Buy Or Sell Opportunity • Jul 08
Now 20% undervalued Over the last 90 days, the stock has risen 31% to NT$23.90. The fair value is estimated to be NT$29.89, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.7% over the last 3 years, while earnings per share has been flat. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$24.90, the stock trades at a trailing P/E ratio of 17.9x. Average trailing P/E is 35x in the Chemicals industry in Taiwan. Total returns to shareholders of 17% over the past three years. Reported Earnings • May 20
First quarter 2026 earnings released: EPS: NT$0.55 (vs NT$0.40 in 1Q 2025) First quarter 2026 results: EPS: NT$0.55 (up from NT$0.40 in 1Q 2025). Revenue: NT$2.42b (down 7.5% from 1Q 2025). Net income: NT$264.7m (up 38% from 1Q 2025). Profit margin: 11% (up from 7.3% in 1Q 2025). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 11% per year, which means it is performing significantly worse than earnings. Reported Earnings • Mar 14
Full year 2025 earnings released: EPS: NT$1.23 (vs NT$1.54 in FY 2024) Full year 2025 results: EPS: NT$1.23 (down from NT$1.54 in FY 2024). Revenue: NT$9.01b (down 13% from FY 2024). Net income: NT$588.4m (down 20% from FY 2024). Profit margin: 6.5% (down from 7.1% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 12% per year and the company’s share price has also fallen by 12% per year. Announcement • Mar 12
Formosan Union Chemical Corp., Annual General Meeting, Jun 11, 2026 Formosan Union Chemical Corp., Annual General Meeting, Jun 11, 2026, at 09:00 Taipei Standard Time. Location: 9 floor no,350, sung chiang rd., jhongshan district, taipei city Taiwan Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: NT$0.34 (vs NT$0.41 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.34 (down from NT$0.41 in 3Q 2024). Revenue: NT$2.14b (down 17% from 3Q 2024). Net income: NT$161.6m (down 18% from 3Q 2024). Profit margin: 7.5% (down from 7.6% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: NT$0.13 (vs NT$0.58 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.13 (down from NT$0.58 in 2Q 2024). Revenue: NT$2.19b (down 26% from 2Q 2024). Net income: NT$60.1m (down 78% from 2Q 2024). Profit margin: 2.7% (down from 9.2% in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Declared Dividend • Aug 13
Dividend increased to NT$0.80 Dividend of NT$0.80 is 33% higher than last year. Ex-date: 27th August 2025 Payment date: 26th September 2025 Dividend yield will be 4.3%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by both earnings (52% earnings payout ratio) and cash flows (37% cash payout ratio). The dividend has increased by an average of 2.8% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 26% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.40 (vs NT$0.39 in 1Q 2024) First quarter 2025 results: EPS: NT$0.40 (up from NT$0.39 in 1Q 2024). Revenue: NT$2.62b (up 3.0% from 1Q 2024). Net income: NT$191.4m (up 3.5% from 1Q 2024). Profit margin: 7.3% (in line with 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • May 03
Formosan Union Chemical Corp. to Report Q1, 2025 Results on May 12, 2025 Formosan Union Chemical Corp. announced that they will report Q1, 2025 results on May 12, 2025 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$16.05, the stock trades at a trailing P/E ratio of 10.4x. Average trailing P/E is 17x in the Chemicals industry in Taiwan. Total loss to shareholders of 31% over the past three years. Reported Earnings • Mar 20
Full year 2024 earnings released: EPS: NT$1.54 (vs NT$0.88 in FY 2023) Full year 2024 results: EPS: NT$1.54 (up from NT$0.88 in FY 2023). Revenue: NT$10.3b (up 9.2% from FY 2023). Net income: NT$733.6m (up 75% from FY 2023). Profit margin: 7.1% (up from 4.4% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Mar 14
Formosan Union Chemical Corp., Annual General Meeting, Jun 16, 2025 Formosan Union Chemical Corp., Annual General Meeting, Jun 16, 2025. Location: 1 floor no,350, sung chiang rd., jhongshan district, taipei city Taiwan Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: NT$0.41 (vs NT$0.33 in 3Q 2023) Third quarter 2024 results: EPS: NT$0.41 (up from NT$0.33 in 3Q 2023). Revenue: NT$2.58b (up 11% from 3Q 2023). Net income: NT$196.2m (up 26% from 3Q 2023). Profit margin: 7.6% (up from 6.7% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Nov 11
Formosan Union Chemical Corp. Establishes the Committee for Sustainable Development Formosan Union Chemical Corp. announced the Board of Directors' approval to establish the Committee for Sustainable Development. Resume of the new position holder: CHEN,HUNG-WEN /Independent Director of the 18th Board of Directors, LIN,LAI-TI /Independent Director of the 18th Board of Directors, TSENG,HSIAO-CHIEN /Legal senior manager. Effective date of the new member: November 08, 2024. Buy Or Sell Opportunity • Sep 24
