Recently, Zibo Qixiang Tengda Chemical Co., Ltd. (002408.SZ) released its 2011 Performance Projection, according to which, its operating revenue is expected to increase by 13.34% YoY to RMB 2.78 billion and net profit is estimated to increase by 15.73% to RMB 494 million.

The main reason for growth is that the new 40 kt Methyl Ethyl Ketone device and supporting butene separation device are scheduled to put into operation in 2011H1. Meanwhile, its export increases significantly on account of the company steppes up international market expansion as several Japanese companies stop production affected by the earthquake.

MEK class products of Zibo Qixiang Tengda account for 66% of operating revenue in 2011 and represent 78% of gross profit. The main reason for the growth was the price of MEK dramatically increased in 2011H1, and gross margin rose to 40.7%.

Gross Profit Structure of Qixiang Tengda by Product, 2011

Source: Zibo Qixiang Tengda, ResearchInChina