Acer Group’s Chemical Trading Star: Protrade Applied Materials Listed on Taipei Emerging Stock Market at NT$43
Protrade Applied Materials (6972), supported by Cathay Securities, officially listed on the Taipei Emerging Stock Market on November 29 at a debut price of NT$43 per share. Specializing in the agency and distribution of rubber, plastics, and chemical materials, Protrade operates across more than 40 countries worldwide, making it one of the rare Taiwanese trading companies with a truly global presence spanning five continents.
Founded in the United States in 1985, Protrade established its Taiwan operations in 2001. With over three decades of experience in the trade of rubber, plastics, and chemical materials, the company focuses on applications such as tires, footwear, infrastructure, and rubber products. It has built long-term partnerships with globally renowned suppliers like Dow Chemical, Goodyear, TSRC (2103), Chi Mei Corporation (1763), and USI (1304), assisting these suppliers in expanding their presence in specific overseas markets.
Protrade highlights the complexity of the rubber and plastic materials market, where the diverse properties of raw materials and formulations require specialized knowledge. Drawing on years of service experience, Protrade excels in understanding material characteristics and applications, enabling it to connect suppliers with brand customers, identify suitable materials, and provide tailored solutions that drive business collaboration.
Protrade’s General Manager, Gordon Chris Bell, emphasized that the company collaborates annually with at least 20 international suppliers and serves over 300 customers. This extensive network keeps Protrade attuned to the latest market dynamics and shifts in material supply and demand across regions. In navigating challenges such as fluctuating material prices, economic cycles, and regional supply-demand imbalances, Protrade adopts a diversified approach across products, industries, and geographic markets. This strategy mitigates risks and positions the company for significant growth opportunities while ensuring operational resilience.
In 2019, Protrade caught the attention of Acer Group subsidiary Weblink (6776), which has since acquired a 62.5% stake. Sharing a similar business model of product agency and channel management, Protrade benefits from replicating Weblink’s successful strategies. Additionally, the support from Acer Group enhances Protrade’s corporate governance and enables complementary use of group resources, boosting its operational scale and product portfolio. This synergy positions Protrade as a standout performer within the Acer Group’s diversified industry ventures.
Benefiting from an industry recovery, Protrade reported NT$2.75 billion in revenue for the first half of 2024, a 4.9% year-on-year increase, with net profit after tax reaching NT$39.3 million and earnings per share (EPS) at NT$1.71. Cumulative revenue for the first three quarters of 2024 totaled NT$4.39 billion, reflecting an 18% year-on-year growth.
Looking ahead, Protrade has established a robust global footprint and business team. With the expected impact of U.S. infrastructure initiatives and China’s policies to stimulate real estate and automotive sectors, the company anticipates further growth. Industry experts predict that as the petrochemical industry continues to recover, Protrade—free from significant equipment depreciation costs and production pressures—can quickly regain its past performance levels.
(Translated by ChatGPT)