Investment Rating - The investment rating for the chemical raw materials industry is "Positive" (maintained) [1] Core Views - The report indicates that the fluorochemical industry is entering a long-term prosperity cycle, with significant growth potential across various segments, including raw materials like fluorite, refrigerants, and high-end fluorinated materials [22][23] - The refrigerant market is experiencing a sustained upward trend, driven by high temperatures and improved demand, particularly in the air conditioning sector [21][22] Summary by Sections Industry Overview - The fluorochemical index increased by 0.96% during the week of July 14-18, outperforming the Shanghai Composite Index by 0.54% [6][25] - The average price of fluorite (97% wet powder) remained stable at 3,200 CNY/ton as of July 18, 2025, with a year-on-year decrease of 13.61% [7][32] Refrigerant Market - As of July 18, 2025, the prices for various refrigerants are as follows: R32 at 54,000 CNY/ton, R125 at 45,500 CNY/ton, R134a at 50,000 CNY/ton, R410a at 49,500 CNY/ton, and R22 at 35,000 CNY/ton [20][24] - The report highlights that R32 and R134a prices have increased by 50.00% and 61.29% respectively compared to 2024 [45] Company Performance - Companies such as Dongyangguang, Juhua, and Sanmei are expected to report significant profit increases for the first half of 2025, with growth rates ranging from 136% to 192.81% [9][10] - Recommended stocks include Jinshi Resources, Juhua, Sanmei, and Haohua Technology, which are positioned to benefit from the ongoing trends in the fluorochemical sector [10][22]

Core Viewpoint - The report highlights significant adjustments in the heavy holdings of Liu Gesong's six funds managed by GF Fund, particularly in the new energy vehicle and semiconductor sectors, with a notable shift towards new consumption, internet, and military industries [1][2]. Fund Holdings Adjustment - Liu Gesong's funds have reduced their positions in several previously favored stocks, including: - North Huachuang: Holdings decreased by approximately 17.69% to 161,240 shares [2]. - Seres: Holdings reduced by 9.14% [6]. - EVE Energy: Holdings decreased by 4.16% [6]. - JinkoSolar: Holdings down by 10.77% [6]. - Conversely, there has been a significant increase in holdings of stocks such as: - DeYe Co.: Increased by 40% [3][8]. - Xichuang Data: Increased by nearly 76% [3]. - Xiaomi Group-W: Increased by 25.66% [7]. Fund Performance - The overall performance of Liu Gesong's funds in Q2 was underwhelming, with all funds experiencing net redemptions: - The best-performing fund, GF Multi-Dimensional Emerging, recorded a net value growth rate of 7.91% [4]. - Other funds, such as GF Small Cap Growth A and C, reported growth rates of 2.38% and 2.28%, respectively [4]. - GF Innovation Upgrade and GF Technology Pioneer recorded negative returns [4]. Market Context - The A-share market saw mixed performance in Q2, with the Shanghai Composite Index rising by 3.26% and the Shenzhen Component Index slightly declining by 0.37% [5]. - Key sectors such as military, banking, and telecommunications showed significant gains, while sectors like food and beverage, home appliances, and steel performed poorly [5]. - Liu Gesong remains optimistic about the domestic economy's resilience, citing factors such as the easing of geopolitical tensions and supportive domestic policies [5].

Investment Rating - The report maintains a "Buy-B" rating for the company [1][8] Core Views - The company is expected to achieve a significant increase in net profit for the first half of 2025, with estimates ranging from 5.9 to 6.5 billion yuan, representing a year-on-year growth of 59.3% to 75.5%, with a median of 6.2 billion yuan, indicating a 67.4% increase [4] - The second quarter of 2025 is projected to see a median net profit of 4.4 billion yuan, reflecting a quarter-on-quarter growth of 86.5% and a year-on-year growth of 135.6% [4] - The company benefits from the high demand for refrigerants, particularly R134a, with a domestic production quota of 49,700 tons, accounting for 23.8% of the market, allowing it to capitalize on favorable market conditions [5] - The geopolitical uncertainties are expected to drive growth in specialty products, with a strong demand for items such as special coatings and materials due to increased military spending globally [5] - The electronic materials segment is anticipated to grow due to the expansion of the integrated circuit and panel industries, with the company competing in the high-frequency PCB substrate market [6] Financial Data Summary - The company’s projected net profits for 2025 to 2027 are estimated at 14.6 billion, 20.1 billion, and 24.6 billion yuan respectively, with corresponding P/E ratios of 22, 16, and 13 times based on the closing price of 25.05 yuan on July 14 [8] - The company’s revenue is expected to grow from 7.85 billion yuan in 2023 to 24.32 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 19.9% [12][14] - The net profit is projected to increase from 900 million yuan in 2023 to 2.46 billion yuan in 2027, reflecting a CAGR of approximately 22.5% [12][14] - The gross margin is expected to stabilize around 26% by 2027, with net margins improving from 11.5% in 2023 to 10.1% in 2027 [12][14]

