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Jiutian to benefit from elevated prices, set to last till 2023: analysts

Jovi Ho
Jovi Ho5/12/2022 10:34 AM GMT+08  • 4 min read
Jiutian to benefit from elevated prices, set to last till 2023: analysts
“Even if the Chinese government approves new supply, it would still require a minimum of nine to 12 months for trials.”
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Limited industry supply is elevating prices for Jiutian Chemical Group’s products, and the squeeze could benefit the company well into next year, says UOB Kay Hian Research analyst Clement Ho.

In a May 11 note, Ho is maintaining “buy” on Jiutian with a higher target price of 18 cents from 16.8 cents previously. The new target price represents an upside of 81.8%.

Jiutian’s 1QFY2022 strong net profit of RMB201.1 million ($41.52 million), up 122.7% y-o-y, came from higher revenue of RMB772.3 million, up 75.8% y-o-y, as average selling prices (ASPs) for dimethylformamide (DMF) and methylamine (MA) remained elevated.

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