Nan Ya Plastics Corp (南亞塑膠), the nation’s largest plastics maker, yesterday said its profit for this year would increase 13.89 percent from NT$25.27 billion (US$843 million) a year ago on the back of rising investment income from Nanya Technology Corp (南亞科技).
After Nanya Technology completes capital reduction, the accumulated losses of the company would be NT$17.4 billion at the end of last year, and Nanya Technology can write off the losses because of growing profit this year, Nanya Technology and Nan Ya Plastics chairman Wu Chia-chau (吳嘉昭) said.
In the meantime, Nan Ya Plastics, the largest shareholder of Nanya Technology with a 37.83 percent stake, can book investment income of at least NT$6.58 billion this year, according to the company.
The investment income is higher than the NT$3.07 billion the company booked in the previous year, Nan Ya Plastics said.
As for the company’s core businesses, Wu said its operating profit this year is likely to remain as flat as last year because its petrochemical division has seen strong competition, while its plastics and polyester divisions may post higher sequential growth than last year.
Nan Ya Plastic’s electronic materials division — which makes copper clad laminate, glass fiber fabric and epoxy resin — turned profitable in the first quarter and profitability may continue picking up for the rest of the year, benefiting from improving printed circuit board sector.
Shareholders yesterday approved Nan Ya Plastic’s plan to distribute a cash dividend of NT$1.9 per share, representing a payout ratio of 59 percent as the company made a net profit of NT$25.27 billion or NT$3.19 per share last year.