Sinostar PEC (C9Q) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue fell 10.8% YoY to RMB1,165.4m, while gross profit rose 49.3% to RMB106.9m and net profit increased 53.9% to RMB69.5m.

• Higher gas separation margins drove the profit improvement; management expects key product prices and gross margin to remain supported in H1, with possible price declines in H2 as new capacity comes online and geopolitical premiums ease.

Financial highlights

• Revenue was RMB1,165.4m, down 10.8% YoY; cost of sales declined 14.3% to RMB1,058.5m.

• Gross profit increased 49.3% to RMB106.9m; operating profit was RMB94.7m, up from RMB62.2m in Q1 2025.

• Net profit rose 53.9% to RMB69.5m; income tax expense increased 65.5% to RMB23.8m.

• Finance costs declined to RMB1.8m from RMB3.3m, while distribution costs rose to RMB5.1m from RMB3.2m.

Outlook and guidance

• H1 key product prices are expected to remain high, supporting improved gross margin; H2 prices may ease as new capacity is commissioned and geopolitical premiums decline.

• Over the next 12 months, Middle East geopolitical developments and international crude oil and propane price trends are identified as key performance drivers.