Nan Ya Plastics Corporation (1303) AI Stock Analysis

Nan Ya Plastics Corporation

(TWSE:1303)

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Rating:46Neutral

Price Target:TWD 235.00▼(-24.92% Downside)

Action:initiatedcoverage

Date:11/09/26

Nan Ya Plastics scores below average, driven primarily by weak financial performance: margins remain compressed at the bottom of a petrochemical downcycle, return on equity is just 1.3%, and 2025 free cash flow turned negative as capital spending outran weak operating cash generation. A conservative balance sheet with debt-to-equity under 0.5 and a large equity cushion provides meaningful downside protection and the capacity to ride out the trough. Valuation is a further drag, with a P/E above 40 on depressed earnings and a minimal 0.33% dividend yield. Technicals are mixed — the stock remains well above its 100- and 200-day averages after a strong longer-term run, but has recently broken below its short-term averages with weak RSI and stochastic readings. A convincing re-rating would require stronger petrochemical spreads to lift margins and restore positive free cash flow.

Positive Factors

Diversified Product PortfolioExposure across vinyl, chemicals, polyester, and functional materials gives Nan Ya multiple industrial demand channels spanning construction, packaging, textiles, and electronics. This breadth can reduce dependence on any single end market and support resilience when individual product cycles weaken.

Negative Factors

Sharp Profitability CompressionThe steep decline in net and operating margins shows that current earnings power is substantially weaker than during prior up-cycles. Thin profitability leaves less buffer against adverse product spreads or demand weakness and makes sustained returns dependent on a cyclical recovery.

Nan Ya Plastics Corporation (1303) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.41T
Dividend Yield: 0.26%
Average Volume (3M): 93.98M
Price to Earnings (P/E): 50.5
Beta (1Y): 1.17
Revenue Growth: 18.48%
EPS Growth: ―
Country: TW
Employees: 34,224
Sector: General
Sector Strength: 55
Industry: Chemicals

Nan Ya Plastics Corporation Business Overview & Revenue Model

Company Description

Established in 1958 and headquartered in Kaohsiung City, Taiwan, Nan Ya Plastics Corporation is a major global manufacturer and distributor. The company's extensive portfolio encompasses a broad spectrum of products, including plastics, polyester fib...

Nan Ya Plastics Corporation Financial Statement Overview

Summary

Financials reflect a deep petrochemical downcycle. Revenue has plateaued near NT$260 billion after a ~37% drop from the 2021 peak, net margin has collapsed to 1.7%, and return on equity is just 1.3% (Income Statement 36). Cash flow is the weakest link (33): operating cash flow halved to NT$8.6 billion and free cash flow turned negative at NT$-2.7 billion as capital spending outpaced inflows. The balance sheet is the key offset (60), with debt-to-equity improved to 0.49, equity funding ~58% of assets, and strong cash conversion (operating cash flow ~1.9x net income). Modest 2025 gains in gross and operating profit hint at stabilization, but earnings power remains very thin.

Income Statement

36Negative

Balance Sheet

60Neutral

Cash Flow

33Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	280.87B	259.92B	259.61B	259.76B	355.18B	411.67B
Gross Profit	34.18B	20.13B	18.58B	19.24B	53.91B	103.85B
EBITDA	44.52B	26.21B	30.16B	36.57B	70.41B	124.76B
Net Income	49.19B	4.52B	3.34B	6.31B	32.11B	81.30B
Balance Sheet
Total Assets	723.03B	610.60B	617.47B	648.53B	665.32B	668.70B
Cash, Cash Equivalents and Short-Term Investments	67.76B	64.12B	82.70B	114.28B	126.50B	120.36B
Total Debt	149.11B	173.21B	180.64B	190.79B	174.78B	140.43B
Total Liabilities	225.38B	238.80B	254.87B	271.44B	271.21B	239.95B
Stockholders Equity	477.75B	355.67B	346.58B	360.14B	375.10B	414.07B
Cash Flow
Free Cash Flow	-9.11B	-2.68B	6.15B	11.72B	44.05B	49.70B
Operating Cash Flow	5.29B	8.65B	18.79B	35.68B	75.30B	78.88B
Investing Cash Flow	8.17B	-11.56B	-17.90B	-31.41B	-41.38B	-33.31B
Financing Cash Flow	-39.23B	-16.52B	-20.11B	-11.93B	-22.90B	-25.89B

Nan Ya Plastics Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1303 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6505	55Neutral	TWD 853.53B	11.13	―	1.32%	16.05%	1097.89%
TW:6274	54Neutral	TWD 294.07B	36.17	―	0.71%	86.84%	165.06%
TW:8046	53Neutral	TWD 649.40B	123.38	―	0.19%	41.80%	773.78%
TW:1303	46Neutral	TWD 2.29T	50.48	―	0.26%	18.48%	―
TW:1326	45Neutral	TWD 418.20B	24.59	―	0.82%	8.51%	―
TW:1301	40Underperform	TWD 444.97B	42.80	―	0.71%	-11.04%	―

* General Sector Average

Performance Comparison

TW:1303 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1303	Nan Ya Plastics Corporation	313.00	259.46	484.60%
TW:1301	Formosa Plastics Corporation	70.20	27.95	66.16%
TW:1326	Formosa Chemicals & Fibre Corporation	73.50	38.30	108.82%
TW:6274	Taiwan Union Technology Corporation	1060.00	661.69	166.12%
TW:6505	Formosa Petrochemical Corp	91.20	37.42	69.59%
TW:8046	Nan Ya Printed Circuit Board Corporation	1080.00	788.61	270.64%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Nan Ya Plastics Corporation AI Stock Analysis