echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Chemicals Industry > New Chemical Materials > The first quarter net profit growth of chemical companies is amazing

    The first quarter net profit growth of chemical companies is amazing

    • Last Update: 2021-09-16
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    The chemical industry performed very well in the first quarter
    .
    According to Wind data, as of the close on April 6, in the first-level industry of Shenwan Chemical Industry, 47 listed companies have disclosed their first quarterly performance forecasts.
    Except for Hongda New Materials, which continued to lose money, the remaining 46 listed companies have reported their performance.
    Hi (pre-increasing, turning loss, slightly increasing), the proportion of pre-his is as high as 97.
    87%
    .
    Among them, Luxi Chemical is expected to increase its net profit by more than 50 times in the first quarter, Tiantie Co.
    , Ltd.
    is expected to increase its net profit by more than 60 times in the first quarter, and Duo Fluoride is expected to increase its net profit by more than 70 times in the first quarter
    .
    Factors such as product price increases, strong demand and the release of new production capacity have contributed to the substantial increase in the performance of related companies
    .
    Product price increases Since the fourth quarter of 2020, under the procyclical chemical market, product price increases have promoted high growth in the performance of related companies
    .
    After entering 2021, the chemical sub-industry is booming, and commodity prices such as plastics, PTA, ethylene glycol, and n-butanol have all risen
    .
    Up to now, the listed companies that have benefited from the sharp rise in product prices that have led to the highest growth rate of net profit in the industry are Luxi Chemical, Yuntianhua and Tiantie
    .
    Luxi Chemical expects that the net profit attributable to shareholders of listed companies in the first quarter of this year will be between 900 million yuan and 1 billion yuan, a year-on-year increase of 5245.
    53% to 5839.
    48%
    .
    The company said that after entering 2021, the prices of its main products have risen in turn.
    So far, n-butanol has risen by 37%, PC has risen by 30.
    3%, nylon 6 has risen by 15%, silicone DMC has risen by 31.
    8%, and bisphenol A has risen by 102%
    .
    Luxi Chemical currently has more than 100 products in multiple categories, including new chemical materials, basic chemicals, and fertilizers
    .
    The quarterly report of Yuntianhua, a comprehensive chemical company with the phosphorus industry at its core, was also “eye-catching”
    .
    Yuntianhua predicts that the company will achieve a net profit of 520 million yuan to 580 million yuan in the first quarter, a year-on-year increase of 4510% to 5042%
    .
    The company said that the increase in performance was due to the significant increase in the price of polyformaldehyde during the reporting period, the company's main equipment was operating stably at full capacity, and the company's self-sufficiency rate of synthetic ammonia raw materials was increased, and the implementation of the strategic reserve of raw material sulfur in 2020, the main product raw material costs and operating costs were effectively Control, leading to a year-on-year increase in the gross profit margin of the company’s main products
    .
    Yuntianhua currently has 3 sets of large-scale synthetic ammonia and phosphate fertilizer integrated, synthetic ammonia and nitrogen fertilizer integrated production equipment, with a high-concentration phosphate compound fertilizer production capacity of 8 million tons/year, a polyformaldehyde production capacity of 90,000 tons/year, and a phosphate rock mining capacity of 12 million Tons/year, maintaining the status of a giant in the industry for a long time
    .
    Benefiting from the sharp increase in the price of glufosinate-ammonium, Lier Chemical expects a profit of 160 million yuan to 200 million yuan in the first quarter, a year-on-year increase of 91.
    89% to 139.
    86%
    .
    The company stated that this year it will realize the safe and stable operation and capacity expansion of the Guang'an Methyl Phosphorus Dichloride Project, enhance the company's glufosinate-ammonium production capacity and market competitiveness, and ensure that the construction of new projects at each base is implemented as planned
    .
    It is understood that the total global production capacity of glufosinate-ammonium is about 50,000 tons, and the production capacities of Lier Chemical, BASF and UPL are among the top three, with 18,500 tons, 12,000 tons and 6,000 tons respectively
    .
    Lier Chemical's production capacity of glufosinate ammonium accounted for 55%, leading the industry
    .
