 2017-12-19 |
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Source: Capital Securities Investment Advisory
- Annual Revenue: NT$17 billion
- Gross Margin: 12%
- Operating Profit Margin: 3%
- Net Profit Margin: 1.7%
- ROE: 2%
- ROA: 1%
- EPS: NT$0.9
- Book Value per Share: NT$16
- Dividend Payout Ratio: 80%
- PER: 16x
- PBR: 0.9x
Business Operations:
- Manufacturing Business: Accounts for 85% of revenue.
- Real Estate Business: Accounts for 7% of revenue.
- Distribution Business: Accounts for 9% of revenue.
Manufacturing Business:
- Produces packaging tape, PVC electrical tape, PE protective tape, double-sided tape, film, solvents for the IC optoelectronics industry, and acrylics.
- Advantages include end-use application diversity and a high degree of vertical integration.
Real Estate Business:
- Consists of construction projects and hotel operations.
- Construction Projects: "Wangzhou Supreme" will be recognized starting from Q4 2017 and will continue to be accounted for in Q4 2017 to Q1 2018. Current sales rate is 60%.
- Hotel Operations: "Youyi Hotel" aims for self-sufficiency and seeks long-term land appreciation benefits. The Shilin branch has already reached the break-even point. The Mitsui branch, benefiting from the Mitsui Outlet, has the highest profit margin. The Chongqing branch targets low-cost backpackers.
Distribution Business:
- Sells industrial packaging materials, adhesives, machinery, cleaning supplies, and custom bags.
2016 Performance:
- Loss per Share: NT$0.22, primarily due to the write-off of inefficient equipment, resulting in a loss exceeding NT$100 million.
- Foreign Exchange Losses: NT$60 million due to the sharp depreciation of the Chinese yuan.
2017 Performance:
- Operations gradually stabilized.
2018 Outlook:
- Manufacturing Business: Expected to benefit from stricter environmental policies in China, leading to the closure of small factories; high raw material prices are expected to help Wangzhou Petrochemical turn losses into profits. The demand for semiconductors and optoelectronics is expected to continue growing, with stable, slight revenue growth anticipated.
- Real Estate Business: New projects in Xinzhuang Phase 2 and Linkou Phase 2 will begin in the second half of 2018.
- Distribution Business: Continues to add new products and integrate marketing resources, with stable, slight revenue and profit growth expected.
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