Price Target Changed • May 05
Price target increased by 12% to NT$2,354 Up from NT$2,098, the current price target is an average from 9 analysts. New target price is 6.0% below last closing price of NT$2,505. Stock is up 293% over the past year. The company is forecast to post earnings per share of NT$66.90 for next year compared to NT$47.13 last year. Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$2,505, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 18x in the Communications industry in Taiwan. Total returns to shareholders of 794% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$1,438 per share. Price Target Changed • Apr 15
Price target increased by 9.6% to NT$1,998 Up from NT$1,823, the current price target is an average from 9 analysts. New target price is approximately in line with last closing price of NT$1,970. Stock is up 278% over the past year. The company is forecast to post earnings per share of NT$66.59 for next year compared to NT$47.13 last year. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$1,835, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 14x in the Communications industry in Taiwan. Total returns to shareholders of 513% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$1,329 per share. Buy Or Sell Opportunity • Apr 07
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 34% to NT$1,615. The fair value is estimated to be NT$1,345, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 42% over the last 3 years. Earnings per share has grown by 40%. Revenue is forecast to grow by 67% in 2 years. Earnings are forecast to grow by 79% in the next 2 years. Reported Earnings • Mar 14
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: NT$47.13 (up from NT$21.48 in FY 2024). Revenue: NT$248.3b (up 125% from FY 2024). Net income: NT$26.3b (up 120% from FY 2024). Profit margin: 11% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 31% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has increased by 69% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Mar 13
Accton Technology Corporation, Annual General Meeting, Jun 11, 2026 Accton Technology Corporation, Annual General Meeting, Jun 11, 2026. Location: no,1, yen hsin 3rd rd., hsinchu science park, hsinchu city Taiwan Price Target Changed • Mar 13
Price target increased by 11% to NT$1,826 Up from NT$1,651, the current price target is an average from 7 analysts. New target price is 27% above last closing price of NT$1,440. Stock is up 125% over the past year. The company is forecast to post earnings per share of NT$46.44 for next year compared to NT$21.48 last year. Buy Or Sell Opportunity • Mar 12
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 30% to NT$1,505. The fair value is estimated to be NT$1,246, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 34% over the last 3 years. Earnings per share has grown by 33%. Revenue is forecast to grow by 77% in 2 years. Earnings are forecast to grow by 78% in the next 2 years. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$1,390, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 18x in the Communications industry in Taiwan. Total returns to shareholders of 429% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$1,248 per share. New Risk • Dec 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 8.4% 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. This is currently the only risk that has been identified for the company. Price Target Changed • Dec 11
Price target increased by 8.3% to NT$1,563 Up from NT$1,443, the current price target is an average from 7 analysts. New target price is 37% above last closing price of NT$1,140. Stock is up 60% over the past year. The company is forecast to post earnings per share of NT$45.59 for next year compared to NT$21.48 last year. Price Target Changed • Nov 11
Price target increased by 12% to NT$1,443 Up from NT$1,290, the current price target is an average from 7 analysts. New target price is 47% above last closing price of NT$981. Stock is up 74% over the past year. The company is forecast to post earnings per share of NT$45.85 for next year compared to NT$21.48 last year. Reported Earnings • Nov 08
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: NT$14.00 (up from NT$4.74 in 3Q 2024). Revenue: NT$72.9b (up 159% from 3Q 2024). Net income: NT$7.83b (up 195% from 3Q 2024). Profit margin: 11% (up from 9.4% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) also surpassed analyst estimates by 4.7%. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 26% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 57% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Nov 05
