Formosa Chemicals & Fibre Corp Overview
FCFC is Taiwan's largest integrated aromatics-to-polymers producer. It sits mid-stream in the Formosa Plastics Group's Mailiao complex, taking naphtha-derived feedstock from Formosa Petrochemical. It converts that feedstock into paraxylene, orthoxylene, benzene, styrene monomer, phenol/acetone, PTA and PIA, and then into PS, ABS, PP and PC resins. A legacy fibre and textile tail, including Formosa Taffeta, remains.
Revenue fell from NT$379.9bn (FY2022) to NT$287.0bn (FY2025). The decline came as Chinese capacity additions collapsed spreads, and FY2025 brought the first annual loss since the 1984 listing.
FCFC's equity value is dominated by its investment portfolio rather than its operating margin. The portfolio includes about 24% of Formosa Petrochemical and stakes in Nan Ya Plastics, Nanya Technology and other group companies.
Since mid-2025 management has run a "slimming" programme that exits red-ocean commodity lines. In parallel it is pivoting toward semiconductor-grade materials, low-carbon hydrogen, green power and AI-data-centre sites. Its stated ambition is for these to reach 40–50% of revenue by 2030.
What the company does
FCFC manufactures and sells commodity and semi-specialty petrochemicals, plastics resins and fibre/textile products. The TWSE English company profile (generated 12 February 2026) lists its main business as petrochemical products: PTA, PS, AN, butadiene, SM polymers, SM, benzene, toluene, PX and OX, nylon fibre and spinning.
The Taiwan commercial registry lists the operating scope as PTA, PS, SM, OX, PX, benzene, phenol, acetone, PP, DMF, ABS, synthetic fibre yarn and fabric, nylon filament and fabric, and dyeing/finishing. Some fibre lines, notably Taiwan rayon and spinning, were terminated in 2024, so the registry scope is broader than current operations.
Business model and revenue model
The revenue model is almost entirely product sales, priced off Asian spot and contract benchmarks: PX/OX/benzene against naphtha, PTA against PX, SM against benzene and ethylene, phenol/acetone against benzene and propylene, and resins against monomers. Profitability is a spread business. Management's monthly MOPS revenue explanations decompose every change into a "volume variance" and a "price variance".
There is no meaningful subscription or licensing income. Smaller service-type revenue is emerging from four areas:
-
green-power wheeling and renewable-energy certificate (REC) transfer and power trading;
-
micro-grid/EMS integration;
-
small-hydro generation;
-
prospective leasing of land, buildings and power capacity for AI computing centres.
A large and highly variable share of pre-tax profit comes from non-operating items. Equity-method income from Formosa Petrochemical (FPCC), Mailiao Power (MLPC) and Formosa Ha Tinh (FHI), dividend income from FVOCI holdings and FX are the main components.
In FY2023 FCFC reported a consolidated operating loss of NT$3.1bn but a pre-tax profit of NT$7.4bn, entirely because of NT$10.5bn of non-operating profit (FCFC results deck, Apr 2025).
Value-chain position
FCFC's position in the chain runs as follows:
Upstream feedstock: FPCC supplies naphtha and reformate under group arrangements, and FCFC returns raffinate to FPCC. MOPS revenue notes for September and November 2025 reference raffinate resold to FPCC.
Aromatics: ARO-1/2/3 at Mailiao produce PX, OX and benzene.
First derivatives: These are SM, phenol/acetone, PTA (Mailiao, Longde and Ningbo) and PIA.
Polymers: These are PS, ABS, PP, and PC through Formosa Idemitsu Petrochemical.
Downstream: These are nylon filament and fabric, and (via Formosa Taffeta) nylon/polyester fabrics and tire cord.
Customer types and end-markets
| Product family | Typical customers | End-markets |
|---|---|---|
| PX | PTA producers, increasingly in mainland China | Polyester fibre, PET bottle resin |
| PTA / PIA | Polyester fibre & resin makers | Textiles, packaging, PET bottles |
| SM | PS/ABS/SBR/UPR producers | Packaging, appliances, rubber |
| Phenol / acetone | BPA, phenolic resin, MMA producers | Polycarbonate, epoxy, construction |
| PS / ABS | Moulders, appliance OEMs, electronics housings | Appliances, IT housings, toys, automotive |
| PP (incl. metallocene grades in development) | Converters; semiconductor carrier makers (FOUP/FOSB) | Packaging, automotive, semiconductor logistics |
| PC (FIPC) | Compounders, electronics | Electronics, automotive, optical |
| Engineering compounds / flame-retardant plastics | AI-server rack makers, drone makers | AI infrastructure, UAVs, 5G/6G |
| Nylon / textiles (FCFC, Formosa Taffeta) | Garment & industrial-fabric makers | Apparel, tire cord, industrial |
| Electricity / RECs | Corporates seeking green power | Corporate decarbonisation |
Independent characterisation
FCFC is in practice a levered call on Asian aromatics and styrenics spreads, wrapped around a large holding company. On the operating side it has been structurally unprofitable at the EBIT line since FY2022: operating margin was −1.39%, −0.92%, −0.45% and −1.41% in FY2022–FY2025. Chinese integrated refiners such as Hengli, Rongsheng/ZPC and Shenghong added PX/PTA/SM/phenol capacity far faster than demand grew over this period.
On the holding side, its stakes in FPCC (about 24%), Nanya Technology, Nan Ya Plastics and others carry large mark-to-market value. The 2025–2026 memory super-cycle and oil spike pushed 1H2026 comprehensive income to NT$181.2bn against net profit of NT$13.05bn.
The 2026 earnings recovery has two drivers. Exogenous oil and spread support came from the US–Iran conflict and the Strait of Hormuz disruption. Equity-method income from FPCC also surged.
The "new business" pivot is real but sub-scale today. The one product with stated volumes is flame-retardant AI-server-rack plastic at 500–600 tonnes per month.
