 2014-10-13 |
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Reporter Wang Yi-Chen, Taipei
YC (4306) reported a consolidated revenue of NT$1.718 billion for September 2014, a slight increase of 4.85% compared to the same period last year. For the first three quarters of the year, the cumulative revenue was NT$15.12 billion, reflecting a 3.79% growth compared to the same period last year. The group's subsidiary, ACHEM (1715), had a consolidated revenue of NT$872 million in September, a decrease of 2.9% compared to the previous year. The cumulative revenue for the first three quarters was NT$8.27 billion, a 6.23% increase compared to the same period last year. Xinzhou Global (3171) achieved a consolidated revenue of NT$151 million in September, up 1.99% from August. The cumulative revenue for the first three quarters reached NT$1.305 billion.
In the third quarter, ACHEM faced a downturn in the mainland OPP market and accelerated its vertical integration of OPP production. It is 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 has led to a decrease in both production and sales in September. Additionally, some overseas customers have delayed their orders due to inventory adjustments. It is expected that normal operations will resume in mid-October. Despite this, the cumulative revenue for the first three quarters has grown by 6.23% compared to the same period last 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. Meanwhile, ACHEM's subsidiary, ACHEM Chemicals, is still in the trial production stage for its acrylic acid project. Once mass production begins, it is expected to contribute to the overall vertical integration synergies.
Looking ahead to the fourth quarter, 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. The operational performance is expected to keep improving, and with the gradual increase in ACHEM Chemicals’ production capacity, YC will benefit from the growth of these three subsidiaries. Future revenue and profitability are expected to show stable growth. |
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