 2013-10-15 |
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Reporter: Zhou Yi-lang
With the addition of three new production lines and high demand for PVC tapes, YC (4306) anticipates that, driven by rising market demand and the ramp-up of its production lines, its tape, film, and packaging distribution businesses will maintain third-quarter performance levels, leading to promising profitability for Q4.
Regarding its expansion plans, YC’s seventh BOPP (biaxially oriented polypropylene) film production line has commenced operations. Currently, the monthly production capacity in mainland China is 5,000 tons, while in Taiwan it is 8,200 tons.
Additionally, ACHEM Chemical’s PVC tape production is approximately 21 million square meters per month. To address the 30% annual growth in the PVC tape market in mainland China, ACHEM Chemical will add two more PVC production lines in the second half of the year, focusing on customized production to meet market demand.
YC’s capital expenditures from last year are beginning to show results, with forecasts suggesting a potential 20% to 30% increase in revenue for YC’s parent company. On October 14, YC’s stock closed at 22.55 yuan, down 0.45 yuan.
YC also noted that its investment in ACHEM Petrochemical’s Shanghai Phase I project, which includes annual production capacities of 80,000 tons each for acrylic acid and butyl acrylate, and 20,000 tons for adipic acid, is expected to commence in February next year and will significantly enhance operational momentum.
In recent years, YC has focused on integrating its industry chain, from raw materials to tape production and packaging distribution, with expansion investments in Taiwan, mainland China, and Vietnam. The company is a comprehensive producer in the tape industry. In addition to YC’s own BOPP production, its two listed companies, ACHEM Chemical produces OPP and PVC tapes, while Xinzhou Global serves as a downstream packaging distributor. |
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