 2010-12-13 |
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[Reporter Peng Hsuan-Yi] Benefiting from Nan Ya Plastics' temporary reduction in BOPP film production, YC (4306) increased its BOPP film sales proportion, resulting in a record high November revenue of NT$408 million, a 36.52% growth compared to the same period last year. The company's cumulative revenue for the first 11 months of the year reached NT$4 billion, a 20.16% year-on-year increase.
As the fourth quarter is the peak season for plastic packaging, with strong demand from the downstream food and apparel industries, YC's gross profit margin is expected to rise above the third quarter’s 12.71%.
In November, most plastic prices remained high, with the exception of PVC and PS, which slowed down. However, some specialized plastic manufacturers, including TPCC, LCY, and YC, saw revenue increases due to reduced production at some plants for maintenance and debottlenecking projects. TPCC led the way with a 21% month-on-month increase. Other companies experienced slight declines of 4% to 9%, but all still recorded growth compared to the previous year.
Looking at the overall performance of specialized plastic manufacturers for the first 11 months, CSCC benefited from the strong demand for synthetic fibers, driving up CPL and AN prices and achieving a 54% year-on-year revenue growth, the highest among its peers. LCY came in second with a 43% growth due to new production capacity in China. AP, Taiwan Synthetic Rubber Corp., and Grand Pacific Petrochemical Corp. also recorded stable price increases in PE and ABS, with year-on-year growth of around 30%.
Analysts noted that the tight supply of BOPP film in Taiwan was mainly due to Nan Ya Plastics converting one of its BOPP production lines to pearlized paper production after a fire. Since it will take about nine months for the Nan Ya Chia-Yi pearlized paper plant to resume full operations, it is expected that the tight supply of BOPP in Taiwan will continue into next year.
In response, YC plans to add a new production line in Taiwan with a monthly output of 3,000 tons. Once this line goes into operation by the end of next year, YC’s total production capacity in Taiwan will increase to 6,000 tons.
Additionally, Grand Pacific Petrochemical Corp. saw its SM No. 2 and No. 3 plants shut down for maintenance for half a month in November, affecting about 14,000 tons of production capacity. They managed to maintain normal supply to downstream customers by purchasing raw materials. While the SM No. 2 plant has resumed operations, the debottlenecking project at the No. 3 plant will not be completed until December 15, and next year’s production capacity is expected to increase by 40,000 tons. |
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