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Caixin Media reported on July 12th (Reporter: Chen Kang) that under the boost of the price increase of polyester filament in the first half of the year, leading company Tongkun Group (601233.SH) announced a profit warning this evening, expecting the net profit in the first half of the year to increase more than 8 times year on year.

The profit warning shows that the company expects to achieve a net income of 1 billion yuan to 1.15 billion yuan for the first half of 2024, an increase of approximately 0.895 billion yuan to approximately 1.045 billion yuan compared to the same period last year, with a growth rate of 849.4%-991.81%; The expected non-net profit will be 0.85 billion yuan to 1 billion yuan, a year-on-year increase of 2186.62%-2554.85%, mainly due to non-recurring losses and gains such as government subsidies received by the company and disposal of non-current assets.

From a quarterly perspective, Tongkun Group's net profit in the first quarter of this year was 0.58 billion yuan, a year-on-year increase of 218.01%, while a net loss of 0.491 billion yuan was recorded in the first quarter of last year. The performance in the second quarter of this year was not as good as last year, with a net profit ranging from 0.42 billion to 0.57 billion yuan, a year-on-year decrease of 4.2-29.41%.

The loss in the first quarter of 2023 was not related to the main business, mainly due to the decrease in profit and loss confirmed by external investment in Zhejiang Petrochemical. According to the financial report, the company suffered a loss of 0.511 billion yuan in investment income from joint ventures and associates.

Tongkun Group stated that downstream demand for polyester filament in the first half of the year was significantly improved compared to the same period in 2023, and the industry leader's large-scale expansion cycle in the supply side has ended. The concentration of the industry has further increased, and the synergies in the industry have become more apparent. The sales volume and price difference of products have increased, and the industry as a whole is in a state of recovery.

According to data from the National Bureau of Statistics, the market price of polyester filament in early January 2024 was 7,607.1 yuan/ton, and the market price in late June was 7,975 yuan/ton, with fluctuations in between, with an overall increase of 367.9 yuan/ton.

In late June, Tongkun Group and many other companies raised the prices of polyester filament products in a concentrated manner, with price increases ranging from 50-100 yuan/ton, and the prices of mainstream products increased by more than 7% compared with the same period last month. The effect of this round of price increases may be reflected in the third quarter performance.

The performance forecast shows that Tongkun Group expects the net profit attributable to shareholders of listed companies in the first half of the year, excluding investment income from joint ventures and associates, to be 0.6 billion yuan to 0.75 billion yuan.

However, Tongkun Group mentioned that the relevant business data of Zhejiang Petrochemical is only preliminary data for financial purposes, and subsequent adjustments may occur. This is a major uncertainty that affects the accuracy of this performance forecast.