 2016-11-10 |
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Taiwan's leading adhesive tape manufacturer, YC Group, announced its revenue performance for October and the financial report for the third quarter of 2016. YC (4306) reported consolidated revenue of NT$1.66 billion for October, a decrease of 10.55% compared to the previous month. The group's subsidiary, Achem (1715), recorded consolidated revenue of NT$930 million for October, an increase of 4.08% from the previous month. Meanwhile, Hsinchu Global (3171) reported consolidated revenue of NT$125 million for October, a decrease of 8.43% compared to the previous month.
On the other hand, YC Group’s third-quarter financial report for 2016 showed that Hsinchu Global (3171) accumulated earnings per share (EPS) of NT$1.11 for the first three quarters of the year. However, both Achem (1715) and YC (4306) reported losses, with EPS of -NT$0.08 and -NT$0.01, respectively.
Hsinchu Global’s cumulative revenue for the first three quarters was NT$1.249 billion, with a net profit after tax of NT$66 million, a 3% decline in revenue compared to the same period last year, resulting in an EPS of NT$1.11. The third-quarter performance of Hsinchu Global (3171) declined mainly due to the weaker-than-expected economic conditions in Taiwan, which affected growth. However, in mainland China, the company improved its operations by restructuring its customer base, removing less desirable small and medium-sized clients, and focusing on medium to large target customers, leading to stable growth. Looking ahead to the fourth quarter, which is the peak season for electronic packaging materials, orders are expected to grow steadily, and with the cloud business entering a period of large-scale order acceptance, fourth-quarter performance is anticipated to surpass that of the third quarter.
Achem’s cumulative revenue for the first three quarters was NT$8.306 billion, with a net loss after tax of NT$32 million, a 7% decline in revenue compared to the same period last year, resulting in an EPS of -NT$0.08. Achem's (1715) tape business remained stable, and overall operating profit continued to be steady. However, due to the recognition of one-time losses such as the disposal of underperforming production lines at the Ningbo plant, relocation expenses for production lines at the Jiading plant, and foreign exchange losses, the overall third quarter showed a loss. Nevertheless, the Jiading plant, acquired earlier, presents significant potential for future profits if disposed of. Looking ahead, after accounting for the adverse factors related to factory relocation and equipment sales, with increasing export orders and the Chinese market stabilizing, coupled with the expected commencement of full operations at the Hainan plant by the end of the year, the overall business is expected to rebound.
YC’s cumulative revenue for the first three quarters was NT$14.153 billion, with a net loss after tax of NT$5 million, an 8% increase in revenue compared to the same period last year, resulting in an EPS of -NT$0.01. YC’s (4306) film and tape business in Taiwan continued to be profitable. However, the third quarter's performance was below expectations due to factors such as the poor market price for propylene, the main product in its subsidiary Achem's petrochemical sales, the significant depreciation of the RMB, and the recognition of Achem's (1715) losses. Looking ahead, if oil prices remain stable and profits from completed construction projects are realized, the company’s operations are expected to stabilize. |
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