Buy Or Sell Opportunity • Jul 31
Now 29% overvalued Over the last 90 days, the stock has fallen 44% to NT$5,815. The fair value is estimated to be NT$4,503, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to grow by 240% in 2 years. Earnings are forecast to grow by 356% in the next 2 years. New Risk • Jul 22
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 12% 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 (12% average weekly change). High level of non-cash earnings (43% accrual ratio). Upcoming Dividend • Jul 10
Upcoming dividend of NT$49.44 per share Eligible shareholders must have bought the stock before 17 July 2026. Payment date: 18 August 2026. Payout ratio is a comfortable 50% but the company is paying out more than the cash it is generating. Trailing yield: 0.3%. Lower than top quartile of Taiwanese dividend payers (5.0%). Lower than average of industry peers (1.0%). Declared Dividend • Jun 25
Dividend of NT$50.00 announced Shareholders will receive a dividend of NT$50.00. Ex-date: 17th July 2026 Payment date: 18th August 2026 Dividend yield will be 0.5%, which is lower than the industry average of 3.0%. Payout Ratios Payout ratio: 51%. Cash payout ratio: 154%. New Risk • May 28
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 12% 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 (12% average weekly change). High level of non-cash earnings (43% accrual ratio). Major Estimate Revision • May 19
Consensus EPS estimates increase by 15%, revenue downgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast fell from NT$14.3b to NT$13.5b. EPS estimate rose from NT$93.74 to NT$108. Net income forecast to grow 146% next year vs 55% growth forecast for Semiconductor industry in Taiwan. Consensus price target up from NT$8,328 to NT$8,956. Share price fell 3.5% to NT$9,605 over the past week. Reported Earnings • May 13
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: NT$19.00 (up from NT$17.21 in 1Q 2025). Revenue: NT$2.98b (up 30% from 1Q 2025). Net income: NT$698.6m (up 14% from 1Q 2025). Profit margin: 23% (down from 27% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) also surpassed analyst estimates by 2.6%. Revenue is forecast to grow 49% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has increased by 144% per year, which means it is tracking significantly ahead of earnings growth. New Risk • May 13
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 43% 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 (43% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (12% average weekly change). Major Estimate Revision • Mar 13
Consensus revenue estimates increase by 19% The consensus outlook for revenues in fiscal year 2026 has improved. 2026 revenue forecast increased from NT$11.2b to NT$13.3b. EPS estimate increased from NT$71.43 to NT$93.35 per share. Net income forecast to grow 100% next year vs 43% growth forecast for Semiconductor industry in Taiwan. Consensus price target up from NT$4,138 to NT$4,732. Share price rose 20% to NT$6,285 over the past week. Reported Earnings • Mar 11
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: NT$46.93 (up from NT$34.31 in FY 2024). Revenue: NT$7.86b (up 36% from FY 2024). Net income: NT$1.67b (up 41% from FY 2024). Profit margin: 21% (in line with FY 2024). Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) exceeded analyst estimates by 2.3%. Revenue is forecast to grow 37% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Semiconductor 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 increased by 116% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Feb 26
WinWay Technology Co., Ltd., Annual General Meeting, Jun 17, 2026 WinWay Technology Co., Ltd., Annual General Meeting, Jun 17, 2026. Location: no,600, chia ch`ang rd., nanzih district, kaohsiung city Taiwan Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$3,280, the stock trades at a forward P/E ratio of 57x. Average forward P/E is 23x in the Semiconductor industry in Taiwan. Total returns to shareholders of 712% over the past three years. Valuation Update With 7 Day Price Move • Nov 25
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$2,530, the stock trades at a forward P/E ratio of 47x. Average forward P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 512% over the past three years. Price Target Changed • Nov 21
Price target increased by 8.0% to NT$2,078 Up from NT$1,924, the current price target is an average from 6 analysts. New target price is 10% below last closing price of NT$2,310. Stock is up 75% over the past year. The company is forecast to post earnings per share of NT$45.25 for next year compared to NT$34.31 last year. Price Target Changed • Sep 26
