Levima Advanced Materials Co. (003022.SZ) reported first-quarter net profit more than doubled to RMB 145 million, a 102.67% increase from the same period last year, driven by strong demand for advanced materials.
The subsidiary of Legend Holdings (03396.HK) announced the results in a filing, noting the performance reflects significant top-line growth and improved operational efficiency. Shares of the advanced materials producer jumped as much as 8.08% after the announcement.
Revenue for the quarter ended March 31 rose 45.93% year-over-year to RMB 2.246 billion. Net profit after deducting non-recurring items reached RMB 147 million, a 109.12% increase, while basic earnings per share stood at RMB 0.11. The company's net cash flow from operating activities showed a substantial 6.09-fold increase to RMB 222 million, compared to RMB 31.28 million in the prior-year period.
The robust performance from its subsidiary is a positive development for parent company Legend Holdings, which holds a significant stake in the advanced materials sector. The results suggest a strong start to the year for China's high-performance materials industry amid a broader economic recovery.
The strong earnings report indicates that Levima's strategic focus on high-value chemical products is yielding significant returns. Investors will be watching the company's second-quarter performance to see if the growth momentum can be sustained.
This article is for informational purposes only and does not constitute investment advice.
