Core Viewpoint - First Shanghai maintains a "Buy" rating for Dongyue Group (00189), predicting revenue for 2025-2027 to be RMB 16.09 billion, RMB 17.47 billion, and RMB 18.15 billion respectively, with net profits of RMB 1.90 billion, RMB 2.58 billion, and RMB 2.81 billion. A target price of HKD 18.9 is set for 2025, indicating a potential upside of 57.5% from the current price [1] Financial Performance - In the first half of 2025, the company achieved revenue of RMB 7.46 billion, a year-on-year increase of 2.8%. The gross margin was 29.1%, up nearly 9.3 percentage points, and the net profit attributable to shareholders was RMB 780 million, a significant year-on-year growth of 153.3%, slightly exceeding the company's profit forecast [2] Refrigerant Business - The refrigerant segment showed rapid growth, contributing significantly to the company's performance. In the first half of 2025, this segment generated revenue of RMB 2.29 billion, a year-on-year increase of 47.7%. Profit reached RMB 1.03 billion, up 209.8%, with a segment profit margin of 44.9%, an increase of 23.5 percentage points. The price of major products like R32, R22, and R410a has risen significantly, with R22 priced at RMB 34,500 per ton, up RMB 2,500 per ton since the beginning of the year [3] Fluoropolymer and Silicone Business - The fluoropolymer materials segment continues to face pressure due to weak downstream demand, leading to a further decline in product prices compared to last year. Despite this, the company maintains a competitive advantage with superior product quality and higher prices than market peers. In the first half of 2025, this segment reported revenue of RMB 1.94 billion, a year-on-year decrease of 4.6%, with a segment profit of RMB 260 million and a profit margin of 13.4% [4] - The silicone segment is impacted by the release of new production capacity, weak downstream demand, and international trade conditions, resulting in a serious supply-demand imbalance and declining product prices. In the first half of 2025, revenue was RMB 2.76 billion, down 15.9%, with a profit of RMB 875,000, a decrease of 83.7%, and a profit margin of 0.38% [4]
第一上海：维持东岳集团“买入”评级 目标价18.9港元