Futu news on June 17th,$WUHAN YOUJI (02881.HK)$Today the pre-market opened high, up 65.09%, at HKD 9.08, with a turnover of HKD 2.9686 million and a total market value of HKD 847 million.
Market source: Futu Securities.
Company overview
Wuhan Organic is a well-known supplier of toluene derivatives for the Chinese and global markets, mainly focusing on the production of toluene oxidation and chlorination products, benzoic acid ammoniation products, and other fine chemical products through organic synthesis processes. The company's toluene derivatives are mainly used as food preservatives, household chemicals, animal feed acidifiers, and synthetic intermediates for agricultural chemistry and medical use.
As of the final feasible date, the company's self-made product portfolio mainly includes five toluene oxidation products, two toluene chlorination products, two benzoic acid ammoniation products, and more than 20 other fine chemical products with a wide range of market uses. In 2021, 2022 and 2023, the company recorded product sales of approximately 362,302 tons, 375,848 tons and 346,147 tons, respectively.
Wuhan Organic's industry ranking and market share in China and the global market confirm its leading position in toluene oxidation and toluene chlorination products. According to a Frost Sullivan report, based on 2023 sales revenue, the group is the largest manufacturer of benzoic acid and sodium benzoate in China and the second largest manufacturer of benzyl alcohol, accounting for 62.0%, 37.9% and 33.9% of China's total revenue in 2023, respectively.
In the global market, the company ranks second in the manufacturing of benzoic acid and sodium benzoate and third in the manufacturing of benzyl alcohol in 2023, accounting for 37.0%, 22.4% and 20.6% of the total global revenue in 2023, respectively. The company's products are sold to more than 70 countries and are widely recognized around the world.
Financial overview
In terms of financial status, as of the year ended December 31, 2021, 2022 and 2023, Wuhan Organic achieved revenues of RMB 2.7895 billion, RMB 3.1338 billion and RMB 2.6771 billion, respectively, with net profits of RMB 309.1 million, RMB 340.5 million and RMB 72.9 million for the same period.
During the same period, the company's gross profit was RMB 639.1 million, RMB 699.3 million and RMB 329.8 million, with gross margins of 22.9%, 22.3% and 12.3%, respectively.
Wuhan Organic's revenue from self-made products is recorded as sales of toluene oxidation products, sales of toluene chlorination products, sales of benzoic acid ammoniation products, and sales of other fine chemical products. The revenue contribution from self-made product sales accounted for 79.4%, 86.8%, and 83.0% of the total revenue for the years ended December 31, 2021, 2022, and 2023, respectively.
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Editor/Hao