 2015-06-15 |
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Stock Update: YC (4306) Sees Profit Growth in Q2 Amidst Stabilizing Oil Prices
Financial News, 2015/06/11 08:55
By Wu Cailian
YC (4306) reported a consolidated revenue of NT$1.502 billion for May, a decrease of 4.89% month-over-month. Cumulative revenue for the first five months of the year reached NT$7.14 billion, marking a year-over-year decrease of 13.78%. Its subsidiary ACHEM (1715) saw a consolidated revenue of NT$907 million in May, down 2.04% from the previous month. The cumulative revenue for the first five months was NT$4.29 billion, down 7.63% year-over-year. Newzhou Global (3171) reported May revenue of NT$147 million, up 3.69% month-over-month, with cumulative revenue for the first five months totaling NT$677 million, down 5.08% year-over-year.
Following a significant drop in oil prices at the end of last year and in the first quarter of this year, YC faced operational pressures. However, with oil prices gradually recovering in the second quarter and the expected handover of the Xinzhong MORE project by the end of the year, both revenue and profit in Q2 are anticipated to show a notable increase compared to Q1.
ACHEM is benefiting from the gradual realization of vertical integration efficiencies, with increasing shipment volumes. Despite a decline in May revenue compared to April due to the relocation of the OPP production line from the Jiading plant to the Ningbo plant (which has not yet been reflected in Wan Zhou's revenue), actual revenue growth is estimated at 2%. 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, overall operations are expected to recover.
Newzhou Global, after integrating its packaging materials business, has shown stable profit performance in Taiwan. In China, revenue is increasing as the results of business expansion begin to materialize, driving profit growth in the packaging materials sector. While cloud services demand has slowed, leading to a deceleration in overall revenue growth in May, packaging materials revenue continues to grow by over 5%. The company is expected to secure orders from China's optoelectronic industry for its packaging materials business in the future. |
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