 2018-03-30 |
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Taiwan's leading tape manufacturer YC Group (4306) announced its consolidated revenue for 2017 was NT$18.978 billion, with a consolidated net profit of NT$588 million and an EPS of NT$1.30. Its subsidiary, Xinzhou Global (3171), reported a consolidated revenue of NT$1.611 billion, with a net profit of NT$39 million and an EPS of NT$0.65 for the same year.
In 2017, YC Group rebounded from a loss in 2016 caused by RMB exchange rate losses and returned to profitability. The profit in 2017 was driven by stable oil prices, which stabilized the film market demand and prices, resulting in steady revenue and profit growth in the film business. Despite the competitive market in Mainland China, the subsidiary Wan Chou Chemical’s PVC film and tape production at the Hai An factory and increased export volumes from various Mainland China factories led to stable growth in the tape business. Additionally, the construction sector benefited from the completion and revenue recognition of the Wangzhou Extreme project, further boosting the group’s revenue and profit.
Xinzhou Global (3171) experienced a decline in profit in 2017 compared to 2016 mainly due to one-time write-offs of bad debts. However, core business orders in Taiwan remained stable, while the Mainland China market saw revenue decline due to restructuring and a shift in sales strategy to target large, high-quality manufacturers. Despite this, profits improved, turning losses into gains. Looking ahead, with stable growth in Taiwan’s packaging orders and a recovering Mainland China market, substantial profit growth is anticipated for this year.
For 2018, YC Group’s operations are expected to be optimistic due to stable high raw material costs and increasing export orders. Continued updates to automated production equipment are anticipated to lower costs, and both tape and film businesses are expected to perform well. Additionally, Achem Petrochemical, which produces acrylic raw materials, is forecasted to see a significant reduction in losses. In the construction sector, following the completion and revenue recognition of the Linkou Extreme project, new pre-sale projects in Linkou Phase II and Xinzhuang Phase II are expected to generate total sales of NT$6.4 billion. Therefore, YC Group anticipates improved operational performance this year compared to last year. |
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