Strategy
Stated strategic themes (paraphrased from AGM and conference statements)
-
Exit the red ocean. FCFC is abandoning loss-making commodity volumes and phasing out weak products. Its goal is a differentiated, high-value product share above 50% (AGM, June 2025).
-
Slimming and lean production. Line consolidation began in Q3 2025. Management says no further capacity cuts are needed at current market conditions, with continued process, energy and carbon cost-down (AGM, May 2026).
-
Product-mix optimisation and new markets. FCFC is prioritising profitable orders, controlling volume to hold price and expanding outside China.
-
High-tech pivot. FCFC is moving into semiconductor and AI supply-chain materials and energy. The four focus areas are AI-server protective materials, low-carbon hydrogen, green-power development and SiC, with a 40–50% revenue contribution targeted by 2030 (COMPUTEX, June 2026).
-
Decarbonisation ("We Produce, We Recycle"). Targets, measured against the 2020 base, are −10% GHG by 2025, −25% by 2030 and carbon neutrality by 2050.
-
Balance-sheet repair. FCFC is monetising Nanya Technology shares, has authorised up to NT$10bn of unsecured bonds and is targeting a low debt-to-capital ratio (16% at June 2026).
Initiative register (last 24 months)
| Initiative | Announced | Target / metric | Status |
|---|---|---|---|
| Suspension of some plastics lines; >50% differentiated products | Jun 2025 | >50% differentiated mix | In progress |
| Slimming plan (aromatics, SM, plastics, nylon, textiles) | Q3 2025 | Return to operating profit | Achieved: pre-tax profitable from Q3 2025 to Q1 2026 |
| Nanya Technology disposal rounds 2–4 | Nov 2025, Mar 2026 | Fund working capital; strengthen balance sheet | Round 4 window 11 Mar–31 Dec 2026 |
| Unsecured corporate bonds ≤NT$10bn | Mar 2026 | Refinancing / tenor extension | Issuance status n/d |
| COMPUTEX 2026 high-tech portfolio | Jun 2026 | 40–50% of revenue by 2030 | Early stage |
| Metallocene PP for wafer carriers | Jun 2026 | Mass production by end-2026 | Pending |
| Flame-retardant AI-rack plastics | Jun 2026 | 500–600 t/month | Shipping |
| 5N5 electronic-grade low-carbon hydrogen | 2,026 | Output Q3 2027; NT$1.0bn plant | Construction |
| SiC materials R&D | 2026 (3 years in progress) | Results 2H2027 if customer agreement progresses | R&D |
| AI computing-centre site leasing | 2,026 | Monetise idle land and power | Marketing |
| Carbon-reduction capex programme | 2024 deck | NT$18.6bn by 2030; NT$7.9bn spent by 2024 | In progress |
Medium-term targets / guidance
FCFC does not publish numeric financial guidance. Qualitative guidance at the May 2026 AGM was:
-
Q2 2026 revenue roughly equal to Q1, with lower volumes offset by higher prices;
-
2H2026 "cautiously optimistic".
The only explicit long-range target is the 40–50% revenue share from new businesses by 2030, which was not quantified in NT$.
Products & Services
Launch years are given only where verified.
Petrochemical Products
| Product | Description / specification | Target customers | Notes |
|---|---|---|---|
| Paraxylene (PX) | Aromatic from reformate (ARO-1/2/3, Mailiao) | PTA producers (FCFC internal and mainland China) | 2025: more PX sold externally to Chinese PTA makers; ARO-3 turnaround in Q2 2026 |
| Orthoxylene (OX) | Aromatic | Phthalic anhydride producers | Volumes cut in 2025 amid oversupply |
| Benzene | Aromatic | SM, phenol, cyclohexane makers | Partly captive |
| Styrene monomer (SM) | Benzene + ethylene derivative | PS, ABS, SBR, UPR producers | Maintenance and turndowns in 2025; SM spreads improved in Q1 2026 |
| Phenol | Cumene-process | BPA, phenolic-resin producers | Supported in 2025 by competitor outages |
| Acetone | Co-product of phenol | MMA, BPA, solvents | — |
| PTA (purified terephthalic acid) | Mailiao, Longde (Yilan) and Ningbo (PTA-6 commissioned 2024) | Polyester fibre and PET resin makers | Ningbo PTA-6 underwent a repair shutdown and restart in Aug–Sep 2025 |
| PIA (purified isophthalic acid) | Co-monomer for PET bottle resin and UPR | PET resin, coatings | Some China orders shipped from Longde in Sep 2025 |
| Raffinate | By-product | Sold back to FPCC | — |
| DMF (dimethylformamide) | Solvent | PU leather, fibre | Listed in registry scope |
Plastics Products
| Product | Description | Target customers | Notes |
|---|---|---|---|
| PS (GPPS/HIPS) | Styrenic resin | Packaging, appliances | Volumes cut in 2025 for US tariffs and Chinese competition |
| ABS | Engineering styrenic | Appliance, IT and automotive moulders | High-price specialty grades pushed in 2025 |
| PP | Polyolefin | Converters | Export expansion in late 2025 |
| High-cleanliness metallocene PP | Ultra-clean grade for 300 mm wafer carriers (FOUP/FOSB) | Semiconductor logistics | Mass production targeted end-2026; FCFC says it will be the world's third supplier of PP wafer-carrier material |
| PC (polycarbonate) | Via FIPC JV with Idemitsu | Electronics, optical, automotive | — |
| Modified PC/ABS compounds | High-value modified grades | Notebook, AI-PC, networking | Long-standing "deep cultivation" per management |
| Ultra-flame-retardant engineering plastic | Grade described as effectively non-ignitable | AI-server rack makers | 500–600 t/month; already in supply chain (COMPUTEX, Jun 2026) |
