Higher product prices drive Jiutian's Q3 results to another quarterly record

JIUTIAN Chemical Group on Wednesday posted another record set of results - a Q3 attributable net profit of RMB51.9 million (S$10.5 million) for the three months ended Sept 30, compared to just RMB2.4 million a year ago.

This was also a significant jump from its RMB32.6 million net profit reported in the preceding quarter - in itself a record quarterly net profit since the firm was listed in 2006.

The company's performance was driven by the higher average selling prices of dimethylformamide and methylamine from the year before, mainly due to the continuing recovery of China's economy. There was also a surge in demand for its main products from downstream customers, who in turn were enjoying strong growth in demand for their products from both local and export markets.

The permanent closure of one of Jiutian's largest competitors also aided its performance.

The results were achieved despite a shorter operating quarter arising from a 20-day shutdown for routine maintenance in September, Jiutian said.

It added that, with its plants now fully serviced, it will focus on operating efficiently and moving its utilisation rates higher to take advantage of the favourable operating margins of its main products.

Jiutian's shares added 0.1 cent or 0.88 per cent to S$0.115 on Wednesday.