37 Chemical Firms Forecast Profit Surge in Q1 with Top Performers Up Over 1200 Percent

April is peak earnings season in China, and as of April 11, 163 companies across the Shanghai, Shenzhen, and Beijing exchanges had published Q1 results or forecasts. Among them, a stunning 158 firms reported positive growth, while just 5 indicated a decline. The standout? All 37 chemical companies projected profit increases.

Notably, Haopeng Technology and Limin Chemical ranked 8th and 9th among the top gainers, each expecting profits to jump more than 12-fold compared to the same period last year. In fact, 20 chemical firms anticipate at least a twofold increase in Q1 profits.

The agrochemical segment is leading the charge. Companies like XianDa, Limin, Taihe, Lier, and Salt Lake are seeing robust growth. Limin Chemical expects its net profit excluding non-recurring items to increase by up to 1199.85%, driven by rising product prices and higher sales volumes. Full-capacity production has further solidified its profit rebound.

The global agricultural boom, especially in South America and India, is amplifying demand for agrochemicals. Domestically, spring planting season, coupled with higher coal prices and plant maintenance outages, has also fueled strong seasonal momentum for Chinese producers.

Right behind agrochemicals is the refrigerant sector. Companies like Dongyangguang, Juhua, and Yonghe are expecting profits to grow between 145% and 227%. Reduced production quotas for older-generation refrigerants and increased consumption of newer-generation ones have pushed average product prices sharply higher. The price of fluorspar, a key upstream material, rose over 10% year-on-year, while R32 refrigerant surged 62%.

Chemical fiber producers such as Hengsheng, Tongyi Zhonghe, and Wanwei also posted strong preliminary results.

Despite U.S. tariff pressures, many firms are doubling down on China. Data from Wind shows that since April, 252 companies have announced buyback plans totaling 26.1 billion yuan, including giants like PetroChina, Sinopec, CNOOC, Sinochem, and Rongsheng.

Tariffs may raise U.S. prices for Chinese goods, but fluorochemical products like fluorspar and hydrofluoric acid have been exempted, offering relief to exporters in this segment.

CICC believes that while short-term volatility may arise from external pressures, policy support and a favorable shift in global sentiment could attract foreign capital back into China, giving the domestic market a positive medium-term outlook.