 2011-05-09 |
|
|
Reporter Zhao Xiao-Hui, Taipei
With a significant increase in demand for consumer goods, shipments of packaging materials such as films and tapes have surged, leading packaging giant YC Group (4306) to achieve a record high in consolidated revenue for April, reaching NT$1.71 billion, which represents a 30.53% year-over-year increase and a 2.7% month-over-month increase. For the first four months of 2011, YC Group's cumulative consolidated revenue was approximately NT$6.045 billion, reflecting a 24.36% growth compared to the same period last year. In April alone, revenue was NT$536 million, marking a 40.05% year-over-year increase and an 8.35% increase compared to March, bringing the cumulative revenue for January to April 2011 to around NT$1.83 billion, up 35.7% year-over-year.
YC noted that the significant increase in demand for consumer goods has driven strong shipments of packaging materials, despite some production impacts due to China's electricity rationing policies. The company emphasized that under conditions of high demand and low supply, a continued decline in oil and raw material prices would positively affect profit margins.
In its first quarter financial report, YC reported a consolidated net profit after tax of NT$207 million, a 28% year-over-year increase, with a gross margin of 14.29% and earnings per share (EPS) of NT$0.75.
Looking ahead to the second quarter, YC anticipates benefiting from the vertical integration of upstream, midstream, and downstream production of films and tapes, which should shield it from raw material shortages. The company is optimistic about increased demand for BOPP films, with expectations for continued growth in both revenue and gross margins.
YC also mentioned that the anticipated opening of individual travel for mainland Chinese tourists would significantly boost demand for personal care products, food and beverages, and gifts, greatly stimulating domestic consumption and widening the existing supply gap for films. The new film plant in Changbin is currently under rapid construction to capitalize on this growth opportunity.
Currently, YC operates five BOPP film production lines with a monthly output of approximately 2,500 to 3,000 tons. In January, Ningbo Asia Polymer successfully commenced production, and the Changbin plant is expected to produce an additional 3,000 tons per month in the second half of this year. The group's total annual production capacity is projected to reach 160,000 tons. With the introduction of new production lines and rising product prices, revenue is expected to continue to grow, helping YC expand its footprint in the BOPP film market. |
|
