 2015-05-18 |
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PE Market Booms: Taiwan Plastics Groups Report Positive Earnings
May 16, 2015, 04:10 AM, Reporter Peng Hsuan-yi, Taipei
Benefiting from a resurgence in plasticizer demand and widening product margins, Taiwan Plastics Group reported encouraging profits for Q1. Among them, Taiwan Plastics (1304) and Asia Plastics (1308) saw notable gains due to robust PE pricing, with quarterly profit growth of 33% and 15%, respectively, marking their best performance. Delta Chemical (1309) also managed to turn a loss into a profit.
In terms of EPS, Huaxia (1305) led with NT$0.35, followed by Asia Plastics with NT$0.26, Delta Chemical with NT$0.25, and Taiwan Plastics with NT$0.18 per share.
Meanwhile, YC Group (4306) faced challenges due to losses from falling raw material prices and a sluggish BOPP market, resulting in a Q1 EPS loss of NT$0.25. However, its subsidiary ACHEM (1715) reported an EPS of NT$0.17 for Q1, and Xinjia Global (3171) achieved a 40% year-on-year profit increase with an EPS of NT$0.38.
Taiwan Plastics Group noted that despite a decrease in Q1 revenue due to falling prices alongside oil price drops, the onset of the peak demand season in Q2 is expected to improve operations. Domestic prices have been steadily increasing in May, which is anticipated to boost performance.
Huaxia's Q1 was relatively stable due to PVC price fluctuations, with a gross margin of 13.72%, operating income of NT$216 million, and an EPS of NT$0.35.
Delta Chemical saw a recovery in ABS and PS markets and a reduction in costs, successfully turning a profit with a Q1 gross margin of 6.78%, operating income of NT$84.93 million, and net income of NT$82.19 million, yielding an EPS of NT$0.25.
Taiwan Plastics achieved a Q1 gross margin of 10.36%, with core profit growing 46% year-on-year to NT$4.21 billion. Including other investment gains, net income was NT$18.8 billion, up 33.41% year-on-year.
Asia Plastics reported a Q1 gross margin of 10.23%, with operating income of NT$79.84 million and net income of NT$121 million, marking a 15.34% year-on-year increase.
Additionally, YC noted that with the rebound in oil prices and increased market demand in Q2, operations are expected to recover from their low point. |
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