Nan Ya Plastics Corp

Nan Ya Plastics Corp maintains a capital structure defined by significant leverage relative to its equity base, with long-term debt of TWD 173.2 billion against total equity of TWD 355.7 billion, resulting in a debt-to-equity ratio of 0.49. The company holds TWD 42.4 billion in cash and equivalents, which is insufficient to cover total liabilities of TWD 254.9 billion, leading to a negative net cash position. Liquidity is assessed as medium risk, supported by a current ratio of 1.32, indicating adequate short-term asset coverage for current obligations. The firm generated TWD 8.6 billion in operating cash flow and TWD 10.7 billion in free cash flow during the latest period, despite capital expenditures of TWD 11.3 billion.

Profitability metrics indicate modest returns on capital, with a return on equity (ROE) of 5.15% and a return on assets (ROA) of 3.0%. The company reported net income of TWD 4.5 billion on revenue of TWD 259.9 billion, yielding a net margin of approximately 1.7%. The gross profit of TWD 21.6 billion suggests a gross margin of roughly 8.3%, while operating income stood at TWD 3.7 billion. Valuation multiples reflect these profitability levels, with a price-to-earnings ratio of 78.57 and an EV/EBITDA of 211.92, indicating a high valuation relative to current earnings power. The price-to-book ratio is 4.05, suggesting the market prices the company at a premium to its tangible book value.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of product mix or geographic exposure. The company’s activity is broadly classified under Metals & Mining, with sector classification codes pointing to Chemicals, implying a diversified industrial base. Without specific segment breakdowns, the revenue of TWD 259.9 billion is treated as a consolidated figure, and no specific geographic risks or opportunities can be isolated from the provided inputs.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue figure of TWD 259.9 billion serves as the baseline for performance evaluation. Without year-over-year or quarter-over-quarter comparisons, the direction of revenue growth or contraction cannot be determined from the available snapshot. The stability of the share count, with 7.93 billion basic and diluted shares outstanding, suggests no recent significant equity issuances or buybacks affecting the per-share metrics.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, emphasizing the reliance on debt financing. The high valuation multiples, particularly the P/E of 78.57, expose the stock to significant multiple compression risk if earnings do not improve. The debt-to-equity ratio of 0.49 is manageable but requires consistent cash flow generation to service interest obligations. The absence of historical data limits the ability to assess cyclicality or trend-based risks.

Recent observations from investor relations indicate a mean analyst price target of TWD 80.00, which is significantly below the current market price of TWD 181.5, suggesting a potential overvaluation according to consensus estimates. The median price target is TWD 94.00, with a high of TWD 120.00 and a low of TWD 26.00. The mean recommendation is 2.29, leaning towards a buy, with one strong buy, three buys, and three holds. This divergence between the current market price and analyst targets highlights a disconnect between market sentiment and fundamental valuation models used by analysts.

Net income surged 35.3% year-over-year to TWD 4.5 billion in FY2026, signaling a strong earnings recovery.

Operating income exploded 1,637.8% year-over-year to TWD 3.7 billion, indicating a dramatic improvement in core profitability.

Free cash flow turned positive at TWD 10.7 billion in FY2026, reversing the negative trend from prior years.

Long-term debt decreased to TWD 173.2 billion in FY2026, reflecting a deliberate deleveraging strategy and improved balance sheet health.

The company maintains a low dilution risk profile, protecting existing shareholders from potential equity value erosion.

The company faces high credit risk, suggesting significant potential for future losses or financial instability.

Revenue TWD 68.60B, +4,6% YoY; Operating income +10 342,7% YoY.

• ▍Revenue TWD 68.60B, +4,6% YoY
• ▍Operating income +10 342,7% YoY
• ▍Net income +3 046,0% YoY
• ▍Free cash flow +356,7% YoY
• ▍Net margin 20.8%

Revenue TWD 64.47B, −5,4% YoY; Operating income +624,3% YoY.

• ▍Revenue TWD 64.47B, −5,4% YoY
• ▍Operating income +624,3% YoY
• ▍Net income +1 551,8% YoY
• ▍Free cash flow +97,9% YoY
• ▍Net margin 7.6%

Revenue TWD 64.18B, −3,4% YoY; Operating income +4,2% YoY.

• ▍Revenue TWD 64.18B, −3,4% YoY
• ▍Operating income +4,2% YoY
• ▍Net income +4 851,2% YoY
• ▍Free cash flow +117,4% YoY
• ▍Net margin 5.1%

Revenue TWD 65.72B, −1,0% YoY; Operating income +226,6% YoY.

• ▍Revenue TWD 65.72B, −1,0% YoY
• ▍Operating income +226,6% YoY
• ▍Net income −337,3% YoY
• ▍Free cash flow −115,1% YoY
• ▍Net margin -6.3%

Revenue TWD 65.55B; Operating income TWD 35.8M.

• ▍Revenue TWD 65.55B
• ▍Operating income TWD 35.8M
• ▍Net margin 0.7%

Revenue TWD 68.15B; Operating income -TWD 253.5M.

• ▍Revenue TWD 68.15B
• ▍Operating income -TWD 253.5M
• ▍Net margin 0.4%

Revenue TWD 66.42B; Operating income TWD 994.1M.

• ▍Revenue TWD 66.42B
• ▍Operating income TWD 994.1M
• ▍Net margin 0.1%

Revenue TWD 66.41B; Operating income TWD 398.7M.

• ▍Revenue TWD 66.41B
• ▍Operating income TWD 398.7M
• ▍Net margin 2.6%

Revenue TWD 259.91B, +0,1% YoY; Operating income +1 637,8% YoY.

• ▍Revenue TWD 259.91B, +0,1% YoY
• ▍Operating income +1 637,8% YoY
• ▍Net income +35,3% YoY
• ▍Free cash flow +37,9% YoY
• ▍Net margin 1.7%

Revenue TWD 259.61B, −0,1% YoY; Operating income −89,3% YoY.

• ▍Revenue TWD 259.61B, −0,1% YoY
• ▍Operating income −89,3% YoY
• ▍Net income −47,1% YoY
• ▍Free cash flow +147,7% YoY
• ▍Net margin 1.3%

Revenue TWD 259.76B, −26,9% YoY; Operating income −93,8% YoY.

• ▍Revenue TWD 259.76B, −26,9% YoY
• ▍Operating income −93,8% YoY
• ▍Net income −80,3% YoY
• ▍Free cash flow +48,6% YoY
• ▍Net margin 2.4%

Revenue TWD 355.18B, −13,7% YoY; Operating income −60,4% YoY.

• ▍Revenue TWD 355.18B, −13,7% YoY
• ▍Operating income −60,4% YoY
• ▍Net income −60,5% YoY
• ▍Free cash flow −156,0% YoY
• ▍Net margin 9.0%