Now 20% undervalued Over the last 90 days, the stock has risen 4.7% to NT$24.60. The fair value is estimated to be NT$30.88, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 22%. Upcoming Dividend • Aug 20
Upcoming dividend of NT$0.60 per share Eligible shareholders must have bought the stock before 27 August 2024. Payment date: 27 September 2024. Payout ratio is a comfortable 44% but the company is paying out more than the cash it is generating. Trailing yield: 2.6%. Lower than top quartile of Taiwanese dividend payers (4.4%). In line with average of industry peers (2.4%). Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: NT$0.58 (vs NT$0.26 in 2Q 2023) Second quarter 2024 results: EPS: NT$0.58 (up from NT$0.26 in 2Q 2023). Revenue: NT$2.98b (up 24% from 2Q 2023). Net income: NT$274.8m (up 120% from 2Q 2023). Profit margin: 9.2% (up from 5.2% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Jul 31
Formosan Union Chemical Corp. to Report Q2, 2024 Results on Aug 07, 2024 Formosan Union Chemical Corp. announced that they will report Q2, 2024 results on Aug 07, 2024 Declared Dividend • Jul 15
Dividend reduced to NT$0.60 Dividend of NT$0.60 is 67% lower than last year. Ex-date: 27th August 2024 Payment date: 27th September 2024 Dividend yield will be 2.6%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by both earnings (56% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 7.7% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • Jun 05
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 28% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.3% net profit margin). Reported Earnings • May 18
First quarter 2024 earnings released: EPS: NT$0.39 (vs NT$0.20 in 1Q 2023) First quarter 2024 results: EPS: NT$0.39 (up from NT$0.20 in 1Q 2023). Revenue: NT$2.55b (up 3.3% from 1Q 2023). Net income: NT$184.9m (up 96% from 1Q 2023). Profit margin: 7.3% (up from 3.8% in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Reported Earnings • Mar 17
Full year 2023 earnings released: EPS: NT$0.88 (vs NT$2.27 in FY 2022) Full year 2023 results: EPS: NT$0.88 (down from NT$2.27 in FY 2022). Revenue: NT$9.43b (down 11% from FY 2022). Net income: NT$418.2m (down 61% from FY 2022). Profit margin: 4.4% (down from 10% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. New Risk • Aug 31
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 138% Cash payout ratio: 133% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.3% net profit margin). Buying Opportunity • Aug 24
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be NT$28.28, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.7% over the last 3 years. Earnings per share has grown by 21%. New Risk • Aug 17
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 6.3% Last year net profit margin: 11% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 138% Cash payout ratio: 133% Minor Risk Profit margins are more than 30% lower than last year (6.3% net profit margin). Upcoming Dividend • Aug 17
Upcoming dividend of NT$1.80 per share at 7.5% yield Eligible shareholders must have bought the stock before 24 August 2023. Payment date: 28 September 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 7.5%. Within top quartile of Taiwanese dividend payers (5.7%). Higher than average of industry peers (3.8%). Announcement • Jul 18
Formosan Union Chemical Corp. Announces Cash Dividend for 2022, Payable on September 28, 2023 Formosan Union Chemical Corp. announced cash dividend distribution of TWD 1.8 per share for the 2022 at meeting held on July 17, 2023. Ex-rights (ex-dividend) trading date is August 24, 2023; Ex-rights (ex-dividend) record date is September 01, 2023; Payment date of cash dividend distribution is September 28, 2023. Reported Earnings • Mar 29
Full year 2022 earnings released: EPS: NT$2.27 (vs NT$1.99 in FY 2021) Full year 2022 results: EPS: NT$2.27 (up from NT$1.99 in FY 2021). Revenue: NT$10.6b (up 15% from FY 2021). Net income: NT$1.08b (up 14% from FY 2021). Profit margin: 10% (in line with FY 2021). Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Announcement • Jan 19
Formosan Union Chemical Corp. Announces the Change of Chief Internal Auditor Formosan Union Chemical Corp. announced the change of chief internal auditor. Name, title, and resume of the previous position holder is Tseng,Xiao-Qian/Associate manager of audit office. Name, title, and resume of the new position holder is Chung,Yi-Ju/manager of audit office. Reason for the change is position adjustment. Effective date is January 18, 2023. Reported Earnings • Nov 18
