Zhejiang Yonghe Refrigerant (SH:605020) HTSC·2025-08-12 05:07Investment Rating - The investment rating for the company is maintained at "Buy" [6][4]. Core Views - The company reported a significant increase in net profit for H1, achieving a year-on-year growth of 141% to reach 270 million RMB, driven by strong refrigerant prices and continued industry demand [1][4]. - The company is expected to benefit from the ongoing high demand for refrigerants, leading to an upward adjustment in profit forecasts for the years 2025 to 2027 [4][15]. Summary by Sections Financial Performance - In H1, the company achieved revenue of 2.45 billion RMB, a year-on-year increase of 12%, with a net profit of 270 million RMB, reflecting a 141% increase [1][6]. - Q2 net profit was 170 million RMB, up 131% year-on-year and 79% quarter-on-quarter, slightly exceeding expectations due to higher refrigerant prices [1][4]. Market Conditions - The refrigerant market remains strong, with prices for key products like R32 and R134a increasing by 8.6% and 3.1% respectively from the end of Q2 [3][4]. - The company is advancing its fourth-generation refrigerant projects, which are expected to enhance its competitive position in the fluorochemical sector [3][4]. Profit Forecast and Valuation - The profit forecast for the company has been revised upwards, with expected net profits of 670 million RMB, 790 million RMB, and 900 million RMB for 2025, 2026, and 2027 respectively, reflecting increases of 48%, 43%, and 40% compared to previous estimates [4][15]. - The target price for the company's stock is set at 29.82 RMB, based on a 21x PE ratio for 2025 [4][7].