 2016-01-12 |
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Taiwan's tape leader YC Group has announced its revenue performance for December and the entire year. Due to the impact of falling oil prices, YC, Achem, and Xinzhu all saw declines in their annual revenues compared to 2014, with Wanchao experiencing the largest drop of 12.95%. Looking ahead to 2016, Achem and Xinzhu are expected to perform well in Q1 due to increased export orders in Europe and the U.S., and a stable packaging market in China. In contrast, YC remains cautious due to ongoing issues with low oil prices, which continue to impact its operations and profitability.
For December, YC (4306) reported consolidated revenue of NT$1.45 billion, up 1.77% month-over-month, but down 10.89% year-over-year for the first 12 months. Achem (1715) achieved consolidated revenue of NT$1.023 billion in December, a 5.24% increase from the previous month, but down 12.95% year-over-year. Xinzhu Global (3171) reported consolidated revenue of NT$155 million in December, up 1.14% month-over-month, and down 2.53% year-over-year.
Achem benefited from increased export orders to Europe and the U.S., along with a slight rise in seasonal orders from the Chinese market, leading to a 5.24% increase in December revenue. If export and Chinese orders remain stable, Achem is expected to maintain steady growth in Q1.
Xinzhu's revenue growth continued due to stable performance in Taiwan’s packaging orders and an increase in large key customer orders in China. Additionally, lower oil prices have reduced material costs and significantly improved gross margins, with a strong performance anticipated for Q1.
Despite a slight revenue rebound in December, YC faces ongoing challenges with its film business due to low oil prices. If oil prices continue to fall, YC may face further challenges in revenue and profitability growth. |
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