Zhengdan Co. Expects Profit Surge of Up to 13 Billion Yuan in 2024

On January 13, Zhengdan Co. released an impressive earnings forecast, predicting a net profit attributable to shareholders of between 1.1 billion and 1.3 billion yuan for 2024. This marks a staggering year-on-year increase of 11,039.13% to 13,064.42%, compared to just 9.88 million yuan in 2023. Moreover, the company's non-recurring net profit is expected to reach approximately 1.095 billion to 1.295 billion yuan, reflecting an extraordinary growth of 23,412.87% to 27,706.28%.

Market Position and Product Demand

As of January 14, Zhengdan Co. leads the profit increase rankings among 114 companies that have announced their 2024 earnings forecasts, outpacing the second-highest growth rate of 724.50% from Xizi Clean Energy.

The company's primary product, TMA (Trimellitic Anhydride), is widely used in various industries, including eco-friendly plasticizers, high-end powder coatings, and advanced lubricants. The surge in demand for TMA is attributed to rumors of a permanent shutdown of Innospec's production facility, resulting in a 25% reduction in supply. Consequently, TMA prices have skyrocketed—from over 10,000 yuan per ton at the start of 2024 to 50,000 yuan per ton, with export prices reaching as high as 140,000 yuan per ton.

Strong Revenue Growth

Zhengdan Co. reported significant increases in both the sales volume and prices of its key products, TMA and TOTM, while maintaining stable unit costs. This combination has led to substantial revenue and profit growth in its anhydride and ester businesses, contributing to the remarkable rise in net profit attributable to shareholders.

With its strategic market positioning and the booming demand for TMA, Zhengdan Co. is poised for a remarkable financial year in 2024, setting an enviable benchmark in the industry.