# Formosa Plastics (1301.TW)

Canonical: https://gigainvestors.com/s/1301.TW

Analysis as of: 2026-10-16T07:35:01.789Z. Financial observations: FY2000–FY2025.

Listing currency: TWD. Reporting currency: TWD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: TWD 81.70 per share; close as of 2026-10-15.

Estimated value: low TWD 44.91 per share, central TWD 45.22 per share, high TWD 45.63 per share. Buy at or below the central value TWD 45.22 per share. Valuation as of 2026-10-16T07:35:01.789Z; scenarios are not confidence intervals.

Expected annual return: 3.4% at the stated quote. About 3.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; TW 10-year bond 2.0% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 2

- Operating margin variation: 1.03×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.11×

- FY2018: 0.11×

- FY2019: 0.21×

- FY2020: 0.14×

- FY2021: 0.32×

- FY2022: 0.18×

- FY2023: -0.02×

- FY2024: -0.02×

- FY2025: -0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 12.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 6.9%

- ROIC, second-lowest year: -1.1%

- Typical minus recent gross margin: 12.3 pp

- Typical gross margin (annual median): 15.5%

- Recent gross margin (lower of latest and 3-year median): 3.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.8%

- ROIC including acquisitions, ten-year median: 8.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.1%

- FY2017: 6.8%

- FY2018: 7.1%

- FY2019: 12.9%

- FY2020: 7.3%

- FY2021: 21.7%

- FY2022: 10.7%

- FY2023: -1.1%

- FY2024: -0.9%

- FY2025: -1.6%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.77×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: TWD 80B

- Net income, five-year total: TWD 104B

- Return on incremental invested capital: -30.0%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 2.6 pp

- Working capital / revenue, final three-year average: 13.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.82×

- FY2023: 0.20×

- FY2024: 6.79×

- FY2025: 1.43×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.8% vs -1.1%

- Per-share earnings: 6.19 to -0.19 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: TWD -320B

- Cumulative retained earnings: TWD -37B

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: TWD -6.38

- Per-share value, starting three-year median: TWD 6.19

- Per-share value, ending three-year median: TWD -0.19

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: TWD 259M

- Cumulative net income, 10 years: TWD 299B

- ROIC, first three-year median: 6.8%

- ROIC, last three-year median: -1.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: TWD 6.19

- FY2017: TWD 7.76

- FY2018: TWD 7.78

- FY2019: TWD 5.86

- FY2020: TWD 3.15

- FY2021: TWD 11.21

- FY2022: TWD 5.68

- FY2023: TWD 1.15

- FY2024: TWD -0.19

- FY2025: TWD -1.58

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.6%

- FY2017: 0.7%

- FY2018: -0.2%

- FY2019: -1.9%

- FY2020: -2.4%

- FY2021: 2.5%

- FY2022: -4.0%

- FY2023: 0.2%

- FY2024: -2.6%

- FY2025: -3.0%

## Holders

## Price story

Down 25% since Jun 2022 · sales -12.3%

Story as of 2026-10-16T10:00:03.371Z; price observation 2026-10-15.

Price needs cash profits to grow 37.1% a year for ten years

### Sales · FY2024–2025

sales -12.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: TWD 180B 

- FY2017: TWD 207B 

- FY2018: TWD 230B 

- FY2019: TWD 208B 

- FY2020: TWD 186B 

- FY2021: TWD 274B 

- FY2022: TWD 252B 

- FY2023: TWD 199B 

- FY2024: TWD 200B 

- FY2025: TWD 175B 

### Gross margin · FY2025

gross margin 3.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 13.5% 

- FY2017: 16.2% 

- FY2018: 16.2% 

- FY2019: 15.5% 

- FY2020: 15.6% 

- FY2021: 27.8% 

- FY2022: 16.9% 

- FY2023: 4.9% 

- FY2024: 5.1% 

- FY2025: 3.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are TWD 175.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2025: revenue 175411403000; grossProfit 5603311000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1301.TW: Formosa Plastics Corporation engages in the manufacture and sale of plastic raw materials, chemical fibers, and related petrochemical industrial products in Taiwan, China, and internationally. It operates through Plastic, Polyolefin, Polypropylene, Tairylan, Chemical, and Other segments. The company offers plastic raw materials, such as polyvinyl chloride, high-density polyethylene, linear low-density polyethylene, ethylene vinyl acetate copolymer, polyethylene wax, polypropylene, polyacetal, and composite granules; and carbon fiber products. It also provides chemical products, including liquid alkali, solid alkali, liquid and vinyl chlorine, dichloroethane, acrylonitrile, acetonitrile, methyl methacrylate, methacrylic acid, methyl tertiary butyl ether, acrylate, superabsorbent resin, and n-butanol products; and antibacterial superabsorbent resin. In addition, the company offers other materials comprising PEEK carbon fiber composites, processing aids, impact-resistant modifier, Haibo, chlorinated solvents purifying hydrogen, lithium-ion battery electrolyte, lime, calcium carbonate powder, and hydrochloric acid; and programmable automation consisting of process computer DCS system, warehouse logistics control system, RTPMS real-time production management system, safety control system, and LIMS laboratory information management systems. Its products are applied in daily necessities, outdoor sports, mechanical engineering, building materials and coatings, 3C home appliances, civil engineering agriculture and animal husbandry, and other applications. The company was incorporated in 1954 and is based in Kaohsiung, Taiwan.

