Plastic Stocks – Xinzhu Surpasses Last Year's Annual Profit in First Three Quarters, Optimistic for Q4
2015-11-13
Xinzhu (3171), a subsidiary of YC Group, reported a consolidated revenue of NT$453 million for Q3 of 2015, with net profit after tax reaching NT$23 million. The EPS for the quarter was NT$0.40. For the first three quarters of this year, Xinzhu accumulated revenue of NT$1.28 billion and net profit after tax of NT$75 million, with an EPS of NT$1.27. This represents a 54% year-over-year increase and surpasses the total profit of last year.
Xinzhu stated that the order performance for packaging materials in Taiwan remains stable. In addition, the company is restructuring its sales points in China, focusing on large, key manufacturing clients. The company's own brand, "Packaging Master," continues to promote its image across Taiwan, China, and Hong Kong, gradually expanding to important locations in China. This has resulted in impressive operational performance this year. With ongoing orders from existing large clients and new orders from the optical electronics sector, the outlook for Q4 remains optimistic.
Looking ahead, Xinzhu plans to gradually expand into the tourism packaging market in the Hualien and Taitung regions of Taiwan, as well as in central and southern Taiwan. In China, the company will continue to set up service points in economic development zones in East, North, Central, and South China. Additionally, several large clients are expected to complete product certification by early next year and begin placing orders. This suggests a potential growth of 20-30% next year.
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