Core Viewpoint - Cathay Pacific Haitong maintains an "Overweight" rating for Dongyue Group (00189), projecting net profits attributable to shareholders for 2025-2027 at 1.822 billion, 2.017 billion, and 2.410 billion RMB respectively, with a target price of 15.29 HKD based on a 12x PE for 2026 and an exchange rate of 0.91 [1] Group 1: Refrigerant Business Performance - In H1 2025, the refrigerant segment's revenue reached 2.292 billion RMB, a year-on-year increase of 47.69%, accounting for 30.71% of the group's total external sales [2] - The refrigerant segment achieved a profit of 1.030 billion RMB in H1 2025, reflecting a significant year-on-year growth of 209.77% [2] - Price increases for key products R32 and R410A were the main drivers of the segment's performance growth, attributed to quota restrictions [2] Group 2: Subsidiary and Associate Company Updates - Dongyue Silicon Materials, a non-wholly owned subsidiary, reported unaudited revenue of 490 million RMB and a net profit of 2.857 million RMB for the first three quarters of 2025 [3] - The associate company, Future Materials, has submitted its IPO application to the Shanghai Stock Exchange, which has been accepted for processing [4] - Dongyue Group holds an 8.33% stake in Future Materials, while Shandong Dongyue Silicon Materials holds a 5.14% stake [4]

Group 1 - The core viewpoint of Guotai Junan is to maintain an "overweight" rating for Dongyue Group (00189), projecting net profits attributable to the parent company for 2025-2027 at 1.822 billion, 2.017 billion, and 2.410 billion yuan respectively, with a target price of 15.29 HKD based on a 12x PE for 2026 [1] - In the first half of 2025, the refrigerant business experienced a significant year-on-year growth of 209.77%, with external sales reaching 2.292 billion yuan, a 47.69% increase, accounting for 30.71% of the group's total external sales [1] - The major products R32 and R410a saw significant price increases in the first half of 2025, primarily due to quota restrictions, which were the main drivers of the refrigerant division's performance growth [1] Group 2 - Dongyue Silicon Material, a non-wholly-owned subsidiary, reported an unaudited revenue of 490 million yuan and a net profit attributable to shareholders of 2.857 million yuan for the first three quarters of 2025 [2] - The affiliated company Future Materials has submitted its IPO application to the Shanghai Stock Exchange, which has been accepted, focusing on the research, production, and sales of fluorinated proton exchange membranes and related key materials [3] - Dongyue Group holds an 8.33% stake in Future Materials, while Shandong Dongyue Silicon Material holds a 5.14% stake [3]