Non-woven fabric maker Nan Liu Enterprise Co Ltd (南六企業) yesterday posted revenue of NT$1.61 billion (US$52.2 million) for the first quarter, a 2.3 percent year-on-year decline due to the slow season effect, but analysts said revenue could gain momentum later this year when its new plant in Kaohsiung’s Yanchao District (燕巢) begins operations.
Last quarter’s figure was also lower than the NT$1.69 billion forecast by Taishin Securities Investment Advisory Co (台新投顧), but revenue for the full year is forecast to increase by about 17 percent to NT$7.93 billion following an increase of 5.48 percent last year, Capital Investment Management Corp (群益投顧) said.
The company’s new plant in India is also expected to start contributing revenue next year after construction is completed this year, Capital Investment said.
The plant in Sanand, Gujarat state, is to be the company’s production base in South Asia and Nan Liu is planning to open two production lines of air-through non-woven fabric.
“Nan Liu’s growth momentum may persist due to its capacity expansion and its development of high value-added products,” Capital Investment said in a note.
Through vertical integration, Nan Liu has transformed from a maker of non-woven fabric for various global brands, including Japan’s UniCharm Co and US-based Procter & Gamble Co and Kimberly-Clark Corp, to a supplier of end-market products with high added value.
The company’s revenue breakdown by product for last year was 25 percent for air-through and thermal-bonded non-woven fabric, 23 percent for spunlace non-woven fabric, 40 percent for wet wipes and facial masks, and 12 percent for fabric for surgical gowns.
Nan Liu posted a net profit of NT$592.77 million for last year, up 9.49 percent from NT$541.38 million in 2017, or earnings per share of NT$8.16.
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