 2015-06-09 |
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YC and ACHEM's Vertical Integration Benefits Emerge; Newzhou Global Sees Increased Orders from China
Liberty Times, Reporter Zhang Huiwen, Taipei
Taiwan's leading tape manufacturer, YC Group (4306), announced a May 2015 revenue of NT$1.502 billion, a 4.89% decrease from the previous month and a 13.78% decrease year-over-year for the first five months. Its subsidiary ACHEM (1715) reported consolidated revenue of NT$907 million in May, down 2.04% from April and a 7.63% decrease year-over-year for the first five months. Newzhou Global (3171) achieved revenue of NT$147 million in May, a 3.69% increase from the previous month, but a 5.08% decrease year-over-year for the first five months.
ACHEM has benefited from the gradual realization of vertical integration effects, with increasing shipment volumes. However, May’s revenue declined compared to April, primarily because the OPP production line was moved from the Jiading plant to the Ningbo plant, and the revenue from Ningbo's OPP tape shipments has not yet been included in ACHEM’s figures. When adjusted for this, the actual growth is around 2%. Revenue is expected to see significant growth after the equity transfer is completed in July. In the second half of the year, with production capacity at the Hai'an plant ramping up and increased shipments of new products like PE, overall operations are expected to recover strongly.
Newzhou Global has shown stable profit performance in Taiwan after integrating its packaging materials business. In China, the effectiveness of business expansion is becoming more evident. Orders from the end of May will gradually boost revenue in the region, leading to increased overall profitability in the packaging materials sector. However, due to reduced demand in the cloud services business, May’s overall revenue growth has slowed. Despite this, packaging materials revenue is expected to maintain a growth rate of over 5%. Future orders from China’s optoelectronics industry, along with expanded cloud services and technological enhancements, are expected to drive significant growth in overall operations. |
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