 2012-04-30 |
|
|
Reported by Zhao Xiaohui, Taipei
Benefiting from increased BOPP (biaxially oriented polypropylene) film prices and a rebound in tape demand, YC Group (4306) reported robust first-quarter profits for this year. The company’s earnings before tax per share was NT$0.81, up 6.58% year-over-year. Subsidiary ACHEM (1715) reported earnings before tax per share of NT$0.35, a significant increase of 52.17% compared to the previous year.
YC’s single-quarter revenue was NT$1.488 billion, up 16.34% from NT$1.279 billion in the same period last year. Consolidated revenue for the first quarter was NT$4.604 billion, an increase of 6.23% from NT$4.334 billion a year earlier.
For ACHEM, single-quarter revenue was NT$1.268 billion, up 27.18% from NT$997 million in the same period last year. Earnings before tax per share was NT$0.35, up 52.17% from NT$0.23.
YC attributed the strong first-quarter performance to rising BOPP film prices and increased tape demand. The company also noted that the benefits from previous capital expenditures are becoming apparent, particularly with the new BOPP film production line reaching full capacity and significantly boosting revenue.
Looking ahead, YC plans to launch a new film production line in Q2 next year. ACHEM is also focusing on niche tape production at its Yangmei factory, which is expected to greatly enhance its gross margin and profitability. Additionally, ACHEM’s investments in tape production facilities in Ho Chi Minh City, Dongguan, and Shanghai are nearing completion, which should positively impact future profits.
For future operations, YC remains optimistic about China's easing monetary policy and reduced reserve requirement ratio, which are expected to stimulate the domestic market, enhance consumer confidence, and boost purchasing activity. Due to rising raw material costs, increased demand, and higher domestic oil and electricity prices, the company anticipates upward adjustments in product pricing for Q2, with an improved operational performance expected. |
|
