$ASE Technology (ASX.US)$Selected in the March 2022 analysis...

Launched in 2018, it is mainly engaged in semiconductor packaging and manufacturing business. 2/3 of the market is in the US, and the current price is 9.96.

In the past 5 years, revenue grew in the first 4 years, shrank 13.3% in 2023, with an average growth rate of 9.4%. Operating profit shrank 12.3% and 50.6% respectively in the first and last two years, increased in the middle 3 years, and net profit shrank 48.1% in 2023. Interest expenses account for 11.7% of operating profit in 2023, and the interest burden is slightly higher. Gross margin has also shrunk in the past 5 years and the first two years. It increased in the middle three years, reaching a maximum of 20.1%, falling back to 15.8% in 2023, and the return on net assets reaching a maximum of 25.6%, and falling to 10.7% in 2023.

Currently, the price-earnings ratio is 21.7. If the price-earnings ratio is 10.5 based on the 2022 net profit high, the price-earnings ratio corresponding to the 5-year average net profit is 16.3. Taken together, the valuation is not very attractive.