### Why customers stay

Margins ranged from 3.2% to 5.1% during 2023–25; it earns 6.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2023: grossProfit / revenue = 4.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2024: grossProfit / revenue = 5.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2025: grossProfit / revenue = 3.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); 10-year return on capital observations [[2016,0.040539526885375314],[2017,0.06807157130947177],[2018,0.07090381983077279],[2019,0.12881633619455934],[2020,0.07272201602109253],[2021,0.21658595744270284],[2022,0.10699350094904195],[2023,-0.010574292789397113],[2024,-0.008890027914393214],[2025,-0.015803375535386036]]; median 0.06948769557012227. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2016: growth capex 0; upkeep 3470393000; owner earnings 44885138000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2017: growth capex 0; upkeep 6710685000; owner earnings 51122267000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2018: growth capex 8276475000; upkeep 7451895000; owner earnings 49549540000. Growth capex / owner earnings = 0.16703434582843757.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2019: growth capex 0; upkeep 17345838000; owner earnings 27358891600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2020: growth capex 0; upkeep 9097380000; owner earnings 18911696000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2021: growth capex 9936914000; upkeep 8344380000; owner earnings 71325789600. Growth capex / owner earnings = 0.13931726596686705.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2022: growth capex 0; upkeep 14786645000; owner earnings 29685609000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); FY2023: growth capex 0; upkeep 13636595000; owner earnings 1498113600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); Dividend observations: [[2016,23360116000],[2017,29224705000],[2018,36293430000],[2019,36927613000],[2020,28012404000],[2021,15282289000],[2022,52172634000],[2023,26745324000],[2024,6353614000],[2025,3156378000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 34.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1301.TW SharesStats.PercentInsiders = 34.457 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 37.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.789Z); Ten-year compound average after fade. Initial solved rate 0.5352804456993192. Price 81.7; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 5.280946083103287 → FY2025 -2.2687904784478468. Closing-price date 2026-10-15.