Third quarter 2022 earnings released: EPS: NT$0.54 (vs NT$0.59 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.54 (down from NT$0.59 in 3Q 2021). Revenue: NT$2.52b (up 14% from 3Q 2021). Net income: NT$256.0m (down 8.5% from 3Q 2021). Profit margin: 10% (down from 13% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 17
Upcoming dividend of NT$1.70 per share Eligible shareholders must have bought the stock before 24 August 2022. Payment date: 28 September 2022. Payout ratio is a comfortable 65% and the cash payout ratio is 90%. Trailing yield: 5.8%. Lower than top quartile of Taiwanese dividend payers (6.5%). Lower than average of industry peers (7.7%). Reported Earnings • Aug 16
Second quarter 2022 earnings released: EPS: NT$0.75 (vs NT$0.58 in 2Q 2021) Second quarter 2022 results: EPS: NT$0.75 (up from NT$0.58 in 2Q 2021). Revenue: NT$2.65b (up 7.3% from 2Q 2021). Net income: NT$357.5m (up 28% from 2Q 2021). Profit margin: 14% (up from 11% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Jun 18
Formosan Union Chemical Corp. Approves Cash Dividend for the Year of 2021 Formosan Union Chemical Corp. acknowledgment of the 2021 earnings distribution proposal approved in its shareholders meeting held on June 17, 2022 for cash dividend of TWD 1.5 per share for the year of 2021. Reported Earnings • May 18
First quarter 2022 earnings released: EPS: NT$0.68 (vs NT$0.54 in 1Q 2021) First quarter 2022 results: EPS: NT$0.68 (up from NT$0.54 in 1Q 2021). Revenue: NT$2.92b (up 25% from 1Q 2021). Net income: NT$326.4m (up 28% from 1Q 2021). Profit margin: 11% (in line with 1Q 2021). Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 31
Full year 2021 earnings released: EPS: NT$1.99 (vs NT$1.16 in FY 2020) Full year 2021 results: EPS: NT$1.99 (up from NT$1.16 in FY 2020). Revenue: NT$9.20b (up 8.5% from FY 2020). Net income: NT$947.6m (up 71% from FY 2020). Profit margin: 10% (up from 6.5% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment improved over the past week After last week's 15% share price gain to NT$26.30, the stock trades at a trailing P/E ratio of 13x. Average trailing P/E is 19x in the Chemicals industry in Taiwan. Total returns to shareholders of 98% over the past three years. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$1.71 (vs NT$0.38 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$7.02b (up 231% from 3Q 2020). Net income: NT$814.1m (up 348% from 3Q 2020). Profit margin: 12% (up from 8.6% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 18
Upcoming dividend of NT$1.20 per share Eligible shareholders must have bought the stock before 25 August 2021. Payment date: 28 September 2021. Trailing yield: 6.0%. Within top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (2.9%). Reported Earnings • Aug 15
Second quarter 2021 earnings released: EPS NT$0.59 (vs NT$0.27 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$2.46b (up 21% from 2Q 2020). Net income: NT$279.2m (up 115% from 2Q 2020). Profit margin: 11% (up from 6.4% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jun 04
Investor sentiment improved over the past week After last week's 21% share price gain to NT$21.50, the stock trades at a trailing P/E ratio of 14.3x. Average trailing P/E is 16x in the Chemicals industry in Taiwan. Total returns to shareholders of 30% over the past three years. Reported Earnings • May 15
First quarter 2021 earnings released: EPS NT$0.54 (vs NT$0.20 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: NT$2.34b (down 1.0% from 1Q 2020). Net income: NT$255.2m (up 171% from 1Q 2020). Profit margin: 11% (up from 4.0% in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 5% per year. Reported Earnings • Mar 30
Full year 2020 earnings released: EPS NT$1.16 (vs NT$0.44 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: NT$8.48b (down 3.6% from FY 2019). Net income: NT$554.8m (up 158% from FY 2019). Profit margin: 6.5% (up from 2.4% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Dec 28
New 90-day high: NT$16.00 The company is up 19% from its price of NT$13.45 on 29 September 2020. The Taiwanese market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 17% over the same period. Is New 90 Day High Low • Dec 10
New 90-day high: NT$14.90 The company is up 4.0% from its price of NT$14.30 on 11 September 2020. The Taiwanese market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 11% over the same period. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS NT$0.38 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: NT$2.12b (down 9.8% from 3Q 2019). Net income: NT$181.9m (up 243% from 3Q 2019). Profit margin: 8.6% (up from 2.3% in 3Q 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings.