 2014-08-12 |
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Reporter: Zhao Xiaohui, MoneyDJ News, Taipei
Taiwanese tape leader YC (4306-TW) reported its consolidated revenue for July 2014, benefiting from the performance of new production capacities at its subsidiaries ACHEM and Xinzhou Global. The consolidated revenue reached NT$1.701 billion, marking a 1.62% increase year-over-year. For the first seven months of the year, cumulative revenue totaled NT$11.718 billion, up 3.55% from the previous year. The investment in ACHEM Petrochemical's acrylic acid plant is expected to create additional revenue momentum once it reaches full production.
Within the group, ACHEM (1715-TW) reported consolidated revenue of NT$911 million for July, an increase of 5.01% compared to the same period last year. YC noted that in June and July, ACHEM accelerated its OPP vertical integration by gradually relocating equipment from Shanghai to the Ningbo plant. Revenue is expected to grow further starting in August.
Additionally, ACHEM benefited from stable growth in export tape orders and increased shipments of automotive and PVC tapes. For the first seven months of the year, ACHEM’s revenue amounted to NT$6.49 billion, an 8.2% increase compared to the previous year. In terms of specialized products, ACHEM's new production capacities are gradually showing results, with expectations for stable growth once major customer certifications are completed. The company anticipates that in the third quarter, increased shipments of PVC tapes (automotive and protective types) and the launch of new PE (Polyethylene) products will contribute to a recovery in performance.
Another subsidiary, Xinzhou Global (3171-TW), achieved consolidated revenue of NT$141 million in July, a remarkable increase of 198% year-over-year. For the first seven months, cumulative revenue reached NT$1.007 billion, a significant 216% increase from the previous year.
YC also indicated that after integrating its packaging materials business, Xinzhou Global's operational efficiency in Taiwan is gradually becoming evident. Additionally, the "Pack Master" business in China is growing and has started to turn a profit, suggesting sustained future growth for Xinzhou Global.
Regarding the investment in ACHEM Petrochemical’s acrylic acid plant, YC mentioned that it is currently in trial production. Full-scale production is expected to enhance the benefits of vertical integration within the industry.
Looking forward to the second half of the year, YC pointed out that with the expansion of ACHEM’s new production capacity and Xinzhou Global’s continued expansion of its packaging material channels in Taiwan and China, operational performance is expected to improve. Combined with the gradual increase in ACHEM Petrochemical’s production capacity, YC anticipates benefiting from the growth of these three subsidiaries, leading to stable growth in both revenue and profitability.
Source: MoneyDJ News |
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