FFHL Stock Price Increases Over 65% Pre-Market: Why It Happened 

By Amit Chowdhry ● Jun 25, 2021
  • The stock price of Fuwei Films (Holdings) Co Ltd (NASDAQ: FFHL) increased by over 65% pre-market. This is why it happened.

The stock price of Fuwei Films (Holdings) Co Ltd (NASDAQ: FFHL) – a manufacturer and distributor of high-quality BOPET plastic films in China – increased by over 65% pre-market. Investors are responding positively to the company’s Q1 2021 results. 

These are the Q1 2021 highlights:

— Net sales were RMB101.6 million (US$15.5 million), compared to RMB83.2 million, during the same period in 2020, which represents an increase of RMB18.4 million or 22.1%.

— The sales of specialty films were RMB65.0 million (US$9.9 million) or 63.9% of total revenues as compared to RMB39.9 million or 47.9% in the same period of 2020.

— The gross profit was RMB42.5 million (US$6.5 million), representing a gross margin of 41.8%, as compared to a gross profit of RMB29.8 million and gross margin of 35.8% for the same period in 2020.

— Net profit attributable to the company was RMB31.4 million (US$4.8 million) compared to net profit attributable to the company of RMB13.0 million a year ago.

KEY QUOTE:

“Despite the oversupply in the marketplace and the ongoing coronavirus pandemic, we achieved positive trends in overall sales, especially sales of specialty films, including base film for dry film, which accounted for 63.9% of our total revenues. Base film is a high value-added and differentiated product, which is used to produce dry film that is used in printed circuit boards. The sales increase of base film for dry film demonstrates that the quality of our products is well recognized by our customers. We believe that the order growth also helps improve the Company’s financial performance. For the future, we remain committed to innovation and differentiated marketing strategy and expanding the end-user applications of our films products. We will continue with these efforts and expect that they will enable the Company to capitalize on new opportunities despite challenging industry and economic conditions.”

— Lei Yan, Chairman and CEO of Fuwei Films

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.