Investment Rating - The report maintains a positive outlook on the chemical industry, with specific buy and hold recommendations for various companies [2][20]. Core Insights - The report highlights the closure of Dow's organic silicon production capacity in Barry, UK, which is expected to increase domestic export demand and support the upstream industrial silicon costs, indicating a potential reversal in the organic silicon industry [4][5]. - The demand for high-end AI PCBs is projected to surge due to the continuous growth in computing power requirements, driven by GPU, ASIC, and 800G switch technologies [4]. - The report notes that the recent tariff announcements from the US on imports from Southeast Asia are lower than expected, stabilizing pessimistic market sentiments [4]. Industry Dynamics - The macroeconomic outlook for the chemical industry indicates a significant increase in oil supply led by non-OPEC countries, with a stable global GDP growth rate of 2.8% [5]. - The report mentions that coal prices are expected to decline in the medium to long term, alleviating pressure on downstream sectors [5]. - Natural gas exports from the US are anticipated to accelerate, potentially lowering import costs [5]. Company Recommendations - Companies to watch in the organic silicon sector include Dongyue Silicon Materials, Xin'an Chemical, and Xingfa Group [4]. - In the PCB sector, recommended companies include Shengquan Group, Dongcai Technology, Lianrui New Materials, Yake Technology, Tiancheng Technology, and Jiuri New Materials [4]. - For traditional cyclical stocks, the report suggests focusing on leading companies in various segments such as Wanhu Chemical, Hualu Hengsheng, and Baofeng Energy [4]. Price Trends - The report provides specific price movements for various chemical products, such as PTA prices decreasing by 2.8% to 4715 RMB/ton, while MEG prices increased by 0.7% to 4409 RMB/ton [11]. - Urea prices rose by 2.9% to 1800 RMB/ton, while phosphate prices remained stable [12]. - The report notes that the price of DMC increased by 1.9% to 11000 RMB/ton, indicating a recovery in the organic silicon market [15].

Group 1 - The PVDF concept sector experienced a decline of 1.65%, ranking among the top declines in concept sectors, with major declines seen in companies like Sanmei Co., Ltd., Juhua Co., Ltd., and Shenzhen New Star [1][2] - Among the PVDF concept stocks, only two stocks saw price increases, with Jinming Precision Machinery rising by 1.46% and ST Lianchuang by 0.59% [1][2] - The main capital outflow from the PVDF concept sector today was 297 million yuan, with 12 stocks experiencing net outflows, and six stocks seeing outflows exceeding 10 million yuan [2][3] Group 2 - Juhua Co., Ltd. had the highest net capital outflow of 123.45 million yuan, followed by Dongyangguang with 99.37 million yuan and Putailai with 22.80 million yuan [2][3] - The stocks with the highest net capital inflow included Haohua Technology, Jinming Precision Machinery, and Sanmei Co., Ltd., with inflows of 23.99 million yuan, 5.89 million yuan, and 3.76 million yuan respectively [2][3] - The trading volume for Juhua Co., Ltd. was 2.10%, while the trading volume for Jinming Precision Machinery was 4.04% [3]

Key Points - Juhua Co., Ltd. expects a net profit of 1.97 billion to 2.13 billion yuan for the first half of 2025, representing a year-on-year increase of 136% to 155% [1] - The main reasons for the significant profit growth include the continuous recovery in the prices of fluorinated refrigerants and stable growth in production and sales of core products [2] - Haida Group anticipates a net profit of 2.5 billion to 2.8 billion yuan for the first half of 2025, reflecting a year-on-year increase of 17.64% to 31.76% [3][4] - Huagong Technology expects a net profit of 890 million to 950 million yuan for the first half of 2025, indicating a year-on-year growth of 42.43% to 52.03% [5][6] - Yun Aluminum Co., Ltd. forecasts a net profit of 2.7 billion to 2.8 billion yuan for the first half of 2025, showing a year-on-year increase of 7.19% to 11.16% [7][8] - Saint Farm anticipates a net profit of 850 million to 950 million yuan for the first half of 2025, representing a year-on-year increase of 732.89% to 830.88% [13] - Dinglong Co., Ltd. expects a net profit of 290 million to 320 million yuan for the first half of 2025, reflecting a year-on-year increase of 33.12% to 46.9% [14] - Yuxiu Capital forecasts a net profit of 1.473 billion to 1.575 billion yuan for the first half of 2025, indicating a year-on-year growth of 45% to 55% [15] - Haohua Technology expects a net profit of 590 million to 650 million yuan for the first half of 2025, representing a year-on-year increase of 59.30% to 75.50% [16] - Huace Navigation anticipates a net profit of 320 million to 335 million yuan for the first half of 2025, indicating a year-on-year growth of 27.37% to 33.34% [18] - Dajin Heavy Industry expects a net profit of 510 million to 570 million yuan for the first half of 2025, reflecting a year-on-year increase of 193.32% to 227.83% [20] - Shandong Steel anticipates a net profit of approximately 12.71 million yuan for the first half of 2025, marking a turnaround from loss to profit [22]