Now 25% undervalued Over the last 90 days, the stock has risen 7.7% to NT$1,050. The fair value is estimated to be NT$1,400, 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 27%. Revenue is forecast to grow by 86% in 2 years. Earnings are forecast to grow by 97% in the next 2 years. Valuation Update With 7 Day Price Move • Oct 31
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$1,090, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 16x in the Communications industry in Taiwan. Total returns to shareholders of 359% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$1,341 per share. Price Target Changed • Oct 17
Price target increased by 11% to NT$1,290 Up from NT$1,159, the current price target is an average from 7 analysts. New target price is 35% above last closing price of NT$958. Stock is up 68% over the past year. The company is forecast to post earnings per share of NT$43.74 for next year compared to NT$21.48 last year. Buy Or Sell Opportunity • Oct 07
Now 25% undervalued Over the last 90 days, the stock has risen 29% to NT$1,030. The fair value is estimated to be NT$1,371, 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 27%. Revenue is forecast to grow by 81% in 2 years. Earnings are forecast to grow by 97% in the next 2 years. Reported Earnings • Aug 09
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: NT$9.01 (up from NT$4.62 in 2Q 2024). Revenue: NT$60.6b (up 148% from 2Q 2024). Net income: NT$5.03b (up 95% from 2Q 2024). Profit margin: 8.3% (down from 11% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.2%. Earnings per share (EPS) also surpassed analyst estimates by 2.4%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Communications 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 increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Aug 08
Consensus revenue estimates increase by 17% The consensus outlook for revenues in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$195.4b to NT$227.8b. EPS estimate increased from NT$38.17 to NT$41.45 per share. Net income forecast to grow 64% next year vs 32% growth forecast for Communications industry in Taiwan. Consensus price target up from NT$926 to NT$1,076. Share price rose 12% to NT$989 over the past week. Price Target Changed • Aug 08
Price target increased by 16% to NT$1,076 Up from NT$926, the current price target is an average from 8 analysts. New target price is 8.8% above last closing price of NT$989. Stock is up 101% over the past year. The company is forecast to post earnings per share of NT$41.45 for next year compared to NT$21.48 last year. Valuation Update With 7 Day Price Move • Jul 31
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$892, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 16x in the Communications industry in Taiwan. Total returns to shareholders of 271% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$1,583 per share. Upcoming Dividend • Jul 23
Upcoming dividend of NT$11.00 per share Eligible shareholders must have bought the stock before 30 July 2025. Payment date: 29 August 2025. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (2.4%). Board Change • Jun 17
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. 6 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Eizo Kobayashi 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. Insufficient board refreshment. Declared Dividend • Jun 14
Dividend increased to NT$11.00 Dividend of NT$11.00 is 10% higher than last year. Ex-date: 30th July 2025 Payment date: 29th August 2025 Dividend yield will be 1.4%, which is lower than the industry average of 2.3%. Sustainability & Growth Dividend is covered by both earnings (41% earnings payout ratio) and cash flows (75% cash payout ratio). The dividend has increased by an average of 26% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 64% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 10
First quarter 2025 earnings released: EPS: NT$9.17 (vs NT$4.02 in 1Q 2024) First quarter 2025 results: EPS: NT$9.17 (up from NT$4.02 in 1Q 2024). Revenue: NT$42.8b (up 127% from 1Q 2024). Net income: NT$5.13b (up 129% from 1Q 2024). Profit margin: 12% (in line with 1Q 2024). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • May 09
Consensus revenue estimates increase by 12% The consensus outlook for revenues in fiscal year 2025 has improved. 2025 revenue forecast increased from NT$162.9b to NT$182.7b. EPS estimate increased from NT$30.67 to NT$34.83 per share. Net income forecast to grow 63% next year vs 38% growth forecast for Communications industry in Taiwan. Consensus price target broadly unchanged at NT$900. Share price rose 6.6% to NT$662 over the past week. Duyuru • May 01
