 2010-07-15 |
|
|
(Yangcheng News - Taipei) YC (4306) and ACHEM (1715) have initiated resource integration, with YC fully subscribing to ACHEM's private placement of 50 million shares to assist in expanding its operations in mainland China. Additionally, YC will benefit from ACHEM's resolution regarding a land fraud case in Pingtung involving the previous management team, recovering approximately NT$170 million. YC is expected to recognize 35% of the earnings from this, boosting its investment income for the second quarter to NT$190 million, a 53% quarterly increase.
Analysts indicate that YC's core business maintained stable performance in the second quarter, including recognition of NT$80 million from its investment in Wangzhou Construction's "City of the Bay," along with contributions from ACHEM. It is estimated that YC's net profit for the second quarter will reach NT$220 million, a 37% quarter-on-quarter increase, with an EPS of NT$0.96; the EPS for the first half of the year is projected at NT$1.66.
To strengthen its financial structure and enhance its operational capabilities in mainland China, ACHEM plans to conduct a private placement of 50 million shares. On July 14, it was announced that the largest shareholder, YC, would subscribe to all the shares at a price of NT$10.88 per share, totaling NT$544 million. YC's accumulated holdings in ACHEM now amount to 127 million shares, with a cost of approximately NT$1.197 billion, raising its ownership stake to 44.95%.
Furthermore, Wangzhou Construction's "City of the Bay" has approximately NT$70 million remaining from its completed projects, which are expected to be launched by the end of the third quarter. Another project, "Fenghua Garden," will follow the build-and-sell model, as it is already completed, with its launch scheduled for the third quarter, contributing to profit growth in the second half of the year. With dual contributions from core business and investment income, analysts estimate that YC's profit will increase by 33% this year, with an EPS of NT$3.28.
(Source: Yangcheng News - Reporter Peng Hsuanyi / Taipei Report) |
|
