Asian Dividend Gems: Nova Technology Corp

• Nova Technology Corp is a leading company in Taiwan in integrating water, gas, and chemical systems for high-tech industrial facilities.

• Nova Technology provides high dividend payout and excellent dividend yield. From 2019 to 2023, the company's dividend payout and dividend yield averaged 71.7% and 7.2%, respectively.

• Nova Technology generates high levels of ROE. Its ROE improved from 23% in 2021 to 28.7% in 2022 and 30.3% in 2023.

How We Found Nova Technology

We found Nova Technology using Smartkarma's Smartscore Screener. We used the following three criteria:

• Include companies in the following three countries (Taiwan, Philippines, and Vietnam)

• Include companies with market cap of more than US$100 million

• Include companies with Dividend Score of 4 or 5 (out of 5)

Using these three criteria, there are 50 companies in the list, of which Nova Technology is the second highly ranked company.

Source: Smartkarma's Smartscore Screener

Nova Technology Corp Company Background

Established in 1997, Nova Technology Corp is a leading company in Taiwan in integrating water, gas, and chemical systems for high-tech industrial facilities. The company offers a comprehensive suite of services tailored to the high-tech industry which are as follows:

• System Integration: Specializing in the integration of water, gas, and chemical systems essential for high-tech manufacturing facilities.

• Engineering Services: Providing design, installation, and maintenance of industrial machinery and equipment.

• Network Communication Services: Offering virtual private networks, fixed network data services, and other communication solutions.

Industry Applications - Nova Technology's market reach is amplified by its solutions' critical applications in several high-demand sectors:

• Semiconductor Manufacturing: Providing ultra-pure water systems and specialty gas integration, essential for chip fabrication. Recent projects in the semiconductor sector include delivering ultra-pure water systems and specialty chemical handling solutions to new semiconductor fabs in Taiwan and China.

• Display Manufacturing: Supporting LCD and OLED display manufacturers with advanced chemical systems.

• Green Energy: Facilitating the production of solar panels and other renewable energy solutions. In the green energy projects, the company has been collaborating with solar energy firms to develop advanced chemical and gas integration systems for photovoltaic panel manufacturing.

The chart below provides the main products of Nova Tech Corp. According to the company, it breaks down its revenue in 1Q-3Q 2024 into three main businesses including the following:

• High-tech process equipment (62%) - High tech industrial water, gas and chemical process supply system design, wet process equipment manufacturing

• Specialty gas supply system (34%) - High tech industrial water, gas and chemical process supply system equipment manufacturing, construction installation and testing

• Green sustainable integration services (4%) - High tech industrial wastewater, waste gas and waste chemical recycling and reuse of equipment, integrated design, installation and testing

Source: Company data