Far Eastern New Century (1402) Q1 2026 earnings summary

Executive summary

• Achieved NT$0.61 EPS in 1Q26, up 33% year-over-year, driven by operational recovery, portfolio optimization, and asset disposals.

• Maintained 59 consecutive years of dividend payments, with a NT$1.25 per share cash dividend and an 81% payout ratio.

• Production business rebounded with NT$210M operating profit in 1Q26, recovering from a significant loss in FY2025 after resuming operations at the Hsinchu site.

• Strategic asset disposals in 1Q26 and 1Q25 generated NT$1.9B and NT$1.6B gains, respectively.

• Total comprehensive income reached NT$8.38B, up from NT$7.39B a year earlier.

Financial highlights

• 1Q26 consolidated revenue was NT$61.3B, down 3.8% year-over-year; net income rose 22.4% to NT$5.55B.

• Operating profit for 1Q26 was NT$4.9B, down 22% year-over-year; EPS was NT$0.61, up from NT$0.46.

• Book value per share stood at NT$43.9; return on equity was 5.3%.

• Cash and cash equivalents increased to NT$47.15B from NT$37.01B year-over-year.

• Net cash from operating activities was NT$7.54B, up from NT$4.72B in Q1 2025.

Outlook and guidance

• Focus on sustainable growth through international expansion, green innovation, AI transformation, and operational resilience.

• Committed to achieving net zero GHG emissions by 2050, with a 50% reduction target by 2030.

• Regulatory trends are expected to drive demand for recycled PET, with supply constraints accelerating textile-to-textile recycling development.

• The board approved a new unsecured bond issuance up to NT$10B post-period.

• IFRS 18 adoption is planned for 2028, with ongoing assessment of impacts on financial reporting.