Equity Analysis /

SG : Jiutian Chemical Group Ltd - Riding the upturn

    Khangchuen Ong
    Khangchuen Ong

    Research Analyst

    12 April 2021
    Published byCGS-CIMB

    Benefiting from robust downstream demand, DMF prices have continued on a strong uptrend YTD to Rmb11,000/ton (+40% YTD, +120% yoy). We forecast a record quarter in 1Q21F, with core net profit of Rmb78.5m (>28-fold increase yoy) as ASP hikes outpace raw material cost increases. Maintain Add with an unchanged TP of S$0.135 (5.7x FY22F P/E).