Market Drops 170 Points, Yet All Formosa Four Stocks Rise! NY and FPCC Surge Over 5% – The Reasons Revealed

Taiwan's stock market showed weakness today (7th), closing down 170 points. However, one bright spot emerged among traditional industry stocks: the "Formosa Four" saw their share prices rise following the release of July revenue reports. Notably, Nan Ya (1303) and Formosa Petrochemical Corporation (FPCC, 6505) both surged over 5%, standing out sharply amid a weak market.

All four Formosa Group stocks closed in positive territory today. Nan Ya gained NT$9.5, up 5.35%, closing at NT$188; FPCC rose NT$3.9, up 5.81%, ending at NT$71; Formosa Chemicals & Fibers (FCFC, 1326) increased by NT$0.8, up 1.38%, closing at NT$58.9; and Formosa Plastics Corporation (FPCC, 1301) added NT$0.7, up 1.27%, finishing at NT$55.8.

Notably, all four companies reported higher revenues in July compared to June, with some benefiting from growing demand driven by AI data centers, resulting in clear operational highlights.

Formosa Four Report Month-on-Month Revenue Growth in July; Nan Ya Hits 49-Month High

According to the latest revenue figures, all four companies posted month-on-month revenue increases in July, with Nan Ya drawing particular market attention.

Nan Ya recorded consolidated revenue of NT$30.57 billion in July, up 12.7% month-on-month and 44.5% year-on-year—its highest level in 49 months. The company attributed this to continued expansion of AI data centers by North American cloud service providers (CSPs) and aggressive investments in computing infrastructure by Chinese firms, sustaining strong demand for high-end electronic materials that remains supply-constrained.

Electronic materials alone contributed an additional NT$2.3 billion in revenue, raising their share of total revenue to 57%—the primary driver behind the revenue growth. Currently, production capacity utilization for related products remains above 90%. High-end materials continue to pass customer certifications and scale up mass production, indicating that the AI data center construction boom is not only boosting chip, server, and cooling supply chains but also gradually spreading into the electronic materials sector.

FPCC Revenue Reaches NT$74.8 Billion, Leading the Four with 17.5% MoM Growth

Besides Nan Ya, FPCC also delivered robust performance in July. FPCC reported consolidated revenue of NT$74.821 billion, up 17.5% month-on-month and 32.3% year-on-year—making it the largest in revenue scale among the Formosa Four and showing exceptional month-on-month growth.

The company stated that revenues from refining, olefins, and utility businesses all grew simultaneously. Refining operations benefited from restored crude oil deliveries and increased refining volumes, significantly boosting product sales. Although international oil prices declined in July, refined product prices remained relatively high due to ongoing tight supply in the Middle East. Combined with increased electricity sales from its utility business, these factors collectively lifted FPCC’s overall revenue.

FCFC Revenue Up 13% MoM as Petrochemical Shipments Recover

FCFC reported July consolidated revenue of NT$31.267 billion, up 13% month-on-month and 34.2% year-on-year. The company noted that proactive inventory destocking efforts, influenced by geopolitical factors, drove increased shipments of petrochemical products such as PX, SM, PS, ABS, and PP. Additionally, the resumption of production at its Ningbo PTA facility after scheduled maintenance further boosted sales volume.

However, due to intense market competition, petrochemical product prices declined slightly compared to June, partially offsetting the growth driven by higher sales volumes.

FPC Revenue Up 9.4% MoM, Supported by Inventory Replenishment Demand

As for Formosa Plastics Corporation (FPC), its July consolidated revenue reached NT$15.294 billion, up 9.4% month-on-month and 4.8% year-on-year. FPC stated that increased ethylene supply from FPCC improved production utilization rates. Additionally, renewed conflict between the U.S. and Iran in July led markets to anticipate rising petrochemical prices, prompting customers to replenish inventories early—another contributing factor.

Main product sales volume increased by 78,000 tons compared to June. However, average product selling prices declined 8% to 15% from the previous month due to earlier U.S.-Iran peace talks briefly suppressing crude oil and petrochemical feedstock prices, partially offsetting the benefits of higher sales volume.

Why Did the Formosa Four Attract Capital Despite a 170-Point Market Drop?

Today’s market showed the broader index falling 170 points, with major electronics stocks facing selling pressure. Yet the Formosa Four collectively rose against the trend, suggesting market funds are seeking support beyond electronics stocks.

Nan Ya’s biggest highlight stems from strong demand for AI electronic materials, while FPCC benefited from growth in refining, utility operations, and product shipments. Both companies saw positive reactions in both revenue and stock price. Notably, Nan Ya’s July revenue hit a 49-month high, with electronic materials now accounting for 57% of total revenue—indicating that AI data center demand is transitioning from a speculative theme to tangible revenue generation for traditional industrial firms.

Overall, all four Formosa Group companies reported higher July revenues than June. Nan Ya benefited from robust AI electronic materials demand, achieving a 49-month revenue high; FPCC was supported by refining, utility, and shipment recovery, with operational momentum warming up. Amid a weak market environment with a 170-point decline, the Formosa Four all closed higher, making these traditional industry leaders one of the few bright spots on today’s trading floor.