Core Viewpoint - The company,昊华科技, has confirmed that its PTFE products are applicable in PCB substrates and plans to increase investment and research in this area [2] Group 1: Company Developments - The company’s subsidiary, 中化蓝天, has successfully launched a high-performance organic fluorine materials project with an annual capacity of 26,000 tons, producing qualified PTFE products [2] - The current PTFE production capacity of 中昊晨光 is 48,000 tons per year [2] Group 2: Future Plans - The company intends to enhance its investment and research efforts in the PCB sector [2]

Core Viewpoint - Haohua Technology (600378.SH) is a leading domestic enterprise in the specialty gas industry, focusing on the electronic information sector with over 50 years of technological accumulation and innovation [1] Group 1: Company Overview - Haohua Gas, a subsidiary of Haohua Technology, has a total production capacity of tens of thousands of tons, with some products holding a domestic market share of up to 60% [1] - The main products include nitrogen trifluoride, carbon tetrafluoride, sulfur hexafluoride, tungsten hexafluoride, hexafluoropropane, hydrogen selenide, hydrogen sulfide, and hydrogen bromide [1] - The company is currently developing electronic mixed gases for photolithography applications [1] Group 2: Technological Advancements - The company utilizes advanced fluorine production technology and vertical high-efficiency fluorination reactors to achieve international advanced product standards for high-purity carbon tetrafluoride [1] - The ultra-high-purity sulfur hexafluoride has been upgraded from the existing high-purity product, achieving over 60% market share in domestic flat panel display applications [1] - Haohua Technology has successfully developed eight types of products, including electronic-grade hexafluorobutylene and electronic-grade hydrogen bromide, contributing to the domestic substitution of integrated circuit etching gases [1] Group 3: Market Outlook - The electronic specialty gas business is expected to benefit from the recovery of end-user markets and the growing demand for AI applications [1]

Core Viewpoint - The company, Haohua Technology, is focusing on the production of polyvinylidene fluoride (PVDF) for the lithium battery industry, enhancing its market position and product offerings in key applications [1] Group 1: Product Applications - The PVDF resin produced by the company's subsidiary, Sinochem Lantian, is widely used in lithium batteries, coatings, and other core areas [1] - The company has developed high-performance PVDF binders for various lithium battery types, including high-pressure LFP and high-nickel NCM, which improve electrochemical performance [1] Group 2: Market Position and Capacity - The current production capacity of PVDF is 22,500 tons per year, with plans for gradual release of additional capacity [1] - The company has established stable supply relationships with eight out of the top ten global lithium battery manufacturers, indicating a strong market presence [1]

Core Viewpoint - The company has developed sodium-ion battery electrolyte samples and plans to establish industrial production facilities, leveraging its experience in lithium battery electrolyte development [1] Group 1: Sodium-Ion Battery Development - The company has completed small and medium sample experiments for sodium-ion battery electrolytes and is ready for industrialization [1] - The company plans to build industrial production facilities for sodium-ion battery electrolytes [1] Group 2: Solid-State Battery Research - The company is tracking the technological advancements in solid-state batteries, focusing on cost reduction and design optimization for binders, polymer electrolytes, and sulfide/halide electrolytes [1] - The company is involved in a provincial "pioneer" project in Zhejiang, collaborating with upstream and downstream enterprises to promote technological progress and industrial application of solid-state batteries and related materials [1] Group 3: Market Position and Applications - As of the first half of 2025, the company ranks seventh in domestic electrolyte shipments, placing it in the second tier of the industry [1] - The company's electrolyte materials are primarily used in power battery projects for new energy vehicles, next-generation long-cycle energy storage projects, and consumer digital battery sectors [1]

Investment Rating - The report maintains an "Optimistic" rating for the chemical industry [3][4]. Core Insights - The report highlights a recovery opportunity at the bottom of the chemical cycle, particularly in the titanium dioxide sector, with major companies expanding globally and focusing on asset acquisitions [3][4]. - Global oil supply is expected to increase significantly, driven by non-OPEC production, while demand remains stable with a projected global GDP growth of 2.8% [4][5]. - The report emphasizes the importance of various chemical chains, including textiles, agriculture, and exports, as well as the potential for recovery in profitability for titanium dioxide due to easing trade tensions and improved overseas real estate conditions [3][4]. Summary by Sections Industry Dynamics - Oil supply is anticipated to rise, with OPEC+ expected to increase production, while demand is stable but may slow due to tariffs [4]. - Coal prices are expected to stabilize at a low level, and natural gas exports from the U.S. are likely to increase, reducing import costs [4]. Chemical Product Prices and Trends - The report notes that the PPI for all industrial products fell by 2.3% year-on-year in September, indicating a narrowing decline compared to August [5]. - Manufacturing PMI rose to 49.8%, suggesting a continued recovery in manufacturing activity [5]. Investment Analysis - The report suggests focusing on four key areas for investment: textiles, agriculture, export-related chemicals, and sectors benefiting from reduced competition [3]. - Specific companies to watch include Lu Xi Chemical, Tongkun Co., and Huafeng Chemical in the textile chain, and various firms in the agricultural sector such as Hualu Hengsheng and Baofeng Energy [3][4]. Key Company Valuations - The report provides a valuation table for key companies, indicating their market capitalization and projected earnings for the coming years [14].