| Drone thermoplastics | Lightweight structural thermoplastics | Taiwan UAV makers | FCFC claims to be Taiwan's main supplier |
| Aromatic nylon, PEEK (in development) | High-temperature engineering plastics | Humanoid robots, drones, AI servers, 5G/6G, semiconductor carriers | Development stage |
Others / Fibre & Textiles
| Product | Notes |
|---|---|
| Nylon filament and nylon fabric, dyeing/finishing | Consolidated into fewer lines under the 2025 slimming plan |
| Rayon (viscose staple fibre) – Taiwan | Production terminated in 2024 |
| Spinning – Taiwan | Terminated in 2024 |
| Vietnam fibre/yarn/fabric | Ongoing |
| Formosa Taffeta: filament fabrics (nylon/polyester), tire cord and other | Pressured by Chinese price-cutting in 2026 |
New businesses (transformation portfolio)
| Offering | Description | Status / timeline |
|---|---|---|
| 5N5 electronic-grade low-carbon hydrogen | 99.9995% purity H2 purified from existing by-product hydrogen; third-party-certified carbon footprint 0.52 kg CO2e/kg H2 (about one-twentieth of mainstream production routes) | NT$1.0bn purification plant; first output targeted Q3 2027 (supply "as early as mid-2027"); management cites total hydrogen output potential of 50,000 t/yr |
| Electronic specialty gases | Gases for semiconductor, panel and LED processes | Planning stage |
| Fine/electronic chemicals | Polyimide (PI) monomers, photoresist (PR) materials, perovskite-cell materials | R&D with "strategic investment partners" (unnamed) |
| Silicon carbide (SiC) materials | Third-generation semiconductor materials; 26-person R&D team after 3 years of in-house work | Results possible "as early as 2H2027" if a customer supply agreement progresses |
| Small hydro, solar PV, green-power wheeling, REC transfer, power trading | FCFC claims to be Taiwan's largest private small-hydro operator; plants include Xikou, Batian and Shalu | Operating |
| Micro-grid & EMS | Integrated PV, EV chargers and storage, e.g. a 58.5 MWh-class system at the Xingang Welfare Building (per deck graphic) | Operating / commercialising |
| AI computing-centre sites | Revitalised land and plants with a self-built power plant, Taipower backup and green power | Marketing to prospective tenants (COMPUTEX 2026) |
Pricing models are n/d for all products. Commodity products are sold at market-linked prices.
Financial Narrative
Basis: consolidated IFRS, NT$ millions unless stated.
Income statement
Revenue CAGR FY2021–FY2025. The CAGR is −5.9% per year (computed: 287,034 / 365,812 over four years).
Income statement commentary. FY2021 was a cyclical peak: 14.6% gross margin, NT$34.4bn EBIT and NT$12.6bn of equity income.
The inflection came in FY2022. Revenue still grew 3.9% on oil-driven prices, but gross margin collapsed to 3.4% as feedstock costs outran product prices and Chinese capacity arrived. FCFC has not earned an operating profit in any year since.
Reported earnings in FY2022–FY2024 were sustained entirely below the line by:
-
interest and investment income (NT$11.1bn in FY2022, NT$5.9bn in FY2023);
-
equity income (NT$6.9bn in FY2023);
-
FX gains (NT$2.2bn in FY2022).
FY2025 lost that support. Non-operating income turned to a NT$1.0bn loss on four items:
-
FX losses of NT$1.65bn;
-
a NT$1.03bn decline in equity income, driven by Mailiao Power at −NT$2.35bn and only partly offset by FPCC at +NT$0.75bn and FHI at +NT$0.51bn;
-
a NT$0.71bn fall in dividend income;
-
NT$0.8bn of asset write-downs.
With the core still loss-making, the first annual loss since listing followed.
Quarterly bridge into 2026
Sources: FCFC decks (Aug 2025, Apr 2026); Quartr summaries of Q3 2025 and 1H2026. Q2 2025 EPS of −1.16 is from the Aug 2025 deck; the audited 1H2025 EPS was later reported as −1.27 (−1.24 in the deck), a minor restatement. Q3 2025 is derived from the 9M EPS of −0.94 and the audited 1H EPS of −1.27. Q2 2026 figures are derived from 1H2026 (revenue NT$168.9bn, operating profit NT$5.05bn, net NT$13.05bn, EPS 2.23) less Q1 2026.
1H2026 gross margin was 7.0% against 2.4% in 1H2025, and net margin was 7.7% against −4.9%. Q1 2026 was helped by low-cost inventory and a sharp March price spike, plus NT$3.33bn of additional FPCC equity income quarter-on-quarter.
Balance sheet
Latest interim position (30 Jun 2026, S&P data):
-
cash and investments NT$246.4bn;
-
total debt NT$133.9bn;
-
net cash NT$112.5bn;
-
equity NT$558.2bn;
-
BVPS NT$88.71.
Management cites debt-to-capital of 16% at 30 June 2026 (Quartr).
Balance sheet commentary. The defining feature is the size and volatility of the investment book. Short- plus long-term investments were NT$288.7bn at FY2025 year-end, more than half of total assets.
FY2024 equity fell NT$78bn to NT$305.5bn on unrealised losses in listed holdings. This happened even though net income was positive, and Q3 2024 alone saw a NT$33.7bn comprehensive loss.
FY2025 and 1H2026 reversed this sharply as Nanya Technology and FPCC rallied. Equity rose to NT$381bn at FY2025 year-end and NT$558bn at June 2026.
Net debt peaked at NT$81.6bn in FY2024, when working capital also dropped to NT$28.2bn because NT$27.5bn of long-term debt fell current. It then fell to NT$8.9bn in FY2025 for four reasons:
-
NT$22.3bn of net debt repayment;
-
an NT$9.1bn inventory release;
-
Nanya Technology disposals, which boosted investing inflows by NT$11.2bn;
-
capex discipline.
