 2015-05-18 |
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YC (4306) Reports Q1 Loss of NT$0.25 per Share; ACHEM (1715) Posts Small Profit of NT$0.17 per Share
Financial News Flash / Report by Wu Cailian
YC (4306) announced a consolidated Q1 revenue of NT$40.59 billion, with a consolidated net loss of NT$1.28 billion and an EPS of NT$0.25. In contrast, ACHEM (1715) reported Q1 consolidated revenue of NT$24.63 billion, with a consolidated net profit of NT$0.66 billion and an EPS of NT$0.17.
The significant drop in crude oil prices since the second half of last year, combined with an oversupply in the Chinese film market leading to a sharp decline in prices, resulted in raw material cost losses for YC, causing the Q1 loss. However, with crude oil prices rebounding in Q2, overall operations are expected to bottom out and recover, with additional gains expected from the sale of land in Linkou. The construction segment anticipates recognizing revenue from the New Taipei's Wangzhou MORE project in Q4, and sales of the Linkou Wangzhou Extreme project have exceeded 50%, with revenue recognition expected in the latter half of next year. These factors are expected to improve YC's profitability gradually.
For ACHEM (1715), the drop in crude oil prices led to a decrease in product prices, resulting in a 9% year-on-year decrease in Q1 revenue. However, lower raw material costs, increased export orders for OPP, and higher shipments of PVC tapes (automotive and protective types) led to a 3% rise in gross margin. Operating income grew by over 20% compared to the previous year, although the profit performance was affected by investment losses related to the new Ningbo plant and Wanzhou Petrochemical shares.
Looking ahead to Q2, vertical integration benefits are expected to become more evident, with stable export orders and the completion of international certifications for the Ningbo plant. Overall operations are expected to improve compared to Q1. Additionally, with the gradual ramp-up of production capacity at the Hai'an plant, increased shipments of new products like PE, and improved performance from newly added specialized product capacities, ACHEM’s performance in the second half of the year is anticipated to surpass that of the first half. |
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