NanPao First Quarter 2024 Financial Results
NanPao Reports an EPS of NT$5.86 in the First Quarter of 2024
Operating Profit Increased by over 50% Year-on-Year
NanPao Resins Chemical (TWSE:4766) announced its financial results for the first quarter of 2024. Net income was NT$706 million, with an EPS of NT$5.86. Due to improvement in operational efficiency and continued product mix optimization, the operating margin in the first quarter reached 15.4%, an increase of 4.3 percentage points from the previous year, which marks a record high for the same period. For the outlook in 2024, as the inventory of athleisure brand customers is gradually returning to healthier levels, NanPao will take advantage of growth opportunities in new products and applications, invest in R&D for advanced applications, and enhance product performance, 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.
The consolidated revenue for the first quarter of 2024 was NT$4.99 billion, up 10.2% YoY. Due to the gradual recovery of customer demand, Adhesives revenue, accounting for 73% of total revenue, increased by 14.7% YoY in 1Q24. Coatings & Construction revenue, accounting for 24% of total revenue, increased by 1.2% YoY in 1Q24. Cumulative net revenue for January through April 2024 was NT$6.84 billion, an increase of 12.4% compared to the same period in 2023.
Due to improvement in operational efficiency and continued product mix optimization, the operating profit in the first quarter was NT$769 million, a significant increase of 53.1% over the same period last year. The operating margin reached 15.4%, which marks a record high of the same period. The operating expense ratio in the first quarter was 17.7%, up 0.4 percentage points from last year. This increase was mainly due to the acquisition of Changshu Yubo Polymer Materials. Yubo, which has a higher OPEX ratio, has been consolidated into the financial statements since May 2023. Net income for the first quarter was NT$706 million, down 0.7% YoY and up 14.7% QoQ, and the EPS was NT$5.86.
NanPao commented that the inventory of athleisure brand customers is gradually returning to healthier levels. The company will remain committed to innovation, with a focus on developing green and sustainable products, as well as improving production and operational efficiency. This strategy aims to improve long-term ROE. For the sportswear adhesives business, NanPao has more opportunities to directly collaborate with international brands in the joint development of bonding technology for new materials, which helps NanPao to acquire new orders, further optimizing product mix, and strengthen its market position. As for the industrial & other consumer goods adhesives business, NanPao takes advantage of growth opportunities in new products and applications, such as flexible packaging and PSA for LCD polarizer plates and touch panels.
NanPao prioritizes ESG and the development of green products and sees sustainability to be a core competitive edge. NanPao has also declared that it will move towards net zero by 2050. NanPao aims to focus on long-term sustainable growth, integrating ESG into its corporate culture, not only to conform to trends and customer requirements but also to pursue more solid competitive advantages and prosper in our society.
|
NT$mn |
1Q24 |
4Q23 |
1Q23 |
QoQ |
YoY |
|
Revenue |
4,990 |
5,517 |
4,529 |
-9.6% |
10.2% |
|
Gross Profit |
1,654 |
1,872 |
1,287 |
-11.6% |
28.5% |
|
Operating Profit |
769 |
928 |
503 |
-17.1% |
53.1% |
|
Net Profit |
706 |
616 |
711 |
14.7% |
-0.7% |
|
EPS (NT$) |
5.86 |
5.11 |
5.90 |
14.7% |
-0.7% |
|
Gross Margin |
33.2% |
33.9% |
28.4% |
|
|
|
Operating Margin |
15.4% |
16.8% |
11.1% |
|
|
|
Net Margin |
14.2% |
11.2% |
15.7% |
|
|
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.