Due to the rebound in demand from the downstream textile and apparel industry and the rising prosperity of the chemical fiber industry, the first quarter results of listed companies in the chemical fiber sector achieved a “good start”.
Recently, 26 of the 27 listed companies in the chemical fiber industry sector of Oriental Fortune have disclosed first quarter reports or performance forecasts for this year. Net profits of 20 companies increased year-on-year, 17 of which increased by more than 100%; 4 companies turned losses into profits year-on-year; only 2 companies suffered losses. Suzhou Longjie, Hengtian Hailong, Youcai Resources, and Xinfengming ranked among the top four in net profit growth, reaching 4339.77%, 2221.07%, 1060.63%, and 749.93% respectively.
The highest growth rate is more than 40 times
Suzhou Longjie becomes the chemical fiber sector has disclosed the growth champion in its first quarter results. The company’s first quarter report shows that revenue in the first three months of this year was approximately 173 million yuan, a year-on-year increase of 43.28%; net profit was approximately 12.19 million yuan, a year-on-year increase of 4339.77%; basic earnings per share was 0.10 yuan, a year-on-year increase of 4247.83%.
However, the company’s annual report released on the same day showed that the net profit attributable to shareholders of the listed company in 2020 was approximately 35.81 million yuan, a year-on-year decrease of 78.66%; operating income was approximately 880 million yuan, A year-on-year decrease of 45.83%. The company said the decline in revenue was due to the impact of the epidemic last year.
It is understood that the company is one of the few companies in China that has mastered the production technology of high/super simulated animal fur polyester fibers such as imitation wool and imitation rabbit fur, imitation suede fiber and imitation fur. The specifications and models of fiber and PTT fiber are rich, and the market share in the corresponding market segments is at the forefront of the industry. In 2020, the company made certain breakthroughs in the field of recycled environmentally friendly fibers. The company stated that the improvement of profitability of enterprises in the industry in which the company operates is mainly through increasing product functionalization rate, differentiation rate, and increasing product added value.
The volume and price of main products have increased
Benefiting from the industry’s Cyclically, chemical fiber companies rely on the rise in volume and price of their main products to drive significant growth in performance.
In terms of polyester filament, the leading company Xinfengming released its first quarter report for 2021 after the market closed on April 26. In the first three months of this year, the company achieved operating income of 10.817 billion yuan. , a year-on-year increase of 113.57%; the net profit attributable to shareholders of listed companies was 497 million yuan, a year-on-year increase of 749.93%. The company’s main products are polyester filament and polyester staple fiber. The average price of filament in the first quarter of this year increased by 22% compared with the fourth quarter of last year, and its profitability is considerable.
In the latest research report, Kaiyuan Securities believes that the company’s production capacity expansion and the recovery of industry demand are synchronized, and the company may fully benefit. This year, the company will invest 1 million tons of filament and 600,000 tons of short fiber production capacity. By then, the company’s filament production capacity will reach 6 million tons, of which 300,000 tons of filament has been put into production on April 13.
Affected by the demand for anti-epidemic materials caused by the epidemic, demand for spandex has grown steadily in 2020, and inventories have continued to fall to low levels. According to Baichuan Information, the domestic selling price of spandex 40D had been between 28,000 yuan per ton and 29,000 yuan per ton before September last year. Since then, its price has soared, currently reaching 64,000 yuan per ton.
On April 22, the first quarter report disclosed by Huafon Chemical showed that the company achieved total operating income of 5.79 billion yuan in the first quarter of this year, a year-on-year increase of 120.8%; it achieved net profit attributable to the parent company of 16.4 billion, a year-on-year increase of 501.7%. The company’s gross profit margin was 38.7%, a year-on-year increase of 16.7 percentage points; the net profit margin was 28.3%, a year-on-year increase of 17.9 percentage points. Everbright Securities believes that in the future, with the commissioning of the second phase of the company’s 100,000-ton differential spandex project, the 300,000-ton differential spandex project, and the fifth and sixth phases of the 1.15 million-ton adipic acid project, the company’s production capacity and profitability will be further improved.
Viscose staple fiber is also a popular chemical fiber variety since last autumn. The first quarter report recently disclosed by Jilin Chemical Fiber shows that the company achieved operating income of 893 million yuan in the first quarter of this year, a year-on-year increase of 49.63%; it achieved a net profit attributable to shareholders of the listed company of 31.6812 million yuan, a year-on-year increase of 104.66%. The profitability of Aoyang Health’s viscose staple fiber business increased compared with the same period last year. The company’s first quarter report released on the 28th showed that the net profit attributable to shareholders of the listed company was 36.074 million yuan, turning a loss into a profit year-on-year.
Many listed companies with advantages in the entire oil refining-chemical fiber industry chain have considerable “money” prospects. On the 27th, Rongsheng Petrochemical disclosed its first quarter report. In the first three months of this year, the company achieved operating income of 34.581 billion yuan, a year-on-year increase of 64.26%; net profit attributable to shareholders of listed companies was 2.622 billion yuan, a year-on-year increase of 113.86%. Hengli Petrochemical achieved operating income of 53.23 billion yuan in the first quarter, a year-on-year increase of 78.8%; net profit attributable to the parent company was 4.11 billion yuan, a year-on-year increase of 91.8%. Oriental Shenghong expects to achieve a net profit attributable to shareholders of listed companies of 500 million to 660 million yuan in the first three months of this year, an increase of 153.79% to 235% over the same period last year.
Institutions frequently appear on the shareholder list
As performance increases significantly At the same time, some chemical fiber companies have also received funding from the capital market.
The China Construction Bank Corporation-GF Technology Pioneer Hybrid Securities Investment Fund, managed by star fund manager Liu Gesong, has a fund allocation direction of panels, photovoltaics, power batteries, Refining, titanium dioxide, chip and other manufacturing industries as well as medical services are the main industries. As of the end of the first quarter, its holdings in Rongsheng Petrochemical and Hengli Petrochemical accounted for 4.97% and 4.59% of its total holdings respectively.
Among the top ten tradable shareholders of Huafon Chemical in the first quarter of this year, 7 were institutional investors, including China Life Insurance Co., Ltd. – Dividends – Personal Dividends – 005L – FH002, etc. Four insurance funds are new shareholders.
Similar situations occur��In the list of the top ten tradable shareholders of Tongkun Co., Ltd. In the first quarter of this year, the company received additional holdings from Shanghai Pudong Development Bank Co., Ltd.-Guangfa High-end Manufacturing Stock-type Initiated Securities Investment Fund and Central Huijin Corporation of Hong Kong (Hong Kong Stock Connect), and 4 institutions including the National Social Security Fund 116 Portfolio withdrew. Among the top ten tradable shareholders, there are also four new institutional shareholders including China Merchants Bank Co., Ltd. – Bank of Communications Schroder New Growth Hybrid Securities Investment Fund, and Agricultural Bank of China Co., Ltd. – Bank of Communications Schroder New Growth Hybrid Securities Investment Fund.
The top ten tradable shareholders of Xinfengming include Industrial Bank Co., Ltd.-GF Xingcheng Hybrid Securities Investment Fund. </p
