Nan Ya Plastics (1303) Q2 2024 earnings summary

Executive summary

• Market capitalization reached NT$394.2 billion as of July 2024, up from NT$259.8 billion in 2023, excluding Nanya Tech.

• Operates 104 plants globally with 30,392 employees, with significant presence in Taiwan, China, and the US.

• Maintains leading market positions in plastics processing, epoxy resin, copper foil, and electronic glass fiber yarn.

• Consolidated financial statements for the six months ended June 30, 2024 and 2023 were reviewed with a qualified conclusion due to some unreviewed subsidiaries and equity-accounted investees.

• The group operates in plastics, fiber, petrochemical, electronics, and engineering, with 10 manufacturing plants in Taiwan and multiple international subsidiaries.

Financial highlights

• 1H24 EPS rose year-over-year, driven by improved performance in electronic materials, chemicals, plastics, and polyester, and higher investment income.

• 2Q24 EPS increased sequentially due to AI-driven demand, higher copper prices, and recovery in polyester and plastics.

• 1H24 revenue was NT$125.0 billion, down from NT$129.5 billion in 1H23, mainly due to a high PCB revenue base last year.

• Net profit attributable to owners for H1 2024 was $2,976,183 thousand, up from $1,807,919 thousand year-over-year.

• Basic EPS for H1 2024 was $0.38, compared to $0.23 for H1 2023.

Outlook and guidance

• 3Q24 expects peak season for electronics, new product launches, and stable demand for high-speed materials in networking, servers, and automotive.

• Chemical prices supported by reduced EG supply from China; polyester demand peaks in summer, with US customers shifting orders due to shipping constraints.

• Annual strategy focuses on high-speed communications, AI, new energy vehicles, medical materials, and green technology.

• The group is monitoring the impact of new IFRS standards, including IFRS 18 effective 2027, and does not expect significant impact from other pending standards.

• Management continues to evaluate the impact of global minimum top-up tax and other regulatory changes.