Price target increased by 15% to NT$1,704 Up from NT$1,477, the current price target is an average from 5 analysts. New target price is 19% below last closing price of NT$2,095. Stock is up 68% over the past year. The company is forecast to post earnings per share of NT$45.39 for next year compared to NT$34.31 last year. Valuation Update With 7 Day Price Move • Sep 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$1,845, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 25x in the Semiconductor industry in Taiwan. Total returns to shareholders of 401% over the past three years. Valuation Update With 7 Day Price Move • Aug 29
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to NT$1,375, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 21x in the Semiconductor industry in Taiwan. Total returns to shareholders of 256% over the past three years. Reported Earnings • Aug 15
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: NT$5.76 (down from NT$6.52 in 2Q 2024). Revenue: NT$1.52b (up 21% from 2Q 2024). Net income: NT$205.0m (down 8.6% from 2Q 2024). Profit margin: 14% (down from 18% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 7.7%. Earnings per share (EPS) also missed analyst estimates by 33%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 46% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jul 11
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 Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Upcoming Dividend • Jun 30
Upcoming dividend of NT$25.00 per share Eligible shareholders must have bought the stock before 07 July 2025. Payment date: 01 August 2025. Payout ratio is a comfortable 55% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Taiwanese dividend payers (5.2%). Lower than average of industry peers (2.2%). Price Target Changed • Jun 28
Price target increased by 7.4% to NT$1,446 Up from NT$1,346, the current price target is an average from 5 analysts. New target price is 18% above last closing price of NT$1,230. Stock is up 17% over the past year. The company is forecast to post earnings per share of NT$47.05 for next year compared to NT$34.31 last year. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$1,105, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 16x in the Semiconductor industry in Taiwan. Total returns to shareholders of 189% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$564 per share. Price Target Changed • May 13
Price target decreased by 9.6% to NT$1,308 Down from NT$1,446, the current price target is an average from 4 analysts. New target price is 35% above last closing price of NT$968. Stock is up 14% over the past year. The company is forecast to post earnings per share of NT$51.95 for next year compared to NT$34.31 last year. Reported Earnings • May 11
First quarter 2025 earnings: EPS in line with analyst expectations despite revenue beat First quarter 2025 results: EPS: NT$17.21 (up from NT$5.81 in 1Q 2024). Revenue: NT$2.30b (up 114% from 1Q 2024). Net income: NT$612.8m (up 207% from 1Q 2024). Profit margin: 27% (up from 19% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 7.4% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Apr 30
WinWay Technology Co., Ltd. to Report Q1, 2025 Results on May 07, 2025 WinWay Technology Co., Ltd. announced that they will report Q1, 2025 results on May 07, 2025 Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$866, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 17x in the Semiconductor industry in Taiwan. Total returns to shareholders of 166% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$890 per share. Buy Or Sell Opportunity • Apr 09
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 42% to NT$704. The fair value is estimated to be NT$889, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 6.8%. Revenue is forecast to grow by 55% in 2 years. Earnings are forecast to grow by 58% in the next 2 years. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to NT$782, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 119% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$889 per share. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$1,160, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 175% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$951 per share. New Risk • Mar 14
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 120% Dividend yield: 2.0% 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 Risk Share price has been highly volatile over the past 3 months (9.8% average weekly change). Minor Risk Dividend is not well covered by cash flows (120% cash payout ratio). Duyuru • Feb 19
WinWay Technology Co., Ltd. to Report Fiscal Year 2024 Results on Feb 26, 2025 WinWay Technology Co., Ltd. announced that they will report fiscal year 2024 results on Feb 26, 2025 Valuation Update With 7 Day Price Move • Feb 18
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$1,425, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 297% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$700 per share. New Risk • Dec 30
