 2014-08-14 |
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MoneyDJ News, Reporter, News Center
Taiwanese tape leader YC Group (4306) reported consolidated revenue of NT$10.02 billion for the first half of 2014, with a net profit of NT$64 million and earnings per share (EPS) of NT$0.14. Its subsidiary, ACHEM (1715), posted consolidated revenue of NT$5.58 billion for the same period, with a net profit of NT$280 million and EPS of NT$0.72. Xinzhou Global (3171) reported consolidated revenue of NT$866 million, a net profit of NT$34 million, and EPS of NT$0.70.
YC stated that the decline in profitability during the first half of the year was mainly due to an oversupply in the Chinese film market, which significantly lowered product prices. Additionally, changes in IFRS accounting principles, requiring revenue recognition only after project completion, contributed to the lower earnings. Although sales for the New Taipei's Wangzhou MORE and Linkou's Wangzhou Premium products are performing well, the revenue and profit from these products are expected to be recognized only in the second half of next year.
Furthermore, YC plans to actively develop new products and export markets, expand product applications and sales combinations to improve profit structures, and strengthen production and sales efforts. The company anticipates that with improvements in profit structure and stabilization of the Chinese market, future revenue and profitability will gradually improve.
For the second quarter, ACHEM achieved consolidated revenue of NT$2.875 billion, a 6.32% quarter-over-quarter increase. Net profit for the quarter was NT$166 million, showing a 40% growth from the previous quarter, with a quarterly EPS of NT$0.42. This improvement was attributed to increased OPP (Oriented Polypropylene) export orders and higher shipments of PVC (Polyvinyl Chloride) tapes (automotive and protective types), which boosted gross profit and operating income, up 9% from the first quarter. The increase also included land income from Linkou. In the specialized sector, stable growth is expected once major customer certifications are completed. The third quarter is anticipated to see continued growth in ACHEM’s performance, driven by increased shipments of PVC tapes, specialized products, new production capacities, and new PE (Polyethylene) products coming to market.
Regarding Xinzhou Global, its revenue and profitability showed significant growth for the first half of the year. Last year's profits were primarily from property sales, while this year’s profits are derived from packaging material channels. This reflects the benefits of last year’s restructuring and expansion in the Chinese market, coupled with the early integration of YC’s packaging business, which has expanded its business locations and channel scale. The company expects continued growth as the “Pack Master” business in China gradually increases revenue and profitability.
Looking ahead to the second half of the year, YC Group anticipates that the expansion of new capacities at ACHEM, continued growth in Xinzhou Global’s packaging material channels in Taiwan and China, and increased capacity at ACHEM Petrochemical will benefit the group. The company expects to see steady growth in both revenue and profitability driven by the growth of these three subsidiaries. |
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