Financial Services Association, January 30 (Reporters Liu Jian and Wang Ping An) Impacted by white sugar's 10-year high, COFCO Sugar (600737.SH) handed over the best report card since listing. Furthermore, although sugar prices have declined somewhat since the beginning of the new season, they are still high, and the company's 2024 performance may still be supported. “The 2023/24 sugar season may continue to be booming this year, and the price area is likely to continue to be high.” An industry analyst told reporters earlier.

This evening, COFCO Sugar announced its 2023 annual results forecast. The company expects net profit attributable to shareholders of listed companies in 2023 to be about 2.06 billion yuan, an increase of about 1,316 billion yuan compared with the same period last year, an increase of about 177%; net profit after deducting non-recurring profit and loss is estimated to be about 2.05 billion yuan, an increase of about 1,426 billion yuan compared with the same period last year, an increase of about 228% over the previous year.

On a quarterly basis, the company's profit level continued to rise last year and remained at a high level in Q4. Among them, Q1, Q2, and Q3 achieved net profit of 274 million yuan, 495 million yuan, and 672 million yuan respectively, while Q4 achieved 619 million yuan. The year-on-year growth rates for the first three quarters were 19.42%, 22.30%, and 425.85% respectively, while Q4 achieved loss-to-profit conversion.

The high sugar price became the main factor in the company's performance growth, which also confirmed the company's performance trend. According to Choice data monitoring, sugar prices have soared since the beginning of this year, hitting a high of 7,600 yuan/ton in September. Since then, the new season has begun to decline slightly, but it has remained at a high level of 6,500 yuan/ton or more.

In terms of tomato business, due to weather, foreign production has been cut, and European and American countries are in an inflationary cycle, driving up price costs. As a result, the export price of ketchup is currently at a relatively high level, and the company's profit level has also increased markedly.

Looking ahead to 2024, although the new pressing season begins, domestic production may rise, and sugar prices have declined slightly, there may be production cuts in India and Thailand in the northern hemisphere, and sugar prices may continue to remain at a high level, which still supports the performance of sugar companies. “In terms of supply and demand fundamentals, the current new pressing season in the southern hemisphere is nearing the end, and production is basically the same as last year, or even declined slightly; the pressing of sugar cane sugar mills in the northern hemisphere is about to begin, and domestic sugar is still in a tight balance. From the demand side, sugar is a newly needed product, and demand naturally increases by 1%-1.5% each year. Therefore, it is generally expected that there will still be a gap between supply and demand next year, and sugar prices are likely to remain high.” The company recently stated.

In addition, the implementation of the company's ongoing production capacity in 2024 will effectively extend the company's sugar industry chain and is expected to support the long-term growth of the company's performance. According to information, the company is advancing the Tangshan Phase II and Zhangzhou sugar industry projects as scheduled. Currently, the company has formed a sugar refining capacity of more than 2 million tons/year, and the sugar refining capacity of the Zhangzhou Sugar Industry under construction can be increased by 35 tons/year after it is completed and put into operation. “At present, the main structure of the sugar refinery in Zhangzhou has been completed, and it is expected to be put into operation in the second half of 2024.” Earlier, a relevant person from the company told the Financial Federation reporter.