 2010-12-09 |
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[Reporter Deng Ning] Benefiting from the temporary reduction in BOPP film production by Nan Ya (1303), YC (4306) has increased the sales proportion of BOPP films. In November, revenue reached NT$408 million, just shy of the historical high of NT$410 million set in August 2008, marking the second highest level. This represents a month-over-month increase of 4.37% and a year-over-year growth of 36.52%. Cumulatively, revenue for the first 11 months reached NT$4 billion, up 20.16% from last year.
In November, YC's film sales significantly increased from NT$110 million in October to NT$157 million, hitting a new high since July of last year, with a monthly growth exceeding 40%. Analysts point out that Q4 is a peak season for plastic packaging, with strong demand from the downstream food and apparel industries. Due to the tight supply and demand for plastic packaging products, gross margins are expected to rise. YC's Q4 revenue, along with an increased proportion of film sales, is anticipated to surpass the Q3 gross margin of 12.71%.
The domestic supply and demand for BOPP films are tight primarily due to a fire at Nan Ya, which resulted in the conversion of a BOPP film production line to produce pearl paper. Given that the recovery time for the pearl paper plant in Chiayi is expected to be nine months, and supported by ongoing power restrictions in China and strong film demand, the market expects the tight domestic BOPP production capacity to continue into next year. YC also plans to add a new production line in Taiwan with a monthly capacity of 3,000 tons, which will increase Taiwan’s total production capacity to 6,000 tons after the line is commissioned by the end of next year.
At the same time, YC sees opportunities in the packaging materials market and has established a new company called Xinzhou Global, jointly funded with ACHEM (1715) at 50% each, with a capital of NT$100 million. This company will act as a trading agent for introducing internationally renowned packaging brands. They plan to establish 20 "Bao Da Shi" specialty chain stores in Taiwan and China, selling everything from household cling film to industrial films. The first store will open in mid-January next year in Zhongli, Taoyuan, and after refining the store model in Taiwan, they will expand to Shanghai.
Additionally, ACHEM, which primarily produces OPP tape, PVC tape, double-sided tape, and PET tape, reported a revenue of NT$325 million in November, up 0.3% month-over-month and 5.34% year-over-year. Cumulatively, revenue for the first 11 months reached NT$3.688 billion, a 24.33% increase from the previous year. |
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