 2012-05-01 |
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Reported by Hui-Wen Chang, Taipei
Thanks to higher BOPP film prices and a rebound in tape demand, both YC (4306) and ACHEM (1715) announced strong Q1 financial reports yesterday. Both companies showed growth, with YC's stock closing up by NT$0.30 at NT$28.35, and ACHEM's stock up by NT$0.15 at NT$15.20. YC indicated that they expect further price adjustments in Q2.
For Q1, YC reported revenue of NT$46.04 billion, a 6.23% increase from the previous year. Pre-tax EPS was NT$0.81, up 6.58% from last year. ACHEM’s Q1 revenue was NT$12.68 billion, a 27.18% increase year-over-year, with pre-tax EPS of NT$0.35, up 52.17% from the previous year.
YC noted that a new film line will come into production in Q2 next year, and ACHEM’s Yangmei tape plant is also aggressively producing specialty tapes, which is expected to significantly boost gross margins and profitability. Additionally, ACHEM's tape investments in Ho Chi Minh City, Dongguan, and Shanghai will be completed soon, injecting new momentum into revenue growth.
Looking ahead, YC is optimistic about China’s easing monetary policy and reduced reserve requirement ratio, which is expected to drive the development of the Chinese stock market, enhance domestic demand, boost consumer confidence, and stimulate buying activity. Additionally, due to rising raw material costs, recovering demand, and increases in domestic oil and electricity prices, YC anticipates upward price adjustments in Q2.
Analysts predict that with ACHEM’s revenue returning to the parent company and product price increases, the revenue for both companies is expected to grow month by month. It is estimated that YC’s Q2 revenue could increase by 10% compared to Q1, while ACHEM’s revenue might grow by 15-20%. http://www.libertytimes.com.tw/2012/new/may/1/today-e21.htm |
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