Investment Rating - The report maintains a "Recommended" rating for the refrigerant industry, indicating a positive outlook on the industry's fundamentals and performance relative to the market index [1]. Core Insights - The refrigerant industry is expected to experience a price uptrend due to supply constraints from production quotas and increasing demand driven by the growth in household air conditioning and automotive sectors [5][9]. - Recent adjustments in production quotas for HFC-32 and HFC-134a show slight increases, while HFC-125's quota has decreased, reflecting a stable yet limited supply environment [6][7][8]. - The demand for refrigerants is projected to rise as the production of household air conditioners and automobiles continues to grow, with significant increases in production volumes noted in recent years [9]. Summary by Sections Industry Performance - The refrigerant prices have shown significant increases, with R32 priced at 53,000 RMB/ton (+3.92% month-on-month), R134a at 49,500 RMB/ton (+2.06%), while R22 and R125 have seen slight declines or stability [5]. - The production quotas for HFC-32 and HFC-134a are being utilized at high levels, with HFC-32's production accounting for 54.38% of its adjusted quota and HFC-134a at 50.28% [5]. Market Demand - The domestic air conditioning market has seen a compound annual growth rate of 5.40% from 2014 to 2024, with production expected to reach 266 million units by 2024 [9]. - The automotive sector is also rebounding, with a projected production of 31.56 million vehicles in 2024, contributing to increased demand for refrigerants in automotive air conditioning systems [9]. Investment Focus - Key companies to watch in the refrigerant sector include Juhua Co., Ltd., Sanmei Chemical, Haohua Technology, Dongyue Group, Yonghe Co., Ltd., and Jinshi Resources, which are highlighted for their potential growth and investment opportunities [9][10].

