Fri, Sep 06, 2013 - Page 13 News List

Surgical drapes, wet wipes boost Nan Liu revenue

By Camaron Kao  /  Staff reporter

Nonwoven fabrics maker Nan Liu Enterprise Co (南六) yesterday said sales increased 26.7 percent last month from a year ago, as the company shipped more surgical drapes and wet wipes to its clients.

The company forecast that sales would continue increasing this month to exceed NT$400 million (US$13.4 million) from last month’s NT$380.35 million and NT$357 million in July, because the company is aiming to make this quarter’s sales higher than last quarter’s NT$1.2 billion.

“The revenue growth for last month was due to our increasing production capacity of surgical drapes and wet wipes in both Taiwan and China, which enables us to satisfy our clients’ rising demand,” Chuang Chun-chin (莊春金), a fiscal department manager, said by telephone.

Chuang said the production level of the company’s new factory in Zhejiang Province, China, is gradually expanding and will make a significant contribution to Nan Liu’s revenue next quarter.

The new factory is capable of manufacturing 1,500 tonnes of spun-lace nonwoven a month, and the company will change other production lines for spun-lace nonwoven into manufacturing surgical drapes and gowns, according to Fubon Securities Co (富邦證券).

According to Fubon’s latest report issued last month, the company’s spun-lace nonwoven production capacity will increase by 70 percent after the adjustment, and its shipments of surgical drape and gowns will increase by 150 percent this year.

Sales of wet wipes were 37 percent of the company’s sales, while surgical drapes and gowns were 10 percent, according to KGI Securities Co (凱基證券).

Sales of spunlace nonwoven account for 31 percent of the company’s revenue, while thermal bond nonwoven account for 16 percent, KGI Securities said.

It added that sales of facial masks account for 6 percent.

From January through to last month, the company’s revenue totaled NT$2.9 billion, up 21.89 percent from NT$2.38 billion a year ago, according to the company’s filing.

Fubon Securities forecast that Nan Liu’s sales would be NT$1.28 billion and NT$1.52 billion this quarter and next quarter, respectively, up from NT$1.19 billion the previous quarter, according to its report issued on Aug. 19.

“Surgical drapes and gowns have high gross margin, and the rising proportion of the company’s sales of surgical drapes and gowns will help the company’s gross margin,” Fubon Securities said.

Nan Liu’s shares rose 4.55 percent to NT$149.5 yesterday.

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