Best Practice Principles; to consider acknowledgment of the 2022 business report and financial statements; to consider acknowledgment of the 2022 earnings distribution; and to consider other matters. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 5 non-independent directors. Director Sheng-Yu Hsu was the last director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 12
Third quarter 2022 earnings released: EPS: NT$0.42 (vs NT$0.21 loss in 3Q 2021) Third quarter 2022 results: EPS: NT$0.42 (up from NT$0.21 loss in 3Q 2021). Revenue: NT$1.18b (up 54% from 3Q 2021). Net income: NT$62.7m (up NT$94.3m from 3Q 2021). Profit margin: 5.3% (up from net loss in 3Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 52 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$0.06 (vs NT$0.51 loss in 2Q 2021) Second quarter 2022 results: EPS: NT$0.06 (up from NT$0.51 loss in 2Q 2021). Revenue: NT$957.0m (up 5.9% from 2Q 2021). Net income: NT$8.98m (up NT$85.8m from 2Q 2021). Profit margin: 0.9% (up from net loss in 2Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. Reported Earnings • May 19
First quarter 2022 earnings released: NT$0.48 loss per share (vs NT$0.18 profit in 1Q 2021) First quarter 2022 results: NT$0.48 loss per share (down from NT$0.18 profit in 1Q 2021). Revenue: NT$723.9m (down 9.4% from 1Q 2021). Net loss: NT$71.4m (down 360% from profit in 1Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 61 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 8 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Chairman of the Board Weihan Mo 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: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 17
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: NT$0.69 loss per share (down from NT$0.87 profit in FY 2020). Revenue: NT$3.54b (up 16% from FY 2020). Net loss: NT$103.7m (down 179% from profit in FY 2020). Revenue missed analyst estimates by 12%. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Duyuru • Feb 12
Ruentex Materials Co.,Ltd., Annual General Meeting, May 31, 2022 Ruentex Materials Co.,Ltd., Annual General Meeting, May 31, 2022. Reported Earnings • Nov 15
Third quarter 2021 earnings released: NT$0.21 loss per share (vs NT$0.48 profit in 3Q 2020) The company reported a poor third quarter result with weaker earnings and control over costs, although revenues were flat. Third quarter 2021 results: Revenue: NT$815.1m (flat on 3Q 2020). Net loss: NT$31.6m (down 144% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • Aug 15
Second quarter 2021 earnings released: NT$0.51 loss per share (vs NT$0.22 profit in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: NT$973.4m (up 41% from 2Q 2020). Net loss: NT$76.9m (down 335% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 08
Upcoming dividend of NT$0.77 per share Eligible shareholders must have bought the stock before 15 July 2021. Payment date: 28 July 2021. Trailing yield: 2.0%. Lower than top quartile of Taiwanese dividend payers (5.0%). Lower than average of industry peers (6.5%). Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improved over the past week After last week's 15% share price gain to NT$42.50, the stock trades at a trailing P/E ratio of 32.2x. Average trailing P/E is 10x in the Basic Materials industry in Taiwan. Total returns to shareholders of 74% over the past three years. Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$0.18 (vs NT$0.27 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$858.2m (up 41% from 1Q 2020). Net income: NT$27.5m (up NT$67.3m from 1Q 2020). Profit margin: 3.2% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS NT$0.87 (vs NT$0.58 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$3.30b (up 16% from FY 2019). Net income: NT$130.6m (up 49% from FY 2019). Profit margin: 4.0% (up from 3.1% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 27% per year, which means it is well ahead of earnings. Duyuru • Feb 18
Ruentex Materials Co.,Ltd., Annual General Meeting, May 19, 2021 Ruentex Materials Co.,Ltd., Annual General Meeting, May 19, 2021. Is New 90 Day High Low • Dec 21
New 90-day high: NT$39.55 The company is up 4.0% from its price of NT$37.90 on 22 September 2020. The Taiwanese market is up 11% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Basic Materials industry, which is up 1.0% over the same period. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS NT$0.48 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$887.8m (up 26% from 3Q 2019). Net income: NT$71.7m (up 95% from 3Q 2019). Profit margin: 8.1% (up from 5.2% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 28% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Oct 29
New 90-day low: NT$36.00 The company is down 2.0% from its price of NT$36.90 on 31 July 2020. The Taiwanese market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is flat over the same period.