Hot stock: Jiutian Chemical up 3% after reporting strong Q1 results

SHARES of Jiutian Chemical Group gained as much as 4 per cent on Thursday, after the chemical producer reported stellar profits on Wednesday.

Its shares were up 3 per cent or 0.3 Singapore cent at 10.3 cents as at 10.47am, after 136.7 million shares changed hands.

The Catalist-listed company's net profit for its first quarter ended March 31 was 90.3 million yuan (S$18.5 million), more than 30 times that of its 2.9 million yuan net profit in Q1 FY20.

Similarly, group revenue surged 120 per cent year on year to 439.3 million yuan, from 199.4 million yuan in the preceding year.

The group attributed its results to an increase in sales volume and average selling prices of its main products dimethylformamide and methylamine.

The rise was mainly due to China's continuing recovery from the Covid-19 crisis and "surge in demand for Jiutian Chemical's main products from downstream users, who in turn are experiencing strong growth in both local and export markets for their products", the firm said.

Jiutian's strong first-quarter showing comes after it previously reported a net profit of 86.2 million yuan in the fourth quarter versus net losses a year ago.