Befar Group Co Ltd

Binhua Shares released its 2026 semi-annual report, achieving operating revenue of 8.26 billion yuan, up 12.32% year-on-year; net profit attributable to shareholders of the listed company was 344 million yuan, up 208.25% year-on-year. The performance growth was mainly due to rising prices of the company's main products, which led to higher product gross margins. The company plans to distribute a cash dividend of 0.20 yuan per 10 shares, tax included. Among this, second-quarter net profit was 197 million yuan, up 34% quarter-on-quarter.

Binhua Shares expects attributable net profit of 344 million yuan for the first half of 2026, a year-on-year increase of 208.25%, mainly thanks to periodic price rises for products such as propylene oxide, MTBE, and propylene, as well as higher sales volumes after the commissioning of its C3/C4 project. In the first half, the average price of propylene in the Shandong market was 7,948 yuan per tonne, up 18.41% year-on-year; propylene oxide prices briefly surged to 13,330 yuan per tonne before retreating; and the average MTBE price was 5,979 yuan per tonne, up 8.16% year-on-year. However, analysts expect propylene and propylene oxide prices to be lower in the second half than in the first half, with industry overcapacity pressure persisting. The company is currently running at full production and selling all output, but its Beihai C3/C4 comprehensive utilisation project has a total investment of about 12.8 billion yuan, and its overseas chlor-alkali project in Egypt has a capital contribution of 845 million yuan, leaving it facing significant financial pressure. The share price has fallen from this year's high of 7.84 yuan per share on 3 July to 5.74 yuan per share, a decline of nearly 27%.