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Huaxi Village: Net Profit Growth Of 90%--140% In 2010

2011/1/8 14:21:00 61

Huaxi Village Performance Forecast Chemical Fiber Industry

Huaxi Village (000936.SZ)

6 evening release

Performance forecast

The company expects net profit of about 173 million yuan to 218 million yuan in 2010, an increase of 90% to 140% over the previous year, and a basic earnings per share of about 0.23 to 0.29 yuan, an increase of 10% to 38% over the same period.

In explaining the reasons for the change in performance, Huaxi Village said the four quarter of 2010.

Chemical fiber industry

The market environment is getting warmer. The sales price of PET staple fiber has increased, and gross profit margin has increased year by year.

The main products of Huaxi Village are polyester staple, polyester and so on.

Cotton prices rose sharply in 2010, and the 1105 futures contract for cotton listed on the Zhengzhou Mercantile Exchange rose from less than 16000 yuan / ton at the beginning of the year to 33720 yuan / ton in early November.

Affected by this, the prices of chemical fiber products that have an alternative effect in the textile industry have also risen sharply.

Ping An Securities said that the rapid rise in cotton prices led to a rapid rise in demand for cotton substitutes - polyester staple fibres, and the price of PET staple fibers increased from less than 10 thousand yuan / ton in early September to 13 thousand yuan / ton.

However, the price of raw materials has increased little. At present, the polyester industry has entered the era of profiteering.

The company currently has 200 thousand tons of polyester staple production capacity, with a net profit of 1500 yuan / ton, and an annual EPS contribution of 0.4 yuan; polyester products are similar.

Xiangcai Securities believes that according to past practice, the price difference between cotton and PET staple is generally 3000 yuan / ton - 5000 yuan / ton. In 2010, because of the soaring cotton price, the difference between the two price reached ten thousand yuan or more.

With the stabilization of cotton prices, the price difference between cotton and PET staple is expected to return to normal level.

Xiangcai securities further predicts that the polyester fiber price in 2011 will not be included in the tax price of 12000 yuan / ton. At the same time, as the cotton price is higher and the textile enterprises will increase the consumption of polyester staple fiber, Huaxi Village will benefit from the high prosperity of polyester staple fiber volume and price rise in 2011.

On the 6 day, Huaxi Village reported 8.74 yuan / share, a slight drop of 0.68%.