 2015-11-14 |
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"Popular Stocks – Yanzhou Q3 Financials Stable, Revenue Expected to Grow 10% Next Year; Foreign Investment Buys for 7 Consecutive Days"
November 14, 2015, 12:44
YC (4306-TW), a leading tape manufacturer, has launched its new headquarters in Neihu, and expects total revenue to grow by 10% next year. The third-quarter financial report remained stable under market pressure, with earnings per share (EPS) of NT$0.09, marking the second consecutive quarter of positive EPS. Cumulative EPS for the first three quarters is NT$0.53, a 51.4% increase year-over-year. Yanzhou’s short-term prospects are attractive, drawing foreign investment for seven consecutive trading days. On November 13, the stock closed at NT$14.15, up 4.4% for the week, with all three short-term moving averages showing an upward trend.
YC’s Q3 financial report shows a decline in both revenue and profit compared to Q2. Q3 consolidated revenue was NT$4.409 billion, down 4.5% quarter-over-quarter, and net profit after tax was NT$101 million, a 71% decrease. Despite a drop in EPS from NT$0.63 in the previous quarter to NT$0.09, the EPS has been positive for two consecutive quarters.
Although YC’s cumulative consolidated revenue for the first three quarters of this year is NT$13.086 billion, a 13.4% decrease from last year, the EPS of NT$0.53 represents a 51.4% increase year-over-year.
Earlier this month, YC inaugurated its new headquarters in Neihu. YC President Li Zhixian stated that YC has become one of the most integrated tape manufacturers globally and one of the largest producers of PVC and OPP tapes. The group anticipates over 10% revenue growth next year.
Achem, a subsidiary of YC, is the world’s largest producer of OPP tape and the second-largest producer of PVC tape. The company plans to enhance R&D and sales capabilities, expand new product lines, and expects an additional 15% growth next year, with annual production capacities reaching 2.87 billion square meters for OPP tape and 270 million square meters for PVC tape.
Another subsidiary, Xinzhu Global, will focus on expanding its "Packaging Master" network in economic development zones such as Shanghai, Jiangsu, Liaoning, Henan, Sichuan, Guangdong, and Fujian. Coupled with its packaging materials and cloud information business, Xinzhu Global anticipates revenue could potentially double over the next five years, with a 20% revenue growth forecast for next year.
In the real estate sector, YC has construction projects that will generate revenue in batches starting in the first quarter of next year, and commercial travel operations are set to begin trial runs, which are expected to contribute to the group’s revenue growth. |
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