Nan Ya Plastics: Raising PT to NT$390, on stronger earnings and shareholder returns

UBS maintains Buy on Nan Ya Plastics (1303.TW) and raises its price target, arguing that despite the share price rally since late September, the market has yet to fully reflect the earnings upside from Electronic Materials and the sustainability of shareholder returns. 3Q26 results beat expectations, with CCL OPM exceeding 30% and incremental margins of around 70%, prompting upgrades to 2026-27E EPS that are now above consensus. Stronger CCL ASPs, better product mix, the AI-CCL ramp, and higher contributions from Nanya Technology and Formosa Petrochemical underpin the earnings revision. The company is expected to sustain a high cash payout ratio, funded by operating cash flow, investment dividends and proceeds from NPCB stake disposals, while a shareholder base dominated by non-profit Formosa Group affiliates favours stable distributions. The higher target price reflects raised EM earnings and higher values for listed holdings;