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Chemical Stock Heyi Doubles in Value in Under Two Months
Process Industries · Chemicals: Specialty · economic_daily · 2026-09-23
1709, 1727, 4770
Shares of chemical manufacturer Heyi have surged over 100% since early August, driven by a significant expansion in gross margins during the second quarter.
What Happened
Strong Sector Performance: Chemical stocks in the Taiwan market have seen significant momentum recently, with companies like Heyi and China Chemical reaching new historical highs. Heyi, in particular, has outperformed, with its stock price doubling in less than two months since early August.
Profitability Surge: The company's second-quarter financial results showed a dramatic improvement in profitability, as product prices tracked rising oil costs while operating expenses declined. Gross margin jumped to 32.37% from 11.58% a year ago, leading to a nearly five-fold increase in net profit.
Strategic Shift: Heyi is shifting its focus toward high-value specialty chemicals to diversify its portfolio. Several products are currently in the laboratory or process testing stages, with initial results expected to materialize by the end of next year.
Market Dynamics: Management noted that the company's core business in detergents and surfactants is highly sensitive to oil price fluctuations. The geopolitical environment in the second quarter allowed the company to pass on higher costs to customers, effectively boosting its top-line revenue.