Core Viewpoint - The company expects significant growth in net profit for the first half of 2025, driven by a favorable market environment for refrigerants and strong demand [2][3]. Group 1: Company Performance - The company anticipates a net profit of 1.97-2.13 billion yuan for H1 2025, representing a year-on-year increase of 136%-155% [2]. - For Q2 2025, the expected net profit is between 1.16-1.32 billion yuan, showing a year-on-year growth of 122%-152% and a quarter-on-quarter increase of 44%-63% [2]. - The average price of fluorochemical raw materials is projected to be 3,629 yuan/ton, up 10% year-on-year, with a sales volume of 188,000 tons, an increase of 12% [3]. Group 2: Industry Outlook - The refrigerant industry is experiencing a sustained high level of prosperity due to the reduction of production quotas for second-generation refrigerants (HCFCs) and the implementation of production quotas for third-generation refrigerants (HFCs) starting in 2024 [3][4]. - The average price of refrigerants is expected to be 39,372 yuan/ton, a 62% increase year-on-year, despite a 4% decrease in sales volume to 15.5 tons [3]. - The Ministry of Ecology and Environment has announced a reduction in production and internal use quotas for second-generation refrigerants, aligning with expectations, while third-generation refrigerants have seen an unexpected increase in quotas [4][5].

Core Insights - The demand for computing power is surging in the digital economy, leading to unprecedented cooling challenges for data centers, making liquid cooling technology a necessary choice for high-density computing centers [1] - Fluorinated liquids are emerging as a key material for liquid cooling systems due to their unique thermal and chemical properties, reshaping the cooling landscape for data centers [1][6] Group 1: Fluorinated Liquids - Fluorinated liquids, primarily composed of perfluoropolyether (PFPE) and other fluorinated compounds, are ideal for immersion cooling systems due to their high insulation, thermal conductivity, low viscosity, and chemical inertness [2] - Compared to traditional cooling fluids like mineral oil or silicone oil, fluorinated liquids offer superior thermal management performance, ensuring efficient heat dissipation for high-power devices such as AI servers and GPU clusters [2][4] - The chemical stability of fluorinated liquids allows for long-term use without significant degradation, enhancing the lifespan of electronic equipment [4] Group 2: Market Potential and Growth - The global shift towards high-density data centers and stringent energy efficiency standards is driving the demand for liquid cooling solutions, with the Chinese market for liquid cooling expected to exceed 120 billion yuan by 2025, growing at a compound annual growth rate of over 60% [6] - Domestic companies like Yonghe Co. are accelerating technological advancements to promote the large-scale application of domestic fluorinated liquids in data centers, semiconductors, and 5G base stations [6][8] - The increasing demand for AI computing power and national projects such as "East Data West Computing" are expected to further boost the fluorinated liquid market, providing long-term growth opportunities [8]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The refrigerant industry continues to experience high demand, leading to significant growth in the company's performance. The company expects a net profit attributable to shareholders of 1.97-2.13 billion yuan for the first half of 2025, representing a year-on-year increase of 136%-155% [1][2]. - The supply of refrigerants is tightening due to the reduction of production quotas for second-generation refrigerants (HCFCs) and the implementation of production quotas for third-generation refrigerants (HFCs) starting in 2024. This, combined with strong downstream demand, is expected to sustain the industry's upward trend [2][3]. Summary by Sections Performance Forecast - For the first half of 2025, the average price of fluorochemical raw materials is expected to be 3,629 yuan/ton, up 10% year-on-year, with sales volume of 188,000 tons, up 12% year-on-year. The average price of refrigerants is projected at 39,372 yuan/ton, up 62% year-on-year, with sales volume of 155,000 tons, down 4% year-on-year [2]. - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 4.191 billion yuan (up 11%), 5.141 billion yuan (up 10%), and 6.286 billion yuan (up 8%) respectively, translating to EPS of 1.55 yuan, 1.90 yuan, and 2.33 yuan [4][5]. Industry Outlook - The Ministry of Ecology and Environment has announced the production and use quotas for ozone-depleting substances and HFCs for 2025, indicating a reduction in second-generation refrigerant quotas by 32,800 tons and third-generation refrigerant quotas exceeding expectations. This orderly reduction in supply, coupled with policies like "old-for-new" exchanges, is expected to support steady growth in demand [3][4]. Financial Metrics - The company’s projected revenue for 2025 is 28.197 billion yuan, with a growth rate of 15.26%. The net profit margin is expected to be 14.9%, with a return on equity (ROE) of 19.62% [5][12].

