 2016-03-10 |
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YC Group (4306) is set to enhance its operations this year through new production and asset utilization. Its subsidiaries, including Yan-Chiu and Wan-Chiu (1715), are expected to begin operations at their new projects in China, Achem Petrochemical and Haian, in Q2. Xinzhou (3171) is also ramping up exports, aiming for a 20-30% growth in operations.
Notably, YC's Xin-Zhuang development project will start delivering units in April, with analysts estimating it will contribute approximately NT$0.44 per share in profits. The Linkou project, with a total sales value of NT$4 billion, is expected to deliver units in the first quarter of next year, boosting revenues for this and the next year.
Furthermore, YC Group has also made progress in its real estate and hospitality ventures. Yan-Chiu has announced the opening of a youth hostel on Chongqing South Road this month, catering to backpackers. The commercial hotel in Shilin Chengde Building is scheduled to begin trial operations by the end of May and has already attracted inquiries from Chinese tour groups. Additionally, the Linkou Motel has seen a 20-30% increase in business due to the influx of visitors to the Linkou Outlet.
Achem has been actively enhancing its vertical integration on both sides of the Taiwan Strait. The OPP production line from the Jiading plant has been moved to the Ningbo plant, and capacity has been expanded at the Zhangbin plant. The "Haian Project" in China, featuring a new PVC tape factory, is part of this vertical integration strategy, with three production lines planned to commence in Q2, estimating an annual production capacity of 30 million square meters.
Achem Petrochemical, a joint venture between YC and Toyota Tsusho, has received its operating license this month (with YC holding a 50% stake). The first phase will establish production capacities of 80,000 tons each for acrylic acid and butyl acrylate, and 20,000 tons for isocyanate annually, aiming to enhance operational efficiency and reduce costs.
In addition to its production business, YC is adapting to the housing market's volatility by focusing on strengthening its commercial and hospitality operations. Following the Linkou Motel, the Chongqing South Road building, located near the Botanical Garden, National Museum of History, and Taiwan Arts Education Center, will be positioned as a small youth hostel for international backpackers. The Shilin Chengde Building is planned as a medium-sized business hotel with 70 rooms, priced around NT$3,000.
Currently, YC still holds land in Xin-Zhuang (over 1,000 pings), Linkou (1,300 pings), Beitou (100-200 pings), and Guling Street in Zhongzheng District (over 100 pings). The company will monitor the housing market and look for opportunities to launch new projects. |
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