 2015-12-11 |
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Taiwan's leading tape manufacturer, YC Group, has released its revenue figures for November from its listed subsidiaries. The decline in oil prices has reduced costs for Yan Chao Group, but YC (4306) is experiencing downward pressure on its film business performance. In contrast, Xinzhu Global (3171) is benefiting from growth in shipments across Taiwan and China, showing strong momentum.
YC reported a consolidated revenue of NT$1.424 billion for November, a 7.89% decrease from October. For the first eleven months of the year, revenue decreased by 10.82% year-over-year. Achem (1715) saw a consolidated revenue of NT$972 million in November, down 5.51% from October, with a year-to-date decrease of 12.73%.
Xinzhu Global’s consolidated revenue for November was NT$153 million, an 8.05% increase from October. For the first eleven months, revenue decreased by 2.45% year-over-year.
Achem stated that the ongoing drop in oil prices has led to a reduction in product prices, but it has also lowered production costs, maintaining stable gross margins and profitability. Looking ahead, with the benefits of vertical integration becoming apparent and stable export orders, the company expects steady performance next year.
Xinzhu Global noted that its packaging orders in Taiwan remain stable. The company plans to enhance its presence in the previously overlooked Hualien and Taitung regions and expand its product portfolio to gradually increase market share. In China, with the boost from large key clients’ orders, Xinzhu anticipates starting shipments by the end of this year or early next year, with promising performance and potential for significant growth.
YC mentioned that the persistently low oil prices pose a risk of further declines, affecting the performance of its film business. If oil prices continue to drop, the company may face challenges in revenue and profit growth. |
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