Sinostar PEC Holdings Limited (SGX: C9Q) (“Sinostar”), one of the largest producers and suppliers of downstream petrochemical products within the Shandong Dongming Petrochemical Industrial Zone, announced an impressive set of 3QFY2020 financial results on 13 Nov 2020.
The Group’s 3Q2020 revenue increased 15% year-on-year from RMB 620.8 million to RMB 714.6 million. Gross profit rose 54% year-on-year to RMB 84.3 million mainly due to an increase in sales volume of the petrochemical products and an expansion in gross profit margins by 300bps to 11.8% in 3Q2020.
The breakdown of the different petrochemical products can be seen as per below:
Coupled with a drop in admin and finance expenses, the firm’s 3Q2020 net profits skyrocketed 99% from RMB 26.0 million to RMB 52 million. The Group also registered a 42% jump in net profits for 9M2020 on a year-to-year basis.
According to its press release, Sinostar stands to benefit from the forecasted 8.2% GDP growth in China come year 2021. In addition, the rebound in economic activity and continual demand for protective