Why did the reformed company achieve impressive results in 2024, despite the bearish market environment?

According to China Petrochemical Association, the total revenue of the chemical industry in 2024 reached 9.76 billion yuan. The same year-over-year growth rate was 4.6%.Achieved a profit of 454.44 billion yuan, a year-on-year decrease of 6.4%.。additive This is the reality faced by most chemical enterprises in 2024.

Despite the overall background, modifying plastic listing companies have generally seen increased profits, such as * Kingfa Sci. & Tech. Co., Ltd. * Dowoon Co., Ltd. * Huitong Technology Co., Ltd. * Woteer Technology Co., Ltd. * Yin禧 Technology Co., Ltd. There has been varying degrees of growth, but why are the profitability of modified plastic companies so strong? Specialized Plastic Vision takes you to explore.

I. Summary of the 2024改性上市企业成绩单汇总 (Note: "改性上市企业成绩单汇总" seems to be a mix of Chinese and English, where "改性" might refer to "modified" or "enhanced", "上市企业" means "listed companies", and "成绩单汇总" could be translated as "summary of performance reports". A more coherent translation would be: "I. Summary of the 2024 Performance Reports of Modified Listed Companies")

1）Golden Tech: Net profit skyrockets by 199.94%

Jinfo科技 (600143) has released its financial performance forecast for 2024. The company expects its net profit for 2024 to be between 800 million and 950 million RMB, representing a growth of 152.58% to 199.94% compared to 321.7 million RMB in 2023. The net profit excluding non-operational items is forecasted to be between 771 million and 921 million RMB, showing a significant increase of 288.43% to 364.00% year-on-year.

The significant growth in annual performance of Golden Hair Technology can be attributed to the following main reasons: 1) The company's modification plastics and special engineering plastics business have achieved stable growth in sales and gross margin across industries such as automotive, home appliances, electrical components, and consumer electronics. 2) The company's green petrochemical segment has continuously strengthened integration and coordination with the modification plastics segment upstream and downstream, effectively implementing improvement measures, optimizing product structure, and steadily improving production capacity utilization efficiency, resulting in improved operational quality.

Dow Inc. reported its first billion-dollar quarterly earnings in 1986.

Daon Development achieved revenue of 5.301 billion yuan in 2024 (YoY +16.65%), breaking the 5 billion yuan mark for the first time. Although net profit only slightly increased by 0.67% to 141 million yuan, its three main businesses all achieved double-digit growth.

Dainand Corporation's business mainly includes modified plastics, thermoplastic elastomers, and colored masterbatch products. Based on the 2024 annual report, the company's three business segments achieved the following revenues in 2024 compared to the previous year: * Modified Plastics: 38.06 billion CNY * Thermoplastic Elastomers: 7.68 billion CNY * Colored Masterbatch Products: 2.47 billion CNY * Growth: * Modified Plastics: 19.18% increase * Thermoplastic Elastomers: 21.34% increase * Colored Masterbatch Products: 18.94% increase

Huitong Co., Ltd.: Net profit increased by 32.09% against the trend.

Huitong Co. achieved 6.088 billion yuan in revenue in 2024 (YoY +13.82%), with a net profit of 194 million yuan (YoY +32.09%).

The company's first overseas base has commenced production, with significant growth in overseas business contributions from smart home and new energy vehicle customers, increasing the proportion of overseas revenue to 25%. The company is focusing on developing high-value-added products such as long-chain nylon and PEEK. In the field of recycled materials, it has achieved mass application of gray-white ABS in home appliances and automobiles, forming a closed-loop system from PCR recycling to product application.

4) WarnerChile: 374.89%-552.97%

Wote Co., Ltd. (002886) announced its annual performance forecast, expecting a significant increase in performance from January to December 2024. The net profit attributable to shareholders of the listed company is expected to be between 28 million and 38.5 million yuan, representing a year-on-year increase of 374.89% to 552.97%. The basic earnings per share is anticipated to be between 0.111 and 0.152 yuan. The company expects its operating income for 2024 to reach 1.85 billion yuan, a year-on-year increase of 20%, with operating income achieving sequential growth for three consecutive quarters.

