Sinostar PEC (C9Q) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue fell 24.9% YoY to RMB1,125.1m and net profit declined 89.8% to RMB26.6m, amid weak Chinese terminal demand and weather-related volume disruption.

• 9M revenue rose 7.8% YoY to RMB4,066.6m, while net profit fell 28.6% to RMB201.9m as product gross profit and non-operating income declined.

Financial highlights

• Q3 gross profit was RMB33.9m versus RMB251.1m YoY; profit before tax was RMB24.5m versus RMB331.6m.

• 9M gross profit decreased 3.6% YoY to RMB300.8m; other income fell to RMB8.3m from RMB101.7m, including prior-year dividends and catalyst disposal gains.

• 9M administrative costs rose 39.5% to RMB26.0m, distribution costs increased to RMB6.4m from RMB1.6m, and finance costs fell 36.4% to RMB17.2m.

Outlook and guidance

• Q4 and the next 12 months face weaker downstream demand, seasonal slowdown, new capacity additions and crude-price pressure on MTBE; high-performance polypropylene demand is expected to benefit from China’s consumption upgrades.

• Priorities include technological innovation and new product development to strengthen competitiveness and profitability.