Accton Technology Corporation to Report Q1, 2025 Results on May 08, 2025 Accton Technology Corporation announced that they will report Q1, 2025 results on May 08, 2025 Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to NT$595, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the Communications industry in Taiwan. Total returns to shareholders of 173% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$407 per share. Buy Or Sell Opportunity • Apr 11
Now 25% overvalued Over the last 90 days, the stock has fallen 30% to NT$509. The fair value is estimated to be NT$409, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 24%. Revenue is forecast to grow by 70% in 2 years. Earnings are forecast to grow by 73% in the next 2 years. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$478, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 14x in the Communications industry in Taiwan. Total returns to shareholders of 137% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$410 per share. Reported Earnings • Mar 16
Full year 2024 earnings: Revenues exceed analyst expectations Full year 2024 results: Revenue: NT$110.4b (up 31% from FY 2023). Net income: NT$12.0b (up 35% from FY 2023). Profit margin: 11% (in line with FY 2023). Revenue exceeded analyst estimates by 2.0%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 25% growth forecast for the Communications industry in Taiwan. Duyuru • Mar 14
Accton Technology Corporation, Annual General Meeting, Jun 12, 2025 Accton Technology Corporation, Annual General Meeting, Jun 12, 2025. Location: no,1, yen hsin 3rd rd., hsinchu science park, hsinchu city Taiwan Duyuru • Mar 06
Accton Technology Corporation to Report Q4, 2024 Results on Mar 13, 2025 Accton Technology Corporation announced that they will report Q4, 2024 results on Mar 13, 2025 Price Target Changed • Feb 20
Price target increased by 7.5% to NT$849 Up from NT$789, the current price target is an average from 8 analysts. New target price is 20% above last closing price of NT$706. Stock is up 32% over the past year. The company is forecast to post earnings per share of NT$20.58 for next year compared to NT$15.99 last year. New Risk • Feb 12
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 6.2% 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. This is currently the only risk that has been identified for the company. Price Target Changed • Jan 14
Price target increased by 9.3% to NT$789 Up from NT$723, the current price target is an average from 8 analysts. New target price is 6.8% above last closing price of NT$739. Stock is up 44% over the past year. The company is forecast to post earnings per share of NT$20.01 for next year compared to NT$15.99 last year. New Risk • Nov 13
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 6.4% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 09
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: EPS: NT$4.75 (up from NT$4.28 in 3Q 2023). Revenue: NT$28.2b (up 26% from 3Q 2023). Net income: NT$2.65b (up 11% from 3Q 2023). Profit margin: 9.4% (down from 11% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) missed analyst estimates by 19%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 27% per year. Duyuru • Oct 15
Accton Technology Unveils Cutting-Edge Energy-Efficient Networking Solutions for Hyperscale and AI Data Centers Accton Technology announced its latest advancements in hyperscale data center network technologies, designed to meet the growing demands of artificial intelligence (AI) and Machine Learning (ML) applications. Accton Technology, together with its subsidiary Edgecore Networks, will have live demonstrations of these energy-efficient rack-level network solutions at the OCP Global Summit. Summit attendees will see firsthand how these innovative solutions can be immediately designed into their evolving hyperscale data centers which support the new generation of AI and ML models. Key Accton/Edgecore OCP Booth Highlights: Scalable AI Networking: Accton’s new AI-generation switching technologies will be on display demonstrating leadership performance and energy efficiency. These platforms will be shown with Edgecore’s advanced SONiC Network Operation System, and also feature full compatibility with any of the other Open Network Operating Systems. Scale-out technologies: Accton will be demonstrating the latest in advanced optics, power management, liquid open-loop and immersion cooling, and rack management systems. Combined with the core switching platforms, these innovations eliminate traditional deployment constraints, ensuring optimal performance and efficiency. Duyuru • Oct 14
