 2015-06-15 |
|
|
ACHEM Benefits from Vertical Integration; Newzhou Global Sees Boost from Chinese Orders
June 9, 2015, 13:58
By Peng Xuan-Yi
ACHEM (1715) has reported that the benefits of vertical integration are gradually becoming apparent, with increasing shipment volumes. Although May revenue declined compared to April, this was primarily due to the relocation of the OPP production line from the Jiading plant to the Ningbo plant, which has not yet been reflected in ACHEM’s revenue. If this factor were included, the actual growth would be around 2%. Revenue is expected to see a significant boost once the equity transfer is completed in July. With the gradual ramp-up of production at the Hai'an plant and increased shipments of new products like PE in the second half of the year, operations are anticipated to recover strongly.
In addition, Newzhou Global (3171) has shown stable profit performance in Taiwan following the integration of its packaging materials business. In China, the effectiveness of business expansion is becoming increasingly evident. By the end of May, new orders will begin to contribute to revenue growth in the region, driving overall profit growth in the packaging materials sector.
Newzhou notes that packaging materials revenue growth is expected to maintain a rate of over 5%. Future orders from China’s optoelectronic industry, combined with the expansion of cloud services and technological enhancements, are expected to accelerate operational progress. |
|
