GTS Chemical Holdings PLC Trading Update (7818D)
29 Outubro 2015 - 5:00AM
UK Regulatory
TIDMGTS
RNS Number : 7818D
GTS Chemical Holdings PLC
29 October 2015
29 October 2015
GTS Chemical Holdings plc
("GTS" or the "Company" or the "Group")
Trading Update
Group revenue up 34% in Q3
GTS Chemical Holdings plc (AIM:GTS), the specialty chemicals
& lubricating oil producer and China's largest producer of
ammonium sulfite, reports to the market today following continued
strong growth in the third quarter of 2015.
Highlights:
-- Unaudited Group revenue for the nine months ended 30
September 2015 up 34% to RMB 676.2 million (2014: RMB 503.3
million)
-- Revenue for the three months ended 30 September up 34% as growth continues at the same pace
-- Gross margin remains steady at 21.4%
-- Construction of new, higher capacity specialty chemicals production line nearing completion
-- Construction of new lubricant oils production line is
complete and in operation, increasing capacity from 10,000 to
26,667 tonnes per year (single shift basis)
Segmental Sales Analysis
9 months 9 months Increase
to 30 September to 30 September
2015 2014
Sales (RMB millions)
Specialty chemicals 465.4 353.8 +32%
Lubricant oils 161.1 101.4 +59%
Recarburizer 49.7 48.1 +3%
Total 676.2 503.3 +34%
Specialty Chemicals
With revenue of RMB 465.4 million the Group's specialty
chemicals division grew by 32%, continuing the pace of the first
six months of this year. Sales to key customers have generally been
above expectations. The distribution network, which enables GTS to
reach smaller users of its products has increased from 26 to 55
distributors in the year to date.
Lubricant Oils
The Lubricant Oils division continues to be successful with
revenue of RMB 161.1 million in the period, representing 23.8% of
total revenue, up from 20.1% in the same period last year. It has
exceeded expectations and we believe the division will continue to
grow at a faster rate than the larger Specialty Chemicals Division.
The number of distributors has been increased from 48 to 75 within
this year.
Recarburizer
Modest growth has continued in this division. It is not expected
to grow as strongly as the Group's principal Specialty Chemical and
Lubricant Oils divisions. It does however generate a good margin
and is a positive contribution to Group profits without the need
for capital investment.
Investment
The new production line for liquid ammonium sulphite and
bisulfite is nearing completion.
The new lubricating oils production line, which is on the new
adjacent site, has been completed and is now in operation. This is
a semi-automatic line, which improves quality and efficiency.
Capacity is now 26,667 tonnes per year (based on a single eight
hour shift day/six days per week).
Mr. Cheng Liu, Chief Executive Officer of GTS Chemical Holdings
plc, said:
"We have achieved another excellent set of results in the latest
quarter, which has cemented the performance of the first half of
the year. Despite the current lower growth prospects for the
economy we expect our current performance to continue for the
remainder of this year. I would like to thank our employees and
shareholders for their continued support."
Enquiries:
GTS Chemical Holdings plc
Mr Roy Su, CFO Tel: +86 159 5935 8899
Website www.gtschemical.com
SP Angel Corporate Finance Tel: +44 (0) 20 3470 0470
LLP
Nominated Adviser and Broker
David Facey / Stuart Gledhill
Yellow Jersey PR Limited Tel: +44 (0) 7768 537
739
Dominic Barretto / Alistair
de Kare-Silver
About GTS Chemical Holdings plc
GTS is the largest Chinese producer of ammonium sulfite, a
specialty chemical used in the paper, chemical engineering, food
and pharmaceutical industries. GTS is also the second largest
producer of ammonium bisulfite, a preservative and reducing agent
used in the petroleum drilling, water treatment and chemical
engineering industries. The manufacturing of these two specialty
chemicals comprises the Group's core business segment, Specialty
Chemicals. This division manufactures its high quality products
mainly from recycled waste materials. Additionally, GTS has a
rapidly growing lubricant oil division, which services the
automotive and industrial markets. Trading in recarburizer is its
third division, which accounts for less than 10% of Group
revenue.
The Group is located in Shandong Province, one of the largest
provinces in China, ranked by GDP, and an area rich in downstream
industries. GTS' location also means it is close to several
chemical plants and paper factories, which gives it a distinct
advantage over its competitors.
The Company is exposed to structural growth in the paper
industry and chemicals sector, and market research estimates that
from 2014 to 2020, China's demand for ammonium sulfite, led by the
paper industry, is set to grow at an annual compound growth rate of
12%. The Company's two main divisions continue to benefit from
government backed environmental changes that are currently taking
place in China. GTS' biggest product, ammonium sulfite, is in
increasing demand as the production of paper from straw continues
to grow. The Company believes that the increase in production of
paper from straw will continue to exceed the overall increase in
demand for paper in China as smaller, less environmentally
friendly, producers leave the market.
The Group has a history of strong profit growth and consistently
high operating margins.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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