China Publicly Listed Companies Impacted by COVID-19 rtmworld

China Publicly Listed Companies Impacted by COVID-19

China Publicly Listed Companies Impacted by COVID-19

Forecasts on the first quarter of 2020 of two of the largest Chinese publicly listed companies reveals how they think the COVID-19 pandemic will impact them.

Ninestar Group (stock code: 002180) claims its profits will be down for the period 1 January to 31 March 2020 both in comparison with its predictions as well as the same period last year.

Hubei Dinglong Co., Ltd. (stock code: 300054 SHE) is based in Wuhan, the original epicentre for the virus and certainly the most impacted region in China.

Both companies are citing factors such as delays in return to work after the extended Lunar New Year period and return to production being delayed.

Ninestar claims its printing consumables and microelectronics chip businesses declined during the first quarter, however, Lexmark ’s printer business operated normally during the first quarter of 2020, and its performance is comparable with the same period of the previous fiscal year. The company is predicting an increase of 6% year-on-year in the second quarter where the operating income of the consumables business is set to be ¥610 million (US$86.4 million). The chip business is set to have operating incomes of ¥220 million (US$31.2 million) and the Static Control business is expected to have an operating income of ¥196 million (US$27.8 million) in the same period.

Dinglong claims forecasted profit will be down between 60% and 75%, which would be between ¥1,335 million (US$189 million) and ¥2,136 million (US$302.4 million).

The ink and toner cartridge divisions have resumed working and are under pressure to meet demand, meaning the company expects to return to full capacity during the second quarter.


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