 2010-08-03 |
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(Central News Agency reporter Zhao Xiaohui, Taipei, August 3, 2010) Taiwan's leading adhesive tape manufacturer YC (4306) is projected to achieve revenues of NT$4.512 billion this year, a year-on-year increase of 22.69%. The estimated after-tax earnings per share (EPS) could reach NT$2.97, surpassing last year's NT$2.79, with an investment rating of "Buy."
Today, Wangzhou Construction, in which YC has a 100% investment, will be auctioning a parcel of land in Neihu, with a cost of approximately NT$700,000 per ping (approximately 3.3 square meters) and a minimum bid price of NT$1.5 million per ping. Analysts estimate that the auction price per ping is expected to fall between NT$1.6 million and NT$1.7 million, contributing approximately NT$7.13 to NT$7.95 to YC's EPS.
YC operates in the downstream sector of the plastics industry, with a capital of NT$2.314 billion. Its core business involves the production of films, adhesive tapes, and packaging materials, with production bases in Taiwan, China, and Vietnam. Its investments include 100% ownership of Wangzhou Construction and a 35% stake in Asia Chemical (1715).
Taiwan Cooperative Securities believes that YC's revenue this year will benefit from low inventory levels in the downstream sector, which is expected to continue replenishing stocks. Additionally, as the economies in Europe and the U.S. gradually recover, the Christmas effect is anticipated to carry through to the fourth quarter, leading to sequential revenue growth.
In terms of profitability, the competitive pricing of upstream polypropylene (PP) is expected to effectively lower costs, benefiting product margins. From its investments, Asia Chemical and Wangzhou are expected to contribute NT$323 million and NT$253 million, respectively, to YC's investment income.
Taiwan Cooperative Securities forecasts that YC's revenue will reach NT$4.512 billion, a year-on-year increase of 22.69%. Operating income is expected to be NT$257 million, a 3.89% increase year-on-year; after-tax earnings are anticipated at NT$687 million, a 20.4% increase year-on-year; and EPS is projected at NT$2.97, exceeding last year's NT$2.79.
Wangzhou holds a parcel of land located at the intersection of Xingshan Road and Xinhu Second Road in Neihu, covering an area of 1,838 ping, with a cost of about NT$700,000 per ping. Wangzhou has commissioned DTZ to publicly auction the land today, with a minimum bid price of NT$1.5 million per ping.
Taiwan Cooperative Securities estimates that the auction price per ping could fall between NT$1.6 million and NT$1.7 million, leading to profits of NT$1.65 billion to NT$1.84 billion, contributing an EPS of over NT$6. With YC holding 100% of Wangzhou, and considering YC's end-of-year capital of NT$2.314 billion, the EPS contribution could reach NT$7.13 to NT$7.95. |
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