Following the reconstruction of its facilities after a fire, Syn-Tech completed inspections of its new factory by the end of July. With this new production capacity coming online, the company is expected to achieve record-high revenue and profit this year. Looking ahead to next year, an influx of returning customer orders, along with joint product development efforts with Japanese partners CTT and AMH, will further strengthen Syn-Tech's operations as it expands into the Chinese market.
A subsidiary of Standard Chem & Pharm Group, Syn-Tech specializes in the development of active pharmaceutical ingredients (APIs). Despite being affected by a fire in 2021, the company has consistently generated profits over the past seven years. In the second quarter of this year, as production resumed at its rebuilt facilities, Syn-Tech reported net income of NT$98.6 million, marking a 12.8% quarter-on-quarter increase and a 45.9% year-on-year increase. The company's earnings per share (EPS) for the quarter reached NT$2.21, the highest in seven quarters. For the first half of the year, net income reached NT$185 million, representing a nearly 40% year-on-year increase, with an EPS of NT$4.17, setting a record for the period.
The final two reconstructed plants, Plants E and F, have completed inspections. In addition to Plant D, which has nearly restored its pre-fire capacity utilization, Plants C, E, and F still have room for improvement. However, the company's monthly revenue has already surpassed pre-fire levels. In the first eight months of the year, Syn-Tech achieved revenue of NT$837 million, a 10.1% year-on-year increase, and analysts are optimistic that the company will maintain its growth trajectory throughout the year.
With the new facilities fully operational, Syn-Tech's business team has been actively visiting customers since last year to regain their business while continuing to develop new products. To meet national demand and reduce potential drug shortages in Taiwan, Syn-Tech has focused on the development of two medications, APB and SBS. The company has already completed production of NBOZ, a key intermediate, and has established a second supply chain.
In the international market, Syn-Tech has been commissioned by Japanese pharmaceutical companies IMH and AMH for research and development projects. Additionally, Syn-Tech has partnered with CTT and AMH to jointly develop products and expand into the Chinese market. The company has already obtained certification for its APIs and is developing a specialty API, PRX, for cataract treatment. Moreover, Syn-Tech is working on a new drug collaboration, GFH, which it is co-developing with its parent company, Standard Chem & Pharm, as well as Japanese pharmaceutical companies, for the treatment of ADHD.
Analysts believe that with the successful completion of inspections, the return of customer orders, and the expansion into international markets, Syn-Tech's capacity utilization and operations will continue to grow. This year's profits are expected to see a significant jump, reaching new highs once again.
Resource (mandarin): 生泰新產能助攻 獲利拚新高
