Jiutian’s 1QFY2022 strong net profit of RMB201.1 million ($41.52 million), up 122.7% y-o-y, came from higher revenue of RMB772.3 million, up 75.8% y-o-y, as average selling prices (ASPs) for dimethylformamide (DMF) and methylamine (MA) remained elevated.
Limited industry supply is elevating prices for Jiutian Chemical Group’s products, and the squeeze could benefit the company well into next year, says UOB Kay Hian Research analyst Clement Ho.
In a May 11 note, Ho is maintaining “buy” on Jiutian with a higher target price of 18 cents from 16.8 cents previously. The new target price represents an upside of 81.8%.
