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Process Industries

Formosa Plastics Corp.

  • 98.70 TWD
  • -0.50
  • -0.50%
  • Taiwan
    Dec 14, 2018
  • Ticker
    TAI(1301)
  • Prev. close
    99.20
  • Market cap (TWD)
    631,481.43M
  • Market cap (USD)
    20,468.08M
  • Shares
    6,365.74M

Company Background

Founded in 1954 by the late tycoon Wang Yung-ching with financial aid from the U.S. government, Formosa Plastics is the flagship company of Formosa Plastics Group, one of Taiwan's largest family-controlled conglomerates, with business interests in a wide range of sectors, including plastics, chemicals, electronics components, healthcare and education.

Formosa Plastics is Taiwan's biggest petrochemical company by market cap and a global leader in the polyvinyl chloride, or PVC, sector. The company makes and sells PVC resin, chemical and fiber products.

Since Wang passed away, his family has gradually reduced their involvement in the group's day-to-day decisions by bringing in external managers or allowing non-family executives to oversee the conglomerate's operations. The Wangs still maintain a controlling stake in the group.

The current chairman is Jason Lin, a longtime company employee who rose through the ranks. Lin joined Formosa Plastics in 1967, but left the company in 1987 and rejoined in 1999. He has a master's degree from Wageningen University in the Netherlands.

Business Summary

Formosa Plastics Corp. manufactures and sells intermediate raw materials for plastics. Its products include polyvinyl chloride, high-density polyethylene, low-density polyethylene, linear low-density polyethylene, polyethylene wax, polypropylene, polyoxymethylene, masterbatch, liquid caustic soda, liquid chlorine, acrylonitrile, acetonitrile, methyl methacrylate, methacrylic acid, epichlorohydrin, methyl tert-butyl ether, acrylic acid & esters, carbon fiber, sodium hypochlorite, chlorinated solvent, hydrogen, lithium-ion battery electrolyte, calcium carbonate, distributed control systems system, warehouse management system, and learning management system. Its products are used in packaging materials, bottle, articles of clothing, toy dolls, medical materials, sports equipment, sporting goods, auto parts, generation timber, motor parts, wire and cable, ships aerospace, paint coating, chemical building materials, waterproof insulation, furniture furnishings, tool parts, 3C parts coated, 3C shell timber, master batch pigment, additives, clean bleach, civil farm animals film with a bag, bottle box barrel, and dry water retention. The company was founded on November 5, 1954 and is headquartered in Taipei, Taiwan.

Financial Highlights

Dec 2017 TWDUSD
Revenue206,709.75M6,794.58M
Gross Profit33,128.74M1,088.94M
Operating income21,923.89M720.64M
Income before tax54,904.34M1,804.71M
Net income49,382.85M1,623.22M
EBITDA30,373.99M998.39M
Diluted EPS7.760.25
Dividends Per Share5.700.18
Total Assets476,071.03M15,997.81M
Total liabilities131,060.87M4,404.14M
Total equity345,010.16M11,593.66M
Operating cash flow46,081.53M1,514.70M
Currency in TWDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 215,424.76M 216,589.04M 191,545.39M 180,173.19M 206,709.75M
Gross Profit 15,340.98M 16,171.47M 21,406.07M 23,910.38M 33,128.74M
Operating income 4,580.09M 5,478.80M 10,467M 12,994.52M 21,923.89M
Income before tax 23,164.49M 20,551.55M 35,094.30M 43,813.94M 54,904.34M
Net income 20,715.84M 17,993.43M 30,877.26M 39,392.54M 49,382.85M
EBITDA 13,442.90M 13,578.84M 18,856.55M 21,957.51M 30,373.99M
Diluted EPS 3.25 2.83 4.85 6.19 7.76
Dividends Per Share 1.90 1.70 3.60 4.60 5.70
Total Assets 408,746.36M 431,086.69M 423,501.05M 455,666.07M 476,071.03M
Total liabilities 146,310.01M 145,194.97M 136,066.14M 142,595.58M 131,060.87M
Total equity 262,436.35M 285,891.71M 287,434.90M 313,070.48M 345,010.16M
Operating cash flow 16,268.26M 13,438.39M 40,852.00M 36,606.27M 46,081.53M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 7,257.94M 7,147.39M 6,032.15M 5,586.62M 6,794.58M
Gross Profit 516.85M 533.65M 674.12M 741.38M 1,088.94M
Operating income 154.30M 180.79M 329.62M 402.92M 720.64M
Income before tax 780.44M 678.19M 1,105.19M 1,358.53M 1,804.71M
Net income 697.94M 593.77M 972.38M 1,221.44M 1,623.22M
EBITDA 452.90M 448.09M 593.83M 680.83M 998.39M
Diluted EPS 0.10 0.09 0.15 0.19 0.25
Dividends Per Share 0.06 0.05 0.11 0.14 0.18
Total Assets 13,714.71M 13,641.12M 12,893.14M 14,138.38M 15,997.81M
Total liabilities 4,909.15M 4,594.48M 4,142.42M 4,424.44M 4,404.14M
Total equity 8,805.55M 9,046.63M 8,750.72M 9,713.93M 11,593.66M
Operating cash flow 548.09M 443.46M 1,286.51M 1,135.04M 1,514.70M

Valuation Measures

Dec 2017
PER12.71
ROA10.60%
ROE15.00%
Operating margin10.60%
Profit margin23.88%

Key executives

  • Chairman & General Manager: Chien Nan Lin
  • Chief Financial Officer: Chen Hsiao Lei
  • Director: Wen Chin Hsiao
  • Deputy General Manager: Kuang Ming Chen
  • Deputy General Manager: Chien Shan Yang

Shareholders

  • Chang Gung Medical Foundation (9.4%)
  • Formosa Chemicals & Fibre Corp. (7.6%)
  • Credit Suisse Singapore Ltd. (Private Banking) (6.2%)
  • Nan Ya Plastics Corp. (4.6%)
  • Everred Corporate, Inc. (4.1%)
  • Landmark Capital Holdings, Inc. (3.0%)
  • The Vanguard Group, Inc. (2.6%)
  • Formosa Petrochemical Corp. (2.0%)
  • BlackRock Fund Advisors (1.7%)
  • Fubon Life Insurance Co., Ltd. (1.5%)

Contact Details

  • Website:http://www.fpc.com.tw
  • Address: 4th Floor, No. 201 Tung Hwa North Road, Taipei, 105 08, Taiwan
  • Phone: +886.2.2712.2211

Related Companies

  • Formosa PS (Ningbo) Co. Ltd.
  • Formosa Polypropylene (Ningbo) Co. Ltd.
  • Formosa Plastics (Cayman) Ltd.
  • Formosa Technologies Corp.
  • Formosa Ha Tinh Steel Corp.
  • World Pak Corp.
  • Formosa Plastics Marine Corp.
  • ITC-Formosa LLC
  • Tai Hsu Fibers Corp.
  • Formosa Plastics Corp. USA
  • Borden Chemicals & Plastics Operating LP /Plyvnyl Chlrd Ops/

Competitors

  • China Petrochemical Development Corporation
  • Braskem S.A. Pfd A
  • Westlake Chemical Corporation
  • BASF SE
  • Sumitomo Chemical Co., Ltd.
  • Taiwan Fertilizer Co., Ltd.
  • Mexichem SAB de CV
  • Asia Polymer Corporation
  • Trinseo SA
  • USI Corporation
  • Superior Plus Corp
  • Ledtech Electronics Corp.
  • Shandong Ruifeng Chemical Co., Ltd. Class A
Last Updated on 14 Dec, 2018

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