Yoke Technology (002409) mainly engages in R&D, production and sales of phosphate flame retardant and rubber & plastic auxiliaries. Its operating revenue reached RMB478 million in 2011H1, up 21.2% YoY; wherein organophosphorus fire retardant contributed 85.2% of the operating revenue and realized net profit of RMB35.42 million, up 6.4% YoY.

Operating Revenue Proportion of Phosphorus Flame Retardant of Yoke Technology, 2008-2011H1

Source: Yoke Technology; ResearchInChina

Influenced by the price rise of raw materials, its performance was slightly lower than the expectation in 2011H1, but with release of numerous favorable factors, its performance is hoped to be dramatically increase in 2011H2.

1. The Ministry of Public Security released No. 65 document in Mar. 2011, according to which, heat insulating materials for all outer wall must use A level fire retardant material.

2. On 9 Aug. 2011, EU cancelled the anti-dumping investigation over TCPP from China. Yoke Technology announced to increase investment of USD6.2 million to its subsidiary Shekoy Chemicals Europe B.V.. Therefore, the proportion of sales in European market will be further improved on the basis of 11% in 2011H1.

3. The fund-raise projects including TDCP, RDP, TPP and TEP in Binghai and Xiangshui have been put into operation. It is expected that the capacity will be dramatically released in 2011H2, which will bring Yoke higher operating revenue, backed by strong demand of phosphorus fire retardant.

Source:ResearchInChina