Sinostar PEC (C9Q) H1 2026 earnings summary

Executive summary

• H1 2026 revenue was RMB2,610.0m, down 1.15% YoY, while net profit rose 184.70% to RMB164.6m, supported by stronger gas-separation margins.

• Gross profit more than doubled to RMB212.7m; gross margin increased to 9.07% from 3.02% YoY.

• Basic and diluted EPS were both RMB17.14 cents, versus RMB6.02 cents in H1 2025.

Financial highlights

• Revenue RMB2,610.0m versus RMB2,640.4m (-1.15%); cost of sales fell 5.57% to RMB2,397.3m.

• Gross profit RMB212.7m, up 109.33%; profit before tax RMB189.2m, up 156.96%; net profit RMB164.6m, up 184.70%.

• Administrative costs decreased 55.73% to RMB8.2m, mainly on lower R&D expense; distribution costs rose to RMB12.5m with higher doorstep deliveries.

• Operating cash flow was RMB223.4m versus RMB107.5m cash used in H1 2025; cash and cash equivalents rose RMB2.54m to RMB5.45m.

Outlook and guidance

• Over the next 12 months, domestic polypropylene and MTBE markets are expected to rebalance amid new capacity and sluggish demand recovery; margins for key products are expected to remain challenging.

• Priorities include cost control, R&D and product-mix optimisation toward specialty and ultra-high-transparency grades, and expanding overseas sales to ease domestic competitive pressure.

• The board maintained a cautious outlook, citing market uncertainty and raw-material price volatility, and decided not to declare a quarterly cash dividend.