Sinostar PEC (C9Q) Q1 2024 earnings summary

Executive summary

• Q1 revenue rose 17.6% YoY to RMB1,466.3m; gross profit increased to RMB138.0m and net profit to RMB88.4m, supported by higher sales volumes and improved product margins.

• Basic and diluted EPS were RMB10.0816 cents, versus RMB0.6767 cents in Q1 2023.

Financial highlights

• Revenue was RMB1,466.3m, up 17.6% YoY; cost of sales rose 10.2% to RMB1,328.3m.

• Gross profit was RMB138.0m, up 236.8% YoY; profit from operations was RMB122.4m, versus RMB33.5m.

• Profit before tax increased 369.0% YoY to RMB118.1m; net profit rose 570.3% to RMB88.4m.

• Administrative costs increased to RMB13.8m from RMB7.6m, including an RMB8.7m YoY increase in R&D; distribution costs rose to RMB2.3m from RMB0.1m.

• Finance costs declined to RMB6.6m from RMB9.8m, attributed to lower borrowings.

Outlook and guidance

• Demand for key products is expected to benefit from global economic recovery and consumer upgrades; new technologies offer prospects for high-end polypropylene.

• Priorities include managing supply pressures, monitoring demand trends, and increasing technology innovation and high-value-added product development; the Board remains optimistic on long-term growth.