Mon, May 07, 2018 - Page 15 News List

Green Seal stumbles after loss

By Chen Cheng-hui  /  Staff reporter

Green Seal Holding Co (綠悅) shares on Friday last week fell by the daily maximum after the biaxial-oriented polyamide (BOPA) film maker posted its first loss since it was established five years ago.

The firm’s shares closed at NT$34 on the Taiwan Stock Exchange, the lowest since it was listed on the main bourse in January 2014. The stock has dropped 47.45 percent this year, underperforming the benchmark TAIEX, which has declined 1.07 percent over the period.

Green Seal is the largest supplier of BOPA film in China. BOPA film is used in packaging for food, household products, medicine and electronics.

The Cayman Islands-incorporated company, hit hard by a supply glut and intense competition, on Thursday last week reported a net loss of NT$23.39 million (US$787,118) for last quarter, compared with net profits of NT$491.51 million a year earlier and NT$6.76 million the previous quarter.

The company posted losses per share of NT$0.14, compared with earnings per share of NT$3.01 a year ago and NT$0.05 the previous quarter.

Due to a decline in the average price of the company’s products and a lower factory utilization rate, revenue for the quarter dropped 40.73 percent year-on-year to NT$1.28 billion, while gross margin decreased 27.85 percentage points annually to 7.73 percent, the firm’s financial statement showed.

In view of the weak first-quarter results, the company said it would continue focusing on high-margin products and accelerate research and development of mid to high-end products for food packaging.

Green Seal said it is on track to increase its high-end product capacity to 100,000 tonnes per year by the end of next year to retain its lead in the mid to high-end market.

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