Goodwill is negligible, so asset quality hinges on PP&E economics and listed-equity marks.
Cash flow
Cash flow commentary. FY2022 is the red flag. FCFC paid NT$28.1bn of dividends, the FY2021 peak payout of NT$4.80 per share. That year it generated only NT$9.8bn of FCF and borrowed NT$36.1bn net. This set up the FY2023–FY2024 leverage peak.
Capex ran at NT$21–23bn in FY2022–FY2023 for projects including Ningbo PTA-6. It was then cut to NT$12–14bn.
FY2025 OCF of NT$25.1bn was flattered by a NT$14.9bn working-capital release, mostly lower inventory as prices fell. That release is not repeatable.
TTM to June 2026 OCF fell to NT$14.6bn and FCF to NT$1.9bn as inventory rebuilt by NT$7.3bn in the price spike. 2026 accounting profits are therefore not yet converting to cash.
Ratios
Ratio commentary. Returns have been sub-cost-of-capital since FY2022; S&P's WACC estimate is about 6.4%. EBIT-based interest coverage has been negative for four straight years, so debt service relied on D&A, dividends from associates and asset sales.
Working-capital management improved: the CCC shortened by about 11 days from FY2021 to FY2025, mainly through lower inventory days, consistent with the "lean production" narrative. The S&P Altman Z-score is 1.93 (Sep 2026), in the grey zone, while the Piotroski F-score of 7 signals improving fundamentals.
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansFinancial Detail
Segment (As Presented in FCFC Results Decks) Overview
| Segment (as presented in FCFC results decks) | Contents | Key products / entities |
|---|---|---|
Petrochemical Products | Aromatics and first derivatives at Mailiao, Longde (Yilan) and Ningbo | PX, OX, benzene, SM, phenol, acetone, PTA, PIA, raffinate |
Plastics Products | Styrenics and polyolefin/engineering resins | PS, ABS, PP, PC (via Formosa Idemitsu Petrochemical, "FIPC") |
Others | Fibre/textile and other subsidiaries | Nylon filament and fabric, Vietnam fibre subsidiaries, Taiwan Acetic Acid, utilities/energy, other |
FTC (Formosa Taffeta) | Listed subsidiary consolidated by FCFC | Nylon/polyester filament fabrics, tire cord, other Formosa Taffeta businesses |
Segment revenue (TWD Bn)
| Segment revenue (TWD Bn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Petrochemical (TWD Bn) | 186.1 | 202.4 | 166.7 |
Plastics (TWD Bn) | 83.1 | 81.5 | 61.5 |
Others (TWD Bn) | 41.8 | 43.6 | 39.7 |
FTC - Formosa Taffeta (TWD Bn) | 21.6 | 21.1 | 19.1 |
Total consolidated (TWD Bn) | 332.6 | 348.6 | 287.0 |
Segment share of revenue (%)
| Segment share of revenue (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Petrochemical (%) | 56.0 | 58.1 | 58.1 |
Plastics (%) | 25.0 | 23.4 | 21.4 |
Others (%) | 12.5 | 12.5 | 13.8 |
FTC (%) | 6.5 | 6.1 | 6.7 |
Segment YoY growth (%)
| Segment YoY growth (%) | FY2024 | FY2025 |
|---|---|---|
Petrochemical YoY (%) | 8.8 | -17.6 |
Plastics YoY (%) | -1.9 | -24.5 |
Others YoY (%) | 4.3 | -8.9 |
FTC YoY (%) | -2.3 | -9.5 |
Group Entities
| Entity | Relationship | Activity |
|---|---|---|
Formosa Chemicals Industries (Ningbo) ("台化寧波") | Subsidiary | PTA (incl. PTA-6), PIA, phenol, PS, ABS, raffinate |
Formosa Taffeta Co. (福懋, TWSE-listed) | Consolidated subsidiary | Textiles, tire cord, other |
Formosa Idemitsu Petrochemical (台化出光, "FIPC") | Consolidated JV with Idemitsu | Polycarbonate |
Taiwan Acetic Acid (台灣醋酸) | Subsidiary | Acetic-acid chain chemicals |
Vietnam subsidiaries | Subsidiaries | Fibre/yarn/fabric |
Formosa Petrochemical (台塑化, 6505) | Associate, about 24% (2,300,799,801 shares per 2023 insider filing) | Refining, olefins, utilities |
Mailiao Power (麥寮汽電, "MLPC") | Associate | Power generation |
Formosa Ha Tinh (Cayman) ("FHI") | Associate | Holding company for Formosa Ha Tinh Steel, Vietnam |
Nanya Technology (南亞科, 2408) | FVOCI investment; 9.42% after round 3, being reduced | DRAM |
Nan Ya Plastics (1303) | FVOCI investment, about 5.21% (413,328 lots, Jun 2026) | Plastics, electronic materials |
Formosa Smart Energy (台塑新智能) | Investee (NT$2.0bn injected 2024) | Energy storage, new energy |
Income statement (TWD Mn)
| Income statement (TWD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (TWD Mn) | 365,812 | 379,897 | 332,620 | 348,608 | 287,034 |
Cost of revenue (TWD Mn) | 312,374 | 367,154 | 321,195 | 334,553 | 277,707 |
