Due to the slow recovery of downstream demand, Formosa Plastics’ revenue in April generally declined compared with the previous month. The legal person believes that if the demand for mid-stream and downstream products has not improved, the interest rate spread of upstream products will be further narrowed in the future. On the whole, in the case of continued weak and volatile quotations of petrochemical products in the first half of the second quarter, it may be Formosa Plastics’ four treasures. In the second quarter, the industry’s profit is expected to show quarterly growth, which brings variables. In terms of investment recommendations, we maintain “neutral” investment recommendations for related stocks.
Formosa Plastics (1301)’s April revenue was 16.19 billion yuan, a monthly decrease of 19.49% and an annual decrease of 35.59%. The main reason for the decline in revenue is that it coincides with the Qingming holiday and the decrease in market demand, and some products are postponed to the next month in line with the shipping schedule
Due to delivery.
South Asia (1303)’s revenue in April was 21.35 billion yuan, a monthly decrease of 9.67%, and an annual decrease of 28.09%. In addition to stability, weak demand for mobile phones, PCs, NB and other related materials led to a decrease in sales; in terms of chemical products, the sales of plasticizers fell due to lower than expected downstream demand, and the revenue of EG by-products decreased slightly. The overall chemical revenue showed a small increase compared with last month. Recession; the revenue of the plastics department declined slightly compared to the previous month due to customer purchases on the sidelines.
Taiwan Chemical (1326)’s April revenue was 25.5 billion yuan, a monthly decrease of 13.34% and an annual decrease of 29.96%. ARO-3 factory and SM Haifeng factory arranged regular inspections and yearly maintenance, resulting in a decrease in the production and sales of PX and SM, coupled with factors such as production and sales adjustments for PP, PS, ABS and other products, the overall sales decline led to a decline in revenue.
Formosa Plastics & Chemicals (6505) reported revenue of 48.06 billion yuan in April, a monthly decrease of 20.61% and an annual decrease of 26.46%. Refining output increased compared with the previous month, but the delayed shipment of export oil products and the decline in the price difference of export oil products led to a decline in revenue; the average ethylene capacity utilization rate in April increased compared with the previous month, but under inventory scheduling, sales volume was higher than that of the previous month. Monthly decrease; in terms of selling price, due to the increase in market supply, the selling prices of ethylene, propylene and butadiene dropped by US$14/ton, US$9/ton and US$58/ton respectively from the previous month. It decreased by US$26/ton last month.
Qunyi Investment Consulting said that although mainland demand has picked up after the Spring Festival, leading to a rebound in petrochemical product quotations, quotations have begun to show signs of falling in April, and the push for downstream demand recovery is slightly weak; the recent performance of most petrochemical product spot spreads Showing shrinkage, although the performance of upstream product spreads is relatively good, but the demand for mid-stream and downstream products has not improved, and the subsequent trend of further narrowing the spread of upstream products will be further limited. On the whole, in the first half of the second quarter, when the quotation trend of petrochemical products continued to be weak and volatile, it may bring changes to the expectation that the profit of Formosa Plastics Sibao’s industry will show a quarterly increase in the second quarter.
The stock price of Formosa Plastics Sibao opened at a low price in the early trading on the 10th, and the intraday stock price fell between 0.5% and 1.4%.
further reading
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