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 7.8% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$1,090, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 191% over the past three years. Reported Earnings • Nov 18
Third quarter 2024 earnings: EPS misses analyst expectations Third quarter 2024 results: EPS: NT$11.75 (up from NT$3.70 in 3Q 2023). Revenue: NT$1.93b (up 96% from 3Q 2023). Net income: NT$404.2m (up 219% from 3Q 2023). Profit margin: 21% (up from 13% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.1%. Revenue is forecast to grow 38% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Semiconductor industry in Taiwan. 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 54% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Nov 05
WinWay Technology Co., Ltd. to Report Q3, 2024 Results on Nov 12, 2024 WinWay Technology Co., Ltd. announced that they will report Q3, 2024 results on Nov 12, 2024 Major Estimate Revision • Oct 09
Consensus revenue estimates increase by 13% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$5.59b to NT$6.34b. EPS estimate increased from NT$32.67 to NT$37.72 per share. Net income forecast to grow 165% next year vs 33% growth forecast for Semiconductor industry in Taiwan. Consensus price target up from NT$1,108 to NT$1,258. Share price fell 4.9% to NT$1,165 over the past week. Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$1,315, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 22x in the Semiconductor industry in Taiwan. Total returns to shareholders of 493% over the past three years. Reported Earnings • Aug 07
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: NT$6.52 (up from NT$3.96 in 2Q 2023). Revenue: NT$1.26b (up 24% from 2Q 2023). Net income: NT$224.1m (up 65% from 2Q 2023). Profit margin: 18% (up from 13% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.8%. Earnings per share (EPS) also missed analyst estimates by 19%. Revenue is forecast to grow 41% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 52% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$855, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 22x in the Semiconductor industry in Taiwan. Total returns to shareholders of 240% over the past three years. Duyuru • Jul 24
WinWay Technology Co., Ltd. to Report Q2, 2024 Results on Jul 31, 2024 WinWay Technology Co., Ltd. announced that they will report Q2, 2024 results on Jul 31, 2024 Upcoming Dividend • Jul 15
Upcoming dividend of NT$11.00 per share Eligible shareholders must have bought the stock before 22 July 2024. Payment date: 15 August 2024. Payout ratio is a comfortable 73% but the company is not cash flow positive. Trailing yield: 1.1%. Lower than top quartile of Taiwanese dividend payers (4.2%). Lower than average of industry peers (1.9%). Major Estimate Revision • Jun 29
Consensus EPS estimates increase by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$5.12b to NT$5.46b. EPS estimate increased from NT$28.48 to NT$33.53 per share. Net income forecast to grow 153% next year vs 31% growth forecast for Semiconductor industry in Taiwan. Consensus price target up from NT$922 to NT$1,108. Share price rose 2.9% to NT$1,050 over the past week. Declared Dividend • Jun 27
Dividend reduced to NT$11.00 Dividend of NT$11.00 is 50% lower than last year. Ex-date: 22nd July 2024 Payment date: 15th August 2024 Dividend yield will be 1.0%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (73% 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 36 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 45% over the next year, which should provide support to the dividend and adequate earnings cover. Duyuru • Jun 25
WinWay Technology Co., Ltd. Announces Cash Dividend, Payable on August 15, 2024 WinWay Technology Co. announced by the board of directors or shareholders meeting or decision by the Company on June 24, 2024, cash dividends to common share of TWD 377,977,820 (TWD 11 per share); Ex-rights (ex-dividend) trading date is July 22, 2024; Ex-rights (ex-dividend) record date is July 28, 2024; Payment date of common stock cash dividend distribution is August 15, 2024. Valuation Update With 7 Day Price Move • Jun 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$1,040, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 23x in the Semiconductor industry in Taiwan. Total returns to shareholders of 314% over the past three years. Price Target Changed • May 14
Price target increased by 11% to NT$922 Up from NT$828, the current price target is an average from 3 analysts. New target price is 8.7% above last closing price of NT$848. Stock is up 28% over the past year. The company is forecast to post earnings per share of NT$28.48 for next year compared to NT$13.52 last year. Reported Earnings • May 12
