 2009-06-11 |
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Plastics Stocks: YC Estimates a Slight Decline in June Revenue; Projects for Neihu and Linkou Land to Launch Next Year
(Reporter He Mei-Ru, Taipei)
Packaging materials giant YC (4306) reported revenue of NT$324 million in May, an increase of 2.95% compared to April, but estimates a slight decline in June revenue. The consolidated revenue was NT$513 million, reflecting a growth of 12.93% over April. Recently, YC sold a piece of land measuring 268.10 ping on Wenhua 2nd Road in Linkou, which is expected to contribute approximately NT$0.25 to YC's EPS, providing a small boost to profits.
YC stated that with the recent opening of real estate purchases by Chinese capital in Taiwan and the direct flights from Songshan Airport to mainland Chinese cities, it has begun planning its lands in Neihu and Linkou, with projects expected to be launched next year.
Looking ahead to June, YC noted that the average price of polypropylene (PP) in May was around US$1,040 per ton, with oil prices also reaching relatively high levels. The price of polypropylene is facing pressure, and with Q3 being a non-traditional peak season, it is anticipated that raw material prices will remain stable, with little chance of price increases. June revenue is estimated to be around NT$300 million, representing a slight decline from the previous month.
In terms of investments, YC is optimistic about the opening of real estate purchases by Chinese capital and the direct flights from Songshan Airport to major cities like Shanghai and Beijing. Wangzhou Construction has begun planning for its land holdings of over 1,800 ping in Neihu's redevelopment area and 894 ping in Linkou's redevelopment area, expecting to launch projects next year. Recently, Wangzhou Construction sold the 268.10 ping land located on Wenhua 2nd Road in Linkou for NT$131 million, resulting in a profit of NT$40.56 million, which will contribute NT$0.25 to YC's EPS.
Regarding its investment in Ningbo Yashuo in China, the expansion of the production line is currently underway, with mass production expected to start in early Q3 of 2010, aligning with the growth in consumer demand in China. The group anticipates that revenue will challenge NT$10 billion next year. |
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