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Nan Ya Plastics Falls Most in 14 Months on Profit: Taipei Mover

March 26 (Bloomberg) -- Nan Ya Plastics Corp., Taiwan’s biggest maker of ethylene glycol and polyester, fell the most in 14 weeks in Taipei trading after announcing a lower-than-expected full-year profit and a plan to cut dividend.

The shares declined 3.1 percent to NT$65.10 as of 11:56 a.m. local time, the most since Dec. 15. The Taiex Index lost 1.3 percent. The stock has advanced 8 percent this year, trailing the 13 percent gain in the benchmark index.

Net income sank 44 percent to NT$23.1 billion ($780 million) last year, Nan Ya Plastics said in a statement on March 23. The average of 16 analyst estimates compiled by Bloomberg News was for a profit of NT$28.4 billion. The company plans to pay a cash dividend of NT$2.1 a share for 2011, compared with NT$4.7 a year earlier.

“Declines in earnings and cash dividend negatively affect investor interest in the stock,” Jun Liao, vice president at Taipei-based Grand Cathay Investment Services Corp., said by telephone today. Liao has an “underperform” rating on the stock and expects the company to post a NT$28 billion profit this year.

Nan Ya Plastics’ board also approved a proposal to sell as much as NT$12 billion of unsecured bonds to repay debt and improve its financial structure, according to a separate statement. The company said it plans to invest an additional $170 million in a Vietnamese steel venture, in which it owns a 21 percent stake.

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To contact the reporter on this story: Adela Lin in Taipei at alin95@bloomberg.net

To contact the editor responsible for this story: Andrew Hobbs at ahobbs4@bloomberg.net

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