Gross profit (TWD Mn) | 53,438 | 12,742 | 11,424 | 14,055 | 9,327 |
Operating expenses (TWD Mn) | 19,006 | 18,028 | 14,475 | 15,610 | 13,371 |
Operating income (TWD Mn) | 34,433 | -5,286 | -3,050 | -1,555 | -4,044 |
D&A (TWD Mn) | 17,783 | 18,258 | 17,257 | 14,978 | 14,802 |
EBITDA (TWD Mn) | 52,216 | 12,972 | 14,207 | 13,423 | 10,759 |
Equity-method income (TWD Mn) | 12,567 | 2,268 | 6,921 | 2,150 | 1,048 |
Interest expense (TWD Mn) | 1,048 | 1,798 | 3,019 | 3,409 | 3,042 |
Pre-tax income (TWD Mn) | 50,160 | 9,590 | 7,386 | 937 | -5,008 |
Income tax (TWD Mn) | 7,452 | 386 | -318 | -187 | 763 |
Net income incl. minorities (TWD Mn) | 42,707 | 9,204 | 7,705 | 1,123 | -5,771 |
Net income attributable to parent (TWD Mn) | 38,359 | 7,360 | 8,549 | 379 | -5,797 |
EPS basic (TWD) | 6.56 | 1.26 | 1.46 | 0.06 | -0.99 |
EPS diluted (TWD) | 6.56 | 1.26 | 1.46 | 0.06 | -0.99 |
Dividend per share, declared for FY (TWD) | 4.80 | 0.95 | 1.25 | 0.50 | 0.60 |
Margins (%)
| Margins (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 14.61 | 3.35 | 3.44 | 4.03 | 3.25 |
Operating margin (%) | 9.41 | -1.39 | -0.92 | -0.45 | -1.41 |
EBITDA margin (%) | 14.27 | 3.42 | 4.27 | 3.85 | 3.75 |
Net margin, attributable (%) | 10.49 | 1.94 | 2.57 | 0.11 | -2.02 |
Revenue growth YoY (%) | 44.42 | 3.85 | -12.45 | 4.81 | -17.66 |
Revenue History
| Quarter | Revenue (TWD Bn) | Operating profit (TWD Bn) | Pre-tax (TWD Bn) | Net profit (TWD Bn) | EPS (TWD) |
|---|---|---|---|---|---|
Q1 2025 | 78.9 | -0.5 | -0.4 | -0.4 | -0.08 |
Q2 2025 | 73.6 | -2.5 | -7.1 | -7.1 | -1.16 |
Q3 2025 | 69.6 | — | — | about +1.9 (derived) | about +0.33 (derived) |
Q4 2025 | 65.0 | -0.8 | 0.2 | -0.4 | -0.05 |
Q1 2026 | 81.7 | 3.1 | 7.3 | 6.5 | 1.07 |
Q2 2026 | 87.2 | about 1.9 (derived) | — | about 6.5 | about 1.16 (derived) |
Financial Analysis
| Balance sheet (TWD Mn, year-end) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (TWD Mn) | 598,345 | 555,546 | 565,870 | 490,950 | 538,942 |
Cash & equivalents (TWD Mn) | 23,062 | 34,374 | 23,871 | 24,382 | 17,194 |
Short-term investments & trading securities (TWD Mn) | 122,309 | 98,488 | 100,079 | 46,935 | 104,260 |
Inventory (TWD Mn) | 47,200 | 48,437 | 44,254 | 42,311 | 33,170 |
Long-term investments (TWD Mn) | 205,021 | 171,865 | 187,416 | 166,667 | 184,438 |
PP&E (TWD Mn) | 132,475 | 144,512 | 149,851 | 153,921 | 150,238 |
Goodwill & intangibles (TWD Mn) | 6 | 341 | 346 | 388 | 390 |
Short-term debt incl. current LTD & leases (TWD Mn) | 40,513 | 80,694 | 71,817 | 98,754 | 65,630 |
Long-term debt incl. leases (TWD Mn) | 63,470 | 60,022 | 76,511 | 54,206 | 64,720 |
Total debt (TWD Mn) | 103,983 | 140,717 | 148,328 | 152,959 | 130,350 |
Net debt (debt − cash − ST investments) (TWD Mn) | -41,388 | 7,854 | 24,378 | 81,642 | 8,896 |
Total equity incl. minorities (TWD Mn) | 443,981 | 373,364 | 383,689 | 305,486 | 381,102 |
Equity attributable to parent (TWD Mn) | 390,971 | 326,127 | 339,259 | 272,548 | 345,867 |
Working capital (TWD Mn) | 161,714 | 109,134 | 113,680 | 28,192 | 98,522 |
Book value per share (TWD) | 66.84 | 55.76 | 58.00 | 46.60 | 59.13 |
Cash flow (TWD Mn)
| Cash flow (TWD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (TWD Mn) | 38,729 | 32,732 | 18,363 | 19,164 | 25,105 |
Capital expenditure (TWD Mn) | 16,152 | 22,971 | 20,781 | 12,431 | 14,315 |
Free cash flow (TWD Mn) | 22,577 | 9,761 | -2,417 | 6,734 | 10,791 |
Common dividends paid (TWD Mn) | 14,658 | 28,131 | 5,587 | 7,338 | 2,941 |
Share buybacks (TWD Mn) | 0 | 0 | 0 | 0 | 0 |
Net debt issued (repaid) (TWD Mn) | 8,995 | 36,078 | 7,220 | 3,364 | -22,340 |
Change in working capital (TWD Mn) | -14,716 | 3,219 | -995 | 397 | 14,901 |
Cash interest paid (TWD Mn) | 1,018 | 1,678 | 2,929 | 3,378 | 3,111 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratios | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE, attributable NI / year-end parent equity (%) (computed) | 9.81 | 2.26 | 2.52 | 0.14 | -1.68 |
ROA, attributable NI / year-end total assets (%) (computed) | 6.41 | 1.32 | 1.51 | 0.08 | -1.08 |
ROIC, S&P methodology (%) | 7.70 | -1.29 | -0.77 | -0.39 | -1.04 |
Current ratio (x) | 2.90 | 1.93 | 2.12 | 1.22 | 2.09 |
Debt / equity, total debt / total equity (x) | 0.23 | 0.38 | 0.39 | 0.50 | 0.34 |
Net debt / EBITDA (x) | -0.79 | 0.61 | 1.72 | 6.08 | 0.83 |
Interest coverage, EBIT / interest (x) (computed) | 32.9 | -2.9 | -1.0 | -0.5 | -1.3 |