Macro Dynamics - The mutual visa exemption agreement between China and Malaysia will take effect on July 17, 2025, allowing holders of valid Chinese and Malaysian passports to stay for up to 30 days without a visa, with a cumulative stay of no more than 90 days within 180 days [1] Space Exploration - China plans to launch the Chang'e 7 lunar probe around 2026, focusing on environmental and resource exploration in the Moon's South Pole-Aitken Basin, particularly searching for water ice to support future lunar base construction [2] Trade Relations - The Chinese Ministry of Commerce responded to EU Commission President Ursula von der Leyen's criticisms regarding China's market access and trade practices, emphasizing China's commitment to high-level opening and the positive progress in China-EU trade relations [3] Engineering Machinery Industry - The China Construction Machinery Industry Association reported that excavator sales reached 120,500 units in the first half of the year, a year-on-year increase of 16.8%. The domestic demand for earth-moving equipment is expected to maintain double-digit growth throughout the year [5] Financial Institutions - China Pacific Insurance announced that Tian Geng has been approved to serve as the company's vice president [7] - Guizhou Bank has received approval to absorb and merge with Tongren Fengyuan Rural Bank, which will lead to the latter's dissolution as a legal entity [9] - Huatai Life announced that Niu Zengliang will take over as the company's general manager starting July 10, 2025 [10] Market Data - As of July 10, the Shanghai Composite Index rose by 0.48%, with significant gains in the real estate sector and a total market turnover of approximately 1.5 trillion yuan [11] - The financing balance of the two markets increased by 3.842 billion yuan, with the Shanghai Stock Exchange reporting a balance of 932.96 billion yuan and the Shenzhen Stock Exchange reporting 916.856 billion yuan [12] Company Dynamics - Sanmei Co., Ltd. expects a net profit of 948 million to 1.042 billion yuan for the first half of 2025, representing a year-on-year growth of 146.97% to 171.67% due to rising prices of fluorinated refrigerants [14] - Great Wall Military Industry anticipates a net loss of 25 million to 29.5 million yuan for the first half of 2025, primarily due to unfulfilled orders and increased R&D expenses [15] - XINWANDA plans to launch its first-generation all-solid-state battery product in 2026 and a second-generation product in 2027 [16] - Alibaba's cross-border e-commerce platform AliExpress has launched a "one-hour delivery" service in the UK, focusing on snacks, beverages, and daily necessities [17]

Core Viewpoint - Zhejiang Sanmei Chemical Co., Ltd. expects significant growth in net profit for the first half of 2025, projecting an increase of 146.97% to 171.67% compared to the same period last year [1][2]. Group 1: Performance Forecast - The company anticipates a net profit attributable to shareholders ranging from 947.619 million to 1,042.381 million yuan for the first half of 2025, an increase of 563.9224 million to 658.6844 million yuan year-on-year [1][2]. - The expected net profit after deducting non-recurring gains and losses is projected to be between 939.019 million and 1,033.781 million yuan, reflecting a year-on-year increase of 151.01% to 176.34% [1][2]. Group 2: Previous Year’s Performance - In the first half of 2024, the company reported a total profit of 482.9905 million yuan and a net profit attributable to shareholders of 383.6966 million yuan [2]. - The basic earnings per share for the first half of 2024 were 0.63 yuan [2]. Group 3: Reasons for Profit Increase - The increase in profit is attributed to the ongoing production quota management of hydrofluorocarbons (HFCs), an optimized competitive landscape, and growing downstream demand, leading to a steady rise in market prices for the company's fluorinated refrigerants [2]. - The company expects non-recurring gains and losses for the first half of 2025 to amount to 8.6 million yuan, which includes government subsidies, investment income, and asset disposal gains, with a decrease of 999,800 yuan compared to the previous year [2].