## Monthly share-price history (TWD per share)

- 2016-10: TWD 85.40 per share

- 2016-11: TWD 90.80 per share

- 2016-12: TWD 89.20 per share

- 2017-01: TWD 90.20 per share

- 2017-02: TWD 92.60 per share

- 2017-03: TWD 90.50 per share

- 2017-04: TWD 90.70 per share

- 2017-05: TWD 89.70 per share

- 2017-06: TWD 92.70 per share

- 2017-07: TWD 90.60 per share

- 2017-08: TWD 93.90 per share

- 2017-09: TWD 91.80 per share

- 2017-10: TWD 91.90 per share

- 2017-11: TWD 90.60 per share

- 2017-12: TWD 98.70 per share

- 2018-01: TWD 103.50 per share

- 2018-02: TWD 103.50 per share

- 2018-03: TWD 104.00 per share

- 2018-04: TWD 104.50 per share

- 2018-05: TWD 107.50 per share

- 2018-06: TWD 112.50 per share

- 2018-07: TWD 112.50 per share

- 2018-08: TWD 112.50 per share

- 2018-09: TWD 117.00 per share

- 2018-10: TWD 101.00 per share

- 2018-11: TWD 100.00 per share

- 2018-12: TWD 101.00 per share

- 2019-01: TWD 102.00 per share

- 2019-02: TWD 102.50 per share

- 2019-03: TWD 109.50 per share

- 2019-04: TWD 112.00 per share

- 2019-05: TWD 110.50 per share

- 2019-06: TWD 114.50 per share

- 2019-07: TWD 100.50 per share

- 2019-08: TWD 94.10 per share

- 2019-09: TWD 94.50 per share

- 2019-10: TWD 97.80 per share

- 2019-11: TWD 97.20 per share

- 2019-12: TWD 99.80 per share

- 2020-01: TWD 93.40 per share

- 2020-02: TWD 91.00 per share

- 2020-03: TWD 75.10 per share

- 2020-04: TWD 87.90 per share

- 2020-05: TWD 83.00 per share

- 2020-06: TWD 87.60 per share

- 2020-07: TWD 78.50 per share

- 2020-08: TWD 78.20 per share

- 2020-09: TWD 78.60 per share

- 2020-10: TWD 79.10 per share

- 2020-11: TWD 85.20 per share

- 2020-12: TWD 96.40 per share

- 2021-01: TWD 87.00 per share

- 2021-02: TWD 97.50 per share

- 2021-03: TWD 101.00 per share

- 2021-04: TWD 106.00 per share

- 2021-05: TWD 103.50 per share

- 2021-06: TWD 103.00 per share

- 2021-07: TWD 99.80 per share

- 2021-08: TWD 102.50 per share

- 2021-09: TWD 113.50 per share

- 2021-10: TWD 107.50 per share

- 2021-11: TWD 102.50 per share

- 2021-12: TWD 104.00 per share

- 2022-01: TWD 105.00 per share

- 2022-02: TWD 105.00 per share

- 2022-03: TWD 106.50 per share

- 2022-04: TWD 105.50 per share

- 2022-05: TWD 105.00 per share

- 2022-06: TWD 108.50 per share

- 2022-07: TWD 92.00 per share

- 2022-08: TWD 91.10 per share

- 2022-09: TWD 86.60 per share

- 2022-10: TWD 83.10 per share

- 2022-11: TWD 90.20 per share

- 2022-12: TWD 86.80 per share

- 2023-01: TWD 89.30 per share

- 2023-02: TWD 90.90 per share

- 2023-03: TWD 91.80 per share

- 2023-04: TWD 93.90 per share

- 2023-05: TWD 94.10 per share

- 2023-06: TWD 85.70 per share

- 2023-07: TWD 83.20 per share

- 2023-08: TWD 79.50 per share

- 2023-09: TWD 79.80 per share

- 2023-10: TWD 77.00 per share

- 2023-11: TWD 80.80 per share

- 2023-12: TWD 79.20 per share

- 2024-01: TWD 72.10 per share

- 2024-02: TWD 71.70 per share

- 2024-03: TWD 68.90 per share

- 2024-04: TWD 68.50 per share

- 2024-05: TWD 65.30 per share

- 2024-06: TWD 57.50 per share

- 2024-07: TWD 57.90 per share

- 2024-08: TWD 51.60 per share

- 2024-09: TWD 53.50 per share

- 2024-10: TWD 47.30 per share

- 2024-11: TWD 41.35 per share

- 2024-12: TWD 35.50 per share

- 2025-01: TWD 36.25 per share

- 2025-02: TWD 38.80 per share

- 2025-03: TWD 36.60 per share

- 2025-04: TWD 34.00 per share

- 2025-05: TWD 34.70 per share

- 2025-06: TWD 34.85 per share

- 2025-07: TWD 42.65 per share

- 2025-08: TWD 38.95 per share

- 2025-09: TWD 38.55 per share

- 2025-10: TWD 38.10 per share

- 2025-11: TWD 41.65 per share

- 2025-12: TWD 39.00 per share

- 2026-01: TWD 47.30 per share

- 2026-02: TWD 51.60 per share

- 2026-03: TWD 45.90 per share

- 2026-04: TWD 51.50 per share

- 2026-05: TWD 47.45 per share

- 2026-06: TWD 54.50 per share

- 2026-07: TWD 55.00 per share

- 2026-08: TWD 66.20 per share

- 2026-09: TWD 68.10 per share

- 2026-10: TWD 80.90 per share

## Annual estimated value (TWD per share)

- FY2016: low TWD 47.63 per share, central TWD 51.73 per share, high TWD 57.19 per share

- FY2017: low TWD 82.02 per share, central TWD 90.61 per share, high TWD 102.05 per share

- FY2018: low TWD 104.11 per share, central TWD 115.84 per share, high TWD 131.46 per share

- FY2019: low TWD 95.67 per share, central TWD 106.26 per share, high TWD 120.35 per share

- FY2020: low TWD 86.93 per share, central TWD 96.39 per share, high TWD 108.99 per share

- FY2021: low TWD 126.76 per share, central TWD 150.13 per share, high TWD 171.83 per share

- FY2022: low TWD 76.67 per share, central TWD 90.18 per share, high TWD 102.51 per share

- FY2023: low TWD 55.19 per share, central TWD 60.75 per share, high TWD 68.15 per share

- FY2024: low TWD 43.57 per share, central TWD 48.39 per share, high TWD 54.81 per share

- FY2025: low TWD 20.44 per share, central TWD 20.75 per share, high TWD 21.17 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.