 2014-10-10 |
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Benefiting from increased demand in the Americas and Asia (excluding China), which helped mitigate the weak market conditions in China, YC (4306) and ACHEM (1715) both saw impressive performance in Q3. For the first three quarters, YC's consolidated revenue increased by 3.79% year-over-year, while ACHEM grew by 6.23%. For Q4, the effect of new production capacities is expected to drive growth of 5-10%.
In September, YC reported consolidated revenue of NT$1.718 billion, a month-over-month decrease of 2%, but a year-over-year increase of 4.85%. For the first three quarters, revenue surpassed NT$15 billion, reaching NT$15.12 billion, which is a 3.79% increase compared to the same period last year.
ACHEM, on the other hand, faced a decline in September due to the relocation of its Shanghai plant, with consolidated revenue of NT$872 million, a 4.4% month-over-month decrease. However, the new production capacities are showing benefits, with revenue for the first three quarters reaching NT$8.27 billion, a 6.23% year-over-year increase.
ACHEM noted that during a weak period in the Chinese OPP market in Q3, it accelerated its vertical integration of OPP production by gradually relocating three OPP production lines from Shanghai to the Ningbo plant. The relocation is expected to be completed by the end of the year. September's revenue decline was due to the impact of this relocation, along with inventory adjustments by some overseas customers delaying their orders. It is anticipated that these issues will normalize by mid-October.
ACHEM also highlighted that stable order growth in the Americas and Asia (excluding China) and increased shipments of automotive and PVC (polyvinyl chloride) tapes have contributed to improved operations. In Q4, increased shipments of PVC tapes (automotive and protective types), new PE (polyethylene) products, and steady growth in specialized businesses are expected to help return performance to high levels.
Additionally, Xinzhou Global (3171) has shown improved operational efficiency in Taiwan following its packaging material business integration. The performance of its mainland China business, Bao Dashi, is also gradually improving, with monthly profitability indicating a positive trend. |
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