Nan Ya Plastics (1303 TT,NT$210)- Strong performance in both core, non-core businesses

Research evidence excerpt

Nan Ya Plastics (1303 TT,NT$210)- Strong performance in both core, non-core businesses

Taiwan Equity | Plastics Industry

Company Snapshot

Expansion of electronic materials, applications leads to upward revision of FY26, FY27 EPS

forecasts to NT$12.29, NT$15.56, respectively

Looking ahead, the company’s electronic materials business possesses vertical integration

and scale advantages, enabling comprehensive supply from upstream basic materials and

mid-to-high-end materials to copper foil, CCL, and PCBs. The synergy with Nitto Boseki in

high-end materials continues to amplify, while mid-range and basic materials

simultaneously benefit from spillover demand due to AI-driven high-end material capacity

crowding. The plastics business is expanding into niche applications such as medical and

electronics, and the polyester business will add two release film production lines in 2H26,

with electronic application results gradually materializing. Entering 2027, the company

plans to participate in 20% of Nitto Boseki’s specialty glass fiber fabric weaving. In

addition, 1Q27 will see new copper foil capacity of 23,400 tons in Huizhou, China, and

7,200 tons of epoxy resin in Kunshan, further boosting overall electronic material sales

scale. Overall, we raise our FY26 EPS forecast to NT$12.29, up 2,057.9% YoY, and FY27 EPS

forecast to NT$15.56, up 26.6% YoY.

How are we different?

Our FY26 and FY27 EPS estimates are higher than the Bloomberg consensus of NT$8.72

and NT$9.81, respectively.

Valuation, risks

Given better-than-expected 2Q26 results, the long-term increase in the company's

electronic materials contribution and OpM, and the successive ramp-up of high-value

new products across business groups, FY26 profit is expected to surge and FY27 profit to

grow by over 20%.