Sanmei(SH:603379) Hua Xia Shi Bao·2025-10-16 09:33Core Viewpoint - The fluorochemical industry is experiencing a significant upturn, with companies like Sanmei Co., Ltd. reporting impressive financial results driven by factors such as reduced production quotas for second-generation refrigerants and increased downstream demand [2][3]. Financial Performance - Sanmei Co., Ltd. expects its net profit for the first three quarters of 2025 to be between 1.524 billion and 1.646 billion yuan, representing a substantial year-on-year increase of 171.73% to 193.46% [3]. - The company's core business, fluorinated refrigerants, is projected to account for approximately 80% of its revenue in 2024, highlighting its critical role in overall performance [2][4]. - The company has shown a consistent upward trend in quarterly performance since 2025, with first-quarter revenue of 1.212 billion yuan and a net profit of 401 million yuan, followed by second-quarter revenue of 1.616 billion yuan and a net profit of 594 million yuan [4]. Industry Dynamics - The increase in profitability is attributed to the further reduction of production quotas for second-generation refrigerants and ongoing management of third-generation refrigerants, leading to an optimized competitive landscape and rising market prices [3][8]. - The fluorochemical industry is characterized by strong cyclicality, with past performance showing significant fluctuations due to market demand and pricing dynamics [5][8]. Cash Flow and Financial Health - As of mid-2025, Sanmei Co., Ltd. reported a net cash flow from operating activities of 944 million yuan, with cash reserves exceeding 3 billion yuan, indicating a healthy debt structure [7]. - The company’s long-term borrowings stood at 389 million yuan, and current liabilities were 804 million yuan, reflecting a solid financial position [7]. Market Trends - The global shift towards environmental policies is driving the gradual phase-out of third-generation refrigerants, while fourth-generation alternatives have not yet been widely adopted, creating supply constraints [8]. - The recovery in downstream demand from sectors such as air conditioning and automotive, combined with production cuts by some companies due to environmental regulations, is further pushing prices upward [8][9].