First quarter 2024 earnings: EPS exceeds analyst expectations First quarter 2024 results: EPS: NT$5.81 (up from NT$4.18 in 1Q 2023). Revenue: NT$1.07b (up 6.4% from 1Q 2023). Net income: NT$199.7m (up 39% from 1Q 2023). Profit margin: 19% (up from 14% in 1Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 43%. Revenue is forecast to grow 26% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 51% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • May 02
WinWay Technology Co., Ltd. to Report Q1, 2024 Results on May 08, 2024 WinWay Technology Co., Ltd. announced that they will report Q1, 2024 results on May 08, 2024 Valuation Update With 7 Day Price Move • Apr 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$905, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 22x in the Semiconductor industry in Taiwan. Total returns to shareholders of 166% over the past three years. Reported Earnings • Mar 13
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: NT$13.52 (down from NT$32.22 in FY 2022). Revenue: NT$3.68b (down 28% from FY 2022). Net income: NT$464.0m (down 58% from FY 2022). Profit margin: 13% (down from 22% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) also missed analyst estimates by 6.9%. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 23% per year. Price Target Changed • Nov 24
Price target decreased by 11% to NT$828 Down from NT$933, the current price target is an average from 3 analysts. New target price is 16% above last closing price of NT$714. Stock is up 68% over the past year. The company is forecast to post earnings per share of NT$14.24 for next year compared to NT$32.22 last year. Major Estimate Revision • Nov 24
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$4.06b to NT$3.90b. EPS estimate also fell from NT$16.65 per share to NT$14.76 per share. Net income forecast to grow 25% next year vs 19% growth forecast for Semiconductor industry in Taiwan. Consensus price target down from NT$933 to NT$893. Share price fell 2.6% to NT$714 over the past week. Buying Opportunity • Nov 23
Now 20% undervalued Over the last 90 days, the stock is up 23%. The fair value is estimated to be NT$932, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 26% over the last 3 years. Earnings per share has grown by 28%. Revenue is forecast to grow by 53% in 2 years. Earnings is forecast to grow by 98% in the next 2 years. Reported Earnings • Aug 14
Second quarter 2023 earnings: Revenues in line with analyst expectations Second quarter 2023 results: Revenue: NT$1.02b (down 3.8% from 2Q 2022). Net income: NT$135.7m (down 35% from 2Q 2022). Profit margin: 13% (down from 20% in 2Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue was in line with analyst estimates. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Taiwan. 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 10% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 09
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$4.42b to NT$4.34b. EPS estimate also fell from NT$22.76 per share to NT$20.06 per share. Net income forecast to shrink 24% next year vs 6.0% decline forecast for Semiconductor industry in Taiwan. Consensus price target broadly unchanged at NT$905. Share price fell 11% to NT$638 over the past week. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$689, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 20x in the Semiconductor industry in Taiwan. Total returns to shareholders of 58% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$416 per share. Major Estimate Revision • Jul 13
Consensus revenue estimates fall by 14% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$5.06b to NT$4.35b. EPS estimate fell from NT$28.92 to NT$22.80 per share. Net income forecast to shrink 19% next year vs 13% decline forecast for Semiconductor industry in Taiwan. Consensus price target up from NT$760 to NT$828. Share price was steady at NT$854 over the past week. Upcoming Dividend • Jul 04
Upcoming dividend of NT$22.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 11 July 2023. Payment date: 03 August 2023. Payout ratio is a comfortable 67% 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 (5.4%). Lower than average of industry peers (3.2%). Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$908, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 19x in the Semiconductor industry in Taiwan. Total returns to shareholders of 87% over the past three years. Duyuru • Jun 30
