 2016-04-01 |
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"Hot Sector: YC Group's Annual Report Shows Newzhao Shining the Brightest"
April 1, 2016, 15:07
YC Group (4306) has announced its 2015 financial report, highlighting Newzhao's (3171) outstanding performance with an EPS of NT$1.41, the brightest among the group. Looking ahead to 2016, with new production capacities coming online and a strategic reshuffling of sales points in mainland China, the group's operations are expected to further stabilize and improve.
In 2015, YC Group's consolidated revenue reached NT$17.56 billion, with a net profit of NT$3.63 billion, and an EPS of NT$0.73. The group's subsidiary Achem (1715) achieved consolidated revenue of NT$11.97 billion, net profit of NT$1.99 billion, and an EPS of NT$0.49. Newzhao's consolidated revenue was NT$1.73 billion, with a net profit of NT$0.83 billion, marking a 43% increase in net profit compared to the previous year, and an EPS of NT$1.41.
Despite facing significant pressure in the film business due to falling oil prices and weak market demand in mainland China last year, YC Group stabilized its operations through gains from the sale of real estate and appreciation of investment properties. For this year, if oil prices do not experience major fluctuations and with the recognition of revenues from the development projects of its subsidiary Wangzhou, as well as the commencement of production at its investment in Wanzhou Petrochemical, the group's performance is expected to remain stable.
Achem faced a sluggish domestic market in mainland China last year, but stable growth in export orders from the Americas and the Middle East sustained the growth of its core tape business. However, due to reduced long-term investment profits and a lack of non-operating income from the previous year’s sale of real estate in Taipei, Achem's profits declined compared to the previous year. For this year, with the second-phase production ramp-up at the Haian plant and continued low raw material prices, overall operational growth is anticipated.
Newzhao benefitted from stable packaging orders in Taiwan and a revamped sales strategy targeting major manufacturing clients in mainland China. Despite inventory adjustments and provisions for bad debts, the company's operational performance grew by 40% last year. Looking ahead, Newzhao plans to expand its market for tourist packaging in Taiwan’s eastern and central-southern regions and enter the e-commerce sector. In mainland China, it will continue to set up service points in economic development zones in East China, North China, Central China, and South China, expecting to maintain significant growth in revenue and profit this year. |
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