Core Viewpoint - The second ESG China Yangtze River Delta Corporate Social Responsibility Release Conference was successfully held, where the "Yangtze River Delta ESG Action Report (2025)" was officially released, and Juhua Co., Ltd. was recognized for its outstanding performance in ESG and sustainable development by being included in the "China ESG Listed Companies Yangtze River Delta Pioneer 100 (2025)" list [1][3]. Group 1: ESG Evaluation and Recognition - The "Yangtze River Delta ESG Pioneer 100" list is a core component of the "China ESG (Corporate Social Responsibility) Release" series, aimed at selecting the top 100 companies in ESG performance from numerous listed companies in the Yangtze River Delta [3]. - The evaluation criteria for the list include green transformation, governance effectiveness, and social responsibility fulfillment, which strictly assess the sustainable development capabilities and overall value of enterprises [3]. Group 2: Juhua Co., Ltd. Initiatives - Juhua Co., Ltd. has consistently adhered to a green low-carbon sustainable development strategy, focusing on new industrialization while enhancing ESG governance levels [13]. - The company has implemented measures such as optimizing industrial layout, eliminating high-consumption and low-efficiency industries, and launching high value-added, environmentally friendly projects [13]. - Juhua has also promoted initiatives like the "Three Zero Two No" project, energy-saving and emission-reduction technologies, and solar power generation projects to integrate green development concepts throughout its production processes [13]. Group 3: Achievements and Future Commitment - Juhua Co., Ltd. has published its corporate social responsibility report for 15 consecutive years and received various ESG ratings, including an AA rating from Wind ESG and A ratings from both Zhongzheng ESG and Huazheng ESG [15]. - The company is committed to the principle of "creating value and returning to society," focusing on ecological priority and green development to enhance its core competitiveness in the context of "carbon peak and carbon neutrality" [15].

Group 1 - The core point of the news is that Juhua Co., Ltd. experienced a decline in stock price by 5.01%, with a current trading price of 36.76 yuan per share and a total market capitalization of 99.243 billion yuan [1] - Juhua Co., Ltd. is primarily engaged in the research, production, and sales of basic chemical raw materials, food packaging materials, and fluorochemical raw materials, with its main business revenue composition being: refrigerants 46.00%, petrochemical materials 15.14%, basic chemical products and others 10.88%, and fluorinated polymer materials 6.59% [1] - The trading volume for Juhua Co., Ltd. was 1.733 billion yuan, with a turnover rate of 1.69% [1] Group 2 - According to data, one fund under China Europe Fund has Juhua Co., Ltd. as a significant holding, with a reduction of 3,500 shares in the second quarter, leaving a total of 27,600 shares held, which accounts for 3.79% of the fund's net value [2] - The fund, China Europe CSI Sub-Industry Chemical Theme Index Initiation A (021977), has a total scale of 12.6276 million yuan and has achieved a return of 24.04% this year, ranking 2,290 out of 4,220 in its category [2] - The fund manager, Song Weiwei, has been in position for 1 year and 272 days, with the fund's total asset scale at 6.555 billion yuan and the best return during the tenure being 132.85% [3]

Core Viewpoint - Juhua Co., Ltd. experienced a stock price decline of 2.02% on October 14, 2023, with a current price of 37.92 CNY per share and a market capitalization of 102.37 billion CNY [1] Financial Performance - For the first half of 2025, Juhua Co., Ltd. achieved a revenue of 13.33 billion CNY, representing a year-on-year growth of 10.36%, and a net profit attributable to shareholders of 2.05 billion CNY, which is a significant increase of 145.84% year-on-year [2] Stock Market Activity - As of October 14, 2023, Juhua Co., Ltd. has seen a year-to-date stock price increase of 58.73%, with a recent decline of 4.24% over the last five trading days [1] - The stock's trading volume on October 14 was 1.03 billion CNY, with a turnover rate of 0.98% [1] Shareholder Information - As of June 30, 2025, the number of shareholders for Juhua Co., Ltd. was 51,500, a decrease of 2.96% from the previous period [2] - The top shareholders include Hong Kong Central Clearing Limited and several mutual funds, with notable increases in their holdings [3] Dividend Distribution - Juhua Co., Ltd. has distributed a total of 5.973 billion CNY in dividends since its A-share listing, with 1.647 billion CNY distributed over the past three years [3] Business Overview - Juhua Co., Ltd. is primarily engaged in the research, production, and sales of basic chemical raw materials, food packaging materials, and fluorochemical raw materials, with refrigerants accounting for 46% of its main business revenue [1]

Group 1 - The solid-state battery industry is experiencing significant growth, with an upcoming event showcasing over 200 exhibitors and 20,000 professional attendees [2] - The event will feature awards and council meetings, indicating a strong community and recognition within the industry [2] Group 2 - In the lithium battery electrolyte sector, companies are showing varied revenue and profit trends, with some experiencing growth while others face declines [3][6] - Tianqi Materials reported a revenue increase of 28.97% in H1 2025, while Rui Tai New Materials and Duo Fluorine saw revenue declines of 7.36% and 6.65% respectively [4][21] - The overall gross margin for lithium battery electrolyte companies is declining, with the highest margin reported by Juhua Co. at 28.72% and the lowest by Shida Shenghua at 4.76% [3][6] Group 3 - Tianqi Materials achieved a revenue of 70.29 billion yuan in H1 2025, with a net profit of 2.68 billion yuan, reflecting a slight decrease in profit margins [11][12] - New Zhou Bang's revenue reached 42.48 billion yuan, with a net profit of 4.84 billion yuan, both showing positive growth despite slight margin declines [16][17] - Rui Tai New Materials reported a revenue of 9.75 billion yuan, down 7.36%, with a net profit of 0.82 billion yuan, down 24.19% [21][20] Group 4 - Duo Fluorine's revenue was 43.28 billion yuan, a decrease of 6.65%, with a net profit of 0.51 billion yuan, down 16.55% [24][23] - Yongtai Technology reported a revenue of 26.09 billion yuan, up 21.97%, with a net profit of 0.59 billion yuan, up 56.17% [28][27] - Shida Shenghua's revenue was 30.11 billion yuan, up 14.87%, but it faced a net loss of 0.56 billion yuan, a significant decline [32][31] Group 5 - Juhua Co. achieved a revenue of 133.3 billion yuan, a growth of 10.36%, with a net profit of 20.51 billion yuan, reflecting a substantial increase of 146.97% [35][34] - Fengshan Group reported a revenue of 6.19 billion yuan, up 18.74%, with a net profit of 0.30 billion yuan, a remarkable increase of 235.40% [39][40]

Investment Rating - The report maintains an "Outperform" rating for the oil and petrochemical sector [1]. Core Views - The Israeli government's approval of the Gaza ceasefire agreement has led to a continued decline in oil prices, with WTI crude futures dropping by 4.15% and Brent crude by 3.53% during the specified period [6]. - Geopolitical tensions remain, particularly with the U.S. halting diplomatic engagement with Venezuela and potential military escalations, which could disrupt Venezuelan oil supplies [6]. - OPEC+ plans a cautious production increase of 137,000 barrels per day in November 2025, but Russia advocates for maintaining current production levels to avoid downward pressure on oil prices [6]. - The EIA has raised its short-term price forecasts for WTI to $65 per barrel and Brent to $68.64 per barrel, while also slightly increasing U.S. oil production expectations to 13.53 million barrels per day [6]. - The report highlights a tightening supply in the fluorochemical sector, with prices for popular refrigerants like R32 and R134a remaining stable at high levels due to production constraints and increasing demand from the air conditioning and automotive sectors [6]. Summary by Sections Oil and Petrochemicals - The report discusses the impact of geopolitical events on oil prices, noting a significant drop in both WTI and Brent crude prices following the ceasefire agreement [6]. - It tracks OPEC+ production strategies and U.S. oil production forecasts, indicating a cautious approach to increasing supply amidst fluctuating demand [6][7]. Fluorochemicals - The fluorochemical market is experiencing a tight supply for popular refrigerants, with stable high prices due to production limitations and recovering demand in the domestic market [6]. - The report notes a projected increase in production for household air conditioners and automotive refrigerants, driven by government incentives [6]. Investment Recommendations - The report suggests focusing on the oil and petrochemical sector, particularly on companies with resilient earnings such as China National Petroleum, Sinopec, and CNOOC [7]. - In the fluorochemical sector, it recommends companies leading in third-generation refrigerant production and upstream fluorite resources [7]. - The semiconductor materials sector is also highlighted, with a positive outlook due to inventory reduction trends and domestic substitution [7].

