 2012-06-12 |
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Economic Daily News / Reporter Chiu Chuan-Kuang / Taipei Report
The benefits of YC's (4306) investments in mainland China's packaging channels are showing results. In May, YC's consolidated revenue reached NT$1.617 billion, a 5.33% month-over-month increase, making it one of the few plastic manufacturers to report growth for the month.
Looking ahead, YC stated that downstream inventory liquidation is expected to bottom out, and a wave of inventory replenishment is anticipated. However, the exact timing of order returns depends on clear signals of stabilization in oil and raw material prices.
In May, oil prices fell and petrochemical raw material prices decreased sharply, leading to weak order fulfillment willingness among downstream adhesive tape manufacturers. YC’s May revenue was NT$5.12 billion, down slightly by 4% from NT$5.34 billion in April but up 9.4% year-over-year. Revenue for the first five months of the year increased by 9.9% compared to the same period last year.
As a supplier of upstream materials within the group, YC’s main product is biaxially oriented polypropylene (BOPP) film. Due to the correction in petrochemical raw material prices in May, the market’s tendency to chase price increases rather than price declines has had a more significant impact on the upstream. As a result, YC’s revenue in May saw a slight decrease. |
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