DriveNets and Accton Technology Launch the Highest-Performance Ethernet-Based AI Networking Solution in the Industry with New Open Networking White Boxes Based on Broadcom Jericho-3-AI ASIC DriveNets and Accton Technology announced the successful testing and launch of two new white boxes based on Broadcom's Jericho-3-AI and Ramon-3 ASICs. DriveNets and Accton are the first companies to make the white boxes with the new Broadcom ASICs available for commercial AI networking use. The solution combines the proven high-scale software from DriveNets and white boxes from Accton, and supports AI and ML clusters with up to 32K GPUs connected with 800Gbps interfaces. The white boxes are based on the OCP DDC (Distributed Disaggregated Chassis) scheduled fabric architecture, offering a scalable solution that is fast and easy to deploy and can grow with a company's needs. This architecture successfully passed POC's with Tier 1 AI customers. The solution addresses the growing needs of hyperscalers building huge GPU clusters, as well as enterprises building large AI clusters with 1,000s of GPUs. The new Accton white boxes consist of: NCP-5 (AcctonASA926-18XKE), based on Broadcom'sJeron-3 ASIC, supporting 18 network ports of 800Gbps and 20 fabric ports of 800Gbps; NCF-2 (AcctonAS9936-128D), based on Broadcom's Ramon-3 ASIC supporting 128 fabric ports of 800Gbps. Prior to launch, the white boxes underwent rigorous testing in Accton's lab in Taiwan with NCP-5s, NCF-2s, Spirent AI workload emulation solution and Intel Gaud servers with 32 GPUs in a cluster running with BERT and ResNet models. The test results showed more than 30% better Job Completion Time (JCT) performance compared to Ethernet Clos architecture. This testing highlights the architecture's superiority of a DDC scheduled fabric over other Ethernet solutions and is on par with InfiniBand. The industry's first AI workload emulation solution provided by Spirent generates real-world AI traffic patterns at scale using RoCEv2 transport and with integrated Collective Communications Library (CCL) support, to identify issues that can lead to network congestion, higher latency and lower throughput. The solution reduces the complexity and effort required for validating AI infrastructures by providing repeatable testing and actionable metrics such as Job Completion Time (J CT), tail latency, algorithm and bus bandwidth, to intuitively diagnose performance and efficiency issues at a fraction of the cost compared to building real xPU systems. DriveNets and AcCTon will present the testing and its results at the2024 OCP Global Summit, October 15-17 in San Jose, CA. Buy Or Sell Opportunity • Oct 14
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 2.0% to NT$555. The fair value is estimated to be NT$449, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 26%. Revenue is forecast to grow by 42% in 2 years. Earnings are forecast to grow by 50% in the next 2 years. Duyuru • Sep 27
Accton Technology Corporation (TWSE:2345) agreed to acquire 40% stake in Shenzhen Muxi Network Co., Ltd. for CNY 200 million. Digital China Group Co., Ltd. (SZSE:000034) agreed to acquire Joytech Technology (Shenzhen) Co., Ltd. and Accton Technology Co., Ltd. from Accton Technology Corporation (TWSE:2345) for CNY 500 million on September 26, 2024. As part of the consideration, CNY 300 million will be paid in cash and 40% equity in MuXi Networks Ltd, a new entity to be formed by Digital China Group valued at CNY 200 million. Buy Or Sell Opportunity • Sep 27
Now 20% overvalued Over the last 90 days, the stock has fallen 2.2% to NT$543. The fair value is estimated to be NT$451, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 26%. Revenue is forecast to grow by 42% in 2 years. Earnings are forecast to grow by 50% in the next 2 years. Board Change • Sep 21
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. Vice Chairman Chiu-Hsia Wei was the last director to join the board, commencing their role in 2024. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Duyuru • Aug 09
Accton Technology Corporation Appoints Paul Kim as Chief Information Officer & Chief Information Security Officer Accton Technology Corporation appointed Mr. Paul Kim as Chief Information Officer & Chief Information Security Officer. Effective date is August 8, 2024. Duyuru • Aug 01
Accton Technology Corporation to Report Q2, 2024 Results on Aug 08, 2024 Accton Technology Corporation announced that they will report Q2, 2024 results on Aug 08, 2024 Reported Earnings • May 12
