Boston, MA 05\/15\/2014 (wallstreetpr) \u2013\u00a0China XD Plastics Co Ltd (NASDAQ:CXDC)<\/b> reported its first quarter 2014 (1Q2014) results with net income of $22 million with revenue of $223.6 million and gross profit of $46.6 million.<\/p>\n
Higher-end products drive growth<\/b><\/p>\n
Revenues were up by 30.8% to $223.6 million (1Q2013: $171.0 million), due to increase in sales volume (+12.8%) and increase in average RMB selling price (+14.0%) as a result of growing demand for automotive polymer composite materials by automotive customers. Total volume of products shipped during the quarter was 68,945 metric tons, up by ~13% compared to 1Q2013.<\/p>\n
Higher-end product represents ~74% of total revenues during the first quarter. So, the growth in higher-end product sales and suspension of sales discounts increased the gross profit by ~60% to $46.6 million (1Q2013: $29.2 million) and improved the gross margin to 20.9% from 17.1% in 1Q2013.<\/p>\n
Higher gross profit offset the increasing R&D costs and generated growth in EBITDA to $43.5 million, up by ~58% over prior year period. Consequently, it increased the net income to $22.0 million versus net income of $14.5 million in 1Q2013.<\/p>\n
China XD Plastics Co Ltd (NASDAQ:CXDC) is financial sound with the cash balance of $170.4 million, $477.5 million in working capital and shareholder\u2019s equity of $420.6 million as of March 31, 2014.<\/p>\n
Growth prospects<\/b><\/p>\n
Modified plastic market is one of large segment in China and expects to grow in coming years due to increasing use modified plastics per vehicle. Favorable government policies and low penetration in the market drive the need for automotive products. Frost & Sullivan expects that the auto modified plastic market size will grow at 14.2% per year till 2015.<\/p>\n
China XD Plastics Co Ltd (NASDAQ:CXDC) delivers higher volumes of shipment during 1Q2014 and expects strong demand in automotive applications of its products and services. The Company intends to develop new products and enhance its product offerings especially in the higher-end applications to address the growing demand. Accordingly, the Company expects revenues of $950 million to $1.05 billion with net income of $100-$120 million in FY2014.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/15\/2014 (wallstreetpr) \u2013\u00a0China XD Plastics Co Ltd (NASDAQ:CXDC) reported its first quarter 2014 (1Q2014) results with net income of $22 million with revenue […]<\/p>\n","protected":false},"author":32,"featured_media":18123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[5572,5573],"stock_ticker":[],"class_list":["post-22363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-china-xd-plastics-co-ltd-nasdaqcxdc","tag-nasdaqcxdc","entry"],"acf":[],"yoast_head":"\n