Investment Rating - The report maintains an "Optimistic" rating for the chemical industry [3][4]. Core Insights - The report highlights the global expansion of major titanium dioxide manufacturers, emphasizing the opportunity for industry recovery from the bottom of the cycle. The acquisition of Venator UK's titanium dioxide assets and the establishment of subsidiaries in Malaysia and the UK are key developments [4][5]. - The macroeconomic outlook for the chemical sector indicates stable oil demand despite a slight slowdown due to tariffs, with global GDP growth projected at 2.8%. The report also notes that coal prices are stabilizing and natural gas export facilities in the U.S. are expected to accelerate [4][5]. - The report suggests investment strategies across various sectors, including textiles, agriculture, and chemicals, with a focus on companies benefiting from the "anti-involution" policies [4][5]. Summary by Sections Industry Dynamics - The report discusses the current macroeconomic conditions affecting the chemical industry, including oil supply and demand dynamics, with a forecast of increased production from non-OPEC sources and stable global oil demand [5][6]. - It notes that the PPI for industrial products decreased by 2.3% year-on-year in September, indicating a stabilization in prices due to improved supply-demand structures [6]. Investment Analysis - The report recommends a diversified investment approach focusing on sectors such as textiles, agriculture, and export-oriented chemicals, highlighting specific companies for potential investment [4][18]. - Key materials for growth are identified, including semiconductor materials and packaging materials, with specific companies mentioned for each category [4][18]. Price Movements - The report provides detailed price movements for various chemical products, including titanium dioxide, fertilizers, and pesticides, indicating a mixed outlook with some prices stabilizing while others show slight declines [11][14][20]. - It highlights the impact of external factors such as raw material costs and international trade dynamics on pricing trends within the chemical sector [11][14].

Investment Rating - The report maintains a "Strong Buy" rating for the oil and petrochemical sector [1]. Core Viewpoints - Geopolitical risks in the Middle East have eased, leading to a continued downward trend in oil prices. WTI crude futures fell by 1.00% and Brent crude futures by 1.21% during the period from October 10 to October 17, 2025 [6]. - OPEC's latest monthly market report maintains its global oil demand growth forecast for the next two years, predicting an increase of 1.3 million barrels per day in 2025 and 1.4 million barrels per day in 2026 [6]. - The domestic oil companies are reducing their sensitivity to oil price fluctuations through upstream and downstream integration and diversifying their oil and gas sources [7]. Summary by Sections Oil and Petrochemicals - Geopolitical tensions have decreased, resulting in a downward trend in oil prices. The easing of risks is reflected in the signing of a ceasefire agreement in Gaza and calls for further implementation of the ceasefire by the UN [6]. - The U.S. government is facing a budget impasse, which is impacting economic operations and creating uncertainty regarding fiscal policies [6]. - The report suggests that while short-term oil price risks may persist, the long-term outlook remains anchored by fundamental demand growth [7]. Fluorochemicals - The supply of popular fluorinated refrigerants is tight, leading to continued price increases. R32 refrigerant prices remain high, and R134a prices are also on the rise due to supply constraints and increasing domestic demand [6][7]. - The report highlights that the production of second-generation refrigerants is declining, while third-generation refrigerants have limited quota increases, stabilizing market competition [6]. Semiconductor Materials - The semiconductor sector is experiencing an upward cycle, supported by improving fundamentals and domestic substitution trends. The report recommends focusing on companies like Nanda Optoelectronics and Shanghai Xinyang [7].

