SLCT(SH:600691) Zhong Guo Jing Ying Bao·2026-01-21 06:58Core Viewpoint - LuHua Technology (600691.SH) is expected to report a significant net loss for the year 2025, with estimates ranging from 638 million to 863 million yuan, primarily due to low prices of key products like urea and polyvinyl chloride, alongside asset impairment provisions impacting profitability [2] Company Summary - LuHua Technology's core business includes the production and sales of chemical products and equipment manufacturing, with urea being a crucial profit pillar [2] - The company anticipates a substantial decline in profits due to two main factors: a significant pressure on its main business from weakened market demand and a comprehensive impairment test leading to increased provisions [2] Industry Summary - The domestic urea market in 2025 is facing severe challenges with supply-demand imbalances and declining prices, as evidenced by a drop in average factory prices to 1694 yuan/ton, down 352 yuan/ton from 2024 [2] - According to analysts, the urea price is expected to show some recovery in the first half of 2025, followed by fluctuations in the second half, with an estimated production capacity of 73.8 million tons and effective market demand around 65.5 million tons [3] - Predictions for 2026 suggest that urea prices will continue to operate at low levels with seasonal fluctuations, with average monthly prices expected to range between 1590 and 1850 yuan/ton [3]