China General Plastics Corporation · TWSE:1305
China General Plastics — Q2 2022 Earnings Presentation
22 slides from China General Plastics's earnings presentation, Aug 19, 2022
Slide 1: China General Plastics Corp. Investor Conference
華夏海灣塑膠股份有限公司 China General Plastics Corp. Investor Conference 2022/8/19 Time Itinerary Reporter 15:30〜 VIP Registration 16:00 胡吉宏 執行副總 Q2 Review & Q3 Outlook Otto Hu, 16:00〜 Executive VP 16:30 郭建洲 經理 Q2 Finance Information C C Kuo, Manager 林漢福 副董事長 16:30〜 Wrap up / Q & A H F Lin, 17:00 Vice Chairman
Slide 2: Q2 Review & Q3 Outlook
China General Plastics Corp. Q2 Review & Q3 Outlook Reported by: Otto Hu August 19, 2022
Slide 3: Q2 2022 Review: PVC feedstocks
Q2 2022 Review: PVC feedstocks Ethylene Ongoing war between Russia and Ukraine restricted oil supply. Thus, oil price held at high level. However, China’s lockdown and zero-covid policy drags on ethylene and derivatives. Even through Crackers lower the operation rate, the ethylene market still slu
Slide 4: Q2 2022 Review: PVC
Q2 2022 Review: PVC Chinese logistics issues and weak demand in Q2 was mainly due to lockdowns for Covid-19. The PVC inventory was under pressure even though the O/P rate reached low at 75%. The PVC demand was improving but not lasted long in early June. So, more than 1,200kt of PVC was exported i
Slide 5: Q2 2022 Review: Consolidated Sales
Q2 2022 Review: Consolidated Sales The consolidated sales in H1 was NT$10.147B, which increased by NT$0.592B YoY (6.2%↑) . Sales Quantities (KT) H1 2022 H1 2021 Growth VCM/PVC 193 181 12 PVC Products 26 31 (5) Alkaline 29 29 0 Total 248 241 7 5
Slide 6: Crude Oil & Ethylene Price Trend
Crude Oil & Ethylene Price Trend Unit:US$/bbl WTI Unit:US$/MT CFR NEA (Platts) 6
Slide 7: PVC/VCM/EDC Price Trend
PVC/VCM/EDC Price Trend Unit:US$/MT CFR NEA (Platts) 7
Slide 8: Q3 2022 Outlook: Ethylene
Q3 2022 Outlook: Ethylene Global energy demand were contracted because cost sharply hiked. WTI fell to pre-Ukraine war level. Both of OPEC+ and US slowdown the expand pace due to the demand uncertainty. Crude oil may hold the price within certain range as still conflict in Ukraine. US ethylene p
Slide 9: Q3 2022 Outlook: EDC/VCM
Q3 2022 Outlook: EDC/VCM EDC US EDC production get rid of lower level from Q1 increasing 18% (QoQ), 8.2% (YoY) in Q2 2022. In H1, EDC production increase 5.5% compared to last year. Although US EDC export volume fell 5.7% (YoY), but export volume in Q2 is higher than Q1 by 14.2%, which means US ED
Slide 10: Q3 2022 Outlook: PVC Supply
Q3 2022 Outlook: PVC Supply Chinese PVC prices rebounded from the bottom in mid. July. Current PVC O/P rate is about 75% and maintains the inventory at stable level. The PVC producers prefer keeping more allocations in domestic market for better profit margin. So, the overseas markets in Asian loo
Slide 11: Q3 2022 Outlook: PVC Demand (I)
Q3 2022 Outlook: PVC Demand (I) The Chinese future and spot PVC prices rebounded from the bottom in mid. July because of the actions taken by the government on housing, bank’s loan and infrastructure. As 20th National Congress of the Chinese Communist Party is on going, the positive outlook is exp
Slide 12: Q3 2022 Outlook: PVC Demand (II)
Q3 2022 Outlook: PVC Demand (II) SEA: Due to the war trade between US and China, the downstream fabricators had moved from China to South East Asia especially to Vietnam. The current annual PVC consumption in Vietnam is about one million tons majorly for window shade and flooring. The order intake
Slide 13: Q3 2022 Outlook: PVC Products
Q3 2022 Outlook: PVC Products The Taiwanese new house opening and transaction have been cooling down since later Q2. However, the business of pipes and door panels for the on going projects of constructions are still good. As for the projects run by the government for T3 of Taoyuan Airport, wind p
Slide 14: 2022 Outlook: PVC Sold by Month
2022 Outlook : PVC Sold by Month PVC total quantity sold in 2022: YTD in July: more than 230kt YoY increase: -2% Unit:KMT 14
Slide 15: 2022 Outlook: Consolidated Sales
2022 Outlook : Consolidated Sales CGPC consolidated net revenue: YTD in July : 11.708B YoY increase: +2.9% Unit:NT$ M 15
Slide 16: Finance information
China General Plastics Corporation and Subsidiaries Finance information Reporter : C.C.Kuo Manager Date : 2022, Aug. 19
Slide 17: 2022 HY Sales by product (NT$million)
2022 HY Sales by product (NT$million) 17
Slide 18: Consolidated Statements of Income
China General Plastics Corporation and Subsidiaries Consolidated Statements of Income (In millions of NTD, except per share data) 2022 2021 2021 2020 2019 YoY% Jan.-Jun. Jan.-Jun. FY FY FY Sales 10,147 9,555 6.2% 20,222 13,733 15,118 Cost of goods sold 9,147 6,772 35.1% 15,181 10,374 13,148 Gross pr
Slide 19: Financial ratio analysis
China General Plastics Corporation and Subsidiaries Financial ratio analysis 2022 2021 2021 2020 2019 Jan.-Jun. Jan.-Jun. FY FY FY Operating income margin(%) 0.6 20.3 16.4 15.7 5.1 Net income margin(%) 4.1 15.5 13.0 13.1 4.6 Debt ratio(%) 37 32 30 26 29 Current ratio(%) 191 192 264 265 288 Quick rat
Slide 20: Disclaimer
Disclaimer This presentation includes the Company’s current information and any development or adjustments thereof will be published according to laws, regulations or rulings. The Company is not obligated to update or revise this presentation. The information in this presentation is not for invest
Slide 21: Thank You
Thank You “7a
Slide 22: Q&A
Q&A
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