 2014-03-21 |
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Times Report, Reporter Wang Yixin, Taipei
YC (4306) primarily produces films, tapes, and packaging materials. Starting in the second quarter, new production capacities will begin to come online. In 2015, the "Hai'an Project" in Nantong, China, will launch six integrated production lines for PVC films and tapes. Additionally, cooperation with Japan's Toyota Tsusho will help expand sales channels in China and Japan.
YC expects to launch one PVC tape line and one PE coating line in the second quarter, with the possibility of adding another PVC tape line and an OPP tape line later in the third quarter. By 2015, the "Hai'an Project" will see the start-up of six integrated production lines for PVC films and tapes, with half of the capacity expected to be operational by early 2015. This expansion is expected to drive significant growth, with analysts optimistically forecasting a 17.2% revenue growth rate for 2014 and 13% for 2015.
At the end of January, YC announced the sale of a 20% stake in its subsidiary WAN CHIO BVI to Japan's Toyota Tsusho. This move is part of YC's strategy to enhance its upstream petrochemical production capabilities, as the company has historically lacked experience in this area. Analysts suggest that the partnership with Toyota Tsusho will leverage its sales networks in China and Japan, benefiting WAN CHIO's distribution. The first-quarter disposal of WAN CHIO BVI is expected to yield approximately NT$60 million, maintaining YC’s price-to-book ratio at 1.4 times and setting a target price of NT$28. Looking ahead, WAN CHIO Petrochemical is a key component in YC's upstream product strategy, and its integration with YC and WAN CHIO (1715) will likely enhance cost reduction and margin improvement prospects. |
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