Group 1 - Company Junhe Precision expects a net profit of 49.3 million to 53 million yuan for the first half of 2025, representing a year-on-year increase of 46.61% to 57.61% [1] - Company Yingtan plans to reduce its shareholding by a total of 2.79%, with specific reductions from major shareholders and executives due to funding needs [1][2] - Company EFORT W.F.C. Holding plans to sell 22% of its stake in GME Aerospace for 6 million euros, reducing its ownership from 48.99% to 19.76% [2] - Company Huada Jiutian has terminated its major asset restructuring plans due to a lack of consensus on key terms among parties involved [3] - Company Shankai Intelligent is planning a change in control, leading to a temporary suspension of its stock trading [3] Group 2 - Company TCL Technology anticipates a revenue of 82.6 billion to 90.6 billion yuan for the first half of 2025, with a net profit increase of 81% to 101% [5][6] - Company TCL Zhonghuan expects a net loss of 4 billion to 4.5 billion yuan for the first half of 2025, worsening from the previous year [6] - Company Lvtianhua forecasts a net profit decline of 62.64% to 73.85%, estimating a profit of 3.5 million to 5 million yuan [8] - Company Zhongke Jincai expects a net loss of 75 million to 105 million yuan, representing a decline of 51.43% to 112% [9] - Company AVIC Heavy Machinery anticipates a net profit decrease of approximately 33.29% for the first half of 2025 [11] Group 3 - Company Jiangbolong reports that the National Integrated Circuit Industry Investment Fund has reduced its stake to below 5% [13] - Company Erlu Si plans to reduce its shareholding by up to 1% due to personal funding needs [14] - Company Zhonghua Rock intends to reduce its shareholding by up to 0.46% for personal funding reasons [15] - Company Jiekang Equipment plans to reduce its shareholding by up to 1% due to personal funding needs [15] - Company Jianzhijia's actual controller plans to increase its shareholding by 50,000 to 100,000 shares [16] Group 4 - Company Jinshi Resources has had a lawsuit terminated after the plaintiff withdrew their case, which had sought 90 million yuan in damages [18] - Company Huaye Fragrance plans to reduce its shareholding by up to 3% due to personal financial arrangements [19] - Company Zhaobiao plans to reduce its shareholding by a total of 0.54% due to personal funding needs [20] - Company Shenkai plans a full takeover offer at 16.13 yuan per share for 8659 million shares, representing 57.73% of its issued shares [21] - Company Suqian Liansheng plans to reduce its shareholding by a total of 6.03% due to personal funding needs [22]

Investment Rating - The report maintains an "Outperform" rating for the company [2][7]. Core Insights - The company is expected to achieve a significant increase in net profit for the first half of 2025, with estimates ranging from 1.97 to 2.13 billion yuan, representing a year-on-year growth of 136% to 155% [7]. - The price of refrigerants continues to rise significantly, with the average sales price in Q2 2025 increasing by 65% year-on-year [7]. - The company is well-positioned to benefit from the upward trend in refrigerant prices due to its leading production quotas for second and third-generation refrigerants [7]. Financial Data and Profit Forecast - Total revenue is projected to grow from 24.46 billion yuan in 2024 to 33.82 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 10.6% [3]. - Net profit attributable to the parent company is forecasted to increase from 1.96 billion yuan in 2024 to 7.57 billion yuan in 2027, reflecting a CAGR of 30% [3]. - Earnings per share (EPS) is expected to rise from 0.73 yuan in 2024 to 2.80 yuan in 2027 [3]. Market Data - As of July 9, 2025, the closing price of the stock was 27.55 yuan, with a market capitalization of 74.38 billion yuan [4]. - The stock has a price-to-earnings (P/E) ratio of 16 for 2025, which is projected to decrease to 10 by 2027 [3][4]. Segment Performance - The sales volume of fluorinated refrigerants in Q2 2025 was 84,800 tons, with a significant increase in sales price [7]. - The company’s fluorinated polymer materials and fine chemicals segments are showing signs of recovery, with sales volumes increasing by 5% and 12% year-on-year, respectively [7].

