According to the scheduled disclosure schedule of annual reports, the annual reports of more than 3500 companies in Shanghai and Shenzhen Stock Exchanges will be officially launched on January 22, 2019. As this time approached, the number of companies disclosing performance forecasts continued to increase. As of Jan. 7, 1236 companies in Shanghai and Shenzhen Stock Exchanges have disclosed performance forecasts, of which 131 are listed companies in the chemical industry.
Basic Situation of Performance Forecast
The chemical industry accounts for the largest proportion of companies that have disclosed the annual report forecast, with 93 companies anticipating, accounting for 70.99%. Ninety-three anticipated companies in chemical industry are specifically distributed as follows: & ldquo; anticipated increase & rdquo; 44, & ldquo; slightly increase & rdquo; 27, & ldquo; continuing profit & rdquo; 16, & ldquo; turnaround & rdquo; 6.
(1) Among the pre-added companies, Yueyang Xingchang, Jiuding New Material and Jacques Technologies, which are the top three companies in the range, achieved the maximum pre-growth rates of 627.89%, 476.77% and 370.00%, respectively. Among them, Yueyang Xingchang expects to achieve net profit of 52 million yuan to 55 million yuan in 2018, an increase of 627.89% to 658.34%; Jiuding's net profit of 8 million yuan to 12 million yuan, a year-on-year turnaround profit; Jacques's net profit of 14,847.04 million yuan to 16,226 million yuan, a year-on-year increase of 33.00% to 37.00%.
(2) Among the companies with pre-reduction or loss: & ldquo; pre-reduction & rdquo; 10, & ldquo; slight reduction & rdquo; 15, & ldquo; continuing loss & rdquo; 2, & ldquo; first loss & rdquo; 6, we need to be vigilant against performance risk. Five other companies said “ uncertainty ”. Among the companies whose annual performance is expected to decline sharply, Baomo shares are expected to make net profit of 77.15 million yuan to 47.5 million yuan (-1032.84% to-674.34%) in 2018, which will become & ldquo; pre-reduced King & rdquo;.
(3) The most profitable companies: Kangdesin, Longboli and Sino-Thai Chemicals are expected to earn up to 3.217 billion yuan, 3.030 billion yuan and 2.650 billion yuan.

Annual Report Forecast of Some Companies
Analytical viewpoint
Supply and demand work together to influence the profits of listed companies from the price side. As a traditional strong cycle industry, chemical industry is different from the previous rounds. The price rise of chemical products in this round is mainly due to the change of supply side. Under the pressure of supply side reform and environmental protection, low-end production capacity has been withdrawn and concentrated to leading listed companies, thus catalyzing the brilliant performance of the chemical sector. However, due to trade frictions, real estate regulation and other factors, some chemical products have also declined considerably. In recent years, China's environmental protection pressure tends to increase, the voice of public opinion is rising, and environmental protection policies are becoming increasingly stringent. The development of local governments has gradually shifted from blindly pursuing GDP to environmentally friendly development mode. Chemical industry is a typical high-pollution industry. Some small and medium-sized enterprises have been shut down and transferred due to their inability to pay huge environmental costs, which is conducive to the increase of market share of Listed Companies in chemical industry. More importantly, with the withdrawal of small and medium-sized enterprises, the supply side will shrink, so that the supply and demand of chemical products will change subtly, and the price of chemical products will rise again.
(Source: Securities Star)