Focus: Revenue of Sugar Manufacturing Enterprises Slid in First Half of 2019

(1) The industrial inventory in July was down 18.74% YoY. Altogether 8.5659 million tons sugar had been sold till July, 12.57% more YoY. The industrial inventory was 2.1945 million tons, down 18.74% YoY, the stock shrank.
(2) Sugar price rose 5.46% MoM. The global sugar supply changed gradually from oversupply to insufficiency, the domestic spot price climbed the ramp given the industrial inventory.
(3) Sugar import in July was up 77.74% YoY. The import in July was 435,100 tons, up 211.10% MoM or up 77.74% YoY; China had imported 1.5048 million tons sugar in total till the end of July, down 7.18% YoY. The futures price for raw sugar in August again trended differently from the domestic sugar price, the profit from processing imported raw material within the quota enlarged to 2370 yuan/ton, and sugar import in August should grow slightly or maintain at a high level.
(4) All listed companies witnessed slip of revenue during the first half year. According to the semi-annual reports, both the turnover and net profit of the key sugar producers fell significantly, and companies attributed this to the sluggishness of the market. BOABC deems sugar producers and even the whole industry shall endure a hard life if sugar price is not solved fundamentally and if cost is higher than price.