First quarter 2024 earnings: Revenues and EPS in line with analyst expectations First quarter 2024 results: EPS: NT$4.02 (up from NT$3.65 in 1Q 2023). Revenue: NT$18.8b (down 4.3% from 1Q 2023). Net income: NT$2.24b (up 10% from 1Q 2023). Profit margin: 12% (up from 10% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Communications 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 19% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$469, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 19x in the Communications industry in Taiwan. Total returns to shareholders of 72% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$355 per share. Duyuru • May 02
Accton Technology Corporation to Report Q1, 2024 Results on May 09, 2024 Accton Technology Corporation announced that they will report Q1, 2024 results on May 09, 2024 Buy Or Sell Opportunity • Apr 26
Now 20% overvalued Over the last 90 days, the stock has fallen 16% to NT$428. The fair value is estimated to be NT$356, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 27%. Revenue is forecast to grow by 35% in 2 years. Earnings are forecast to grow by 52% in the next 2 years. Reported Earnings • Mar 09
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: NT$15.99 (up from NT$14.64 in FY 2022). Revenue: NT$84.2b (up 9.0% from FY 2022). Net income: NT$8.92b (up 9.2% from FY 2022). Profit margin: 11% (in line with FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.5%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 27% per year whereas the company’s share price has increased by 23% per year. Duyuru • Mar 08
Accton Technology Corporation, Annual General Meeting, Jun 13, 2024 Accton Technology Corporation, Annual General Meeting, Jun 13, 2024. Location: 1 Creation Rd.III,Science-based Industrial Park Hsinchu Taiwan Agenda: To consider report on the Company's 2023 business; to consider report on the Company's 2023 Review Checklist by the Audit Committee; to consider report on the Company's 2023 employees compensation and directors; to consider 2023 Business Report and Financial Statement; to consider 2023 Profit Distribution Proposal; and to consider any other matters. Reported Earnings • Nov 14
Third quarter 2023 earnings: EPS misses analyst expectations Third quarter 2023 results: EPS: NT$4.28 (down from NT$4.41 in 3Q 2022). Revenue: NT$22.4b (up 9.0% from 3Q 2022). Net income: NT$2.39b (down 3.1% from 3Q 2022). Profit margin: 11% (down from 12% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.7%. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 27% per year whereas the company’s share price has increased by 29% per year. Price Target Changed • Oct 18
Price target increased by 15% to NT$553 Up from NT$479, the current price target is an average from 6 analysts. New target price is 14% above last closing price of NT$484. Stock is up 100% over the past year. The company is forecast to post earnings per share of NT$16.38 for next year compared to NT$14.64 last year. Duyuru • Sep 14
Accton Announces 800G-Optimized Products That Provide Ethernet and Voq Fabrics for Ai/Ml Workloads Accton Technology Corporation announced a series of 800G-optimized products that can provide Ethernet-based fabric and Virtual Output Queue (VoQ) based fabric for AI/ML workloads. The announcement includes a 2RU 51.2 Tbps Ethernet-based fabric system with 64x800G ports, a 4RU 51.2 Tbps Ethernet-based fabric system with 128x400G ports, and a VoQ-based fabric Distributed Disaggregated Chassis (DDC) architecture with a 128x800G Network Cloud Fabric (NCF) engine. The hype of generative AI has drastically accelerated the size and network bandwidth required in AI/ML clusters with the number of compute nodes and accelerators growing significantly. AI networks require high-capacity systems in a flat architecture that can handle large amounts of data with low latency and high throughput. To meet the demands of AI/ML workloads, either Ethernet-based fabrics or VoQ-based fabrics are being adopted to reduce job completion time. Accton's 51.2 Tbps Broadcom StrataXGS(R) Tomahawk(R) 5 series-based system with 64x800G or 128x400G ports provides a high-radix, deployment-friendly Ethernet-fabric. The 2RU system design is robust and packed in a compact form factor with power and fan tray redundancy to achieve five-nines high availability and a wide environmental operating range for data center cloud applications. With a design that does not use flyover cables, the system offers known good system quality and reliability while preserving the port assignment flexibility for customers. The platform comes in two variants, OSFP800 or QSFP-DD800 interface options, for flexible deployment supporting passive copper DAC on all ports and long-distance ZR+ optics. The 4RU 51.2 Tbps Tomahawk 5 series-based 128x400G system provides high-radix 200G/400G QSFP112 (compatible with QSFP56 and QSFP28) connectivity to accelerators and compute nodes in a flat architecture that reduces latency and required power, which enables networks to be scaled-out sustainably. Accton's Broadcom StrataDNX(TM) Jericho3-AI and StrataDNX(TM) Ramon3 systems are designed to form a VoQ-based fabric DDC Network Cloud Cluster that is optimized to support AI/ML applications. The Broadcom Jericho3-AI based Network Cloud Packet Forwarder (NCP) supports a 14.4 Tbps full-duplex switching and features 18x800G OSFP network interface ports and 20x800G OSFP fabric interface ports. The Broadcom Ramon3-based Network Cloud Fabric (NCF) engine supports a 51.2 Tbpsswitching capacity. The cell-based switching eliminates the Ethernet overhead and can effectively load balance all fabric links to build an efficient and high-availability DDC cluster. With Accton's 6RU, dual-Ramon3, 128x800G (dual-51.2 Tbps) fabric port switch and 2RU, Jericho3-AI, 18x800G (14.4 Tbps leaf) Ethernet network interface port switch, customers can build a 32K-GPU 800G/400G AI/ML cluster with a two-stage DDC network architecture to enable 400G GPU clusters now and migrate to 800G GPU clusters later with a software upgrade without replacing the switches. This provides excellent cost saving and investment protection that reduces capital spending while providing the flexibility for customers to "pay as you grow" without large upfront cost to enable AI and ML applications. Accton takes the hardware design further for the dual-Ramon3 system by optimizing the port mapping within the box, achieving traffic load balancing that accommodates extreme traffic conditions. The innovative design approach reduces the restrictions for network architects to balance traffic loads. With more than thirty years of networking equipment design experience, Accton's Ramon3 and Jericho3-AI systems offer much lower system power consumption, reduced latency, minimized port-to-port timing skews, and high manufacturability with no flyover cables. AvailabilityAccton's Tomahawk-based Ethernet fabric has already achieved First Customer Shipment (FCS) in July. The Jericho3/Ramon3 VoQ-based fabric will achieve General Availability (GA) in Fourth Quarter 2023. Product Details are available at website. New Risk • Aug 25
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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$453, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 14x in the Communications industry in Taiwan. Total returns to shareholders of 103% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$216 per share. Reported Earnings • Aug 11
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: NT$4.02 (up from NT$3.72 in 2Q 2022). Revenue: NT$20.1b (up 7.6% from 2Q 2022). Net income: NT$2.24b (up 8.3% from 2Q 2022). Profit margin: 11% (in line with 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.6%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 19% per year. Price Target Changed • Aug 09
Price target increased by 7.8% to NT$390 Up from NT$362, the current price target is an average from 7 analysts. New target price is approximately in line with last closing price of NT$380. Stock is up 36% over the past year. The company is forecast to post earnings per share of NT$15.93 for next year compared to NT$14.64 last year. Upcoming Dividend • Jul 26
Upcoming dividend of NT$7.50 per share at 1.9% yield Eligible shareholders must have bought the stock before 02 August 2023. Payment date: 31 August 2023. Payout ratio is a comfortable 47% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Taiwanese dividend payers (5.4%). Lower than average of industry peers (2.8%). Duyuru • Jun 16
Accton Technology Corporation Announces Cash Dividends, Payable August 31 2023 The board of directors or shareholders meeting or decision by the Accton Technology Corporation:2023/06/15, Type and monetary amount of dividend distribution: Cash dividends TWD 4,201,116,728 (TWD 7.5 per share) Ex-rights (ex-dividend) trading date: August 02 2023. Last date before book closure: August 03 2023.Book closure starting date: August 04 2023. Book closure ending date: August 08 2023. Ex-rights (ex-dividend) record date: August 08 2023. Payment date of cash dividend distribution: August 31 2023. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to NT$358, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 14x in the Communications 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$166 per share. Duyuru • May 13
