 2015-03-12 |
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YC’s Revenue Drops 14% in the First Two Months, ACHEM’s Operations Expected to Gradually Rebound This Year
MoneyDJ News, March 11, 2015 10:27:59
By News Center
Taiwan’s leading tape manufacturer, YC Group (4306), announced consolidated revenue of NT$1.06 billion for February, a 27.45% year-on-year decrease. Cumulative revenue for the first two months decreased by 14.14% year-on-year. YC stated that the continued low crude oil prices have led to a decline in the performance of its film business, compounded by the persistent oversupply in China’s film market. This year’s operations will face significant pressure, and if crude oil prices continue to drop, the pressure on operations will intensify, posing challenges for future revenue and profit growth.
ACHEM (1715), a subsidiary of YC Group, reported consolidated revenue of NT$662 million for February, a 17.4% year-on-year decrease, with cumulative revenue for the first two months down 7.78%. The company noted that February’s revenue was impacted by fewer working days due to the Lunar New Year, as well as reduced demand in the Chinese market. Although the sharp drop in crude oil prices is relatively beneficial for operations, a decrease in unit selling prices contributed to lower revenue for February. With the Chinese market expected to stabilize and export orders from the U.S. and Japan steadily increasing, ACHEM’s revenue is forecasted to return to normal levels in March. Furthermore, with the gradual commencement of operations at the Yangmei PE plant and the Haian plant in China, and the growing benefits of vertical integration, ACHEM’s overall operations are expected to show a gradual upward growth trend this year.
Xinzhou Global (3171) reported consolidated revenue of NT$115 million for February, a 3.8% year-on-year decrease, with cumulative revenue for the first two months down 5.5%. The company stated that after the integration of Xinzhou Global’s packaging business, its operational efficiency in Taiwan has significantly improved. Taiwan’s packaging market is expected to grow steadily this year. Additionally, after last year’s restructuring, the performance of China’s "Master of Packaging" has reached break-even on a monthly basis, and the company plans to expand its business operations in central and northern China, projecting gradual growth in Xinzhou’s future operations. |
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