Spotlight Stock: TSRC Posts Highest First-Half Profit in Five Years, Shares Jump to Limit-Up

Synthetic rubber manufacturer TSRC (2103-TW) achieved a net profit of NT$1.867 billion in the first half of 2023, representing a 613% year-on-year increase and the highest level in nearly five years. Earnings per share (EPS) reached NT$2.26. Fueled by strong financial results, TSRC's stock opened sharply higher on July 7, jumping directly to the daily trading limit at NT$25. Supported by three consecutive days of foreign buying and bullish momentum from major shareholders, the rally reflects both catch-up appreciation and solid earnings performance.

In the first half of 2023, TSRC achieved an operating gross margin of 17.01%, up 7 percentage points year-on-year, and an operating profit margin of 11.09%, up 8.33 percentage points. The improvement was driven by full-scale production at its new facility in China and increased shipments of high-value-added products such as those used in green tires, generating strong short-term buying interest.

Analysts noted that geopolitical tensions in the Middle East during the first half—particularly Iran’s blockade of the Strait of Hormuz—briefly pushed oil prices sharply higher, which in turn drove up butadiene prices. This rapidly increased production costs for synthetic rubber, prompting a shift in pricing mechanisms from quarterly to monthly quotations. This allowed manufacturers like TSRC to adjust prices more frequently to reflect rising costs. Combined with higher logistics expenses, this contributed to expanded profit margins for the company.

TSRC’s product portfolio includes SBR, BR, and SIS, used in tires, footwear, medical devices, and industrial materials. Tire-related rubber remains its largest revenue source. In recent years, the company has actively increased the proportion of high-value-added products, such as high-performance tires and medical-grade materials, as part of its strategic transformation.