Asian Dividend Gems: Taidoc Technology

• Taidoc Technology is an attractive small cap health care stock in Taiwan. It has a solid dividend yield, strong balance sheet, and stable profits and free cash flow.

• The company's core business includes clinical equipment and professional instruments including diagnostic, telehealth, and blood sugar and blood pressure monitoring devices.

• We found Taidoc Technology using Smartkarma's Smart Score Screener system. It has top ranks in the Value and Dividend categories. However, it has lower rankings in the remaining categories.

Conclusion First

Taidoc Technology is an attractive small cap health care stock in Taiwan. It has a solid dividend yield, strong balance sheet (net cash is 26% of market cap), and stable profits and free cash flow. The company's core business includes clinical equipment and professional instruments including diagnostic, telehealth, and blood sugar and blood pressure monitoring devices.

Taidoc Technology is currently trading at P/E of 14.9x, EV/Sales of 2.6x, EV/EBITDA of 7.9x, and P/B of 1.7x in 2024. Its valuation multiple is trading at a discount to its historical valuation multiples in the past several years but at a premium to the historical valuation multiples.

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Taidoc Technology China DPS, Dividend Yield, & Dividend Payout

Taidoc Technology's dividend yield averaged 7.6% from 2019 to 2022. Its annual dividend payout averaged 71% in the same period. The company's DPS ranged from TWD 6.43 to TWD 19.98 from 2019 to 2022. The company's dividend yield increased from 4.9% in 2019 to 8.2% in 2021 and 10.8% in 2022.

The company's estimated net profit is 1.0 billion TWD in 2024 and the average dividend payout was 71% from 2019 to 2022. Assuming a dividend payout ratio of 71% in 2024, this would suggest a DPS of 7.43 TWD. Given the current price of 156 TWD, this would suggest a dividend yield of 4.8%.

Taidoc Technology Earnings & Dividends (Source: Smartkarma)

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How Did We Find Taidoc Technology?

We found Taidoc Technology (4736 TT) using Smartkarma's Smart Score Screener system. We used the following screening methodology:

• Market cap - More than $300 million

• Countries - Taiwan only

• Sector - All sectors

• Value + Dividends = Only 5

• Resilience = 4 to 5

• Growth = 3 to 5

• Momentum = 2 to 5

Using the criteria above resulted in a list of 10 stocks. Among these companies, we thought Taidoc Technology was the most interesting company to write about at this time.

Source: Smartkarma

Taidoc Technology's Smart Score is 3.8 out of 5.0. It has top ranks in the Value and Dividend categories. However, it has lower rankings in the remaining categories including Growth, Resilience, and Momentum.

Source: Smartkarma

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Taidoc Technology Company Background

Founded in 1998 and headquartered in Taipei, Taidoc Technology provides clinical equipment and professional instruments including diagnostic, telehealth, and blood sugar and blood pressure monitoring devices. The company successfully shifted its listing from the Taipei Exchange to the Taiwan Stock Exchange in 2023. Taidoc Technology has three major product segments including in vitro diagnostics, medical device, and telehealth.

• The company's vitro diagnostic products include biosensor, point of care testing, pen and needle, and vet health care products.

• The company's medical device products include vital signs monitor, pulse oximeter, nebulizer, and blood pressure monitor.

• Teledoc's telehealth products include remote monitoring device and software app.

In 2023, the proportion of revenue from epidemic prevention products declined while blood glucose testing products returned to the stable growth prior to the epidemic. Going forward, the company will focus on optimizing and developing product portfolios with high gross profit and high growth potential: multi-parameter measurement platforms, continuous blood glucose monitoring systems (CGM), smart ring physiology monitoring systems, and medical beauty and health care products.