    Industry insiders pointed out that the global economy is expected to recover in the context of the “post-epidemic cycle”, which will effectively stimulate demand in the chemical industry
    .
    It is worth mentioning that in the first quarter of this year, there was strong market demand for related products in industries such as new materials, automobiles, and rail transit, which directly boosted the profitability of some chemical companies
    .
    On the evening of April 6, Fluoride announced that it expects to achieve a net profit of 90 million yuan to 95 million yuan in the first quarter, a year-on-year increase of 7183.
    91% to 7588.
    57%
    .
    The company stated that an important reason for the significant year-on-year increase in operating performance in the first quarter was that the company’s new materials sector has strong market demand for related products, continued to be in a state of full production and sales, and its profitability has increased significantly
    .
    On the same day, the company released the 2020 performance bulletin, the company realized a net profit of 48.
    62 million yuan, a year-on-year turnaround
    .
    Jinlitai’s performance forecast for the first quarter of this year shows that it is expected to make a profit of 20 million yuan to 23 million yuan in the first quarter, an increase of 5012.
    47% to 5779.
    35% from 391,200 yuan in the same period of the previous year
    .
    Regarding the substantial increase in performance, the company pointed out that in the first quarter, the company’s downstream automotive industry continued its overall good momentum and the overall market demand remained stable.
    The company continued to promote the research and development of water-based coatings, high-solid coatings process technology, and self-research and self-development of core resins to promote product optimization.
    Improve and build core technical barriers to products, while actively optimizing customer structure and vigorously expanding new customers
    .
    Tiantie shares also have a higher pre-increasing rate of performance
    .
    Tiantie announced that it expects a net profit of 68 million to 75 million yuan in the first quarter, a year-on-year increase of 6602.
    15%-7292.
    08%
    .
    Regarding the reasons for the pre-increasing, the company said that the rail transit industry is booming, especially the rapid growth of intercity and urban rail construction.
    The company has benefited from the rapid development of this type of new infrastructure and achieved significant business scale and economic benefits in the first quarter.
    Promote
    .
    Tiantie Co.
    , Ltd.
    is mainly engaged in the research and development, production and sales of rubber products for track engineering.
    The products mainly include isolated rubber vibration damping pads, elastic support type ballastless track rubber boots and other track structure vibration damping products
    .
    Profits are expected to continue and some chemical companies will benefit from the release of new production capacity
    .
    On April 6, Qixiang Tengda released the 2020 performance report and the first quarter performance forecast of 2021.
    On the basis of the 2020 net profit growth of 66.
    49% year-on-year to 1.
    033 billion yuan, the first quarter net profit of Qixiang Tengda is expected to increase by 200% to 245%, reaching 594 million to 682 million yuan, which is basically the same as the net profit of 620 million yuan in 2019
    .
    The expansion of the industrial chain is the main reason for the surge in Qixiang Tengda's performance
    .
    According to the announcement, Qixiang Tengda’s newly commissioned 200,000 tons/year nitrile latex project and the first phase of 100,000 tons/year MMA project production capacity were all released in the first quarter, making its product sales, sales and profits increased to varying degrees; at the same time; , The price of some products jumped in the first quarter, Qi Xiang Tengda seized the favorable opportunity of product price increase to increase product sales and maximize profits
    .
    CICC pointed out that there are two main driving factors for the significant improvement in the profitability of chemical companies: one is the recovery of the global economy in the post-epidemic era, and terminal demand is gradually returning to normal; the other is the rise in oil prices, and the prices of bulk commodities and major chemical products have risen sharply year-on-year.
    This will improve the profitability of the company
    .
    Guosheng Securities believes that driven by the continuous recovery of the global economy and the replenishment cycle, the chemical industry's high boom is expected to continue
    .
    From a performance perspective, the performance of leading chemical companies in the first quarter will exceed market expectations, and the quarter-on-quarter will continue to improve in the second quarter
    .
    The business agency believes that the chemical market in the first quarter rose well.
    The marginal improvement in industry demand in 2021 will mainly come from overseas.
    The loose monetary policy will drive the chemical sub-sectors to further boom, and the chemical market in the second quarter may make a "double score
    .
    "
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.