Chemical sub-sectors differentiate significantly

The overall operating profit for the third quarter of the chemical industry decreased by 38.74% year-on-year, and the net profit attributable to shareholders of the parent company decreased by 39.31% year-on-year, and the growth rate of operating income also fell slightly compared to the interim reporting period. Moreover, the growth rate of the chemical industry revenue is similar to the 5.9% year-on-year increase of the overall A-shares over the same period, and the profit growth rate is significantly worse than that of the A-shares as a whole.

However, it is worth noting that the year-on-year decline in net profit of the chemical industry was 7.64 percentage points lower than the reporting period, and the year-on-year growth in the net profit of chemicals, pesticides, and chemical sub-sectors such as viscose, rubber, etc. Attention. This shows that with the gradual stabilization of the macro economy, the performance of the chemical industry is also improving. Even the profitability of some of the chemical sub-sectors that belong to the traditional mid-stream manufacturing industry should not be underestimated. The sunset industry that looks like “poor and dwarf” can still be born. "Gao Shuai Fu".

According to statistical data, the reporter found that the chemical industry sub-sectors have significantly differentiated themselves in the third quarter, and the proportion of profit growth in the industry is indeed very small. According to the SWS industry division standard, net profit attributable to shareholders of the six secondary sub-sectors attributable to the parent company decreased year-on-year, and net profit attributable to shareholders of the parent company, such as chemical raw materials and chemical fiber, dropped sharply by 106.42% and 110.27%, respectively. Among the 25 tertiary sub-sectors, 18 sub-sectors with net profit declines of more than 50% year-on-year fall. Fluoride workers and refrigerants, inorganic salts, polyester, soda ash, other chemical new materials, and other fiber vinylon, Chlor-alkali and spandex.

However, in the secondary chemical industry, the net profit of the rubber sub-sector attributable to shareholders of the parent company realized a positive year-on-year growth, with an increase of 9.08%. At the same time, the seven tertiary industry also achieved a positive year-on-year increase in net profit. Among them, the daily chemical products performed the most brilliantly, with a year-on-year growth of 191.08%, other rubber products increased by 80.73%, pesticides increased by 75.94%, and viscose growth. 33.59%, phosphorus chemical and phosphate growth of 23.78%, coating paint ink increased by 7.15%, compound fertilizer growth of 4.79%.

In other words, the profitability of some sub-sectors in the chemical industry that belong to the traditional mid-stream manufacturing industry should not be underestimated. The year-on-year growth in net profit of domestic chemicals and other rubber products in the face of over 80% of the net profit of food and beverages, pharmaceuticals and other large consumer industries, as well as new consumer electronics products, is not inferior to profitability.

What is more noteworthy is the changes that are taking place in some of the above sub-sectors. Among them, viscose, paint and paint ink reversed the downward trend in profits in the third quarter, the net profit in the viscose sub-industry reported a drop of 41.6% year-on-year, paint inks dropped by 1.4% year-on-year. A closer look at the report reveals that the viscose industry reported a 34% drop in revenue for the third quarter, indicating that the increase in profits came from more cost reductions.

The growth in net profit of household chemicals, pesticides, and other rubber products accelerated in the third quarter. Its growth rate in the three quarters reported basically the same as that of the China Daily, indicating that demand and unit profit have continued to improve. Such as other rubber products, the growth rate of 2.7%, but the net profit growth rate reached 80.7%, showing that the demand is basically stable, but the cost dropped significantly, driving substantial growth in profits.

As early as the disclosure of the three quarterly advance notice, this newspaper reported in the mid-October of the "performance of the stocks overhauled the broader market to focus on the traditional manufacturing of the middle reaches of the "dark horse,"" Wen Zhong has reported that belongs to other rubber products Sanlux, double arrow shares and treasure The belt industry has stable demand due to cost reduction, and its performance will exceed expectations. Looking back now, Baotong's net profit growth rate was 182.89%, double arrow stock was 188.42%, and Sanlitun was 59.86%.

In fact, compared with last year's three quarterly report, it can be found that the performance of other rubber products has grown much faster this year than last year, when it was -28.71%; the same applies to pesticides, viscose, coatings, paints, inks, phosphorous chemicals, and phosphates, including the performance of viscose. The largest year-on-year change was -982.82.% last year. The daily chemical products in the three quarters of this year reported a larger drop in net profit than last year, which was 382.78% at that time. This also reflected compound fertilizers. The net profit growth in the third quarter of last year was 90.88%.

Therefore, Zheng Zhenghua, a researcher at Founder Securities, believes that the chemical sub-sectors with excellent performance in the above three quarterly reports continue to need to pay attention to changes in their raw material costs and demand conditions. If the two continue to maintain a relatively good situation, the future will continue to be high. Shuaifu."