YIP'S CHEMICAL (00408) has announced a positive profit forecast for the interim period.
The company anticipates that its net profit for the mid-term of 2026 will be no less than HK$138.6 million.
This represents a significant increase of not less than 110% compared to the net profit of approximately HK$66 million recorded in the six months ended June 30, 2025.
Key Drivers for the Surge
The substantial projected growth in interim profit for 2026 is primarily attributed to several key factors.
Firstly, the company's solvent joint venture business is expected to post a significant profit increase, driven by soaring product prices and the successful capture of market opportunities.
Secondly, the group's inks business has continued to make progress in expanding its market share, achieving growth in both sales value and volume, which is set to boost its segment profit compared to the 2025 interim period.
Thirdly, following the completion in December 2025 of the acquisition of approximately 60% equity in Beijing Xin Nuo Hai Bo Petrochemical Technology Development Co., Ltd., a leading chemical gas recovery and treatment enterprise in mainland China, Xin Nuo Hai Bo's financial results will be consolidated into the group's accounts for the 2026 interim period.
Partial Offset to Growth
The positive impact of these factors is expected to be partially offset by a non-recurring gain that was recorded in the 2025 interim period from the disposal of idle land in Shanghai Jinshan.
Comments