Interest coverage, EBITDA / interest (x) (computed) | 49.8 | 7.2 | 4.7 | 3.9 | 3.5 |
Asset turnover (x) | 0.65 | 0.66 | 0.59 | 0.66 | 0.56 |
DSO, days (computed) | 37.0 | 28.9 | 30.7 | 31.3 | 29.2 |
DIO, days (computed) | 55.2 | 48.2 | 50.3 | 46.2 | 43.6 |
DPO, days (computed) | 25.3 | 18.7 | 17.4 | 16.6 | 17.0 |
Cash conversion cycle, days (computed) | 66.9 | 58.4 | 63.6 | 60.9 | 55.8 |
Geographic share of revenue (%)
| Geographic share of revenue (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Taiwan (%) | 35.8 | 41.5 | 37.7 |
China incl. HK & Macau (%) | 48.3 | 41.8 | 45.5 |
Asia ex-China (%) | 10.5 | 11.4 | 12.2 |
Americas (%) | 3.3 | 2.3 | 2.6 |
Europe (%) | 1.4 | 1.4 | 1.4 |
Others (%) | 0.7 | 1.6 | 0.6 |
Geographic revenue, derived (TWD Bn)
| Geographic revenue, derived (TWD Bn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Taiwan (TWD Bn) | 119.1 | 144.7 | 108.2 |
China incl. HK & Macau (TWD Bn) | 160.7 | 145.7 | 130.6 |
Asia ex-China (TWD Bn) | 34.9 | 39.7 | 35.0 |
Americas (TWD Bn) | 11.0 | 8.0 | 7.5 |
Europe (TWD Bn) | 4.7 | 4.9 | 4.0 |
Others (TWD Bn) | 2.3 | 5.6 | 1.7 |
Geographic YoY growth, derived (%)
| Geographic YoY growth, derived (%) | FY2024 | FY2025 |
|---|---|---|
Taiwan (%) | 21.5 | -25.2 |
China incl. HK & Macau (%) | -9.3 | -10.4 |
Asia ex-China (%) | 13.8 | -11.9 |
Americas (%) | -27.0 | -7.0 |
Europe (%) | 4.7 | -17.6 |
Others (%) | 139.1 | -69.2 |
Share price, year-end, adjusted (TWD)
| Share price, year-end, adjusted (TWD) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Year-end close, adjusted (TWD) | 70.66 | 65.51 | 58.70 | 26.40 | 31.74 |
Year-end market cap (TWD Mn) | 472,601 | 412,356 | 364,394 | 159,678 | 187,753 |
Share Price & Returns
| Date | Close (TWD) |
|---|---|
15 Jan 2026 | 34.45 |
10 Mar 2026 | 44.25 |
3 Jun 2026 | 56.50 |
21 Jul 2026 | 68.60 |
10 Aug 2026 | 58.80 |
11 Sep 2026 | 70.20 |
6 Oct 2026 | 73.00 |
Valuation Multiples
| Multiple | FCFC (1326) | Formosa Plastics (1301) | Nan Ya (1303) | FPCC (6505) |
|---|---|---|---|---|
Trailing P/E (x) | 30.9 | 41.3 | 37.8 | 17.1 |
Forward P/E, FY2026 consensus (x) | 24.6 | 25.8 | 14.6 | 12.3 |
P/B (x) | 0.82 | — | — | — |
EV/Sales, TTM (x) | 1.17 | — | — | — |
EV/EBITDA, TTM (x) | 19.0 | — | — | — |
Capital Markets
| Source | Rating | Price target (TWD) | FY2026 EPS (TWD) | FY2026 revenue (TWD Bn) |
|---|---|---|---|---|
S&P Global (6 analysts; Sep 2026) | Buy (2 strong buy, 2 buy, 1 hold, 1 strong sell) | Average 65.83 (Sep); Jul range 20–84 | 2.97 (range 1.76–3.49; 5 analysts) | 321.0 (+11.8%) |
FactSet (Money Weekly, about Apr–May 2026) | — | — | Median 2.03 (range 0.53–2.95) | — |
S&P FY2027 | — | — | 1.60 | 323.0 |
Dividend metric
| Dividend metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Cash DPS declared for fiscal year (TWD) | 4.80 | 0.95 | 1.25 | 0.50 | 0.60 |
Payout ratio, DPS / EPS (%) | 73.2 | 75.4 | 85.6 | 833.3 | 0 |
Capital Markets — Moody's / S&P / Fitch
| Item | Detail |
|---|---|
Moody's / S&P / Fitch | No public international ratings identified |
Debt due within one year, FY2025 (TWD Mn) | 65630 (short-term borrowings 42,847; current LTD 22,643) |
Long-term debt, FY2025 (TWD Mn) | 64,720 |
Total debt, 30 Jun 2026 (TWD Mn) | 133,910 |
New issuance authority | Unsecured corporate bonds up to NT$10bn (board, 10 Mar 2026), possibly in multiple tranches and tenors |
Debt-to-capital (30 Jun 2026) | 16% (management) |
Analyst Conclusions
Management guidance
At the May 2026 AGM, management said the slimming is complete and expected Q2 2026 revenue roughly equal to Q1. It was "cautiously optimistic" on 2H2026, citing:
-
continued Middle East supply constraints;
-
product-mix upgrades and an increased share of differentiated products, with average selling prices above the prior year (August 2026 MOPS);
-
equity income from FPCC.
There is no numeric earnings guidance. The strategic target is 40–50% of revenue from high-tech and green businesses by 2030.
Consensus
S&P consensus is FY2026 revenue of NT$321.0bn (+11.8%) and EPS of NT$2.97, with EPS falling to NT$1.60 in FY2027. 8M 2026 revenue was NT$230.7bn (+16% YoY). Run-rating August-level revenue for September–December would imply a full year of about NT$350bn, ahead of the S&P consensus of NT$321bn. That would require prices to hold.