Group 1 - The chemical sector experienced a significant pullback on October 13, with the chemical ETF (516020) declining by 3.19% [1][2] - Key stocks in the sector, including Tongkun Co., Ltd., fell over 7%, while several others like Xin Fengming and Huafeng Chemical dropped more than 6%, negatively impacting the overall sector performance [1][2] - The chemical ETF has seen a capital inflow of over 80 million yuan in the last three trading days, indicating renewed interest from investors [1][2] Group 2 - The chemical industry is currently at a historical low in terms of profitability and valuation, with a profit margin of 4.14% for the chemical raw materials and products sector as of August 2025 [3] - The price-to-book ratio for the chemical ETF (516020) is at 2.4 times, which is in the 41.57 percentile of the last decade, suggesting a favorable long-term investment opportunity [3] - The construction of new projects in the basic chemical sector has seen a decline for three consecutive quarters, confirming a supply turning point and indicating a potential improvement in the industry landscape [4] Group 3 - Investment strategies suggest focusing on sectors with significant profit elasticity, such as pesticides, organic silicon, and polyester filament, which are expected to benefit from supply-side improvements [4] - The chemical ETF (516020) tracks the CSI segmented chemical industry index, covering various sub-sectors and concentrating nearly 50% of its holdings in large-cap stocks like Wanhua Chemical and Salt Lake Industry [4] - Investors can also consider the chemical ETF linked funds (A class 012537/C class 012538) for exposure to the chemical sector [4]

Group 1 - The core point of the news is that Juhua Co., Ltd. experienced a decline in stock price by 5.08%, with a current trading price of 38.53 CNY per share and a total market capitalization of 104.02 billion CNY [1] - Juhua Co., Ltd. is based in Quzhou, Zhejiang Province, and was established on June 17, 1998. The company specializes in the research, production, and sales of basic chemical raw materials, food packaging materials, and fluorochemical raw materials [1] - The main business revenue composition includes refrigerants (46.00%), petrochemical materials (15.14%), basic chemical products and others (10.88%), and fluorinated polymer materials (6.59%) among others [1] Group 2 - According to data, a fund under China Europe Fund has Juhua Co., Ltd. as one of its top ten holdings. The fund reduced its holdings by 3,500 shares in the second quarter, now holding 27,600 shares, which accounts for 3.79% of the fund's net value [2] - The fund, China Europe CSI Sub-Industry Chemical Theme Index Initiation A (021977), has a current scale of 12.63 million CNY and has achieved a return of 25.6% this year, ranking 2,235 out of 4,220 in its category [2] - The fund manager, Song Weiwei, has been in position for 1 year and 271 days, with the fund's total asset scale at 6.56 billion CNY. The best return during his tenure is 132.85%, while the worst is -2.97% [3]

Industry and Company Analysis Summary Industry Overview - The data center and AI server liquid cooling industry is experiencing rapid growth due to increasing energy consumption and stringent green requirements. Liquid cooling technology is becoming a necessity as traditional air cooling cannot meet current demands [1][2][3] - The main liquid cooling technologies include cold plate, silent, and spray cooling, with cold plate technology currently dominating the market. However, silent cooling has superior heat dissipation capabilities, making it suitable for high-power density AI data centers [1][4] Key Points and Arguments - **Energy Consumption**: In 2024, China's computing centers are projected to consume 11,601 GWh, accounting for 1.68% of total electricity consumption, surpassing the annual output of the Three Gorges Dam. The government has set strict PUE standards for data centers, which will drop from 1.4 in 2023 to 1.3 by 2025 [2][3] - **Market Opportunity**: 3M plans to exit PFAS production by 2025, creating significant domestic replacement opportunities for companies like Juhua Co., Dongyue Group, and Nantong Zhanding [3][9] - **Liquid Cooling Demand**: The penetration rate of liquid cooling in AI data centers is expected to reach 85% by 2028, with overall cooling demand projected to exceed 100,000 tons [3][11] Liquid Cooling Technologies - **Cold Plate Cooling**: Dominates the market with a 91% application rate in 2022. It is mature and does not require extensive modifications to existing data centers, suitable for single cabinet power scenarios of 50-100 kW [4] - **Silent Cooling**: Although only 8% of the market in 2022, it offers the highest heat dissipation capacity, reaching 150 watts per square centimeter, and is ideal for high-density AI data centers [4] Cooling Media Characteristics - **Water-based**: Cost-effective and suitable for cold plate systems but requires additives to prevent microbial growth [5] - **Oil-based**: Used in silent cooling, with various types like mineral oil and synthetic oil, each having its pros and cons [5] - **Fluorinated**: Includes products like perfluoropolyether and perfluoramine, known for excellent thermal performance but higher costs and environmental risks [6][8] Future Trends - Fluorinated coolants, especially light fluorinated ethers, are expected to become essential in high-performance scenarios due to their material compatibility and environmental properties. New microchannel water-cooling technologies are emerging but are costly and complex [7] - The global cooling liquid demand is projected to grow fivefold in the next four years, with AI data centers contributing significantly to this increase [11] Key Companies and Market Dynamics - **Juhua Co.**: A leader in fluorinated compounds, with plans for 5,000 tons of production capacity [12] - **Dongyue Group**: Offers a comprehensive product line suitable for various liquid cooling solutions [12] - **China Petroleum**: Excels in oil-based cooling liquids with stable production capacity and cost advantages [12] Conclusion The liquid cooling industry is poised for significant growth driven by energy efficiency demands and technological advancements. Companies positioned to capitalize on these trends, particularly in the domestic market, are likely to see substantial opportunities in the coming years [3][9][12]

