China Starch expects significant profit increase for 2024

China Starch Holdings Limited (HKEX:3838) has issued a positive profit alert, forecasting a significant increase in profit before taxation for the year ended December 31, 2024. The company expects profit before taxation to range between RMB800 million and RMB840 million, a substantial increase from the RMB177 million recorded in 2023. This projection comes despite an anticipated slight decrease in total revenue to approximately RMB11.4 billion, compared to RMB11.798 billion in the previous year. The company attributes the profit surge to lower corn kernel prices, a key raw material, and increased production and sales of lysine products following facility expansions in 2023. China Starch cautions shareholders and potential investors to exercise caution when dealing in the shares of the company and has advised them to read the annual results for 2024 due to be released March 2025.