On July 29, shares of disposable glove producers Zhonghong Medical, Intco Medical, and Blue Sail Medical rose across the board, with Zhonghong Medical hitting its daily limit up. The previous evening, Zhonghong Medical issued a profit forecast, estimating net profit attributable to shareholders of the listed company at 140 million to 210 million yuan for the first half of this year, a year-on-year increase of 23.38 to 35.57 times, mainly driven by higher selling prices for health protection gloves, improved product gross margins, and stronger cost control. Blue Sail Medical had earlier forecast first-half net profit of approximately 90 million to 110 million yuan, swinging from a loss to a profit year-on-year, with its health protection division achieving net profit of 250 million to 300 million yuan and operating revenue up about 36 percent year-on-year. This year, rising international oil prices have pushed up raw material costs for nitrile gloves, but Chinese manufacturers, with their complete petrochemical supply chains, have achieved raw material self-sufficiency and a significant cost advantage, allowing them to capture excess profits during the industry's price hike cycle.
Zhonghong Pulin Medical Products Co. Ltd.Zhonghong Medical forecasted net profit of 140-210 million yuan for H1, a 23-36x year-on-year increase, driven by higher selling prices, improved gross margins, and cost control.
Blue Sail Medical Co LtdBlue Sail Medical forecasted first-half net profit of 90-110 million yuan, swinging from loss to profit, with health protection division net profit of 250-300 million yuan and revenue up 36%.
Shandong Intco Medical Products Co LtdIntco Medical shares rose as part of sector rally following Zhonghong Medical's profit forecast, but no specific company news mentioned.