SOPO(SH:600746) Xin Lang Cai Jing·2025-08-15 04:52Core Viewpoint - Jiangsu Sopo (600746.SH) has faced a decline in stock price due to concerns over its planned private placement to raise up to 1.5 billion yuan for its vinyl acetate and EVA integration project, with investors worried about short-term equity dilution and project returns [1][2]. Financial Performance - The company's net profit for the first half of the year decreased by 13.31% year-on-year, with a continuous contraction in gross margin, exacerbated by oversupply in the acetic acid industry leading to falling product prices [1][6]. - In the past five years, Jiangsu Sopo's net profit fluctuated significantly, dropping from 508 million yuan in 2022 to 19 million yuan in 2023, with a projected recovery to 213 million yuan in 2024, still less than half of 2022's profit [6]. - The company's revenue for the first half of the year was 3.158 billion yuan, a slight decrease of 1.08% year-on-year, while net profit was 102 million yuan, down 13.01% [7]. Project Details - The total investment for the vinyl acetate and EVA integration project is 3.225 billion yuan, with 1.5 billion yuan planned to be raised through the private placement [3][8]. - The project aims to produce 330,000 tons/year of vinyl acetate and is expected to take three years to reach full production capacity [6][8]. Market Conditions - The acetic acid market has seen a significant price drop from 6,000 yuan/ton in 2022 to below 3,000 yuan/ton, impacting the company's revenue as acetic acid accounts for 80% of total revenue [6]. - The domestic acetic acid industry is experiencing a supply-demand imbalance, with new capacity exceeding demand growth, leading to increased competition and price declines [6]. Financing Concerns - The planned private placement would result in a dilution of shares, with the issuance of 350 million shares, representing 30% of the current total share capital [2][4]. - The company has a high rolling P/E ratio of over 45, which is above the industry average, raising concerns about the sustainability of its valuation given the current performance pressures [8].