自由时报59 minutes agoBusiness1 min readChina

Focus Stocks》Formosa Plastics: Big Bull Moves, Target Price Called 125 Yuan

Quick Look

Formosa Plastics announced that its net profit after tax in the third quarter was 26.289 billion yuan, and its EPS reached a single-quarter high of 2.76 yuan.
Yongfeng Investment Consulting raised the target price to 125 yuan, driving the stock price to rise to 118.5 yuan during the session.
As of 10:42, it rose 7.5 yuan to 116.5 yuan.

AI-generated summary

Why It Matters

Formosa Plastics is one of the Four Treasures of Formosa Plastics and is mainly engaged in the refining and petrochemical business. Its profits are affected by international oil prices, refining spreads and geopolitical events.

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The bulls are on the move! Formosa Plastics raised its target price to 125 yuan and its stock price soared. (File photo)

[Reporter Zhang Huiwen/Taipei Report] Formosa Plastics Sibao announced its third quarter profit yesterday. Formosa Plastics (6505) third quarter net profit after tax was 26.289 billion yuan, and EPS reached 2.76 yuan, setting a new single-quarter record. Yongfeng Investment Consulting immediately raised the target price to 125 yuan, which drove the stock price of Formosa Plastics to a high of 118.5 yuan today. Many retail investors shouted, "The big bull is making a move, is it going to limit?" As of 10:42 minutes, the stock price rose by 7.5 yuan, temporarily trading at 116.5 yuan, with a trading volume of nearly 50,000 contracts.

Formosa Plastics believes that the fourth quarter has entered a period of intensive maintenance of global refineries. With refineries in the Middle East and Russia struggling to resume operations, the price differential between Atlantic diesel and Asian diesel has remained high. It is expected that the diesel price differential in the fourth quarter will be significantly better than the same period in previous years. In addition, the war has led to a decline in gasoline exports from the Middle East and Russia, and the Asian gasoline price differential will also be significantly higher than past winter levels, which will help maintain strong gross profit margins in the fourth quarter.

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Observing the dynamics of the three major legal persons, foreign investors sold more than 30,000 contracts for two days in a row, investment banks bought more than 61,000 contracts for 13 consecutive days, self-operators bought more than 103 contracts yesterday, and the main force sold more than 323 contracts yesterday. Yongfeng Investment Consulting believes that looking into the market outlook, Formosa Plastics will benefit from the strong refining interest rate of refineries in the Middle East and Russia, and profit expectations will remain high, so the target price is raised to 125 yuan.

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AI outlook — possibilities, not facts

Formosa Plastics stock price will have the opportunity to challenge the daily limit
Possible · Within days

Open Questions

When will Middle East and Russian refineries resume normal operations?
How long can the price difference between Formosa Plastics’ diesel and gasoline prices last in the fourth quarter?
Does the continuous overselling of foreign capital mean that institutions have different views on the market outlook?