 2015-05-13 |
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YC Group Q2 Performance Expected to Outperform Q1; Full-Year Operations to Maintain Steady Growth
MoneyDJ News, May 11, 2015, 16:49:27 Reporter: News Center
Taiwan's leading adhesive tape manufacturer, YC Group (4306), announced that its consolidated revenue for April was NT$1.579 billion, up 9.66% from the previous month. Cumulative revenue for the first four months decreased by 13.34% year-over-year. The Group’s subsidiary, ACHEM (1715), reported April consolidated revenue of NT$926 million, a 6.96% increase from the previous month, with cumulative revenue for the first four months down 7.64% compared to the previous year. Xinzhou Global (3171) achieved April consolidated revenue of NT$141 million, up 5.73% from the previous month, with cumulative revenue for January to April decreasing by 5.38% compared to last year.
YC Group stated that ACHEM's revenue in April began to recover after experiencing a downturn in the first quarter due to a significant drop in oil prices and a decline in unit selling prices. Increased export orders to the U.S. and Japan, along with a stabilization of demand in China, contributed to this recovery. Additionally, the operational impact of the PE plant in Yangmei and the Haian plant in China, which will join operations in the second half of this year, along with the gradual realization of vertical integration benefits, is expected to show a growing upward trend in overall operations.
YC also noted that 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 continue its stable growth this year. In China, after last year’s restructuring, the performance of the packaging business has achieved monthly breakeven. Future expansion into the Central and North China regions is expected to yield gradual results starting in the second quarter. Xinzhou’s operations are projected to benefit from lower procurement costs and improved performance in China, leading to significant growth in profits this year.
YC further noted that after experiencing significant pressure in the first quarter due to the dramatic drop in oil prices and the ongoing oversupply in the Chinese film market, the company anticipates a recovery starting in the second quarter as oil prices gradually rebound and the company actively revitalizes its assets. Additionally, with the expected gradual recognition of revenue from the XinZhuang MORE project by the end of the year, the company expects a substantial increase in revenue and profits in the second quarter compared to the first quarter. Overall, the company anticipates maintaining steady growth throughout the year. |
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