 2011-08-11 |
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(Taipei, August 10, 2011, Central News Agency reporter Chao Hsiao-hui) YC (4306), a major packaging materials manufacturer, saw its consolidated revenue in July increase by 23.49% year-on-year. Looking ahead to August, YC is expected to benefit from the shutdown of Formosa Plastics Group's Sixth Naphtha Cracking Plant, which is likely to push up downstream petrochemical prices. BOPP film prices are also expected to remain favorable through the end of the year, and YC remains optimistic about its revenue performance in the second half of the year.
YC's July revenue was NT$423 million, a year-on-year increase of 25.14%. Its subsidiary, ACHEM (1715), had revenue of NT$370 million in July, with a year-on-year growth rate of 0.2%.
The consolidated revenue of YC Group in July was NT$1.546 billion, a year-on-year increase of 23.49%. Cumulative consolidated revenue for the first seven months of this year was NT$10.7 billion, a year-on-year increase of 19.11%.
Looking ahead to August, YC stated that it has significantly raised prices. The shutdown of the Sixth Naphtha Cracking Plant may lead to a long-term reduction in raw material supply, making it difficult for product prices to fall. In addition, with low inventory levels among downstream manufacturers, there is expected to be pressure for inventory replenishment. This, combined with the difficulty in lowering prices, is expected to boost revenue performance.
In addition, YC's board of directors today approved an upward adjustment to the company's first-half financial forecast. The original forecast for consolidated revenue was NT$19 billion, which has been adjusted to NT$20.3 billion, a revision of approximately 7%. Net profit after tax has been adjusted from the original forecast of NT$602 million to NT$1.521 billion, an increase of approximately 153%. Earnings per share before tax have been adjusted from the original forecast of NT$2.20 to NT$5.45.
Looking ahead to the second half of the year, YC stated that the new BOPP film production line at Changbin Industrial Park is expected to start production by the end of the year. BOPP prices are expected to rise moderately from the third quarter until the end of the year, providing new growth momentum for the group.
As for its subsidiary, Wangzhou Construction, YC mentioned that it had undeveloped land in Neihu Phase V, originally totaling 1,800 ping (5,950 square meters). On July 7 of this year, 738.1 ping (2,439 square meters) was sold, and multiple buyers are inquiring about the remaining land. The company is committed to maximizing shareholder value and does not rule out further land sales.
In addition, Wangzhou has planned a new project in Linkou, which is expected to be launched by the end of the year. Wangzhou is expected to continue contributing stable profits to the company. |
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