Accton Technology Corporation Appoints Jun Shi as Executive Vice President and Chief Revenue Officer Accton Technology Corp. has appointed Jun Shi as executive vice president and Chief Revenue officer, to lead sales and business development. Jun Shi brings extensive experience and expertise in Sales, Business Development, Product Management, and Engineering. Jun played instrumental roles in the growth of startups like Volterra, leading from inception to successful acquisitions by F5. Additionally, he spearheaded record-breaking product innovation and growth at renowned networking corporations such as Juniper Networks and Cisco. Reported Earnings • Mar 16
Full year 2022 earnings: EPS in line with analyst expectations despite revenue beat Full year 2022 results: EPS: NT$14.64 (up from NT$8.44 in FY 2021). Revenue: NT$77.2b (up 30% from FY 2021). Net income: NT$8.17b (up 74% from FY 2021). Profit margin: 11% (up from 7.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Communications industry in Taiwan. 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 26% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Jan 17
Accton Technology Corporation Announces Resignation of Avigdor Willenz as Audit Committee Member Accton Technology Corporation announced resignation of Mr. Avigdor Willenz as audit committee member. Reported Earnings • Nov 16
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: NT$4.41 (up from NT$1.97 in 3Q 2021). Revenue: NT$20.6b (up 35% from 3Q 2021). Net income: NT$2.46b (up 125% from 3Q 2021). Profit margin: 12% (up from 7.2% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. No experienced directors. No highly experienced directors. Independent Director Fa-Yauh Lee is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 12
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: NT$4.41 (up from NT$1.97 in 3Q 2021). Revenue: NT$20.6b (up 35% from 3Q 2021). Net income: NT$2.46b (up 125% from 3Q 2021). Profit margin: 12% (up from 7.2% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Communications industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Aug 18
Consensus EPS estimates increase by 19% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from NT$70.9b to NT$74.2b. EPS estimate increased from NT$10.85 to NT$12.88 per share. Net income forecast to grow 25% next year vs 29% growth forecast for Communications industry in Taiwan. Consensus price target up from NT$275 to NT$310. Share price rose 2.5% to NT$286 over the past week. Reported Earnings • Aug 13
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: NT$3.72 (up from NT$1.72 in 2Q 2021). Revenue: NT$18.7b (up 33% from 2Q 2021). Net income: NT$2.07b (up 116% from 2Q 2021). Profit margin: 11% (up from 6.8% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 8.4%. Earnings per share (EPS) also surpassed analyst estimates by 42%. Over the next year, revenue is forecast to grow 17%, compared to a 23% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Aug 12
Price target increased to NT$305 Up from NT$275, the current price target is an average from 7 analysts. New target price is 10% above last closing price of NT$277. Stock is down 6.9% over the past year. The company is forecast to post earnings per share of NT$12.88 for next year compared to NT$8.44 last year. Upcoming Dividend • Jul 28
Upcoming dividend of NT$6.00 per share Eligible shareholders must have bought the stock before 04 August 2022. Payment date: 31 August 2022. Payout ratio is a comfortable 69% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Taiwanese dividend payers (6.7%). Lower than average of industry peers (3.0%). Duyuru • Jul 21
Accton Technology Corporation Changes its Cash Dividends for 2021 Accton Technology Corporation changed 2021 distributing plan of Cash dividends TWD 3,359,576,382 (TWD 5.9987 per share), at its Board meeting held on June 16, 2022. Reason for the change: Due to employees exercise employee stock options, the outstanding shares of the company had changed. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment improved over the past week After last week's 19% share price gain to NT$265, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 14x in the Communications industry in Taiwan. Total returns to shareholders of 103% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$228 per share. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment deteriorated over the past week After last week's 17% share price decline to NT$204, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 12x in the Communications industry in Taiwan. Total returns to shareholders of 69% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$225 per share.