 2004-08-20 |
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Reported by Yi-Fen Chang, Taipei
YC (4306) reported an EPS of NT$0.7 for the first half of the year, largely due to the successful expansion of its production facilities in China, Vietnam, and Taiwan for its BOPA production line, all completed in H1. With these investments now operational, they are expected to contribute significantly to profits in H2. Chairman and CEO Lee Chih-Hsien stated that YC Group's annual revenue could grow by 50%, reaching the NT$5 billion mark.
In terms of its business strategy, Lee emphasized YC’s "3-3-3" growth plan: first, establishing three companies within the group structure—Taiwan YC, Ningbo Asia Plastic in China, and Vietnam Wanli; second, each production base focusing on three product types—tape, film, and resin; and third, having production sites in Taiwan, China, and Vietnam.
In the film product line, YC invested NT$600 million to establish a high-tech, high-value BOPA (biaxially-oriented nylon film) plant in Taiwan’s Changbin Industrial Park, with production beginning in July. This is Taiwan’s first BOPA production line, developed using German and Japanese technology to overcome technical challenges. YC is entering the market at NT$20/kg lower than import prices, with orders already secured for several months.
Lee noted that BOPA nylon film withstands temperatures from 150°C to -60°C, making it ideal for frozen and microwave food packaging, with higher usage in advanced countries. Taiwan’s current consumption is around 100 tons monthly, well below potential, indicating significant growth opportunities. YC's BOPA line has a monthly capacity of 400 tons, initially supplying Taiwan’s market, with exports to Southeast Asia, Europe, America, and China.
Lee highlighted the high technical demands for BOPA production, requiring a dust-free, temperature- and humidity-controlled environment akin to electronics production. This high-margin product represents YC's first step towards high-value, technology-driven manufacturing. With EPS at NT$0.7 for H1, driven by expansion across China, Vietnam, and Taiwan, profits are expected to rise in H2, with stronger returns anticipated next year. YC Group's annual revenue is expected to grow 50%, reaching NT$5 billion, with a full-year EPS forecast of NT$1.95. |
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