 2012-05-01 |
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Economic Daily News - Reported by Yih-Lang Chou
Thanks to an increase in BOPP (Biaxially Oriented Polypropylene) film prices and a rebound in tape demand, the tape leader YC (4306) and its subsidiary ACHEM both reported strong Q1 earnings. YC achieved a net profit of NT$227 million, a 6.23% increase from the previous year. ACHEM saw its net profit soar to NT$101 million, up 62% from NT$63 million in the same period last year due to reduced costs and increased capacity.
YC is optimistic about China's loose monetary policy and reduced reserve requirements, which are expected to boost domestic demand, enhance consumer confidence, and stimulate buying. Additionally, with rising raw material costs and domestic oil and electricity price increases, YC anticipates further price adjustments in Q2, expecting improved operational performance.
On April 30, YC's stock closed at NT$28.35, up NT$0.30, while ACHEM closed at NT$15.20, up NT$0.15.
For the first quarter, YC's consolidated revenue reached NT$4.604 billion, a 6.23% year-over-year increase. Net profit for the quarter was NT$227 million, also up 6.23% from the previous year, with earnings per share (EPS) of NT$0.77, a 52.17% increase from last year's NT$0.23. ACHEM reported Q1 revenue of NT$1.268 billion, a 27.18% increase from NT$997 million last year. Net profit was NT$101 million, up 62%, with EPS of NT$0.37.
YC attributed its strong Q1 performance to higher BOPP film prices, increased tape demand, and robust order intake. The capital expenditure benefits from previous investments are also starting to show, particularly with new BOPP film lines beginning production this year, which has contributed to profit growth.
Looking ahead, YC expects a new film line to start production in Q2 next year. ACHEM’s Yangmei tape plant is also actively producing specialty tapes, which are expected to significantly boost its future gross margin and profitability. Additionally, ACHEM's tape investments in Ho Chi Minh City, Dongguan, and Shanghai are set to be completed, anticipated to inject new momentum into this year's revenue growth and improve future profitability. |
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