 2015-10-14 |
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Due to an oversupply in the Mainland China film market, YC (4306) reported consolidated revenue of NT$1.486 billion in September, a decrease of 7.23% from the previous month, and a year-on-year decrease of 11.44% for the first three quarters. Achem (1715), a subsidiary of YC, also saw September revenue of NT$1.02 billion, which was flat compared to the previous month, with a 13.8% year-on-year decline for the first three quarters.
In contrast, Xinzhou Global (3171) has seen benefits from its adjusted sales strategy in Mainland China, focusing on large manufacturing clients. The company's Mainland China operations continued to grow, with September revenue of NT$155 million, up 3.03% from the previous month. Q3 revenue increased by 2.3% quarter-on-quarter but decreased by 1.62% year-on-year.
YC believes that with oil prices relatively stable, and steady growth in Mainland China orders, along with the cloud business peak season, Q4 operations should show a stable growth compared to Q3. Additionally, the "Wangzhou More" construction project is expected to complete by the end of the year, and the refurbished Chongqing South Road building will be opened as a youth hostel in Q4, which is anticipated to attract backpackers and boost revenue.
Yongyu (1323) saw progress in September and benefited from foreign exchange gains in yen and USD, leading to accelerated profit growth in Q3. Analysts estimate that Yongyu’s Q3 profits could increase by 50% quarter-on-quarter. As Q4 enters the traditional peak season and the company's investment in electric vehicle lithium battery materials turns profitable, the full-year EPS is expected to surpass NT$2, reaching approximately NT$2.2 to NT$2.3.
Yongyu’s investment subsidiary has been focusing on developing and producing lithium battery materials for electric vehicles. With the growth of energy-saving and emission-reduction policies and the new energy vehicle industry, the company has achieved several certifications and is now used by various professional manufacturers. The company has generated continuous profits in Q2 and Q3 of this year, building a strong foundation for long-term diverse revenue streams. |
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