 2003-10-29 |
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(Reported by Zhang Yifen, Cnyes.com) YC (4306), which had a lower-than-expected financial target achievement rate in the first half of the year, experienced strong sales and profits in the third quarter, as delayed orders were shipped and Christmas orders were fulfilled. For January to September, the company reported revenue of NT$1.456 billion and pre-tax earnings per share of NT$2.08. Given that the fourth quarter is the traditional peak season, both revenue and profits are expected to perform well, and the company is likely to meet its full-year target of NT$3 earnings per share (EPS). Additionally, YC plans to apply for a listing on the main board next year.
YC’s core products include three categories: film, resin, and adhesive tape, creating vertical integration synergies. In the adhesive tape segment, the company operates 9 production lines in Taiwan, including 6 for OPP tape, 1 for PVC tape, and 2 for other types of tape. In mainland China, there are 3 production lines, and 1 production line in Vietnam, with a total monthly production capacity of over 70 million square meters.
In resin, YC’s monthly production capacity is 2,000 tons in Taiwan and another 2,000 tons in China, totaling 4,000 tons per month for the group.
In the film segment, the company mainly produces BOPP film. Its mainland China plant currently has 1 production line with a monthly capacity of 2,200 to 2,400 tons. A new production line is expected to be added by the end of January next year, increasing the group's total monthly capacity to 4,500 to 4,800 tons. Additionally, a BOPA (nylon film) plant is being built in Zhangbin, Taiwan, with a planned monthly capacity of 400 tons, and is expected to start production in the second quarter of 2004. BOPA has a high profit margin, and global consumption is estimated to be 126,000 tons, with the Chinese market growing at a rate of 20% annually. The monthly demand in Taiwan is approximately 200 tons, which has previously been met by imports from Japan and Korea. After YC begins producing BOPA, half of the output will be sold domestically, and half will be sold to China. The company expects this product line to contribute NT$400 to NT$500 million in revenue next year.
YC's convertible bonds will be convertible starting December 17, with a conversion price of NT$18.8 per share. The company’s capital is expected to reach NT$800 million next year. Due to investments in new BOPP and BOPA production lines, YC plans a cash capital increase next year. Despite the increase in capital, the company aims to maintain an EPS at or above this year's level, with both Taiwan and mainland China expanding simultaneously. |
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