Jiutian Chemical - 4Q21F Likely A Blowout Quarter
JIUTIAN CHEMICAL GROUP LIMITED (SGX:C8R)
- Favourable market conditions boosted dimethylformamide (DMF) prices to a new high in 4Q21, while input costs were helped by China’s curbs on coal prices.
- We believe 4Q21F was the strongest quarter in Jiutian Chemical (SGX:C8R)’s operating history. We expect Jiutian Chemical to report a record core net profit of RMB129m (+127% q-o-q, +50% y-o-y) for 4Q21F as profit spread further widens.
- We reiterate ADD call on Jiutian Chemical at a higher target price of S$0.15, based on 5.7x CY23F P/E (a 20% discount to SGX-listed peer China Sunsine (SGX:QES)).
- DMF prices could remain elevated in 1H22F. Potential re-rating catalysts for Jiutian Chemical include a higher dividend payout in May.
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 2022-01-19
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2022-02-28 Jiutian Chemical Group - A High-Octane Performance
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