 2012-04-30 |
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Reported by Peng Xuan-Yi, Taipei
With China's monetary policy becoming more accommodative and downstream customer inventories remaining low, both YC (4306) and ACHEM (1715) are set to benefit from the peak demand season and their price increase strategies in Q2. Analysts indicate that ACHEM's revenue, which previously came from triangular trade, has been redirected to the parent company, and combined with product price increases, its revenue has been rising month by month. For Q2, with price and volume both expected to increase, analysts estimate YC’s quarterly revenue to grow by 10–15%, while ACHEM's revenue may increase by around 20%.
Additionally, in response to the group's vertical integration and expanded production scale, ACHEM's Yangmei plant will add two new OPP tape production lines in Q4, each with a capacity of about 8 million square meters, focused on producing hot-melt adhesive tapes for export to Europe and the U.S. In Dongguan, China, ACHEM will expand with four new PVC tape production lines, each with a monthly capacity of 800,000 square meters, setting the stage for next year’s growth phase.
YC is also increasing its production capacity, with Taiwan's film output rising from 30 million tons to 55 million tons per month and OPP tape capacity reaching 60 million square meters. Additionally, the Ningbo Asia Plastics film plant in China will have a monthly production capacity of 75 million tons. In June, Taiwan plans to add two new OPP tape production lines, each with a capacity of 7 million square meters per month, which will help drive operations in the second half of the year. |
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