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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Gts Chemical | LSE:GTS | London | Ordinary Share | JE00BKX4SF95 | ORD GBP0.01 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 48.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMGTS
RNS Number : 7090M
GTS Chemical Holdings PLC
11 May 2015
11 May 2015
GTS Chemical Holdings plc
("GTS" or the "Company" or the "Group")
Trading Update
Group Revenue up 40.0%; Maiden Dividend to be Proposed at AGM
GTS Chemical Holdings plc, the specialty chemicals producer and China's largest producer of ammonium sulfite, reports to the market today following a period of strong performance during the first quarter of 2015.
Highlights:
-- Unaudited Group revenue up 40.0% to RMB 167.0 million (Q1 2014: RMB 119.3 million) -- Specialty chemicals revenue up 36.7% to RMB 118.9 million -- Lubricating oils revenue up 68.0% to RMB 35.7 million -- Construction of new specialty chemicals production line underway -- Intention to announce a maiden full year dividend
Segmental Sales Analysis
3 months 3 months Increase to 31 March to 31 March 2015 2014 Sales (RMB millions) Specialty chemicals 118.9 86.9 +36.7% Lubricating oils 35.7 21.3 +68.0% Recarburizer 12.5 11.1 +11.8% Total 167.0 119.3 +40.0%
Specialty Chemicals
GTS' core business division continued to perform well in Q1, and the growth in revenues of 36.7% compares favourably with the growth seen of 24.4% in 2014. The growth in sales is not only in the paper industry but increasingly to the food and pharmaceutical sector.
Lubricating Oils
During the quarter, sales in the lubricating oils division continued to grow, accounting for more than 21% of total Group revenue. Growth, driven by accelerated marketing efforts, was 68.0% in Q1 vs Q1 2014, matching the growth seen in H2 2014 of 67%. Marketing included the Group's second annual lubricating oil sales conference, held in March, where the Group signed a total of 92 orders for RMB29 million.
Recarburizer
Following flat sales growth in 2014, the first quarter has demonstrated a growth of 11.8% compared with Q1 2014.
Investment
During the quarter, the Group commenced construction of a new specialty chemicals production line on its existing site. The new production line will enable the Group to produce higher quality specialty chemicals and to control the chemical reactions even more closely. We expect the line to be commissioned during Q3 2015, upon which our production capacity of liquid ammonium sulfite and liquid ammonium bisulfite will be increased from 300,000 tonnes per year to 360,000 tonnes per year, based on an 8 hour shift six days a week.
The construction of a new lubricant oils production line has commenced on the land acquired in December 2014.
Dividend
The Board reiterates its intention to announce a maiden full year dividend for the year ended 31 December 2014. The dividend is expected to be consistent with GTS' stated dividend policy of approximately equal to a 5% yield on the placing price of 36 pence at the time of the Company's IPO. Further announcements relating to dividend payments will be made following the publication of the Company's annual report for 2014.
Mr. Cheng Liu, Chief Executive Officer of GTS Chemical Holdings plc, said:
"I am delighted by the Group's progress in the period, which cemented the strong growth in the last quarter. GTS' main business divisions continue to perform and we look forward to the rest of the year with optimism.
"I would like to thank our employees and shareholders for their continued support and look forward to meeting shareholders at the forthcoming annual general meeting."
Enquiries:
GTS Chemical Holdings plc Mr Roy Su, CFO Tel: +86 159 5935 8899 www.gtschemical.com SP Angel Corporate Finance Tel: +44 (0) 20 3470 0470 LLP Nominated Adviser and Broker David Facey / Stuart Gledhill / Liz Yong Yellow Jersey PR Limited Tel: +44 (0) 7768 537 739 Dominic Barretto / Alistair de Kare-Silver
About GTS Chemical Holdings plc
GTS manufactures specialty chemicals for the paper and chemicals industry. The Group is the largest Chinese producer of ammonium sulfite, a chemical used to manufacture paper from straw. GTS has also 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%. GTS stands to gain from the Chinese Government's support of the non-wood paper industry and its drive to restructure the lubricant oil market through increased regulation and higher standards which favour the more modern producer.
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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