Investment Rating - The investment rating for the chemical raw materials industry is "Positive" (maintained) [1] Core Views - The report emphasizes that the refrigerant trend remains unchanged, suggesting to actively seize layout opportunities after market corrections [4][22] - The fluorochemical industry chain has entered a long prosperity cycle, with significant growth potential across various segments, including fluorite, refrigerants, and high-end fluorinated materials [22] Summary by Sections 1. Industry Overview - The fluorochemical index decreased by 8.97% from October 13 to October 17, underperforming the Shanghai Composite Index by 7.50% [6][24] - The average price of fluorite (97% wet powder) as of October 17 is 3,620 CNY/ton, down 0.44% week-on-week, but up 3.12% year-on-year [19][34] 2. Refrigerant Market - As of October 17, prices for various refrigerants are as follows: R32 at 62,500 CNY/ton, R125 at 45,500 CNY/ton, R134a at 53,000 CNY/ton, R410a at 53,000 CNY/ton, and R22 at 16,000 CNY/ton [20][23] - The market for R32 and R134a is expected to remain warm due to slight recovery in domestic production demand and seasonal export orders [21][22] 3. Key Companies and Performance - Recommended stocks include Jinshi Resources, Juhua Co., Sanmei Co., and Haohua Technology, with other beneficiaries being Dongyangguang, Yonghe Co., Dongyue Group, and Xinzhou Bang [11][22] - Sanmei Co. expects a net profit of 1.524 to 1.646 billion CNY for the first three quarters of 2025, representing a year-on-year increase of 171.73% to 193.46% [10]

Group 1 - The A-share market experienced fluctuations, with the China Securities Petrochemical Industry Index declining by approximately 1%, while only a few stocks such as Luxi Chemical, Xin Feng Ming, Blue Sky Technology, China National Offshore Oil Corporation, and Yangnong Chemical saw gains [1] - In the fluorochemical sector, the third-generation refrigerant quotas are mainly concentrated among leading companies like Juhua Co., Sanmei Co., and Haohua Technology, indicating a high industry concentration [1] - The refrigerant industry has maintained a high level of prosperity this year, leading to significant positive performance forecasts for major refrigerant companies in the first three quarters [1] Group 2 - According to Baichuan Yinfeng data, as of October 15, 2023, the domestic average prices for mainstream third-generation refrigerants are as follows: R32 at 62,500 yuan/ton (up 45.35% year-to-date and 64.47% year-on-year), R125 at 45,500 yuan/ton (up 8.33% year-to-date and 30% year-on-year), R134a at 52,500 yuan/ton (up 23.53% year-to-date and 54.41% year-on-year), and R410a at 53,000 yuan/ton (up 26.19% year-to-date and 45.21% year-on-year) [1] - According to the latest report from Shenwan Hongyuan Securities, the long-term logic for refrigerants remains intact under international agreements, and the industry outlook is positive, with expectations for price resonance in both domestic and foreign trade [1] - The Petrochemical ETF (159731) and its linked funds closely track the China Securities Petrochemical Industry Index, which is primarily composed of three major sectors: refining and trading (25.60%), chemical products (23.72%), and agricultural chemical products (19.91%), all of which are expected to benefit from policies aimed at reducing competition, restructuring, and eliminating outdated production capacity [2]

Core Viewpoint - The stock of Haohua Technology has experienced fluctuations, with a recent decline of 2.03% and a year-to-date increase of 2.96%, indicating volatility in its market performance [1] Company Overview - Haohua Technology, established on August 5, 1999, and listed on January 11, 2001, is based in Beijing and specializes in providing comprehensive services for chemical engineering and petrochemical projects, including technology development, consulting, and engineering design [2] - The company's main business revenue composition includes high-end fluorine materials (59.91%), high-end manufacturing chemical materials (19.42%), engineering technical services (11.61%), electronic chemicals (7.45%), and trade and others (1.74%) [2] - Haohua Technology operates within the basic chemical industry, specifically in the chemical products and fluorine chemical sectors, and is associated with concepts such as methanol, coal chemical, social security heavy holdings, state-owned enterprise reform, and fluorine chemicals [2] Financial Performance - For the first half of 2025, Haohua Technology reported a revenue of 7.76 billion yuan, reflecting a year-on-year growth of 124.33%, and a net profit attributable to shareholders of 645 million yuan, up 74.02% year-on-year [2] - The company has distributed a total of 2.15 billion yuan in dividends since its A-share listing, with 1.27 billion yuan distributed over the past three years [3] Shareholder Information - As of June 30, 2025, the number of shareholders of Haohua Technology increased by 14.29% to 18,600, with an average of 48,906 circulating shares per person, a decrease of 12.50% [2] - Among the top ten circulating shareholders, notable changes include an increase in holdings by Huaxia Military Industry Safety Mixed Fund and a decrease in holdings by Da Cheng New Industry Mixed Fund and Da Cheng Rui Jing Flexible Allocation Mixed Fund [3]