 2010-08-18 |
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(2010/08/18, Industrial and Commercial Times) Targeting real estate opportunities from the ECFA, YC (4306) is accelerating its expansion plans in the Greater Taipei area and second-tier cities in China. Chairman Li Zhihsien stated that in conjunction with ACHEM’s proactive development of a presence in China, the YC Group will adopt a dual-track strategy focusing on both the Greater Taipei area and second-tier cities in China, aiming to exceed NT$10 billion in real estate revenue contributions within five years.
Li pointed out that the YC Group currently has 200,000 ping of construction land and an additional 10,000 ping of residential and commercial land, all located in the Greater Taipei area. In the second half of this year, Wangzhou Construction will launch two projects, and a NT$5 billion luxury residential project in Linkou is expected to start next year, with stable profit contributions anticipated.
YC produces films, adhesive tapes, and packaging materials, with production bases in Taiwan (Zhangbin), mainland China, and Vietnam. In recent years, its 100% stake in Wangzhou Construction has entered the real estate market, becoming another important source of profit. In the second quarter, YC's revenue increased by 14% quarter-on-quarter, and its half-year revenue grew by 25% year-on-year. Analysts estimate that the EPS for the first half of the year is approximately NT$1.5, with an expected annual EPS of NT$3.
Wangzhou Construction currently has about NT$70 million in completed projects under its "City of Ocean" series, which will be launched at the end of the third quarter. Another project, "Fenghua Court," adopts a build-first, sell-later approach and is also expected to be launched in the third quarter, with total sales projected at NT$500 million and estimated earnings of about NT$50 million, serving as a profit source for the second half of the year.
It is reported that Wangzhou Construction has NT$500 million in completed and pre-sale projects in Linkou in the second half of the year, with NT$800 million in sales. The "Yunpin" pre-sale project is expected to set a new luxury price point in the area at NT$300,000 per ping, set to launch in late August and begin construction by the end of the year.
Li Zhihsien stated that the group currently has 200,000 ping of construction land, and Wangzhou Construction owns the largest and most complete prime land in the Wuhsi phase of Neihu, Taipei, as well as prime land in the Xinzhung sub-central area. The group is looking for opportunities to expand its revenue-generating capacity in the future. |
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