Hua You Yi, Partner of Motech, Goes Ex-Dividend on TWD 0.50 Dividend, Faces Severe Discounting but Hopes for Turnaround in Second Half

Hua You Yi (6877-TW), a key partner of AOI equipment manufacturer Motech (3563-TW), is actively transforming its business operations. However, its performance in the first half of 2026 has been weak, with financial improvement expected only in the second half. Today (20th), Hua You Yi went ex-dividend on its TWD 0.50 per share dividend for the previous year, with a reference price of TWD 124.50. The stock traded at a severe discount, hitting a low of TWD 118.00.

The dividend is scheduled to be paid on August 13.

Hua You Yi reported first-quarter 2026 revenue of TWD 38.92 million, with a gross margin of 47.74%, down 2.22 percentage points quarter-on-quarter but up 18.48 percentage points year-on-year. Despite the improved margin, the company incurred an operating loss, posting a net loss of TWD 30.43 million, or a loss of TWD 0.65 per share—the second quarterly loss since its listing on the TPEx.

The company is now focusing on semiconductor visual inspection equipment, anticipating that this strategic pivot will gradually improve revenue and profitability. However, financial analysts estimate that tangible improvements will not materialize until the second half of 2026.

For the full year 2025, Hua You Yi recorded revenue of TWD 480 million, flat compared to 2024. Gross margin was 45.41%, down 2.4 percentage points year-on-year. Net profit after tax was TWD 27.47 million, down 41.95% year-on-year, resulting in earnings per share of TWD 0.59.

Hua You Yi primarily manufactures intelligent automation equipment, AOI inspection systems, and OEM equipment. The company is undergoing a strategic transformation, shifting from its traditional focus on substrate automation toward the semiconductor microscopic and macroscopic inspection equipment market. This move aims to reverse the trend of declining profit margins in its OEM automation business. The company expects this shift to lead to gradual improvements in revenue and profitability.

Motech currently holds an 11.48% stake in Hua You Yi, making it the largest institutional shareholder.