 2015-06-09 |
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June 21, 2015, 04:18:14, Economic Daily News
New Asia Global Aims for 40% Profit Growth in First Half
New Asia Global (3171), a packaging materials subsidiary of YC Group, has shifted its strategy in China since last year, focusing less on the scale of its locations and more on stopping losses in its Chinese channels. This change, along with successful expansion of new clients this quarter, is expected to drive significant growth in its operations. The company's profit for the first half of the year is projected to approach NT$50 million, representing an over 40% year-on-year increase.
Last year, YC Group undertook a resource integration effort across its business units. While the Taiwanese packaging materials business was originally reported under Yuan Chou, New Asia took over the management of the Chinese packaging materials channels. The consolidation of resources is expected to enhance efficiency, and transferring YC's packaging channels to New Asia will streamline operations across both sides of the Taiwan Strait, also strengthening New Asia's financial situation. On May 20, New Asia's stock price fell by NT$0.10 to close at NT$18.85.
New Asia has revised its strategy for its Chinese operations. Previously focused on aggressively expanding its network of locations, the company has since concluded that increasing the number of sites does not significantly benefit revenue and profitability. As a result, the company has refocused on central and southern China, including Tianjin, Wuhan, Shanghai, Ningbo, and Dongguan.
Analysts estimate that New Asia's revenue for the second quarter could reach NT$450 million, remaining steady compared to the same period last year but showing a 15.4% quarter-on-quarter growth. The company's net profit after tax is expected to exceed NT$27 million for the quarter, a 22.7% increase from the previous quarter and a 68.7% year-on-year rise, bringing the total net profit for the first half of the year to NT$50 million. |
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