July 11 -- Shanghai 3F New Materials (600636), a producer of fluorochemical products and related chemicals, predicts a 1,026 percent year-on-year surge in first half 2011 net profit to 686 million yuan, reports stcn.com, citing a company filing.

The company attributed the better performance to the increased sales as a result of the boom in the fluoride chemical industry and to the consolidation of Inner Mongolia 3F Fluoride Industry into its financial statement.

Fluroine chemical products are widely used in the refrigerant, medical, aiviation, military and other high-end fields.

3F New Materials is the industry pioneer in China and currently has three major production bases. It produces mainly CFC products, fluoropolymer PTFE, PVDF, and fluorine rubber. The company had benefited from the government's supportive policies, according to the report.

The price of R134a, one of its products, rose by more than 40 percent during the first quarter, while the prices of R32 and R125 surged by more than 110 percent and 200 percent during the same period.

CFC, a major source of the company's revenue, is a major raw material for the production of refrigerants, with the company supplying F152, F32 and F125 mainly to DuPont.

The production of air conditioners and refrigerators had increased 42 percent and 27 percent respectively in 2010 due to the home appliances to the countryside program.

The company’s gross profit margin for CFC hit 30 percent and the margin is expected to further increase in future.

Source:CapitalVue