Reported 11 months ago
Cash dividend yield and price-to-earnings ratio are common metrics for stock investment decisions, but stock expert Xie Fuxu introduces the concept of 'Form-Net Ratio' which helps evaluate if a stock price is reasonable. Using Taiwan Plastics Group's Nan Ya (1303) stock as an example, Xie suggests that falling below 50 yuan is a good low price, as seen with Nan Ya's closing price at 50.1 yuan on June 24. While Nan Ya faced revenue decline last year, Chairman Wu Jiazhuo remains optimistic about future developments including technology integration and new business ventures. Xie recommends using the 'Form-Net Ratio' for cyclically struggling stocks like Taiwan Plastics Group, evaluating it based on net value per share and historical trends to estimate a reasonable price range. Overall, with Nan Ya's operations focusing on product, business, carbon reduction, and digital transformation, the company aims to adapt to new technologies and expand into innovative applications like high-speed communications and AI materials as part of its business strategy.
Source: YAHOO