NanPao Fourth Quarter 2023 Financial Results

NanPao Reports an EPS of NT$20.14 in 2023, with Cash Dividend to be NT$15

 

Both Profits and Dividends Reach New Highs

 

NanPao Resins Chemical (TWSE:4766) announced its financial results for the fourth quarter of 2023. Net income in 2023 was NT$2.43 billion, with an EPS of NT$20.14, marking another historical high. Due to improvement in operational efficiency and continued product mix optimization, the operating margin in the fourth quarter continued to increase to 16.8%, an increase of 0.8 percentage points from the previous quarter, which marks the eighth consecutive quarter of improvement since the fourth quarter of 2021, and a record high since listing. For the outlook in 2024, as the inventory levels of athleisure brand customers are gradually decreasing, and inventory adjustments have decelerated, NanPao will strengthen its industry-leading position and continue gaining market share, aiming to resume revenue growth this year. In addition, the company will also strive to pursue long-term operating profit growth and improve long-term ROE. With the net profit reaching a historic high, NanPao’s board of directors declared a cash dividend of NT$15 per share for 2023, setting another record high. The cash dividend payout ratio is approximately 74%. Based on the closing price of NT$ 290 today, the cash dividend yield reaches 5.2%.

The consolidated revenue for the fourth quarter of 2023 was NT$5.52 billion, down 1.1% YoY, yet a 1.2% increase from the third quarter. Due to inventory adjustments by brand customers, and a high base in 2022, Adhesives revenue, accounting for 72% of total revenue, declined by 2.8% YoY in 4Q23. Coatings & Construction revenue, accounting for 23% of total revenue, increased by 0.6% YoY in 4Q23. Cumulative net revenue for January through February 2024 was NT$3.10 billion, an increase of 13.9% compared to the same period in 2023.

Due to improvement in operational efficiency and continued product mix optimization, the operating profit in the fourth quarter was NT$928 million, a significant increase of 69.2% over the same period last year. The operating margin reached 16.8%, a new high since listing. Net income for the fourth quarter was NT$616 million, up 96.1% YoY, and the EPS was NT$5.11.

NanPao commented that the inventory levels of brand customers are gradually decreasing, and inventory adjustments have decelerated. The company will strengthen its industry-leading position and continue gaining market share. By consistently investing in R&D and expanding its customer base, NanPao expects to resume revenue growth this year. For the sportswear adhesives business, R&D investments in new products are bearing fruit as the company is acquiring new customers and orders. As for the industrial & other consumer goods adhesives business, NanPao continues to focus on high-margin products, adjust the product mix, invest in R&D for advanced applications, and enhance product performance.

NanPao prioritizes ESG and the development of green products and sees sustainability to be a core competitive edge. NanPao has also declared that it will move towards net zero by 2050. NanPao aims to focus on long-term sustainable growth, integrating ESG into its corporate culture, not only to conform to trends and customer requirements but also to pursue more solid competitive advantages and prosper in our society.

 

 

NT$mn	4Q23	3Q23	4Q22	QoQ	YoY	2023	2022	YoY
Revenue	5,517	5,451	5,578	1.2%	-1.1%	20,581	22,004	-6.5%
Gross Profit	1,872	1,806	1,483	3.7%	26.2%	6,490	5,288	22.8%
Operating Profit	928	871	548	6.5%	69.2%	2,964	1,824	62.5%
Net Profit	616	645	314	-4.4%	96.1%	2,428	1,741	39.4%
EPS (NT$)	5.11	5.35	2.60	-4.5%	96.2%	20.14	14.44	39.5%
Gross Margin	33.9%	33.1%	26.6%			31.5%	24.0%
Operating Margin	16.8%	16.0%	9.8%			14.4%	8.3%
Net Margin	11.2%	11.8%	5.6%			11.8%	7.9%

 

 

IR&PR Contact：

 

Spokesman: Hank Lin, Associate VP of Financial Management Division

Tel: +886-6-795-4766

Email: IR@nanpao.com

Website: www.nanpao.com

 

About NanPao

Founded in 1963, NanPao mainly produces adhesives and coatings, covering a wide range of applications including sportswear, textiles, woodworking, electronic components, and hygiene products. NaoPao is the largest adhesive brand in Taiwan and the No. 1 producer of adhesives for athletic footwear globally. NanPao has 27 factories in 7 countries and sell to 50 countries. NanPao’s headquarters is located in Tainan, Taiwan, and is listed on the TWSE since 2018.

 

Disclaimer

This information includes certain statements that may be deemed “forward-looking statements”. All statements that address future activities and events or developments that the company expects, are forward-looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. The company is under no obligation to proactively update the statements of forward-looking statements as new information becomes available or as future events occur.