Taya Revenues are Expected to Reach a Four-Year High〔Commercial Times〕
2017/12/19
Commercial Times Mei-Xing Shen／Report from Taipei
This year, Taya’s(1609) electric wire and cable and magnet wire prices have been constantly rising due to increasing copper prices worldwide. The plants in Dongguan and Kunshan, China have turned losses into profits. It is expected that the consolidated annual revenue and EPS may exceed NT$ 16.3 billion and NT$ 0.8, respectively, provided that shipments in December maintain the same level as in the same period of the previous year.
Recently, the spot and futures price of copper has been fluctuating between 6,700 and 7,000 USD. Taya freely admits that the rising international copper prices are beneficial to the operations of the company. If the consolidated revenue for December is calculated based on the average price of US$ 6,825 in November and an annual growth rate of 25.39%, the revenue in December could be higher than in the same period of the previous year even if the sales volume does not increase.
A copper price of 6,700-6,800 per metric ton is a very high plateau. As long as copper prices remain at the same level, Taya will implement hedging and the magnetic wire and the company’s electric wire & cable business will be profitable next year.
Taya Tainan completed 14 “Taya Green Construction” villas with elevators in the Yongkang area. 5 of the 6 villas which have been sold this year will be recognized as income this year. The starting price of every villa is NT$ 29.80 million and the total sales volume amounts to over NT$ 100 million. The remaining sold villa will be recognized as revenue after escrow closes and will generate additional income for the company next year.
Juridical persons project that the annual consolidated revenue of Taya could exceed NT$ 16.3 million, which represents a four-year high, based on estimated production of 1000-2000metric tons of electric wires & cables and magnetic wires by Taya plants, provided that international copper prices remain at the same level in December (futures and spot prices remain above US$ 6,700 over the next three months) and construction and private businesses maintain their habit of ”Bullish-Buy and Bearish-Sell”
The Taya EPS value rebounded to NT$ 0.69 in the first three quarters and the self-assessed EPS for October is NT$ 0.04. The EPS value for the first ten months therefore amounts to NT$ 0.73. In view of the added recognized investment income derived from Jung Shing Wire (1617) in the 4th quarter, the EPS value for the whole year could exceed NT$ 0.8.
(Commercial times report)