Nan Ya Plastics (1303) Q3 2024 earnings summary

Executive summary

• Market capitalization reached NT$330.7 billion in October 2024, up from NT$259.8 billion in 2023, excluding Nanya Tech.

• Operates 104 plants globally with 30,392 employees; major business segments include plastics, chemicals, electronics, and polyesters.

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

• Operating revenue for the nine months ended September 30, 2024 was NT$191.46 billion, down from NT$196.76 billion year-over-year, with gross profit at NT$14.06 billion.

• Net profit attributable to owners for the nine months was NT$3.04 billion, a decrease from NT$6.17 billion in the prior year period.

Financial highlights

• 3Q24 consolidated revenue was NT$66.4 billion, flat sequentially and down year-over-year due to lower PCB revenue.

• 3Q24 pre-tax income was NT$0.49 billion, down from NT$5.33 billion in 3Q23, mainly due to decreased equity income from Formosa Petrochemical Corp.

• 3Q24 EPS was NT$0.01, down from NT$0.22 in 2Q24 and NT$0.60 in 3Q23, reflecting lower non-operating and equity-method investment income.

• Gross margin for the nine months was 7%, consistent with the prior year.

• Cash and cash equivalents at period end were NT$64.97 billion, down from NT$79.58 billion a year ago.

Outlook and guidance

• 4Q24 demand for AI servers is growing, but other consumer electronics remain flat; customers are cautious due to year-end inventory management.

• Chemical markets remain oversupplied with stable prices; polyester demand stable but entering off-season for bottle-grade pellets.

• Management expects no significant impact from new IFRS standards effective in 2025 and is evaluating the impact of IFRS 18, effective 2027.

• The company continues to monitor global minimum tax developments and does not expect material effects at this stage.

• Strategic focus on product, business, low-carbon, and digital transformation to drive future growth.