 2011-04-11 |
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Packaging materials giant YC Group reported its operational results for March, with YC (4306) and ACHEM (1715) achieving a monthly revenue growth rate of around 50%. Last year, Nan Ya reduced its BOPP production, creating a tight supply of tape materials across the Taiwan Strait, which in turn boosted YC Group's BOPP output. Analysts note that the demand for BOPP films and tapes continues to grow, along with rising prices, leading to an optimistic outlook for both YC and ACHEM’s revenue in Q2, with new records expected.
In March, YC's revenue reached NT$4.95 billion, a year-on-year increase of 33.24% and a month-on-month increase of 49.13%. For Q1, the total revenue was NT$12.94 billion, reflecting a 33% year-on-year growth. ACHEM reported a revenue of NT$3.95 billion in March, with a year-on-year increase of 14.87% and a month-on-month increase of 53.18%. Its cumulative revenue for Q1 amounted to NT$9.97 billion, representing an 11.78% year-on-year increase.
YC stated that strong demand for films and tapes across the Taiwan Strait, coupled with recent raw material shortages, has driven up product prices, resulting in significant growth in both March and Q1 revenues compared to the previous year.
YC’s three major product lines—tape, BOPP films, and packaging materials—account for 40%, 37%, and 23% of revenue, respectively, with the growth rate of BOPP films being particularly favored by the market. Currently, there is a tight supply in the market, which has led to YC's production capacity being fully utilized. YC operates four BOPP film production lines with a monthly capacity of approximately 2,000 to 2,500 tons. In January, both the Ningbo and Changbin plants each began operations with a BOPP production line boasting a capacity of around 3,000 tons per month, leading to an overall capacity increase of over 50%. This will raise the annual capacity to 130,000 tons, driving growth for this year. |
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