Sanmei(SH:603379) Hua Xia Shi Bao·2025-10-17 06:34Core Viewpoint - The fluorochemical industry is experiencing a significant upturn, with companies like Sanmei Co., Ltd. reporting impressive financial results, driven by factors such as quota reductions for second-generation refrigerants and increased downstream demand [1][2]. Financial Performance - Sanmei Co., Ltd. expects a net profit range of 1.524 billion to 1.646 billion yuan for the first three quarters of 2025, representing a substantial year-on-year increase of 171.73% to 193.46% [2][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 [1][2]. - The average price of fluorinated refrigerants has significantly increased, contributing to improved profitability [2][3]. Industry Dynamics - The reduction of production quotas for second-generation refrigerants (HCFCs) and ongoing management of third-generation refrigerants (HFCs) are optimizing the competitive landscape, alongside growing downstream demand [2][3]. - The industry is characterized by strong cyclicality, with past performance showing significant fluctuations due to market demand and pricing changes [4][6]. Cash Flow and Financial Health - Sanmei Co., Ltd. reported a net cash flow from operating activities of 629 million yuan, 484 million yuan, 709 million yuan, and 944 million yuan from 2022 to the first half of 2025, indicating healthy cash flow management [6]. - As of mid-2025, the company holds over 3 billion yuan in cash, with a manageable debt structure, including long-term loans of 389 million yuan and current liabilities of 804 million yuan [6]. Market Trends and Challenges - The global shift towards environmental regulations is leading to the gradual phase-out of third-generation refrigerants, while fourth-generation alternatives have not yet been widely adopted, creating supply constraints [7]. - The industry faces volatility due to various factors, including raw material prices, environmental policies, and changes in downstream demand [7].