Ninestar Forecasts Profit Growth in Q1

Ninestar Forecasts Profit Growth in Q1

According to cninfo.com.cn, Ninestar predicts the net profit attributable to shareholders of the listed company will increase 69.24% to 85.36% year-over-year in the first quarter of 2022 (Q1, 2022) to RMB 420 million to RMB 460 million (US$ 65.94 million to US$ 72.23 million).

Ninestar also predicts that the net profit after deduction of non-recurring gains and losses will be RMB 400 million to 440 million (US$ 62.8 million to US$ 69.1 million), up 102.36% to 122.59% compared to the same period last year.

The main reasons for the changes include:

1. Printer business

Pantum printer sales increased about 33% year-over-year in Q1, which resulted in an approximately 60% increase in consumables. Though Pantum increased R&D investment in medium-and-high-end printers, its net profit still increased about 30% year-over-year. On the other hand, Lexmark printer sales increased about 7% year-over-year in Q1. With the ease of covid-19 restrictions in European and American markets, Lexmark earnings before interest, taxes, depreciation, and amortization (EBITDA) increased about 16% in Q1.

2. Integrated circuits business

Integrated circuits net profit increased more than 10% year-over-year in Q1. Due to its competitiveness in the segment, Ninestar printer chip business continues to grow. Non-printing industrial chips (for industrial control and security, automotive

and new energy, consumer electronics) achieved rapid growth, with operating income increasing more than 150% year-over-year.

3. Print consumables business

Overall net profit for print consumables business decreased about 20% year-over-year in Q1, due to the impact of covid-19 and Chinese spring festival.

Related:

•  Ninestar Forecasts Results for Fiscal Year 2021
• Final: Ninestar Reports Net Profit Growth in Q3
• Ninestar Forecasts Significant Profit Growth for the First Three Quarters
• Final: Ninestar Reports Strong Growth for First Half  
• Ninestar Reveals Strong Growth for First Half of 2021

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