PPS Leader NHU Earns ￥5.8-6.2 Billion in 2024

On January 22, leading PPS manufacturer NHU (002001) announced an impressive 2024 earnings forecast, predicting a net profit attributable to shareholders between 5.8 billion and 6.2 billion yuan, marking a remarkable year-on-year growth of 114.48% to 129.27%. The company's expected basic earnings per share range from 1.89 to 2.02 yuan.

NHU attributes this growth to increased sales volume and prices of its main products in the nutrition business segment, which have significantly boosted operational performance. The company plans to maintain its strategic focus on "Chemicals +" and "Biological +" sectors, concentrating on nutrition products, flavors and fragrances, high-performance new materials, and active pharmaceutical ingredients. It aims to develop various functional chemicals, leveraging modern production bases in places like Zhejiang and Shandong.

In June 2024, Tianjin NHU Material Technology Co., Ltd. was established with a registered capital of 100 million yuan, fully owned by NHU. The company aims to capitalize on local raw material advantages and logistics to develop nylon series new material projects. The initial phase will involve an investment of 3 billion yuan for a 100,000 tons/year adiponitrile-diamine project, with a total investment of about 10 billion yuan planned for the first and second phases.

On January 21, Water Co. (002886) also released its annual earnings forecast, expecting a substantial increase in net profit for the full year 2024, projected between 28 million and 38.5 million yuan, reflecting a staggering year-on-year growth of 374.89% to 552.97%. The expected basic earnings per share are between 0.111 and 0.152 yuan, with anticipated revenues of 1.85 billion yuan, a 20% increase year-on-year.

Water Co. is committed to a platform strategy for specialty polymers, focusing on sectors such as high-frequency communication, computing servers, electric vehicles, low-altitude economy, and semiconductors. The company aims to overcome challenges posed by industry cycles and depreciation of new capacities, achieving dual growth in net profit attributable to shareholders and net profit excluding non-recurring items. The increase in sales of specialty polymers like LCP, special nylon, and PPS is expected to positively impact overall performance.

In September 2024, Water Co. plans to successfully launch PEEK production. The company’s PAEK products, including PEEK and PEKK, are set to expand with a planned capacity of 1,000 tons for PAEK synthetic resin.

Specialty engineering plastics are highly valued for their superior performance and high added value, making them the top tier in the plastic pyramid. Due to their high technical barriers, specialty engineering plastics are difficult to replace and are priced significantly higher than general-purpose engineering plastics, often yielding high profit margins.