Company's performance is attributed to its continued efforts on its high-performance materials platform strategy, actively expanding its penetration in key areas of high-frequency communication, computing servers, electric vehicles, and low-energy economics, as well as its efforts to tackle industry cycles, new production capacity obsolescence, and employee share buyback and depreciation. This results in the company's net profits and non-regular losses increasing together; the company is expected to report an operating revenue of approximately 18.5 billion yuan in 2024, with a growth rate of approximately 20%.

No information provided.

Yinxi Technology has released its performance forecast for 2024. The announcement indicates that the net profit attributable to shareholders for the year 2024 is expected to be approximately 48 million to 53 million yuan, representing a year-on-year increase of 78% to 96%. In 2024, the operating revenue is expected to be around 2.024 billion yuan, an increase of 21.52% compared to the same period last year, with a gross profit approximately 53 million yuan higher than the same period last year.

During the reporting period, the Vietnamese production base of Viet Siux was still in the initial setup stage, resulting in significant losses for the reporting period. The Polymer Material Industrial Park in Dongguan Shangshan Lake and the Silver Zeix New Material Production Base in Zhuhai have been completed and are in operation, resulting in increased fixed asset depreciation expenses for the reporting period, along with substantial personnel reduction and production equipment relocation costs.

The characteristics of the plastic enterprise's profitability are so strong that

As a branch of new materials, modified plastics fall within the scope of national strategic emerging industries and are encouraged and supported by national policies. In recent years, the state has successively issued the "Industrial Structure Adjustment Guidance Catalogue (2019 Edition)", the "Directory for the First-time Application Demonstration of Key New Materials (2019 Edition)", and the "Outline of the 14th Five-Year Plan for National Economic and Social Development and Long-Range Objectives for 2035".

Initiatives such as promoting the development of composite materials, innovation, and talent training under these incentives would bring about significant support to the sector's technical improvement, thereby bridging the gap with foreign companies, and reducing the domestic ones.

1) Market demand growth

The demand for modified plastics has increased significantly in industries such as automotive, home appliances, electronics, and electrical engineering. With the rapid development of these sectors, especially the rise of emerging fields like new energy vehicles and smart homes, the demand for modified plastics has surged. For instance, both Kingfa Technology and Dowin Co., Ltd. have achieved steady growth in their modified plastics businesses.

Green environmental trend: As global emphasis on environmental protection and sustainable development increases, the application of modified plastics in the field of recycled materials is also on the rise. For instance, Wego Tong Share Co. has achieved bulk application of grey-white ABS in the home appliance and automotive sectors in the field of recycled materials, forming a closed loop system from PCR recycling to product application.

Technological Innovation and Product Upgrades

Development of high value-added products: Companies develop high value-added products through technological innovation, such as long-chain nylon and PEEK, which have higher technical barriers and profit margins. For example, Huitong shares and Wote shares have both made significant progress in the field of high value-added products.

Technological Improvement and Capacity Optimization: Enterprises have enhanced production efficiency and product quality through technological improvements and capacity optimization. For example, Kingfa Sci. & Tech. has improved its product structure and increased capacity utilization efficiency through technical改造 and measures.

3）International Market Expansion

Growth in Overseas Business: By expanding into overseas markets, the company has increased its revenue sources. For example, the first overseas base of Huaitong Co., Ltd. has commenced production, and the significant increment in overseas business from smart home and new energy vehicle customers has boosted the proportion of overseas revenue to 25%.

4) Policy Support and Industry Environment

Policy support: The government's support for new materials and environmental industries provides a favorable development environment for enterprises. For example, the support for new energy vehicles, low-cost industries, and the opportunity for the modification of plastics.

In conclusion, modified plastics companies are demonstrating strong profitability in 2024, primarily due to a combination of factors, including growing market demand, technological innovation and product upgrades, overseas market expansion, and supportive policies and an improved industry environment.

Source: Official websites of major enterprises, China Business Industry Research Institute, Specialized Plastic Vision

Editor: Shi Shenbing