 2014-08-11 |
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Reporter: Wang Yixin, Times Report, Taipei
YC (4306) reported a consolidated revenue of NT$1.701 billion for July, a slight increase of 1.62% year-over-year. For the first seven months of the year, cumulative revenue totaled NT$11.718 billion, marking a 3.55% increase compared to the same period last year.
Among the group’s subsidiaries, ACHEM (1715) recorded a consolidated revenue of NT$911 million in July, a 5.01% increase from the previous year. For the first seven months of the year, ACHEM’s cumulative revenue was NT$6.49 billion, reflecting an 8.2% growth year-over-year. Meanwhile, Xinzhou Global (3171) achieved a consolidated revenue of NT$141 million in July, an impressive 198% increase compared to the same period last year. The cumulative revenue for the first seven months reached NT$1.007 billion.
YC stated that ACHEM faced increased supply and falling prices in the Chinese OPP market during June and July. To address this, ACHEM accelerated its OPP vertical integration, gradually relocating equipment from Shanghai to the Ningbo plant. This led to reduced production and shipments in June and July, resulting in a temporary decline in revenue. However, revenue is expected to gradually recover starting in August. Despite this, ACHEM’s cumulative revenue for the first seven months still showed an 8.2% increase year-over-year, driven by steady growth in export tape orders and increased shipments of automotive and PVC tapes, indicating the continued benefits of new production capacities.
In terms of specialized products, the performance of newly added production capacity is becoming evident. It is anticipated that, once major customer certifications are completed and shipments commence, stable growth will follow. The third-quarter outlook for ACHEM includes increased shipments of PVC tapes (automotive and protective types) and the launch of new PE products, which are expected to contribute to a gradual recovery in performance.
Additionally, YC noted that Xinzhou Global’s operational efficiency in Taiwan is becoming increasingly apparent following the integration of its packaging materials business. The "Pack Master" business in China is also showing growth and has started to become profitable. This suggests sustained future growth for Xinzhou Global.
Regarding ACHEM Petrochemical’s acrylic acid plant, which is currently in trial production, YC expects that full-scale production will enhance the benefits of vertical integration within the industry.
Looking ahead to the second half of the year, YC anticipates that the expansion of ACHEM’s new production capacity and Xinzhou Global’s continued expansion in Taiwan and China will lead to improved operational performance. With the gradual increase in ACHEM Petrochemical’s production capacity, YC expects to benefit from the growth of these three subsidiaries, leading to stable growth in both revenue and profitability. |
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