 2014-10-13 |
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MoneyDJ News, October 13, 2014, 08:32:57, Reporter News Center
YC Group (4306) reported a consolidated revenue of NT$1.718 billion for September, a 4.85% increase year-over-year. For the first three quarters of the year, cumulative revenue reached NT$15.12 billion, reflecting a 3.79% year-over-year growth. The group's subsidiary, ACHEM (1715), had a consolidated revenue of NT$872 million in September, a 2.9% decrease compared to the previous year. The cumulative revenue for the first three quarters was NT$8.27 billion, a 6.23% increase year-over-year. Xinzhou Global (3171) achieved a consolidated revenue of NT$151 million in September, a 7.61% decrease year-over-year. The cumulative revenue for the first three quarters was NT$1.305 billion, an 11.79% decrease year-over-year.
Looking ahead to the fourth quarter, YC indicated that with the expansion of new production capacities and new product shipments from ACHEM Chemicals, Xinzhou Global will continue to expand its packaging material channels in Taiwan and mainland China. This will contribute to an increase in overall operational performance. Additionally, with the gradual increase in production capacity at ACHEM Chemicals, YC is expected to benefit from the operational growth of these three subsidiaries, leading to stable revenue and profit growth for the group in the future.
Reviewing September's revenue performance, YC noted that ACHEM Chemicals faced challenges in the mainland OPP market during the third quarter. The company accelerated its vertical integration of OPP production by gradually relocating three OPP production lines from Shanghai to the Ningbo plant, with the relocation expected to be completed by the end of the year. The relocation led to a decrease in both production and sales in September. Additionally, some overseas customers delayed their orders due to inventory adjustments, but these factors are expected to normalize by mid-October.
Despite these issues, ACHEM’s cumulative revenue for the first three quarters still showed a 6.23% increase year-over-year, driven by stable order growth in the Americas and Asia (excluding mainland China), as well as increased shipments of automotive and PVC tapes, indicating the benefits of the company’s new production capacity. The company anticipates that overall performance in the fourth quarter will improve, supported by increased shipments of PVC tapes (automotive and protective types), the introduction of new PE products, and steady growth in specialized businesses.
For Xinzhou Global, the benefits of integrating its packaging materials business have become evident in Taiwan, while the performance of the mainland packaging business, Bao Dashi, is also showing gradual growth with monthly profits starting to appear. This suggests that Xinzhou's operational growth is promising. YC also noted that its other invested company, ACHEM Chemicals, is still in the trial production stage for acrylic acid. It is expected that mass production will enhance the overall vertical integration synergies. |
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