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On the evening of August 5, Zhengdan Co., Ltd. (300641) disclosed its 2024 semi-annual report. The company achieved operating income of 1.382 billion yuan in the first half of this year, an increase of 86.52% year-on-year; and achieved net profit attributable to shareholders of 286 million yuan, an increase of 1015.51% year-on-year.

Securities Times e-company reporter found that in the first half of this year, benefiting from the price increase of its main product TMA, Zhengdan shares' profitability increased significantly. At the same time, along with the sharp rise in stock prices, the company's top ten circulating shareholders underwent a major change in the second quarter.

Gross profit of main products increased significantly

Zhengdan Co., Ltd.'s main business involves the fine chemical industry and the environmental protection new materials industry. Its current main products include trimellitic anhydride (TMA), trioctyl trimellitate (TOTM), vinyl toluene (VT), durenyl, etc.

TMA is an important macromolecular organic compound and a high-end product in the fine chemical industry. It is widely used in environmentally friendly plasticizers, high-end powder coatings, high-grade insulating paints, high-grade lubricants and high-temperature curing agents. Among them, trioctyl trimellitate (TOTM) is produced using TMT.

TOTM is a non-toxic and environmentally friendly plasticizer, mainly used as a plasticizer for high-grade PVC wires and cables and a blending agent for advanced lubricants. As people's requirements for environmental protection increase year by year, and as wire and cable standards improve, TOTM's share in the plasticizer industry continues to increase.

In its semiannual report, Zhengdan Co., Ltd. stated that during the reporting period, due to unstable and tight supply from overseas TMA manufacturers, overseas market demand for Chinese TMA increased significantly, and the sales volume and unit price of the company's main product TMA both increased significantly compared with the same period last year.

At the same time, the sales volume and unit price of TOTM products also increased compared with the same period last year, and the company's operating income increased significantly year-on-year; with the continuous release of the company's TMA and TOTM production capacity, the scale effect gradually emerged, and the cost rate dropped significantly, which led to a significant increase in the net profit attributable to shareholders of the listed company.

Data shows that in the first half of this year, Zhengdan Co., Ltd.'s revenue from anhydrides and esters was 1.016 billion yuan, a year-on-year increase of 100.5%; the gross profit margin was 34.92%, while in the same period last year, the gross profit margin of this product was only 5.89%.

New faces make up half of the shareholder list

Zhengdan Co., Ltd. did not name any specific companies that "overseas TMA manufacturers' unstable supply" in its semi-annual report. In April this year, rumors about the permanent suspension of production of overseas TMA company Ineos appeared in the newspapers.

The TMA industry has a high degree of concentration. According to public data, the global TMA production capacity mainly includes five companies: INEOS of the United States, Berlin of Italy, Zhengdan Co., Ltd., Baichuan Co., Ltd., and TEDA New Materials. In 2023, the production capacities will be 70,000 tons, 30,000 tons, 85,000 tons, 40,000 tons, and 30,000 tons, respectively, totaling about 255,000 tons.

Regarding market rumors that INEOS will permanently shut down its trimellitic anhydride production unit, Zhengdan Co., Ltd. has responded on many occasions that the company has not yet directly received an announcement from INEOS USA announcing the permanent shutdown of its trimellitic anhydride production unit.

Although there was no positive response, the price of TMA has risen sharply this year. According to data from Sino-Trade, as of the end of June this year, the market price of TMA was between 49,000 yuan and 50,000 yuan per ton. In February this year, the price of the product was less than 17,300 yuan per ton, and the price increase doubled.

With the sharp rise in TMA prices, Zhengdan Co., Ltd. and Baichuan Co., Ltd., domestic companies engaged in TMA production, have been hotly sought after by the capital market.

Among them, Zhengdan shares had a lowest price of 2.81 yuan per share in February this year, and then continued to rise. By June 13 this year, the company's stock price once reached 36.65 yuan per share, with the largest increase in the range reaching 12 times, becoming the first A-share stock to increase by more than 10 times this year. Baichuan shares also had the largest increase in the range this year reaching 2.74 times, but the company's stock price has recently adjusted back.

Due to different revenue structures, the above two bull stocks have different profit situations in the first half of this year. Previously, Baichuan shares disclosed its performance forecast, and the company expects its net profit attributable to the parent company to be 80 million to 120 million yuan in the first half of 2024, compared with a loss of 62.9038 million yuan in the same period last year; the non-net profit is expected to be 60 million to 100 million yuan, compared with a loss of 71.4883 million yuan in the same period last year.

Along with the sharp rise in stock prices, the number of circulating shareholders of Zhengdan Co., Ltd. has increased significantly.

As of the end of June this year, the number of shareholders holding the stock was 58,800, with the average shareholding per household falling to 9,060 shares; at the end of March this year, the number of shareholders holding the stock was 18,500, with the average shareholding per household being 26,500 shares. In addition, the company's top ten circulating shareholders underwent a major change in the second quarter.

As of the end of the report, with the threshold lowered, the sixth to tenth largest circulating shareholders of Zhengdan Co., Ltd. have all been replaced by new faces. Among them, the new shareholders on the list include 3 institutions and 2 natural person shareholders. The shareholders who have left the list include 4 natural person shareholders and one institution.

In addition, as of the end of the reporting period, the first, second and fourth largest floating shareholders of Zhengdan Co., Ltd. were companies controlled by the company's actual controller, and their shareholdings remained unchanged; the fifth largest circulating shareholder, Zhengdan Co., Ltd.'s first employee stock ownership plan, held 2.5093 million shares at the end of the reporting period, a decrease of 460,000 shares from the end of the first quarter of this year.

Editor: Chen Lixiang

Proofreader: Yang Lilin