 2018-05-14 |
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Taiwan's leading adhesive tape company, YC Group (4306), announced a consolidated revenue of NT$5.1 billion for the first quarter of year 107, with a consolidated net profit after tax of NT$485 million and an EPS of NT$0.87. The group's subsidiary, Xinzhou Global (3171), reported a consolidated revenue of NT$361 million for the first quarter of year 107, with a consolidated net profit after tax of NT$9 million and an EPS of NT$0.15.
After experiencing a loss in year 105 due to foreign exchange losses, YC Group recovered its profitability in year 106 and maintained strong growth in the first quarter of year 107. The company delivered impressive results, with a 22.4% year-on-year increase in revenue and an EPS of NT$0.87 for the quarter. This growth is primarily due to stable high crude oil prices and a rebound in demand and prices in the film market, leading to steady revenue and profit growth in the film business. Although the OPP tape market remains highly competitive, the benefits of vertical integration in PVC films and tapes have contributed to stable revenue and profit growth in the tape business.
In the construction sector, following the commencement of property deliveries for the Wangzhou Top Project in November of year 106, additional properties are expected to be sold and delivered this year. Additionally, Tenghui Electronics, an investment company, was listed on the emerging stock market in early January and is expected to go public this year, which will increase the company's non-operating income. Despite ongoing discussions and processing related to the disposal of a 55% stake in LGL, which involves local government regulations and tax issues, the group’s revenue and profit are expected to continue improving.
Looking ahead to this year, YC’s operations are anticipated to remain optimistic due to stable high raw material prices, increasing export orders, and ongoing efforts in vertical integration and automation updates to enhance production efficiency. The overall outlook for both the tape and film businesses is positive. Additionally, Wanzhou Petrochemical, which produces acrylic raw materials, is expected to see a significant reduction in losses due to stable rising raw material prices. In the construction sector, besides continued property deliveries for the Linkou Top Project, the company plans to launch pre-sales for the Linkou Phase II Elite Project and the Xinzhun Phase II pre-sale project by the end of the year, with a projected total sales of NT$6.4 billion. Therefore, YC Group anticipates continued growth in operations over the next three years. |
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