Leading polyester companies achieve surging net profit on the year in Q3 2023

Recently, listed companies have announced the third quarter report for 2023. The performance of leading polyester enterprises are analyzed below:

Based on the operating income, except Hengyi Petrochemical declined in the third quarter and the first three quarters over the same period of past year, the rest of the five witnessed rising operating income on the year. Among them the largest increase was Eastern Shenghong, more than doubled. However, as for the product prices of polyester industry chain, the prices decreased in the third quarter and in the first three quarters on the year. Therefore, YOY increase of operating revenue was mainly because of rising sales volume in companies.  On the one hand, the increase of sales volume of many enterprises was mainly due to the release of new units and the rise of output; on the other hand, the increase of sales volume of some enterprises also benefited from the decline of their inventory. For example, the main reason for Shenghong's substantial increase in revenue was the growth in its petrochemical and chemical new materials sectors.

In addition, according to the net profit, the net profit of six leading polyester enterprises in the third quarter of 2023 advanced significantly compared with the corresponding period of last year. Among which Hengli Petrochemical, Tongkun and Xinfengming turned losses into profits, especially Hengli Petrochemical saw the highest net profit in Q3 among the six, while Rongsheng Petrochemical and Eastern Shenghong witnessed more than ten times year-on-year increase, Hengyi Petrochemical's net profit was relatively small compared with others but also more than doubled year-on-year. However, according to the accumulated net profit data of the first three quarters, except Eastern Shenghong and Xinfengming increased year-on-year, the other four companies all declined on annual basis, mainly due to the slow recovery of downstream demand in the first half of 2023 and poor supply and demand of polyester industry chain. As a result, the price spread of polyester products narrowed and the profit decreased year on year. In the third quarter, the processing spread of polyester products, especially PFY and PSF, improved compared with the first half of 2023.