Hengyi Petrochemical (000703) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥64.76 billion, up 0.70% year-over-year, with net profit attributable to shareholders at ¥430 million, a 465.59% increase year-over-year, and basic EPS at ¥0.13, up 550% year-over-year.

• Gross margin and profitability improved, driven by enhanced product mix, cost control, and stable operation of the Brunei refinery project.

• The company continued to focus on its integrated petrochemical and chemical fiber business, with significant progress in high-value product R&D and digital transformation.

Financial highlights

• Operating income: ¥64.76 billion, up 0.70% year-over-year.

• Net profit attributable to shareholders: ¥430 million, up 465.59% year-over-year.

• Net profit excluding non-recurring items: ¥231 million, up 215.84% year-over-year.

• Operating cash flow: ¥97 million, down 87.90% year-over-year due to increased inventory in the polyester segment.

• Total assets: ¥110.87 billion, up 2.61% from year-end 2023.

• Net assets attributable to shareholders: ¥25.29 billion, up 0.32% from year-end 2023.

Outlook and guidance

• The company expects continued improvement in profitability as the Brunei refinery and new functional material projects ramp up.

• Ongoing investment in high-value, differentiated, and green products is expected to support long-term growth.