“Despite 1Q being a seasonally-weaker quarter due to the Chinese New Year, we understand that plant utilisation remained high amid robust orders. We forecast Jiutian achieving revenue of RMB431 million (+7% q-o-q, +116% y-o-y), mainly due to average selling price (ASP) increases,” they write in an April 12 report.
As dimethylformamide (DMF) prices continue on a strong uptrend year-to-date (y-t-d), CGS-CIMB Research analysts Ong Khang Chuen and Kenneth Tan estimate that Jiutian Chemical Group will post a “record quarter” in 1QFY2021.
More specifically, Ong and Tan forecast that Jiutian’s core net profit for the quarter will see more than a 28-fold surge to RMB78.5 million ($16.1 million).
