 2013-03-01 |
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Economic Daily News / Reporter Yih-Lang Chou / Taipei Report
In 2013, YC (4306) Group is entering a period of significant expansion. With production expansion plans in Taiwan, China, and Vietnam set to be completed and operational starting next quarter, the company expects to fully ramp up operations in the second half of the year. YC anticipates that the increased production capacity will elevate the group's performance to new heights. Analysts estimate that YC's annual revenue could challenge the NT$25 billion mark, representing over a 30% growth.
On February 27, YC’s stock closed at NT$19.40, up by NT$0.10.
To establish a comprehensive tape manufacturing model, YC Group’s three subsidiaries—YC, ACHEM, and Xinzhou Global—began new construction and expansion strategies across three locations last year. Notably, YC has ventured into the petrochemical raw materials industry through its investment in ACHEM Chemical, producing raw materials like acrylic acid and butyl ester. The first phase of the plant construction started in July last year and is expected to be completed and operational by the fourth quarter of this year. Based on spot market estimates, this new facility is projected to contribute approximately NT$5 billion in revenue within a year of production.
To meet the demands of clients like 3M, YC is also expanding its own operations. The seventh film production line is currently being set up and is expected to be operational by mid-year.
For ACHEM, which specializes in various types of tape, expansion is underway in Taiwan, China, and Vietnam. The new production lines for PVC and OPP tapes at the Yangmei and Vietnam plants were launched in the fourth quarter of last year. Additionally, two new PVC tape lines at the Shanghai plant in China also went into operation in the latter half of last year. New production lines at the Yangmei and Changbin plants in Taiwan are also expected to start up soon.
By then, YC Group’s product lines will encompass five major tape series, including PP, OPP, and PVC tapes, all produced through vertical integration, significantly enhancing the group's profitability.
Furthermore, to tap into the ASEAN market, YC has purchased 10,000 ping of land near its Vietnam plant for a new factory. This facility will focus on producing packaging films and PVC tapes, with monthly production of about 1.5 million to 2 million square meters of packaging films and 1.5 million square meters of PVC tapes.
Since YC took over Xinzhou Global, the company's financial performance has improved. The simplified computer business concluded at the end of last year, and the company is now fully focused on the distribution business. This year, the distribution performance is expected to be promising.
Analysts project that YC’s revenue, boosted by new production lines, the launch of the ACHEM Chemical plant, and an increase in the number of "Package Masters" outlets, could reach NT$25 billion this year, marking a growth of over 30%. |
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