Chemical Stocks Experience Explosive Growth! Some Shares' Net Profit Soars by 37,872.2%, Stock Prices Surge Over 10 Times Leading the Market

Benefiting from the rise in chemical prices, the A-share basic chemical sector performed well in the three quarterly reports, and the performance was generally good. In the 47 chemical stocks that have released three quarterly reports, more than 80% of the company's results reported good news. Recently, Zhengdan shares released its third quarterly results, showing significant growth in revenue and net profit. In the first three quarters, the company achieved operating income of 2.596 billion yuan, an increase of 130.28%, and achieved net profit of 825 million yuan, an increase of 2949.37%, which even exceeded the sum of net profit of the company since its listing in the past years. From a single quarter, the company achieved a net profit of 539 million yuan in the third quarter, an increase of 37,872.2%, and the growth rate is the first among listed companies that have announced three quarterly reports.

Zhengdan became the first stock to rise more than 10 times this year. In April this year, benefiting from the rise in the price of the company's main product trimellitic anhydride (TMA), the company's stock price rose sharply, and hit a record high of 36.65 yuan/share on June 13, up 1195.76% from the lowest point in the year. Although the company's stock price has retreated since the second half of the year, it has recently started to rise again, and the latest stock price is 26.99 yuan/share.

According to the semi-annual report, Zhengdan Shares is a leading enterprise in the TMA industry and occupies a leading position in the TMA market in China and even in the world. The company is one of the few companies that can use continuous production of TMA products. The company has an existing TMA production capacity of 85,000 tons/year, and plans to build a new TMA production capacity of 65,000 tons/year. After the completion of the project, the total TMA production capacity of the company will reach 150,000 tons/year.

Since the beginning of this year, as demand continues to recover, the price of many domestic chemicals has risen sharply. For example, as one of the important raw materials of polyurethane, diphenylmethane diisocyanate (MDI) latest business quote is 18,283.33 yuan/ton, up 15.96% from the beginning of the year.

Phosphorus chemical industry chain has also been significantly repaired, according to Zhuo Chuang information data, from January to September, the average price of mono-ammonium phosphate 55% powder is 3146 yuan/ton, up 6.57% from the same period last year, the output of about 7.53 million tons, up 17.11% from the same period last year; The average market price of 64% diammonium phosphate was 3,900 yuan/ton, up 0.39% from the same period last year, and the output was about 10.22 million tons, up 4.5% from the same period last year.

Hua 'an Securities research report said that the chemical industry has experienced two years of decline, the most pessimistic time has passed. From the supply side, the growth rate of capital expenditure in the chemical industry will slow down in 2024; From the demand side, the real estate policy continues to be loosened, purchase restrictions and credit policies are gradually liberalized, coupled with the further expansion of exports of new energy vehicles, the demand for chemical products to the sea is further opened, and the supply and demand pattern has been gradually improved. With the gradual recovery of the economy and the continuous reform and optimization of the supply side, the chemical industry, as the strongest pro-cyclical spear, has a global competitive advantage, and the industry is expected to open an upward cycle of prosperity.

Benefiting from rising chemical prices and recovering demand, the performance of the basic chemical sector improved. According to Securities Times · Data Treasure statistics, there are currently 47 basic chemical stocks announced the first three quarters of performance related data, with three quarterly reports or performance forecast of the median net profit, of which 4 turned a profit, 34 net profit year-on-year growth, the proportion of good news more than 80%.

In the net profit growth of the stocks, including Zhengdan shares, a total of 9 shares of net profit doubled year-on-year, Brother Technology, Amway shares, Jinritai (rights protection) growth. Brother Technology is expected to achieve a net profit of 30 million yuan to 39 million yuan in the first three quarters, an increase of 1035.07% to 1375.6%. The company said that the increase in performance was mainly due to the increase in the price of some of the company's vitamin products, the increase in sales volume and the decrease in the reserve for the decline of some product inventories.

Amway shares, Jinlitai, Xinnong shares and other chemical stocks net profit growth of more than 200%. Amway expects the first three quarters of net profit to increase 248.30% to 272.32%, the company said that the reporting period operating revenue, product unit price and profit have reached a record high.

From the perspective of subdivision, among the chemical stocks with pre-increase or turnaround in performance, inorganic salt, phosphate fertilizer and phosphorus chemical stocks have the largest number, with 4 respectively, in addition to compound fertilizer, coating ink and pesticide stocks, there are 3 respectively.

In the past month, the performance of the good chemical stocks as a whole has risen significantly, excluding the recent listing of new shares, 37 shares rose an average of 25.41%, Zhengdan shares, Chuan Jinnuo, Yida shares and other 5 shares have increased by more than 40%.