Shanxi Coking Q2 has outstanding carbon black business, with net profit expected to drop by more than 70% in the first half of the year.

Shanxi Coking (600740) Co., Ltd. today released its operating data announcement for the second quarter of 2024, showing that the company has achieved significant growth in production and sales revenue from multiple product lines.

In terms of output: The output of all products achieved month-on-month growth, among which carbon black output had the highest month-on-month growth rate, reaching 48.34%.

In terms of sales revenue: Sales revenue of all products also achieved month-on-month growth, with carbon black sales revenue having the highest month-on-month growth rate, reaching 67.13%.

In terms of sales volume: Sales of all products achieved month-on-month growth, with coke sales having the highest month-on-month growth rate, reaching 20.81%.

At the same time, a performance forecast for the first half of 2024 was released. It is expected that the net profit attributable to owners of the parent company will shrink significantly in the semi-annual period, ranging from 145 million yuan to 194 million yuan, a year-on-year decline of 78.78% to 84.23%. In addition, net profit excluding non-profit is expected to be 133 million yuan to 183 million yuan, a decrease of 79.98% to 85.44% from the same period last year.

According to the Carbon Black Industry Network, in the first half of 2024, this was mainly due to the impact of weak downstream demand. The overall market was weak, and prices fell more and more. Although the price of coking coal at the raw material end and the price of coke have basically kept pace with the rise and fall, the gross profit margin of the product continues to be under pressure, resulting in a year-on-year decline in main performance.