News from the First Textile Network on May 22 (reported by reporter martin): Kingfa Technology Co., Ltd. (hereinafter referred to as “Kaffa Technology”) is trading today (May 22) Later, an announcement was issued stating that the company’s subsidiary had previously signed a goods sales contract with a company in the United States. The company sold KN95 masks to the buyer with an order amount of US$975 million. The purchase order stipulated that 3 days would start from the date the buyer receives the proforma invoice provided by the seller. An upfront payment of 40% of the order amount should be paid to the seller within working days.
However, Kingfa Technology received a letter from the buyer today. Due to the fund collection and large payment process, the buyer’s upfront payment of 40% of the order amount will be slightly delayed. The company has The reply letter agreed to his application for delayed payment and requested him to complete the payment as soon as possible.
The First Textile Network previously reported that Kingfa Technology issued an announcement on the evening of May 17 that the company’s subsidiary Guangdong Kingfa Technology Co., Ltd. (referred to as “Guangdong Kingfa Technology”) and an American company The company (referred to as the “buyer”) signed a “Goods Sales Contract”. During the period of the goods sales contract, Guangdong Kingfa Technology sold KN95 masks to the buyer according to the goods sales contract and the buyer’s specific purchase order. On May 16 (Beijing time), Guangdong Kingfa Technology received a purchase order from the buyer with an order amount of US$975 million.
At that time, Kingfa Technology stated that the total net profit expected to be generated from the smooth performance of the goods sales contract accounted for the company’s 2019 net profit ( more than 50% of 1.245 billion).
Huatai Securities Liu Xi introduced that according to Alibaba merchant quotation information, KN95 masks are about 5.5-6 yuan/piece. Based on this rough calculation, the delivery volume of Kingfa Technology contract is about ten 100 million pieces, and Kingfa Technology estimates that the net profit of this order will account for more than 50% of the net profit in 2019 (1.245 billion yuan), which corresponds to a net profit of more than 623 million yuan, and the corresponding lower limit of net interest rate is about 9%.
Researchers from Northeast Securities believe that as Asia’s leader in modified plastics, Kingfa Technology has industry-leading plastic production equipment, experience and technology, which is very conducive to switching to production of epidemic prevention materials; this rapid The successful development of anti-epidemic material solutions in response to market changes has laid the foundation for obtaining large orders. The successful acquisition of orders also shows the strong foundation of Kingfa Manufacturing, especially in supply chain management and product quality. Short-term large orders are increasing profits. At the same time, the biggest benefit is to enrich the company’s cash flow and ease the asset-liability ratio.
Public information shows that Kingfa Technology was founded in 1993, IPOed on the Shanghai Stock Exchange in 2004, and has maintained rapid growth for many years. The company’s traditional business is modified plastics. It has rapidly grown from a production capacity of about 20,000 tons when it was first listed to a current plastic modification production capacity of nearly 2 million tons, making it a rare outstanding growth white horse enterprise among listed companies in the domestic chemical industry.
When Kingfa Technology went public in 2004, its revenue was 2.39 billion yuan and net profit was 105 million yuan. The company’s revenue has continued to grow over the years, reaching 25.32 billion yuan in 2018 (2004-2018 compound annual growth rate of 18.4%). The company’s net profit is greatly affected by industry fluctuations. In 2011, it reached a maximum net profit of 955 million yuan. In 2018, the company’s net profit attributable to the parent company reached 624 million yuan (compound growth rate from 2004 to 2018 was 13.6%). The company has maintained a high level of dividends over the years, and has achieved a cumulative dividend of 3.301 billion yuan since its listing.
The financial report shows that in 2019, Kingfa Technology achieved operating income of 29.286 billion yuan, a year-on-year increase of 15.68%, which was attributed to the shareholders of the listed company. The net profit was 1.245 billion yuan, a year-on-year increase of 99.43%, and the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 1.019 billion yuan; in the first quarter report of 2020, Kingfa Technology achieved operating income of 5.54 billion yuan, a year-on-year decrease of 6.15%; attributable The net profit of shareholders of listed companies was 142 million yuan, a year-on-year decrease of 36.91%.
Industry insiders analyzed that according to the first quarter report disclosed by Kingfa Technology, due to the epidemic severely affecting the demand for normal downstream production, and the short-term plunge in international oil prices affecting the operating conditions of the petrochemical business, the company’s performance has declined. There was a large decline in the first quarter, but this was affected by special factors. The upward trend of the company’s main business of modified plastics and other new materials has not changed. As domestic demand improves in the future, , while upstream raw materials continue to remain low, the profitability of the PDH project will gradually recover. (First Textile Network Martin)</p