 2015-05-13 |
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Oil Price Rebound and Resurgence in Chinese Market Boost YC's April Revenue, Leaving Q1 Slump Behind
Juheng News, May 11, 2015, 7:06 PM Reporter: Zhao Xiaohui
As the plastics industry enters its peak season in Q2, Taiwan's leading adhesive tape manufacturer, YC Group (4306-TW), benefited from the rebound in oil prices and a recovery in the Chinese market in April. Consolidated revenue increased by 9.66% month-over-month to NT$1.579 billion. Subsidiaries ACHEM (1715-TW) and Xinzhou Global (3171-TW) also saw month-over-month increases of 6.96% and 5.73%, respectively. The outlook for Q2 is expected to improve compared to the sluggish first quarter.
YC's consolidated revenue for April was NT$1.579 billion, up 9.66% from the previous month, with cumulative revenue for the first four months decreasing by 13.34% year-over-year.
ACHEM, after experiencing a downturn in Q1 due to a significant drop in oil prices and a decline in unit selling prices, saw its April revenue increase to NT$926 million, up 6.96% from the previous month, with cumulative revenue for the first four months down 7.64% year-over-year.
Xinzhou Global, which specializes in packaging materials and retail channels, achieved April consolidated revenue of NT$141 million, up 5.73% from the previous month. Cumulative revenue for the first four months decreased by 5.38% compared to the previous year.
YC noted that with the addition of the Yangmei PE plant and the Haian plant in China to operations in the second half of this year, along with the gradual realization of vertical integration benefits, overall operations are expected to show a gradual recovery and growth trend.
Xinzhou Global, following the integration of its packaging business, has seen significant improvements in operational efficiency in Taiwan. The Taiwanese packaging market is expected to remain stable this year. In China, the performance of the "Bao Dashi" packaging retail business has achieved monthly breakeven after last year’s restructuring. Future expansion into Central and North China is expected to yield results starting in Q2, with benefits from lower procurement costs and improved performance in China expected to enhance operations and profitability for the year.
As for YC, after experiencing a decline in film business performance due to the dramatic drop in oil prices at the end of last year, and the ongoing oversupply in the Chinese film market, the company faced significant pressure in Q1.
YC stated that with oil prices starting to gradually rebound in Q2 and the company actively revitalizing its assets, combined with the anticipated revenue from the XinZhuang "MORE" project by the end of the year, the company expects a significant increase in revenue and profits in Q2 compared to Q1. Overall, the company anticipates maintaining steady growth throughout the year. |
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