 2018-08-14 |
|
|
Taiwan's leading adhesive tape company, YC Group (4306), announced a consolidated revenue of NT$10.249 billion for the first half of year 107, with a consolidated net profit after tax of NT$394 million and an EPS of NT$0.80. The group's subsidiary, Xinzhou Global (3171), reported a consolidated revenue of NT$729 million for the first half of year 107, with a consolidated net profit after tax of NT$24 million and an EPS of NT$0.41.
In the second quarter, despite stable and high crude oil prices, the demand and prices in the film market rebounded, maintaining stable conditions for the tape and film businesses. However, significant foreign exchange losses due to the sharp depreciation of the RMB and other non-operating losses, such as impairment losses recognized from equity investments, led to a minor quarterly loss of NT$0.07 in the second quarter of year 107. Additionally, Achem Petrochemical, which halted operations for its annual maintenance in late May, generated considerable losses. Nevertheless, both revenue and profits for YC in the first half of year 107 grew significantly compared to the same period last year.
Looking ahead to the second half of the year, YC Group operations are expected to remain stable in both the adhesive tape and film sectors due to continued stable high raw material prices, increasing export orders, and ongoing efforts to improve production efficiency through vertical integration and upgrading of automated production equipment. Additionally, Achem Petrochemical, which produces acrylic raw materials, resumed production in July after completing its maintenance, which is expected to gradually reduce losses. In the construction division, despite recognizing profits from property deliveries at the Linkou Top Project in the first half of this year, ongoing property sales and deliveries are expected to continue into the second half, leading to further profit recognition. Furthermore, the investment company, Tenghui Electronics, is expected to apply for listing this year, which will likely increase the company's non-operating income.
Therefore, with the stable performance of YC Group core adhesive tape business and potential contributions from non-operating income, the outlook for future operations remains very optimistic. |
|
