 2012-03-31 |
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Commercial Times | Reporter: Peng Xuan-Yi / Taipei
Thanks to its real estate ventures and new developments in the tape sector, YC (4306) is set to experience a significant operational uplift this year. YC's BOPP film production capacity is projected to increase by 30% annually. ACHEM (1715) will benefit from new operations in its Vietnam and Taiwan Yangmei facilities in the fourth quarter. Additionally, YC's subsidiary, Wangzhou Construction, is expected to launch the "Fengzhi Tree" luxury residential project in Linkou in the first half of the year. The pre-sale project is projected to generate approximately NT$5 billion in total sales, continuing to contribute to revenue growth. YC’s BOPP capacity will increase by 33% annually, and ACHEM's new plant in Vietnam will further boost operations.
YC achieved a record high profit last year with an EPS of NT$4.68 and will distribute NT$3 per share in dividends (NT$2 in stock and NT$1 in cash). ACHEM had an EPS of NT$1.1 last year, with cash dividends of NT$1.05 and stock dividends of NT$0.26. YC's President, Yih-Lang Chou, hopes to maintain a stable dividend payout of NT$2-3 per share through steady expansion, while ACHEM will focus primarily on cash dividends.
Plastic raw materials have rebounded from their lows since January, and because tapes are downstream products, there is a 1-2 month delay in reflecting raw material price increases. YC has already raised the prices of its BOPP films, with benefits from the new BOPP film production line at the Zhangbin plant.
With new operations in Taiwan and Vietnam this year, YC's performance is expected to improve further. YC's total annual BOPP production in the two regions is set to reach 120,000 tons, an increase of about 33% year-over-year. To meet the needs of major client 3M, YC plans to invest NT$1 billion to continue building the seventh BOPP film production line at the Zhangbin plant, with an annual capacity of 30,000 tons, scheduled to be operational by the second quarter of 2013.
Additionally, ACHEM will introduce new high-margin products at its Yangmei plant in Taiwan this year. The new plant in Vietnam is expected to commence operations in the fourth quarter and will merge with YC’s Vietnam facility to leverage economies of scale. Given that ACHEM’s existing tape production sites are mostly in Shanghai and the southeastern coastal regions, the company plans to expand further into the inland southwest regions of China. |
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