 2014-08-12 |
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Reporter, MoneyDJ News, Taipei
Taiwanese tape giant YC (4306) announced that its consolidated revenue for July 2014 was NT$1.701 billion, an increase of 1.62% year-over-year. For the first seven months of the year, consolidated revenue reached NT$11.718 billion, up 3.55% from the previous year.
Among its subsidiaries, ACHEM (1715) reported consolidated revenue of NT$911 million for July, a 5.01% increase year-over-year. For the first seven months, ACHEM's revenue totaled NT$6.49 billion, up 8.2% from the previous year. Xinzhou Global (3171) achieved consolidated revenue of NT$141 million in July, a dramatic increase of 198.45%, with a cumulative revenue of NT$1.007 billion for the first seven months, a substantial rise of 216.17%.
Looking ahead to the second half of the year, YC expects that the expansion of ACHEM's new production capacities and Xinzhou Global's ongoing efforts to expand its packaging material channels in Taiwan and China will boost operational performance. Additionally, with the gradual increase in ACHEM Petrochemical’s production capacity, YC is anticipated to benefit from the growth of these three subsidiaries, leading to continued stable growth in overall revenue and profitability.
YC noted that ACHEM experienced a drop in product prices due to increased supply in the Chinese OPP (Oriented Polypropylene) market in June and July. To address this, the company accelerated its OPP vertical integration during this period, gradually moving equipment from Shanghai to the Ningbo plant. This resulted in reduced production and shipments in June and July and a temporary decline in revenue. However, it is expected that revenue will gradually recover starting in August.
Despite this, ACHEM’s revenue for the first seven months still grew by 8.2% year-over-year, driven by stable growth in export tape orders and increased shipments of automotive and PVC tapes, demonstrating the benefits of the company’s new production capacities. Additionally, the performance of new specialized products is expected to stabilize once major customer certifications are completed. The third quarter is projected to see ACHEM’s overall performance improve, with increased shipments of PVC tapes (automotive and protective types) and the launch of new PE (Polyethylene) products.
Regarding Xinzhou Global, YC reported that the subsidiary’s business integration in the packaging sector is showing gradual improvements in Taiwan. The "Pack Master" business in China is growing and has started to turn a profit, suggesting sustained growth for Xinzhou Global. Furthermore, ACHEM Petrochemical’s acrylic acid, a recent investment, is currently in trial production, and is expected to contribute to the industry’s vertical integration benefits once it reaches full-scale production.
For the second half of the year, YC anticipates that the expansion of ACHEM’s production capacity, the continued growth of Xinzhou Global’s packaging material channels, and the increased capacity at ACHEM Petrochemical will drive stable revenue and profitability growth across the group.
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