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Xinxiang Chemical Fiber: Viscose Staple Price Increases Facing Resistance

2010/5/25 9:57:00 16

Xinxiang

chemical fiber

Yesterday's announcement said that the first quarter results were turning into a profit. At the same time, net profit in the first half of 2010 was expected to soared by 987.51% over the same period last year.

But the daily economic news reporter, based on the increase in the data, found that the company's net profit in the first quarter of this year, as well as the first half of this year's net profit margin is still negative growth.

In March, as many as 4 institutions "get together" to participate in the survey, is its performance pre growth really bright?

Net profit fell by year-on-year.

According to the announcement, the company expects net profit in the 1-6 months of this year to increase by 987.51% to 70 million yuan, with earnings per share of 0.1189 yuan.

Why did the employment performance change so much? The company explained that it was due to the viscose fiber at home and abroad.

spandex

Fiber prices rose sharply compared with last year.

Reporters noted that in a quarterly report released on the same day in Xinxiang chemical fiber, its net profit was 43 million 486 thousand and 500 yuan, compared with a loss of 42 million 221 thousand and 700 yuan in the same period last year.

In addition, Guotai Junan, Guolian securities, Shenwan Paris and southern fund 4 agencies participated in field research in March this year.

Guotai Junan even visited twice in 10 days.

Henan

The local key enterprises have added a bit of mystery.

Data show that as of yesterday's close, the company's stock price has risen 10% over the year, far more than the same time Shen Wan chemical industry

index

Down 17% performance.

However, based on the pre increment data, the reporter found that the net profit of the company in the first quarter and the first half of the year is still negative.

according to

Statistics

The net profit of the company in the fourth quarter of last year was 47 million 75 thousand yuan, while the net profit in the second half of last year was 93 million 178 thousand yuan.

If the net profit in the first quarter of this year is 43 million 486 thousand and 500 yuan and the net profit in the first half of the year is 70 million yuan, the net profit will decline 7.6% in the first quarter, and the net profit in the first half will decrease by nearly 25%.

"Daily economic news" yesterday on the matter to Xinxiang chemical fiber, its secretaries office said that the net profit is only forecast data, and finally the actual data may be different.

Raw material prices skyrocketed or reduced profits

Why, then, how did a company grow by nearly 10 times year-on-year, with a negative growth over the same period?

Is this phenomenon normal?

The company's annual report 2009 shows that

Viscose filament yarn

and

Viscose staple fiber

Business accounted for 52% and 35% of the company's main business revenue respectively, while spandex fibers accounted for less than 11%.

Yesterday, a brokerage researcher said that Xinxiang chemical fiber performance in the first half of the year increased substantially, mainly due to the low base last year.

Since the third quarter of last year, the low inventory in the market has pushed up the price of viscose staple fiber and led to a substantial increase in gross margin and performance.

But this year, viscose staple fiber upstream.

Cotton pulp

The price rises too fast, and viscose staple fiber market momentum is not enough, and the final difference between the two prices will lead to reduced profit margins.

Xinxiang chemical fiber secretaries official told reporters that the current trend of viscose staple fiber is not good judgment, but the company has no inventory, all operations are normal.

Ding Jin Qi, an analyst yesterday, told the daily economic news that due to the tightening of new policies such as the real estate policy, the cautious purchasing attitude of the lower reaches delayed the purchase demand and faced the pressure of inventory.

As a result, short staple prices may be faced with resistance to raise prices, and even do not rule out the possibility of lowering prices in the future.

In addition, viscose staple fiber and cotton pulp increased by 6% and 9% respectively during the year, compared with the 21% and 53% increase in the second half of last year.