ZJJH(SH:600160)2025-10-21 05:04Investment Rating - The report initiates coverage with an "Accumulate" rating for Zhejiang Juhua, setting a target price of RMB 41.04 based on a PE of 19x for FY26 [3][12]. Core Insights - Zhejiang Juhua is a leading enterprise in the refrigerant industry, holding a dominant position in fluorine refrigerants with a total R32 production capacity of 190,000 tons, which includes 130,000 tons at the local port, 30,000 tons in Shandong Feiyuan, and 30,000 tons in the UAE, with an additional 30,000 tons under construction [1][14]. - The fluorine refrigerant market is experiencing a robust growth trend, particularly in household air conditioning and automotive sectors, with production figures for room air conditioners showing a steady increase from 222.473 million units in 2022 to an expected 265.984 million units in 2024 [2][11]. - The company is focusing on high-end applications such as liquid cooling and data centers, investing in R&D for high-performance fluorine materials, and expanding its product offerings in various industries including aerospace, military, and semiconductors [4][14]. Financial Projections - The forecasted net profits for Zhejiang Juhua are RMB 4.511 billion, RMB 5.821 billion, and RMB 6.196 billion for the years 2025, 2026, and 2027 respectively, reflecting significant growth [3][5]. - Total revenue is projected to grow from RMB 24.462 billion in 2024 to RMB 31.722 billion in 2027, with a notable increase in net profit margins [5][8]. - The company aims to accelerate the development of fourth-generation refrigerants, specifically HFO-1234yf and HFO-1233zd, with production capacity targets set to reach 10,000 tons per year for HFO-1234yf [4][14].