Taiwan Energy: 2Q NP rises to 5-year high; reiterate full set OW with NPC> FPC/FCSC> FPCC

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Taiwan Energy: 2Q NP rises to 5-year high; reiterate full set OW with NPC> FPC/FCSC> FPCC

J P M O R G A N Asia Pacific Equity Research

10 July 2026

Taiwan Energy

2Q NP rises to 5-year high; reiterate full set OW with

NPC> FPC/FCFC >FPCC

Formosa Group reported another quarter of clean beats, with group NP of NT$64bn Head of Asia Energy & Chemicals |

reaching the highest in 5 years. Majority of the earnings beat continued to be driven Asia EV Battery

by NPC’s electronic materials segment and FPCC’s strong refining export margin. Parsley Ong AC

FPC also saw OP turn back to black, albeit partly on feedstock lagging effect that (65) 6882-8578

is a one-off in nature. Into 3Q, we expect the group’s NP to retreat due to FPCC parsley.rh.ong@jpmorgan.com

(lower oil price) and FPC (no more lagging benefit), but expect the beat-and-raise J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

trend for Formosa Group to continue over the coming years due to its circular Morgan Broking (Hong Kong) Limited

ownership structure and a gradual recovery in chemical spreads. Michelle Wong

(852) 2800 8556

• NPC: NP rises to new record high, with electronic materials OPM likely michelle.wong@jpmorgan.com

>20%. NPCreported 2Q26 NP of NT$26.8bn (+88% q/q, turned +ve y/y), a J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

beat vs. JPMe of NT$20.5bn and consensus of NT$16.6bn. This was the

Vicky Hsia

highest quarterly NP in its history. Electronic material segment was the clear (852) 2800 3752

bright spot with >20% q/q revenue growth and OPM likely reaching >20% for vicky.hsia@jpmorgan.com

the first time since 2021. We attribute the expansion in 2Q OPM vs. 1Q at 13% J.P. Morgan Securities (Asia Pacific) Limited/ J.P.