Huafeng Spandex's net profit soared 20 times year-on-year

On August 21st, Huafeng Spandex (002064.SZ) announced its semi-annual report: the company realized total operating income of 825 million yuan, up 60.29% year-on-year; operating profit of 203 million yuan, up 23939.96% year-on-year; net profit of 178 million yuan, up year-on-year 2001.54%.

"Securities Daily" According to statistics: As of press time, Huafeng Spandex was the sixth listed company in the petrochemical plastics industry's net profit attributable to the listed company's shareholders, which increased more than 1000% year-on-year. Among them, Annada (002136), which belongs to the petrochemical plastics sector, is the first to take advantage of the net profit of the listed company's shareholders, which is a year-on-year increase of 1,3772.50%. It is the leading shareholder in the Shanghai and Shenzhen A-share markets. Among the 32 companies whose net profit attributable to listed shareholders increased by more than 10 times year-on-year, the number of enterprises in the petrochemical and plastics industry accounted for approximately 18.75%, ranking the first among the metal and non-metal industries.

“Securities Daily” interviewed Huafeng Spandex’s Securities Department staff on the huge increase in net profit attributable to listed shareholders over 20 times. The person told the reporter: “This is because the situation in the first half of last year was too bad.” Annual Report of Huafeng Spandex shows that during the reporting period, operating profit was only 845,900 yuan, a year-on-year decrease of 99.32%. Correspondingly, foreign operating income decreased by 70.24% over the previous year.

This year, on the contrary, during the reporting period, the operating income of foreign markets increased by 157.98% year-on-year, which was more than three times that of the domestic market. The increase in market demand has been accompanied by a significant increase in the price of spandex.

According to the research reports of a number of securities companies, the lowest price of spandex 40D in the first half of 2009 was 41,000 yuan/ton. With the recovery of the spandex market, the price of spandex soared and reached the highest level in April this year. Value of 58,000 yuan / ton, an increase of 41.46%; spandex 20D prices from the beginning of the 67,000 yuan / ton rose to 82,000 yuan / ton, an increase of 22.39%.

The spandex industry associations raised the spandex prices on April 9: Starting from April 12th, on the basis of their respective original prices, the price of the spandex will be raised by RMB 2000-3000/ton, and the price of spandex 40D will rise to 59,000. -60000 yuan/ton.

But behind a series of good news, the entire industry also has hidden concerns.

Since May of this year, the market price of spandex has begun to fall back to 51,000 yuan/ton, a decrease of 12.09%. Contrary to the decline in product prices, there is also a rise in raw materials. In the company’s semi-annual report, it pointed out: “This year, raw material prices for spandex have risen significantly, and labor costs have risen.” Although, Huafeng Spandex’s Securities Department personnel did not increase raw material prices. And detailed and detailed introduction to the company's future earnings impact, but pointed out that the second half of the performance depends on the market performance, especially the downstream textile industry demand. However, some media have reported that "the spandex PTMEG raw material has risen from 21,000 yuan / ton to 26,000 yuan / ton during the same period, during the 24% increase was significantly higher than the spandex gain."

At the same time, an upsurge in the production of spandex was launched in the industry. Guotai Junan stated in its industry analysis report released on August 23 that Huafeng Spandex's operating rate in the first half of 2009 was less than 50%, but this year it is operating at full capacity, and the company is still planning to increase capital and expand production. Huafeng Spandex intends to invest in and construct a 15,000-ton high-temperature, thin fabric special-purpose spandex technical reform project with an investment of 480 million yuan. It is planned to be completed and put into operation in July next year. In addition, Xinxiang Chemical Fiber (000949) announced on July 6 that it plans to build an annual production capacity of 12,000 tons of continuous polymerization differential spandex fiber; Yantai Spandex (002254) announced on March 15 that it plans to build an annual output of 7,000 tons of comfort. Spandex fiber engineering project.

At present, the spandex industry has caused concern in the industry. In the future, pressure will be exerted on Huafeng Spandex and even the entire industry, in addition to the over-expansion of the industry's production capacity, as well as the rise in raw materials and the differentiation of production spandex. As the Guotai Junan study clearly stated, we are not optimistic about the trend of the late spandex prices.