Nan Ya Plastics (1303) Q1 2025 earnings summary

Executive summary

• 1Q25 revenue increased year-over-year to NT$65.6 billion, driven by strong growth in electronic materials from AI and related industries, and modest recovery in polyester and plastics.

• Operating profit rose YoY and QoQ, mainly from electronic materials, but YoY pre-tax income and net profit fell due to lower equity income, reduced FX gains, and higher non-operating expenses.

• Gross margin improved to 7% from 6% YoY, but net margin declined to 0.7% due to higher operating and non-operating expenses.

• Total assets as of March 31, 2025, were NT$618.9 billion, with equity attributable to owners at NT$344.0 billion.

Financial highlights

• 1Q25 consolidated revenue: NT$65.6 billion, up 11.8% YoY, down from NT$68.1 billion in 4Q24.

• 1Q25 pre-tax income: NT$0.81 billion, down YoY, up from NT$0.75 billion in 4Q24.

• 1Q25 EPS: NT$0.06, down YoY from NT$0.16, up from NT$0.04 in 4Q24.

• Cash and cash equivalents at quarter-end were NT$64.9 billion, down from NT$80.0 billion a year earlier.

• Net cash from operating activities was NT$1.36 billion, a significant decrease from NT$5.08 billion in Q1 2024.

Outlook and guidance

• 2Q25 expects stable demand for networking, automotive, and server applications, with short-term boosts from tariff exemptions.

• Polyester demand to rise in peak season, especially in the U.S. due to tariffs on Chinese goods.

• U.S. plant capacity to be expanded to meet local sourcing needs.

• The group is evaluating the impact of IFRS 18 and other new standards effective in 2027, with no significant impact expected.

• Management continues to monitor global minimum tax developments and expects no material impact in the near term.