Chung Hsing's April Profit Before Tax Rises 5% with EPS at NT$0.7
Preface
This article delves into the recent financial performance of Chung Hsing, a prominent player in the chemical industry. As of April, Chung Hsing reported a pre-tax profit of NT$277 million, marking a 5.05% increase compared to the previous month. This piece provides insights into Chung Hsing's overall revenue and profit trends, market challenges, and strategic positions across various business segments.
Lazy bag
Chung Hsing reported stable shipments across its three major divisions for April, with notable profit increases due to improved material costs and reduced expense rates.
Main Body
Chung Hsing, identified by its stock code 1717-TW, announced a pre-tax profit of NT$277 million for April 2023, representing a monthly growth of 5.05%. This translates to an earnings per share (EPS) before tax of NT$0.23 for the month. Accumulated figures for the first four months of the year show a pre-tax profit of NT$821 million, which is a 16.03% decrease year-on-year, with the EPS also at NT$0.7 for this period.
According to Chung Hsing, steady shipments across its three main divisions significantly contributed to the company's April revenue, which stood at NT$3.747 billion. While there was a minor monthly increase of 0.80%, this was contrasted by an annual decrease of 5.21%. The company's operating profit reached NT$252 million, gaining 4.89% from the previous month and showing a year-on-year increase of 3.20%. This increment in operating profit is primarily attributed to the decline in oil prices, leading to better raw material costs and reduced expense rates.
The cumulative revenue for Chung Hsing over the first four months was NT$13.807 billion, showing a slight annual decrease of 1.19%. During the same timeframe, operating profit totaled NT$699 million, reflecting an 18.05% year-on-year drop. The company noted that demand in the Chinese market remains stable, with the impact of U.S. tariff policies being manageable and contributing to a stable performance so far this year.
Chung Hsing also highlighted the competitive advantage of synthetic resins in the market, with standout sales. The specialty materials, despite market competition, demonstrate high added value; sales growth and overall profitability remain strong. The electronic materials sector, particularly dried film photoresist, benefits from increased volumes in the PCB industry. Chung Hsing is also aggressively expanding into the semiconductor equipment sector, aiming to capture growth opportunities.
Key Insights Table
| Aspect | Description |
|---|---|
| April Pre-tax Profit | NT$277 million, a monthly increase of 5.05%. |
| First Four Months Revenue | NT$13.807 billion, a 1.19% decrease year-on-year. |