 2013-11-26 |
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Economic Daily News / Reporter Zhou Yi-Lang / Taipei
Benefiting from new production capacity and successful expansion in China, YC (4306) expects its operational performance to surpass last year’s results. After the completion of Phase I of the Shanghai investment project by ACHEM, scheduled for February next year, the company's performance is anticipated to improve further.
Analysts indicate that YC's earnings per share (EPS) for the first three quarters of this year are NT$1.63. With increasing market demand and the addition of new plants across the group in the fourth quarter, it is estimated that the company's tape, film, and packaging material businesses will maintain the levels seen in the third quarter. For the full year, net profit after tax is expected to exceed NT$800 million, nearly doubling compared to last year, with EPS projected to reach NT$2. The stock price closed at NT$21.40 on the 25th.
YC’s capital expenditures from last year are starting to pay off. Originally operating six BOPP (Biaxially Oriented Polypropylene) production lines across Taiwan and China, the seventh BOPP production line commenced operations in July, increasing the total monthly capacity from 12,500 tons to 15,000 tons. Additionally, ACHEM’s operations benefit from its largest customer, 3M, which has seen a surge in performance due to the revival of U.S. manufacturing.
Furthermore, the group's investment in Xinzhou has led to significant adjustments in its Chinese operations and marketing strategies since the second quarter, resulting in gradual improvements. This has contributed to impressive growth in both core and non-core businesses, with net profit for the first three quarters reaching NT$712 million, more than doubling from the same period last year.
YC anticipates that the fourth quarter will show improved performance compared to the same period last year, driven by increased production capacity and strategic adjustments in China. With ACHEM’s new PE plant scheduled to start production in the first quarter of next year and the benefits from the newly added PVC production line, the company expects to see new growth momentum. Analysts project that YC’s cumulative consolidated revenue for the first ten months of the year stands at NT$17.344 billion, with expectations to challenge NT$20 billion for the year, aiming for a historical high. |
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