 2016-01-13 |
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Benefiting from increased export orders to Europe and the U.S. and new orders in China, the revenues of YC (4306), Achem (1715), and Xinzhu (3171) all rose in December last year. Looking ahead to the first quarter, both Achem and Xinzhu believe that if export and Chinese orders remain stable, operations are expected to show steady growth. Xinzhu, in particular, anticipates a significant boost in gross margin due to lower material costs, which could drive substantial profit growth. However, YC faces pressure on performance and profitability due to weak film market conditions.
Additionally, Dong Lian (1710) and Dong Qian (1708) saw their December revenues increase by 17% and 3%, respectively, due to stabilizing plasticizer prices and increased shipments.
Analysts noted that to stimulate the market and accelerate inventory reduction, Nanya has initiated a shutdown of EG4 in January and reduced supply strategies to ease losses, hoping to boost price levels. Similarly, China’s PTA production cutbacks are aimed at market stabilization. If EG and PTA prices stabilize, it could benefit Dong Lian's operational turnaround.
Achem benefited from increased export orders to Europe and the U.S., along with a slight increase in seasonal orders from the Chinese market, resulting in a 5.24% month-over-month revenue increase in December.
Xinzhu Global continued to see revenue growth in December, rising 1.14%, supported by steady performance in Taiwan’s packaging orders and an increase in key large-scale target customer orders in China.
YC experienced a slight revenue rebound in December with a 1.77% month-over-month increase. However, ongoing low crude oil prices continue to challenge the film business, and further declines in oil prices could pose additional challenges to revenue and profitability growth. |
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