Bull case
-
The trough is behind it. The core has been pre-tax profitable since Q3 2025, and 1H2026 operating profit was NT$5.05bn against a FY2025 operating loss of NT$4.0bn. Gross margin doubled to 7.0% as slimming permanently removed loss-making volume.
-
Hidden asset value. BVPS of NT$88.71 against a NT$73 price (0.82x P/B), plus net cash of NT$112.5bn on S&P's investment-inclusive basis, gives downside support. Each Nanya disposal round converts paper gains into distributable reserves and dividend capacity.
-
Optionality on AI and semiconductors. Metallocene wafer-carrier PP, 500–600 t/month AI-rack plastics, 5N5 hydrogen and SiC could re-rate FCFC toward Nan Ya-style specialty multiples if the 2030 mix target gains credibility.
Bear case
-
Windfall, not recovery. The 2026 profit surge coincided with the Hormuz shock and low-cost inventory. Prices already reversed after the June peace deal, and consensus FY2027 EPS of NT$1.60 is about 46% below FY2026.
-
Poor cash conversion and earnings quality. TTM FCF of only NT$1.9bn against NT$13.8bn of net income, with four straight years of negative EBIT coverage. Equity income and fair-value marks, not operations, drive value.
-
Structural overcapacity persists. Chinese integrated refiners keep adding capacity, with ITRI seeing a glut to about 2028. China is 45.5% of revenue, and new businesses are unlikely to be material before 2027–2028.
Catalysts and monitorables (next 12 months)
| Timing | Catalyst / monitorable |
|---|---|
| About 10 Oct, Nov, Dec 2026 | Monthly revenue (Sep–Nov) and the price/volume variance mix |
| By 14 Nov 2026 | Q3 2026 results: test of margin sustainability after the June price reversal |
| Through 31 Dec 2026 | Execution of round 4 Nanya Technology disposal (30,986 lots) and realised proceeds |
| Q4 2026 | Start of metallocene PP mass production for wafer carriers |
| Ongoing | Strait of Hormuz status, US sanctions on Iran, naphtha and PX spreads |
| Ongoing | China 15th Five-Year Plan capacity-control implementation |
| 2026–2027 | Issuance under the NT$10bn unsecured bond authority |
| Early Jan 2027 | Self-reported FY2026 results; FPG year-end bonus formula signal |
| About Mar 2027 | FY2026 dividend proposal (consensus implies a sharp DPS step-up from NT$0.60) |
| Mid-2027 / Q3 2027 | 5N5 hydrogen first supply; SiC results possible in 2H2027 |
Analyst verdict
FCFC enters late 2026 transformed in perception more than in substance. The numbers show a genuine operating repair. Line consolidation and inventory discipline cut the cash conversion cycle to about 56 days, and the company swung from an FY2025 operating loss of NT$4.0bn to a NT$5.05bn operating profit in 1H2026. Net debt was cut from NT$81.6bn to near zero, or net cash on an investment-inclusive basis, and debt-to-capital fell to 16%.
But the magnitude of the 2026 profit rebound cannot be separated from an exogenous oil and supply shock. The Strait of Hormuz disruption lifted aromatics spreads and created inventory gains, and FPCC equity income surged alongside it.
FCFC's long-run return profile is weak. ROIC has been negative for four consecutive years, gross margins sat at 3–4% from FY2022 to FY2025, and EBIT has not covered interest since FY2021. The equity story therefore rests on two pillars outside the core.
The first pillar is an investment portfolio whose marked value supports a book value of NT$88.71 per share. The second is a high-tech pivot that remains at pilot scale until 2027.
At NT$73, the shares trade at about 0.82x book, about 25x consensus FY2026 EPS and above the average analyst target. That price discounts a durable recovery that consensus itself does not forecast, given the FY2027 EPS decline to NT$1.60.
The asymmetric case is stronger for holders who value the balance sheet and FPG cross-holdings than for those underwriting operating earnings. Downside is cushioned by asset backing and improved liquidity. Upside requires either persistent Middle East supply tightness, credible Chinese capacity discipline, or early commercial proof in wafer-carrier PP, electronic-grade hydrogen and SiC.
Stance: Neutral / Hold. Fundamentals are improving but the valuation is full. Key signposts are Q3 2026 margins after the June price reversal, round 4 Nanya proceeds, and delivery of metallocene PP on schedule. Opportunistic accumulation below about 0.7x book would offer a better margin of safety.
