Asian Dividend Gems: Acter Co

• Based in Taiwan, Acter Co is capitalizing on its extensive experience of high-end cleanroom integration, recycling and regeneration systems, electromechanical engineering to generate consistent growth in earnings and cash flow.

• Acter Co's dividend yield averaged 8.2% from 2019 to 2022. Its annual dividend payout averaged 76% in the same period. Estimated dividend yield is 7% in 2023.

• We found Acter Co Ltd (5536 TT) using Smartkarma's Smart Score Screener system.

Conclusion First

Based in Taiwan, Acter Co Ltd (5536 TT) is capitalizing on its extensive experience of high-end cleanroom integration, recycling and regeneration systems, electromechanical engineering to generate consistent growth in earnings and cash flow. Semiconductor and electronics are two biggest customer segments of the company.

The company has high dividend yield which averaged 8.2% from 2019 to 2022. We believe its shares are also undervalued, trading at P/E of about 8x and P/B of 1.3x. These valuation multiples are about 20-25% discount to the company's historical valuation multiples in the past five years.