BASF's New China Plant Puts Strain on Balance Sheet -- Market Talk

Dow Jones

Sep 18

1512 GMT - BASF's 10-billion-euro investment in a new China plant has put considerable strain on its balance sheet, compromising the German chemical giant's dividend, BofA Securities analyst Matthew Yates says in a note. "We question the contribution BASF's new China plant will make to profits as it ramps up amidst depressed market conditions," he says. According to Yates, the plant also risks cannibalizing the European footprint due to shifting trade flows. This could lead to the need for more restructuring, "which BASF appears reluctant to contemplate, or can ill afford to do." BofA downgrades BASF to underperform from neutral. Shares trade 1.2% lower at 42.97 euros. (sarah.sloat@wsj.com)

(END) Dow Jones Newswires

September 18, 2025 11:12 ET (15:12 GMT)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2568406000"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2568406000\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2568406000?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-09-18 23:12","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2568406000","market":"hk","top_or_hot":-1,"title":"BASF's New China Plant Puts Strain on Balance Sheet -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1512 GMT - BASF's 10-billion-euro investment in a new China plant has put considerable strain on its balance sheet, compromising the German chemical giant's dividend, BofA Securities analyst Matthew Yates says in a note. \"We question the contribution BASF's new China plant will make to profits as it ramps up amidst depressed market conditions,\" he says. According to Yates, the plant also risks cannibalizing the European footprint due to shifting trade flows. This could lead to the need for more restructuring, \"which BASF appears reluctant to contemplate, or can ill afford to do.\" BofA downgrades BASF to underperform from neutral. Shares trade 1.2% lower at 42.97 euros. (sarah.sloat@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  September 18, 2025 11:12 ET (15:12 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BASF's New China Plant Puts Strain on Balance Sheet -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBASF's New China Plant Puts Strain on Balance Sheet -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-09-18 23:12</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1512 GMT - BASF's 10-billion-euro investment in a new China plant has put considerable strain on its balance sheet, compromising the German chemical giant's dividend, BofA Securities analyst Matthew Yates says in a note. \"We question the contribution BASF's new China plant will make to profits as it ramps up amidst depressed market conditions,\" he says. According to Yates, the plant also risks cannibalizing the European footprint due to shifting trade flows. This could lead to the need for more restructuring, \"which BASF appears reluctant to contemplate, or can ill afford to do.\" BofA downgrades BASF to underperform from neutral. Shares trade 1.2% lower at 42.97 euros. (sarah.sloat@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  September 18, 2025 11:12 ET (15:12 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BASFY","symbol_name":"BASF SE","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2568406000","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2568406000","pubTimestamp":1758208320,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1512 GMT - BASF's 10-billion-euro investment in a new China plant has put considerable strain on its balance sheet, compromising the German chemical giant's dividend, BofA Securities analyst Matthew Yates says in a note. \"We question the contribution BASF's new China plant will make to profits as it ramps up amidst depressed market conditions,\" he says. According to Yates, the plant also risks cannibalizing the European footprint due to shifting trade flows. This could lead to the need for more restructuring, \"which BASF appears reluctant to contemplate, or can ill afford to do.\" BofA downgrades BASF to underperform from neutral. Shares trade 1.2% lower at 42.97 euros. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BASFY":"BASF SE","BK4098":"多种化学制品"},"translate_title":"巴斯夫中国新工厂给资产负债表带来压力——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BASFY":0.9},"content_text":"1512 GMT - BASF's 10-billion-euro investment in a new China plant has put considerable strain on its balance sheet, compromising the German chemical giant's dividend, BofA Securities analyst Matthew Yates says in a note. \"We question the contribution BASF's new China plant will make to profits as it ramps up amidst depressed market conditions,\" he says. According to Yates, the plant also risks cannibalizing the European footprint due to shifting trade flows. This could lead to the need for more restructuring, \"which BASF appears reluctant to contemplate, or can ill afford to do.\" BofA downgrades BASF to underperform from neutral. Shares trade 1.2% lower at 42.97 euros. (sarah.sloat@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  September 18, 2025 11:12 ET (15:12 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}