[Summary of Performance Forecast](index=1&type=section&id=Key%20Highlights) The company anticipates a substantial increase in H1 2025 net profit attributable to shareholders, with re-stated figures showing 10.00% to 21.18% growth and non-recurring net profit up 55.84% to 72.11% H1 2025 Performance Forecast Core Data | Indicator | Estimated Amount (RMB million) | YoY Growth (vs. Restated) | YoY Growth (vs. Pre-Restated) | | :--- | :--- | :--- | :--- | | **Net Profit Attributable to Shareholders** | 590.00 - 650.00 | 10.00% - 21.18% | 59.30% - 75.50% | | **Non-Recurring Net Profit Attributable to Shareholders** | 575.00 - 635.00 | 55.84% - 72.11% | 55.84% - 72.11% | - This performance forecast falls under the category of 'achieving profitability with net profit increasing by over 50% compared to the same period last year'[2](index=2&type=chunk) [Details of Current Period Performance Forecast](index=2&type=section&id=I.%20Current%20Period%20Performance%20Forecast) This section details H1 2025 performance forecasts, including estimated ranges for net profit attributable to shareholders and non-recurring net profit, with comparisons against both pre-restated and restated prior-year data, noting the forecast is unaudited H1 2025 Net Profit Attributable to Shareholders Forecast | Comparison Basis | Estimated Increase (RMB million) | YoY Growth Rate | | :--- | :--- | :--- | | **vs. Prior Period (Pre-Restatement)** | 219.63 - 279.63 | 59.30% - 75.50% | | **vs. Prior Period (Restated)** | 53.62 - 113.62 | 10.00% - 21.18% | H1 2025 Non-Recurring Net Profit Attributable to Shareholders Forecast | Comparison Basis | Estimated Increase (RMB million) | YoY Growth Rate | | :--- | :--- | :--- | | **vs. Prior Period (Pre-Restatement)** | 206.04 - 266.04 | 55.84% - 72.11% | | **vs. Prior Period (Restated)** | 206.04 - 266.04 | 55.84% - 72.11% | - The company completed a business combination under common control with Sinochem Lantian Group Co., Ltd. and Guilin Lanyu Aviation Tire Development Co., Ltd. in 2024, leading to restatement of prior-year financial data[5](index=5&type=chunk) - The performance forecast data is unaudited by a certified public accountant[5](index=5&type=chunk) [Prior Period Performance Review](index=2&type=section&id=II.%20Prior%20Period%20Operating%20Performance%20and%20Financial%20Position) This section provides prior-year financial benchmarks, distinguishing between pre-restatement and post-restatement figures, with restated net profit attributable to shareholders and EPS showing significant increases Prior Period Financial Data (Pre- vs. Post-Restatement) | Indicator | Pre-Restatement (RMB million) | Post-Restatement (RMB million) | | :--- | :--- | :--- | | **Total Profit** | 408.26 | 624.01 | | **Net Profit Attributable to Shareholders** | 370.37 | 536.38 | | **Non-Recurring Net Profit Attributable to Shareholders** | 368.96 | 368.96 | | **Earnings Per Share (RMB)** | 0.41 | 0.49 | [Analysis of Performance Increase Reasons](index=3&type=section&id=III.%20Main%20Reasons%20for%20Current%20Period%20Performance%20Increase) Performance growth is primarily driven by scale expansion and integration synergies from last year's major asset restructuring, sustained high prices of core refrigerant products boosting gross profit, and internal quality and efficiency improvement initiatives - Following the merger with Sinochem Lantian Group and Guilin Lanyu Aviation Tire Development Co., Ltd., the company's asset scale and operating revenue significantly increased[8](index=8&type=chunk) - Integrated management of fluorochemical business is implemented, with integration synergies gradually emerging[8](index=8&type=chunk) - The company's refrigerant product prices remained high and increased, driving an increase in gross profit[8](index=8&type=chunk) - The company continuously carried out excellent operation, quality improvement, and efficiency enhancement initiatives, promoting operating performance growth[8](index=8&type=chunk) [Risk Warning and Other Disclosures](index=3&type=section&id=IV.%20Risk%20Warning) The company confirms no significant uncertainties affect this performance forecast's accuracy, but reminds investors that disclosed data is preliminary, with final figures subject to the official H1 2025 report, advising investment risk awareness - The company confirms there are no significant uncertainties affecting the accuracy of this performance forecast[9](index=9&type=chunk) - Investors are advised that the forecast data is a preliminary result, and specific financial data will be subject to the official semi-annual report, requiring attention to investment risks[10](index=10&type=chunk)

Core Viewpoint - The company, Haohua Technology (600378), expects a significant increase in net profit for the first half of 2025 compared to the previous year, indicating strong financial performance and growth potential [1] Financial Performance Summary - The company anticipates a net profit attributable to shareholders of the parent company between 590 million to 650 million yuan for the first half of 2025, representing an increase of 220 million to 280 million yuan, or a year-on-year growth of 59.30% to 75.50% compared to the previous year (before restatement) [1] - When compared to the previous year (after restatement), the expected increase is between 53.62 million to 114 million yuan, reflecting a year-on-year growth of 10.00% to 21.18% [1] - The projected net profit, excluding non-recurring gains and losses, is estimated to be between 575 million to 635 million yuan, with an increase of 206 million to 266 million yuan, translating to a year-on-year growth of 55.84% to 72.11% compared to the previous year (before restatement) [1] - The same projected net profit (excluding non-recurring gains and losses) compared to the previous year (after restatement) also shows an increase of 206 million to 266 million yuan, with a year-on-year growth of 55.84% to 72.11% [1]

Group 1 - The 12th World High-Speed Rail Conference will be held in Beijing from July 8 to 11, focusing on "High-Speed Rail: Innovative Development for a Better Life" with participation from government officials, diplomats, and industry experts [1] - The Dalian Commodity Exchange announced the listing of pure benzene futures and options starting from July 8, with the first batch of contracts totaling four, trading unit set at 30 tons per hand [3] - A total of 8 companies will have their restricted shares unlocked today, amounting to 235 million shares with a total market value of 6.203 billion yuan, with significant unlocks from companies like Haohua Technology and SiKray [4] Group 2 - 22 companies disclosed stock repurchase progress on July 8, with 7 companies announcing new repurchase plans, and 11 companies completing their repurchase plans, indicating active market engagement [5] - The People's Bank of China has a 131 billion yuan 7-day reverse repurchase operation maturing today, reflecting ongoing liquidity management in the financial system [6]