Investment Rating - The report assigns a "Recommended" rating to the photoinitiator industry, marking its first coverage [2]. Core Viewpoints - The supply-demand dynamics in the photoinitiator industry are improving, leading to a potential recovery in industry profitability [3][10]. - The demand side is witnessing a revival in traditional sectors, while emerging applications are opening new opportunities [6][10]. - The industry is expected to see a concentration of production capacity among companies with scale, cost, and technological advantages [9][10]. Summary by Sections Supply and Demand Dynamics - The prices of various photoinitiator products have increased significantly in 2025, with notable price changes: - Photoinitiator 907: 88 CNY/kg (+27.54% since the beginning of the year) - Photoinitiator 184: 45 CNY/kg (+32.35%) - Photoinitiator TPO: 83 CNY/kg (+10.67%) - Photoinitiator ITX: 155 CNY/kg (+16.54%) [5]. - The photoinitiator market in China is projected to grow, with the UV coating market reaching 6.2 billion CNY in 2023 (+8% YoY), UV ink at 5.5 billion CNY (+11% YoY), and UV adhesive at 2.6 billion CNY (+238% YoY) [6][7]. Demand Drivers - The demand for photoinitiators is expected to rise due to recovery in the real estate sector and growth in downstream applications such as UV inks and adhesives used in electronics and packaging [7][10]. - The global 3D printing industry is projected to grow from 20 billion USD in 2023 to 21.9 billion USD in 2024 (+9.1%), with a compound annual growth rate (CAGR) of 18% expected from 2024 to 2034 [7]. - The PCB market is also on an upward trend, with a projected value of 73.6 billion USD in 2024 (+5.8% YoY) and an expected market size of 94.7 billion USD by 2029 [8]. Supply Side and Industry Structure - The production capacity of leading photoinitiator companies in China for 2024 is as follows: - Jiu Ri New Materials: 23,000 tons - Qiang Li New Materials: 17,000 tons - Wo Kai Long: 13,000 tons [9]. - The industry is experiencing a consolidation trend, with production capacity increasingly concentrated among companies with competitive advantages [9][10]. Investment Strategy - The report suggests that the photoinitiator industry is poised for a rebound in profitability as supply-demand conditions improve, and it highlights the potential for price recovery [10]. - Key companies to watch include Jiu Ri New Materials, Qiang Li New Materials, Yang Fan New Materials, and Xin Han New Materials [11].

Core Viewpoint - The chemical industry is currently experiencing a downturn, leading to increased safety incidents in chemical parks, which may result in stricter regulations on high-risk chemical projects and production oversight [3]. Group 1: Impact of Recent Incidents - A major production safety accident occurred at Shandong Youdao Chemical Co., affecting the supply of chlorantraniliprole and its intermediates, with a market price of 305,000 yuan per ton as of June 20 [2]. - The recent fire at Jiangxi Yangfan's facility will impact the supply of intermediates for light initiators, indicating potential supply chain disruptions in the sector [4]. Group 2: Industry Outlook - The chemical industry is in a downcycle, with companies potentially reducing safety investments, leading to more frequent safety incidents [3]. - Leading companies in the chemical sector are expected to benefit from their stringent safety management processes and advanced production technologies, ensuring stable production amid regulatory challenges [3]. Group 3: Recommendations for Investment - Focus on leading companies in niche segments such as light initiators and nylon production, as industry concentration is expected to increase due to ongoing product upgrades and supply-demand optimization [4].

Group 1 - The chemical industry is experiencing an increase in safety incidents, leading to stricter regulations on high-risk chemical reactions, which may benefit leading companies with better safety controls and advanced production technologies [2] - The explosion at Youdao Chemical has impacted the supply of chlorantraniliprole, potentially driving up prices due to supply shortages [3] - The fire at Jiangxi Yangfan, a subsidiary of Yangfan New Materials, is expected to affect the supply of intermediates for photoinitiators, which may lead to increased industry concentration and benefit leading companies [4] Group 2 - An accident at China Pingmei Shenma Group's nylon technology company has disrupted the supply of caprolactam and other chemical products, affecting related nylon enterprises [5]

Group 1 - The article discusses the recent decline in the U.S. inflation rate, with May's CPI data showing a decrease that was below market expectations. This decline is attributed to low energy prices influenced by trade disputes and OPEC+ production increases, as well as companies stabilizing product prices by absorbing tariff costs [4] - It highlights that only certain sectors are experiencing price increases, while significant categories like clothing and automotive prices continue to fall. Additionally, consumer confidence has been impacted by tariffs, leading to a decrease in demand for travel-related services [4] Group 2 - The article reports on a fire at Jiangxi Yangfan's workshop, which may affect the supply of light initiator intermediates. The demand for light initiators is driven by the PCB industry, with Jiurich and Yangfan being major suppliers. The domestic production and sales of light initiators are on the rise, and product prices are expected to rebound from their lows [5] - It also notes the recent frequency of accidents in chemical enterprises, which has impacted the supply of chemicals like caprolactam. The article suggests focusing on the nylon and specialty nylon supply chain, as caprolactam is used to produce nylon 6, with a current production capacity of 7.1 million tons per year in China [6]

Core Viewpoint - The fire incident at Jiangxi Yangfan's workshop may impact the supply of light curing agent intermediates, particularly affecting the production of light curing agent 907, which is crucial for various applications including PCB inks and fine chemicals [3][4]. Group 1: Incident Overview - On June 9, 2025, a fire occurred at Jiangxi Yangfan, a wholly-owned subsidiary of Yangfan New Materials, resulting in one employee sustaining minor burns [3]. - The local emergency management bureau has mandated Jiangxi Yangfan to halt production and operations for rectification [3]. Group 2: Production Capacity and Revenue Impact - Jiangxi Yangfan has an intermediate production capacity of 3,170 tons, contributing approximately 47.3% of Yangfan New Materials' total revenue of 346 million yuan in 2024 [3]. - The company also has additional production capacities in Inner Mongolia (15,275 tons) and a new facility in Zhejiang (2,200 tons) [3]. Group 3: Market Demand and Supply Dynamics - The demand for light curing agent 907 is driven by the PCB industry, which is experiencing growth due to the recovery in electronic consumer products and the rising computational needs of emerging industries like AI [4]. - Major suppliers of light curing agent 907 in China include Jiurich New Materials and Yangfan New Materials, with the latter relying on intermediates like mercaptan compounds for production [4]. Group 4: Price Trends and Market Outlook - The market for light curing agents has seen continuous growth in production and sales, although prices have fluctuated significantly due to regulatory policies and external factors [5]. - Following a period of price decline from 2020 to 2023, the prices of light curing agents are expected to stabilize and potentially recover as unfavorable factors dissipate, benefiting leading companies in the industry [5].