Chang Chun Petrochemical Co. Ltd.&Chang Chun Plastics Co. Ltd.

Overview Key strengths Key risks Leading global market position for some specialty chemicals which could be more resilient during industry downturns. Lack of integration into base feedstock chemicals. Broad product mix and diverse end-applications with integrated production and good process technology. High volatility in product prices and margins for its commodity chemical products especially, given oversupply conditions. Able to maintain a net cash position through sustainable free operating cash flow and a prudent growth strategy. Generally limited entry barriers and intense competition for most of the group's product categories. We forecast the profit margin for Chang Chun Plastics Co. Ltd. and Chang Chun Petrochemical Co. Ltd. (collectively the Chang Chun group) will improve slightly over the next few quarters. More

...Chang Chun group's profitability is likely to recover in 2024 and 2025 albeit under the shadow of persistent oversupply. We forecast the profit margin for Chang Chun Plastics Co. Ltd. and Chang Chun Petrochemical Co. Ltd. (collectively the Chang Chun group) will improve slightly over the next few quarters. More sustainable prices and a more resilient outlook for specialty chemical products should support this improvement. The group's significant expansion in specialty chemicals for auto, industrial, medical, electronics, and semiconductor manufacturing underpin an improving portfolio mix, which in turn could help sustain its margins and slightly...

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