Investment Rating - The report maintains an "Optimistic" rating for the chemical industry [6][4]. Core Views - Recent price increases in titanium dioxide and significant rises in refrigerant long-term contract prices are noted, indicating a potential recovery in profitability for the titanium dioxide sector [6]. - The macroeconomic outlook for the chemical industry is influenced by stable global GDP growth of 2.8%, with oil demand expected to rise despite some slowdown due to tariffs [6][7]. - The report suggests a strategic focus on sectors benefiting from "anti-involution" policies, including textiles, agriculture, and export-related chemicals [6]. Industry Dynamics - Oil supply is expected to increase significantly, driven by non-OPEC production, while demand remains stable [7]. - The chemical sector is experiencing a recovery phase, with improvements in supply-demand relationships and policy effects leading to price stabilization in various industrial products [9]. - The report highlights the importance of monitoring the performance of key materials in the semiconductor and OLED sectors, as well as the impact of geopolitical events on oil prices [6][12]. Sector Recommendations - The report recommends focusing on specific companies within the textile chain, agricultural chain, and export-related chemicals, such as: - Textile: Companies like Lu Xi Chemical and Tongkun Co. - Agriculture: Companies like Hualu Hengsheng and Baofeng Energy [6]. - Emphasis is placed on the potential for recovery in the titanium dioxide market, particularly with the easing of trade tensions and seasonal demand increases [6][4]. - The report also suggests monitoring the performance of companies in the fine chemicals sector, such as Xinhecheng and Juhua Co., as they may benefit from ongoing market trends [20].

Investment Rating - The report maintains an "Outperform" rating for the fluorochemical industry [5][9]. Core Views - The fluorochemical industry is experiencing a significant price increase in refrigerants, driven by supply constraints and rising demand from both domestic and international markets [2][5][8]. - The transition to liquid cooling technologies in data centers is expected to boost the demand for fluorinated liquids and refrigerants, indicating a positive outlook for companies involved in this sector [3][6][8]. Summary by Sections 1. Industry Performance - As of September 30, the fluorochemical index rose by 7.61% compared to the end of August, outperforming major indices such as the Shanghai Composite and the CSI 300 [1][16]. 2. Refrigerant Market Review - The long-term contract prices for R32 and R410A have increased by 18.97% and 7.26% respectively in Q4, reflecting a strong market sentiment [1][23]. - R32's external trade demand is growing due to environmental regulations, with prices reaching 62,000 CNY/ton for exports and 61,000-63,000 CNY/ton for domestic sales [2][25]. 3. Production and Export Data - Domestic air conditioning production is expected to adjust upwards in Q4 2025, despite a decline in September-October due to high inventory levels from the previous year [3][4]. - The export of refrigerants like R32 has shown a 19% increase year-on-year, while R22 exports have decreased by 33% due to quota reductions [33][4]. 4. Liquid Cooling Demand - The shift towards liquid cooling in data centers is anticipated to significantly increase the demand for fluorinated liquids, with the market expected to exceed 100 billion CNY by 2027 [6][67]. - Companies such as Juhua Co., Dongyue Group, and Sanmei Co. are highlighted as key players benefiting from this trend [3][69]. 5. Regulatory Environment - China's commitment to the Montreal Protocol includes significant reductions in HCFCs and HFCs, which will impact the production quotas for refrigerants like R22 and R32 [70][73]. - The report emphasizes that the tightening of refrigerant quotas will support long-term price increases and profitability for leading companies in the fluorochemical sector [8][73].