APPENDIX: PRINCIPAL SOURCES
-
FCFC, "The first quarter of 2026 and the year of 2025 Result Conference" (23 Apr 2026), fcfc.com.tw
-
FCFC, "The first quarter of 2025 and the year of 2024 Result Conference" (25 Apr 2025), fcfc.com.tw
-
FCFC, "1H2025 Result Conference" (28 Aug 2025), English and Chinese, fcfc.com.tw
-
FCFC MOPS monthly revenue explanations: Sep 2025 (13 Oct 2025), Nov 2025 (8 Dec 2025), Jun 2026 (9 Jul 2026)
-
TWSE English company profile 1326 (generated 12 Feb 2026); Yahoo Finance TW and Money-Link company profiles (Jan–Aug 2026); Taiwan commercial-registry data via TechNews InfoBase
-
S&P Global Market Intelligence via StockAnalysis.com: income statement, balance sheet, cash flow, ratios, statistics and forecast pages for 1326, 1301, 1303 and 6505 (Jul–Oct 2026)
-
Quartr event summaries: FCFC Q3 2025 and Q2 2026
-
CNA/UDN (10 Mar 2026); Commercial Times/CNA (27 May 2026); NOWnews (12 Jan 2026; May 2026); China Times Wantrich (12 Jan 2026; 27 May 2026); Storm Media (12 Jan 2026); Money Weekly (2026)
-
TechNews: COMPUTEX article (3 Jun 2026); AGM coverage (10 Jun 2025, 27 May 2026); Formosa Smart Energy (3 May 2024); Shalu hydro (14 Feb 2025); ITRI overcapacity (30 Jan 2025); FPG feedstock outlook (13 Apr 2026)
-
uAnalyze/Anue: Nanya Technology disposal (12 Nov 2025); FPG August 2026 revenue (8 Sep 2026); UDN (8 Sep 2026)
-
cnyes director-holdings tables (Aug 2023); PChome Nan Ya director holdings (Jun 2026); SinoPac AI-Invest dividend history (2026); Google Finance 1326 (Jun 2026)
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure / background | Notes |
|---|---|---|---|
Hong Fu-yuan (洪福源) | Chairman | Chairman since mid-2021, succeeding Wang Wen-yuan; long-serving FPG professional manager | Chaired the 2025 and 2026 AGMs; apologised for the FY2025 loss |
Lu Wen-chin (呂文進) | President, Director, Spokesperson | President in role by 2023 (insider filings); leads the transformation narrative (COMPUTEX 2026) | — |
Huang Kuo-hsien (黃國賢) | Deputy Spokesperson | — | — |
Chang Tsung-yuan (張宗遠) | Vice President and Director (2023 filings) | — | Current status to verify |
Lee Ching-fen (李青芬) | Vice President and Director (2023 filings) | — | Current status to verify |
Chien Wei-keng (簡維庚) | Vice President and Director (2023 filings) | — | Current status to verify |
Huang Tien-chung (黃田忠) | Vice President (2023 filings) | — | Current status to verify |
Directors' Shareholdings
| Director | Type | Shares held (2023) |
|---|---|---|
Hong Fu-yuan | Chairman | 272,804 |
Nan Ya Plastics Corp. (rep. Wang Ruey-yu 王瑞瑜) | Managing director (corporate) | 140,519,649 |
Wang Wen-yuan (王文淵) | Managing director; FPG senior family member | 129,198,084 |
Wang Wen-chao (王文潮) | Managing director | 16,867,218 |
Formosa Petrochemical Corp. (rep. Wang Wen-hsiang 王文祥 per filing) | Director (corporate) | 48,567,575 |
Lu Wen-chin, Chang Tsung-yuan, Lee Ching-fen, Chien Wei-keng | Executive directors | Small |
Su Chun-hsiung, Fang Ying-da, Chuang Hung-ming | Directors | Small |
Independent directors | At least 3 required by FSC rules; names n/d in sources reviewed | — |
Major Shareholders
| Holder | Stake | Source / date |
|---|---|---|
Nan Ya Plastics | About 2.4% (140.5m shares) | Insider filing, 2023 |
Wang Wen-yuan | About 2.2% (129.2m shares) | Insider filing, 2023 |
Formosa Petrochemical | About 0.8% (48.6m shares) | Insider filing, 2023 |
Chang Gung Medical Foundation and other FPG foundations | Significant (exact % n/d) | Historical reporting; foundations are key FPG control nodes |
Insiders (aggregate) | 4.25% | S&P data, Sep 2026 |
Institutions (aggregate) | 9.92% | S&P data, Sep 2026 |
Free float | About 3.26bn shares (about 56%) | S&P data, Sep 2026 |
Competitive Landscape
Competitors by Segment
| Segment | Named competitors |
|---|---|
PX / aromatics | Hengli Petrochemical, Zhejiang Petroleum & Chemical (Rongsheng), Sinopec, S-Oil, SK Geo Centric, ENEOS, Reliance Industries, CPC Corp (Taiwan) |
PTA / PIA | Hengli, Rongsheng/Yisheng, Tongkun, Far Eastern/Oriental Petrochemical (Taiwan), CAPCO (Taiwan), Lotte Chemical |
SM | Grand Pacific Petrochemical (1312), Taiwan Styrene Monomer (1310), LG Chem, Lotte Chemical, Chinese integrated refiners |
Phenol / acetone | Chang Chun Group (Taiwan, private), Kumho P&B Chemicals, INEOS Phenol, Chinese producers (e.g. ZPC, Wanhua) |
ABS / PS | Chi Mei Corp (Taiwan, private; very large ABS producer), LG Chem, INEOS Styrolution, Grand Pacific Petrochemical, Lotte Chemical |
PP | Formosa Plastics (1301, sister), LCY Chemical, Chinese PDH/refinery-integrated producers |
PC | Covestro, SABIC, Lotte Chemical, Wanhua, Chi Mei |
Fibre / textiles | Far Eastern New Century, Chinese filament producers |
Group peers (overlap and benchmarking) | Formosa Plastics (1301), Nan Ya Plastics (1303), Formosa Petrochemical (6505) |
Peer Comparison FY2025
| Metric | FCFC (1326) | Formosa Plastics (1301) | Nan Ya Plastics (1303) | Formosa Petrochemical (6505) |
|---|---|---|---|---|
FY2025 revenue (TWD Mn) | 287,034 | 175,411 | 259,912 | 626,159 |
FY2025 revenue growth (%) | -17.66 | -12.31 | 0.12 | -5.67 |
FY2025 gross margin (%) | 3.25 | 3.19 | 8.31 | 3.52 |
FY2025 operating margin (%) | -1.41 | -4.28 | 1.43 | 1.73 |
FY2025 net income attributable (TWD Mn) | -5,797 | -10,049 | 4,519 | 9,875 |
FY2025 EPS (TWD) | -0.99 | -1.58 | 0.57 | 1.04 |
FY2025 DPS (TWD) | 0.60 | 0.50 | 0.80 | 1.20 |
Recent Developments
The "slimming" involved line consolidation; headcount effects are n/d.
