Nan Ya Plastics (1303) Q1 2026 earnings summary

Executive summary

• 1Q26 revenue and profit rose both QoQ and YoY, driven by robust demand for high-performance computing, cloud infrastructure, and mid- to high-end electronic materials, with electronics exceeding 50% of revenue share.

• Operating profit and EPS reached multi-year highs, fueled by strong electronic materials performance and investment returns from Nanya Technology and FPCC.

• Consolidated financial statements for Q1 2026 and 2025 were reviewed, with a qualified conclusion due to some subsidiaries and investees not reviewed by independent auditors.

• No material misstatements identified; financials present fairly in all material respects per ROC standards.

• Sales breakdown for 1Q26: Electronics 52.8%, Chemicals 16.3%, Polyesters 15.6%, Plastics 13.3%, Others 2.0%.

Financial highlights

• 1Q26 consolidated revenue: NT$68.60 billion, up from NT$64.47 billion in 4Q25 and NT$65.55 billion in 1Q25; operating revenue: $68,596,393 thousand, up 4.6% YoY.

• 1Q26 operating profit: NT$3.74 billion, up from NT$1.33 billion in 4Q25 and NT$0.04 billion in 1Q25.

• 1Q26 pre-tax income: NT$16.08 billion, up from NT$5.84 billion in 4Q25 and NT$0.81 billion in 1Q25, driven by higher operating profit and equity income.

• 1Q26 EPS: NT$1.80, a 15-quarter high, compared to NT$0.62 in 4Q25 and NT$0.06 in 1Q25; basic EPS: $1.80, up from $0.06 in Q1 2025.

• Net profit attributable to owners: $14,254,717 thousand, up 7.1% YoY; gross margin improved to 12% from 7% in Q1 2025.

Outlook and guidance

• 2Q26: AI-driven demand for memory and high-end materials continues to surge, widening the supply gap and supporting higher prices.

• Geopolitical conflicts are raising energy and raw material costs, impacting chemicals and polyester segments; production cuts implemented in Taiwan and China for chemicals.

• Polyester and plastics segments face high material costs and cautious downstream procurement.

• New IFRS standards (notably IFRS 18) to be adopted in 2028, with ongoing evaluation of impact; no significant impact expected from other new standards.