Core Viewpoint - The company reported significant growth in revenue and net profit for the first half of 2025, driven by rising prices of refrigerants and improved industry dynamics [1][2]. Financial Performance - In 1H25, the company achieved total revenue of 2.828 billion yuan, a year-on-year increase of 38.58% - The net profit attributable to shareholders reached 999.5 million yuan, up 159.22% - The net profit excluding non-recurring items was 986 million yuan, reflecting a growth of 163.61% - In 2Q25, total revenue was 1.616 billion yuan, a 49.36% increase year-on-year - The net profit attributable to shareholders for 2Q25 was 594 million yuan, up 158.98% - The net profit excluding non-recurring items for 2Q25 was 590 million yuan, a rise of 168.64% [1]. Product Pricing and Market Dynamics - The average selling price of refrigerants in 1H25 was 39,000 yuan/ton, a 56.5% increase year-on-year, while external sales volume was 62,000 tons, down 6.3% - In 2Q25, the average selling price was 40,300 yuan/ton, a 55.1% increase year-on-year, with external sales volume at 34,900 tons, up 3.1% [1]. - The refrigerant market is experiencing upward price trends due to supply constraints from production quotas and increased domestic and international demand driven by policies and urbanization [2]. Industry Outlook - The refrigerant industry is expected to continue its upward trend in pricing through 2025, supported by improved supply-demand dynamics and industry competition [2]. - The company is actively enhancing its integrated supply chain, with ongoing projects in lithium hexafluorophosphate and various fluorinated compounds [3]. Investment Outlook - The company is positioned as a leading player in the refrigerant market, with projected net profits for 2025-2027 of 2.147 billion, 2.655 billion, and 3.185 billion yuan, representing year-on-year growth rates of 175.83%, 23.65%, and 19.93% respectively [3].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report indicates that the refrigerant market is experiencing a sustained upward trend, with a gradual emergence of a main bullish market [5] - The company achieved a revenue of 5.8 billion yuan in Q1 2025, representing a year-on-year increase of 6.05%, and a net profit attributable to shareholders of 809 million yuan, up 160.64% year-on-year [5] - The report maintains profit forecasts for 2025-2027, expecting net profits of 5.128 billion, 7.285 billion, and 8.535 billion yuan respectively, with corresponding EPS of 1.90, 2.70, and 3.16 yuan [5] Financial Performance Summary - In Q1 2025, the company's revenue from various segments was as follows: fluorochemical raw materials (326 million yuan, +26.90%), refrigerants (2.618 billion yuan, +64.63%), and other segments [6] - The average price of refrigerants in Q1 2025 increased significantly, with a year-on-year rise of 58.08% to 37,504 yuan/ton [6] - The company’s total revenue for 2023 was 20.655 billion yuan, with a projected increase to 28.642 billion yuan in 2025, reflecting a year-on-year growth of 17.1% [8] Market Trends - The report highlights a continuous increase in air conditioning production in China, with expected growth rates of 9.9%, 14.1%, and 14.3% from May to July 2025 [7] - The demand for air conditioning in overseas markets is also strong, with significant sales increases reported by major manufacturers [7]