 2010-09-20 |
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(Taipei News) YC (4306) recently faced a failed auction for its land in Neihu in August, with reports suggesting that Cathay Group is interested in purchasing it. However, YC denied this, stating that negotiations are still ongoing with various potential buyers. It is understood that Shin Kong, Fubon, and Cathay Group have expressed interest in buying the land, with bids exceeding the initial reserve price of NT$150,000 per ping, but everything is still in progress.
In terms of its core business, with rising product prices, YC's Q3 core profit is expected to improve, and it has increased its stake in ACHEM. Overall, profits are likely to maintain the performance seen in the previous quarter. Driven by rising prices in the plastics sector, YC began raising its prices in August, which is expected to enhance profitability. Additionally, strong demand from emerging markets, such as Brazil and other Central and South American countries, combined with low channel inventory levels, is anticipated to help boost sales. It is expected that core profits will outperform those of the previous quarter.
In terms of investments, the revenue from the subsidiary Wang Chou Construction this quarter is relatively low, and profits from ACHEM have declined due to reduced contributions from operations. However, YC's shareholding has increased to 45%, which may help recover approximately NT$30 million previously recognized as exchange losses. Overall, it appears that profits may match those of the previous quarter.
The Central Bank's measures to curb the housing market have led to a more cautious market atmosphere. The Neihu land, which was auctioned off by YC through Wang Chou Construction in August, was not sold, and YC is currently attempting to negotiate a private deal. Last Friday, rumors circulated that Cathay Group would purchase the land, but the company denied this. It is understood that not only Cathay Group but also Shin Kong and Fubon have shown interest in the purchase, with bids also exceeding the initial reserve price of NT$150,000 per ping. However, discussions are ongoing, and there have been no further developments. |
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