Jiutian Chemical Group - CGS-CIMB Research 2021-11-11: Robust ASP Points To A Stronger 4Q21

Jiutian Chemical Group - Robust ASP Points To A Stronger 4Q21

  • Jiutian Chemical (SGX:C8R)'s 3Q21 net profit of RMB57m (-19% q-o-q, +10% y-o-y) was in line with our expectations. Stronger profit spread offset weaker volume output.
  • DMF prices hit a record high in Oct 21. Despite recent retracement, it stayed at elevated levels vs 3Q21, which should bode well for 4Q21F profit spread.
  • We believe that recent share price correction has priced in potential impairment of loan to associate company.
  • We reiterate our ADD call with a target price of S$0.14 for Jiutian Chemical, which remains pegged to 5.7x CY22F P/E (based on a 20% discount to SGX-listed peer China Sunsine (SGX:QES)).

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

Kenneth TAN CGS-CIMB Research | ONG Khang Chuen CFA CGS-CIMB Research | https://www.cgs-cimb.com 2021-11-11
SGX Stock Analyst Report ADD MAINTAIN ADD 0.140 SAME 0.140

Read also CGS-CIMB's most recent report:
2022-02-28 Jiutian Chemical Group - A High-Octane Performance

Check out the most recent target prices at Jiutian Chemical Target Prices. Listing of analyst research reports at Jiutian Chemical Analyst Report.

Relevant links:
Jiutian Chemical Share Price History,
Jiutian Chemical Announcements,
Jiutian Chemical Dividends & Corp Actions,
Jiutian Chemical News Articles


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