MPI Corporation Files Lawsuit for Violation of Trade Secrets Against Winway Technology MPI Corporation filed lawsuit for violation of trade secrets that goes against Winway Technology and several former MPI employees has been prosecuted at Hsinchu District Attorney’s Office and received order for prosecution from Taiwan High Prosecutors Office (a.k.a. First lawsuit). Currently this lawsuit is still under investigation at Criminal Court at Hsinchu Local Court. However,during the investigation process of first lawsuit with Winway Technology, the company found out more evidences that proved defendants had deliberately abused MPI’s trade secrets on its production process. Hence, MPI filed another lawsuit to Winway company itself and several employees who were former MPI employees (aka. 2nd lawsuit). On 27th of June 2023, MPI received “Not to Prosecuted”from Hsinchu Local Attorneys Office for 2nd lawsuit. MPI is deeply disappointed with the result and will apply for reconsideration of the ruling till the justice is with us. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$838, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 135% over the past three years. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$684, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 18x in the Semiconductor industry in Taiwan. Total returns to shareholders of 238% over the past three years. Reported Earnings • Feb 27
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: NT$32.22 (up from NT$14.46 in FY 2021). Revenue: NT$5.12b (up 77% from FY 2021). Net income: NT$1.10b (up 126% from FY 2021). Profit margin: 22% (up from 17% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 8.3%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 5.2% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 19% per year. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$526, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 15x in the Semiconductor industry in Taiwan. Total returns to shareholders of 48% over the past three years. Buying Opportunity • Dec 20
Now 23% undervalued Over the last 90 days, the stock is up 3.4%. The fair value is estimated to be NT$533, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 3.5%. Revenue is forecast to grow by 26% in 2 years. Earnings is forecast to grow by 23% in the next 2 years. Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improved over the past week After last week's 20% share price gain to NT$430, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 13x in the Semiconductor industry in Taiwan. Total loss to shareholders of 7.5% over the past three years. Reported Earnings • Nov 17
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: NT$10.79 (up from NT$3.56 in 3Q 2021). Revenue: NT$1.56b (up 106% from 3Q 2021). Net income: NT$368.8m (up 206% from 3Q 2021). Profit margin: 24% (up from 16% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 30%. Earnings per share (EPS) also surpassed analyst estimates by 76%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Semiconductor industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 4 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Dennis Chang was the last independent 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. Lack of board continuity. Reported Earnings • Aug 14
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: NT$6.12 (up from NT$2.50 in 2Q 2021). Revenue: NT$1.06b (up 65% from 2Q 2021). Net income: NT$208.4m (up 147% from 2Q 2021). Profit margin: 20% (up from 13% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 9.2%. Earnings per share (EPS) also surpassed analyst estimates by 21%. Over the next year, revenue is forecast to grow 17%, compared to a 20% growth forecast for the industry in Taiwan. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$312, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 9x in the Semiconductor industry in Taiwan. Total returns to shareholders of 20% over the past year. Upcoming Dividend • Jun 24
Upcoming dividend of NT$10.98 per share Eligible shareholders must have bought the stock before 01 July 2022. Payment date: 26 July 2022. Payout ratio is a comfortable 67% but the company is paying out more than the cash it is generating. Trailing yield: 2.9%. Lower than top quartile of Taiwanese dividend payers (6.4%). Lower than average of industry peers (3.5%). Valuation Update With 7 Day Price Move • Jun 22
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$372, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 10x in the Semiconductor industry in Taiwan. Total returns to shareholders of 40% over the past year. Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improved over the past week After last week's 18% share price gain to NT$410, the stock trades at a trailing P/E ratio of 25x. Average trailing P/E is 15x in the Semiconductor industry in Taiwan. Total returns to shareholders of 56% over the past year. Buying Opportunity • May 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 14%. The fair value is estimated to be NT$455, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.4% over the last 3 years. Earnings per share has declined by 2.7%. Reported Earnings • May 22
First quarter 2022 earnings released: EPS: NT$3.52 (vs NT$1.38 in 1Q 2021) First quarter 2022 results: EPS: NT$3.52 (up from NT$1.38 in 1Q 2021). Revenue: NT$800.8m (up 47% from 1Q 2021). Net income: NT$119.2m (up 162% from 1Q 2021). Profit margin: 15% (up from 8.3% in 1Q 2021). The increase in margin was driven by higher revenue.