 2010-10-11 |
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(Taipei News) Due to the high demand for prime land on Hsing-Shan Road in Neihu, Taipei, and the reduction in production capacity for pearlescent film following a fire at Nanya’s Chiayi plant, YC (4306) is expected to benefit. Analysts are optimistic that YC's after-tax earnings per share (EPS) could reach NT$2.52 this year, with an investment rating of "buy."
Taiwan Cooperative Securities stated that following the fire at Nanya’s Chiayi plant, Taiwan's monthly production capacity of pearlescent film will be reduced by 5,000 tons. The domestic manufacturers of pearlescent film are Nanya and YC, and it is anticipated that in Q4 of this year and Q2 of next year, YC’s film product line revenue is expected to grow quarter by quarter due to price increases.
Regarding the land on Hsing-Shan Road in Neihu, although it was unsold in a public auction in August, many domestic insurance companies and foreign investors have privately contacted YC. A transaction at the earliest could occur in the first half of next year at NT$1.7 million per ping, potentially generating a profit of NT$1.84 billion, contributing NT$6.46 to EPS.
Taiwan Cooperative Securities estimates that YC's revenue this year could reach NT$4.385 billion, a year-on-year increase of 19.26%; after-tax earnings of NT$670 million, a year-on-year increase of 17.43%; with EPS reaching NT$2.52 and a year-end book value per share of NT$17.22.
For next year, Taiwan Cooperative Securities forecasts YC’s revenue to reach NT$6.151 billion, a year-on-year increase of 40.26%; after-tax earnings of NT$998 million, a year-on-year increase of 48.92%; with EPS reaching NT$3.50 and a year-end book value per share of NT$20.
Taiwan Cooperative Securities has given YC an investment rating of "buy." |
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