Fundraising Overview - The company Zhejiang Yonghe Refrigeration Co., Ltd. raised a net amount of RMB 1,720,163,802.37 through a specific stock issuance approved by the China Securities Regulatory Commission [1] - The funds were deposited into a designated account on March 7, 2025, and the verification report was issued by Lixin Accounting Firm [1] Temporary Fund Supplementation - The company approved the use of up to RMB 600 million of idle fundraising for temporary liquidity support related to its main business operations, with a usage period not exceeding 12 months from the board's approval date [1] Special Account Management - The company established a special account for fundraising and signed a regulatory agreement to ensure proper management and protection of investor rights, in compliance with relevant regulations [2] - The special accounts were opened at China Industrial and Commercial Bank and China Bank, with specific balances of zero at the time of reporting [2] Regulatory Agreement Details - The agreement involves multiple parties, including the company, its subsidiaries, and the underwriting institution, Citic Securities, to regulate the storage and use of the fundraising [3] - The funds in the special account are restricted to temporary liquidity support and cannot be used for other purposes, with a maximum amount of RMB 200 million allowed for cash management products [3] Oversight and Compliance - The underwriting institution is responsible for ongoing supervision of the fundraising management, ensuring compliance with regulations and timely reporting of account statuses [4] - The agreement stipulates that any changes in representatives or account management must be communicated promptly to all parties involved [5] Conclusion - The announcement reflects the company's commitment to regulatory compliance and investor protection through structured fundraising and liquidity management practices [6]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% in the next six months [4][8]. Core Insights - The company is expected to see a significant increase in net profit for the first half of 2025, with estimates ranging from 1.97 billion to 2.13 billion yuan, representing a year-on-year growth of 136% to 155% [6]. - The rise in refrigerant prices is a key driver for the company's performance, with the second-generation HCFCs production quotas being further reduced and the third-generation HFCs entering a production quota system [6]. - The company’s core products, particularly fluorinated refrigerants, have seen stable growth in both price and sales volume, contributing to increased profitability [6]. Financial Performance Summary - The company’s total revenue for 2025 is projected to be approximately 25.47 billion yuan, with a net profit of around 4.35 billion yuan, translating to a basic earnings per share of 1.46 yuan [7]. - The company’s operating profit is expected to rise significantly, with projections of 4.94 billion yuan for 2025, up from 2.50 billion yuan in 2024 [7]. - The report highlights a strong growth trajectory for the company, with a projected net profit of 6.64 billion yuan by 2027 [7].

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [3][7]. Core Views - The company is expected to see a significant increase in net profit for the first half of 2025, with estimates ranging from 1.97 to 2.13 billion yuan, representing a year-on-year growth of 136% to 155% [1][7]. - The long-term outlook for refrigerants is positive, with the company positioned to benefit as a leader in the fluorochemical industry [1][7]. Financial Data and Valuation - Projected total revenue for 2025 is 29.355 billion yuan, with a year-on-year growth of 20% [2][11]. - Estimated net profit for 2025 is 3.943 billion yuan, reflecting a growth of 101% compared to the previous year [8][12]. - The company's earnings per share (EPS) for 2025 is projected to be 1.46 yuan, with a price-to-earnings (PE) ratio of 19.7 times [8][12]. Production and Sales Performance - The company's main products, including fluorinated refrigerants, have shown stable growth in production and sales, contributing to increased gross margins and profit [7]. - Revenue from refrigerants is expected to reach 6.086 billion yuan in the first half of 2025, with a significant price increase of 61.88% year-on-year [7]. Market Dynamics - The report highlights that the price of refrigerants has been recovering due to reduced production quotas for second-generation refrigerants and strong downstream demand [7]. - The company is expected to benefit from a favorable market environment as global temperatures rise, leading to increased demand for refrigerants [7].