 2016-03-10 |
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YC Group has announced its February revenue performance. Due to fewer working days during the Lunar New Year, revenue for YC, Achem, and Xinzhou all saw significant declines compared to the same period last year. Looking ahead, with raw material prices stabilizing and customers replenishing their inventories, revenue is expected to gradually recover.
Due to the impact of reduced working days during the Lunar New Year, YC (4306) reported a consolidated revenue of NT$10.02 billion in February, a decrease of 5.49% year-over-year. Revenue for the first two months accumulated to a 6.66% decline compared to the same period last year. Achem (1715) saw its consolidated revenue for February drop to NT$6.28 billion, down 7.24% from last year, with a cumulative decrease of 9.34% for the first two months. Xinzhou (3171) achieved consolidated revenue of NT$1.08 billion in February, down 6.58% year-over-year, but with a cumulative increase of 4.39% for the first two months.
Achem's February revenue decline was attributed to the Lunar New Year effect; however, starting in March, with the stabilization and rebound of raw material prices, and increased inventory orders from clients, March revenue is expected to show significant improvement over February. The outlook for the second quarter is optimistic, with anticipated sequential revenue growth in the first half of the year.
Xinzhou's revenue decline in February was also due to fewer working days and low raw material prices. Nevertheless, revenue for January and February combined increased by 4.39% compared to the same period last year. Looking ahead, with the rebound in buying activity after the Lunar New Year in China and the resumption of normal working days in March, along with the gradual shipment of orders from key clients, Xinzhou's performance is expected to remain strong this year.
With oil prices stabilizing and petrochemical raw material prices rebounding, and as the second quarter approaches with peak demand for plastic products, increased downstream demand is anticipated. If oil prices do not experience significant fluctuations or further declines, the outlook for March and the second quarter can be viewed with cautious optimism. |
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