Investment Rating - The industry investment rating is "Overweight" [1] Core Insights - The overall performance of industrial gases is weak post-Spring Festival, with liquid gas prices showing a year-on-year decline [3][5] - Key events include Hangyang's gas project in Xinjiang, Guanggang Gas winning a helium procurement project for the Hainan commercial aerospace launch site, and Jinhong Gas signing a long-term cooperation agreement with France's Air Flow [3][5] - Recommended stocks are Hangyang Co. and Shaan Gu Power, with related stocks including Guanggang Gas, Fostar, and Zhongtai Co. [5] Summary by Sections Price Trends - Liquid gas prices have decreased year-on-year, with specific prices as of February 26, 2026: - Liquid oxygen: average price 297 RMB/ton, down 2% month-on-month, down 22% year-on-year - Liquid nitrogen: average price 339 RMB/ton, down 2% month-on-month, down 16% year-on-year - Liquid argon: average price 598 RMB/ton, down 8.56% month-on-month, up 30.52% year-on-year [5][8] - Rare gases also show price declines, with high-purity helium gas at 76.07 RMB/cubic meter, down 2.02% month-on-month, down 23.16% year-on-year [5][9] Production Capacity - The average weekly operating load rate for China's industrial gases is 66.73% as of December 31, 2025, down 1.88 percentage points month-on-month [7][9] Company Performance Forecast - Hangyang Co. (002430.SZ) has an EPS forecast of 0.94 RMB for 2024, increasing to 1.38 RMB by 2027, with a PE ratio decreasing from 34.71 in 2024 to 23.50 in 2027 [6] - Shaan Gu Power (601369.SH) has an EPS forecast of 0.60 RMB for 2024, increasing to 0.78 RMB by 2027, with a PE ratio decreasing from 19.85 in 2024 to 15.36 in 2027 [6]

Summary of Industrial Gas Industry and Key Company Insights Industry Overview - The Chinese industrial gas market is projected to reach 200 billion RMB, driven by macroeconomic growth, increased outsourcing of gas supply, and demand expansion in new fields [1][2] - The global industrial gas market is expected to grow to 1.3 trillion RMB, with a compound annual growth rate (CAGR) of nearly 7% over the next four years [2] - The competitive landscape is increasingly concentrated, with the top six domestic companies holding a market share of 72% [2] Key Insights on Electronic Specialty Gases - The semiconductor industry is experiencing a significant boom, with global sales increasing by 30% year-on-year as of November 2025 [1][3] - Domestic integrated circuit production is expected to grow rapidly during the 14th Five-Year Plan, enhancing the demand for electronic specialty gases [3][8] - The domestic market for electronic specialty gases is anticipated to benefit from the shift from import reliance to global competitiveness [3] Performance of Key Companies - Hangyang Co., as a leading player in the industrial gas sector, is expected to see its market share increase from approximately 6.3% [2] - The company is projected to achieve net profits of 10.7 billion RMB, 13 billion RMB, and 15.1 billion RMB for the years 2025-2027, with year-on-year growth rates of 16%, 22%, and 17% respectively [14] - Kai Mei Te Gas has shown significant stock price growth, outperforming international giants like Linde and Air Liquide [4] Price Trends of Industrial Gases - Prices for liquid oxygen, nitrogen, and argon are at their lowest levels in nearly seven years, with average prices at the 3rd, 2nd, and 41st percentiles historically [5] - Liquid oxygen prices fell by 7% year-on-year, while liquid nitrogen prices continued to decline [5] Demand Structure and Market Dynamics - The demand for industrial gases is evolving with changes in industrial structure, with applications in metallurgy, new energy, semiconductors, and food medical sectors [6] - The outsourcing ratio in China's industrial gas market is about 68%, lower than the 80% seen overseas, but is steadily increasing [9] Future Trends and Investment Opportunities - The industrial gas sector is expected to see a rise in outsourcing gas supply, which offers lower operational costs and higher stability [9] - The market for air separation equipment is projected to grow from approximately 340 billion RMB to 400-500 billion RMB, with a high concentration of major players [10] - Investment opportunities are particularly promising in the electronic specialty gas sector, with expectations of continued growth in downstream demand [11] Competitive Landscape - Major global players include Linde, Air Liquide, and Air Products, while domestic leaders include Hangyang, Shaanxi鼓动力, and Qiaoyuan [12][13] - Companies focusing on electronic specialty gases include China Shipbuilding Industry Corporation and Guang Steel Group [12] This comprehensive overview highlights the growth potential and competitive dynamics within the industrial gas sector, particularly focusing on electronic specialty gases and the performance of key players like Hangyang Co.

Investment Rating - The report assigns an "Accumulate" rating for the industrial gas industry [1]. Core Insights - The industrial gas prices are experiencing low fluctuations for liquid oxygen and nitrogen, while liquid argon prices continue to rise significantly year-on-year. Rare gases are also showing low fluctuations [2][4]. - Key events include Hangyang winning a bid for a large 4.5K low-temperature system, marking its entry into the superconducting field, and Guanggang Gas changing its fundraising project to focus on the Wuhan semiconductor and Huaxing Optoelectronics T8 projects [2][4]. Summary by Sections Price Trends - Liquid oxygen average price: 328 RMB/ton, down 2.4% month-on-month, flat year-on-year - Liquid nitrogen average price: 357 RMB/ton, down 1.7% month-on-month, up 1% year-on-year - Liquid argon average price: 1029 RMB/ton, down 6.79% month-on-month, up 139% year-on-year - Rare gases prices show the following trends: - High-purity helium (cylinder): 590.46 RMB/cylinder, down 2.58% month-on-month, down 10.39% year-on-year - Xenon: 20500 RMB/cubic meter, flat month-on-month, down 29.31% year-on-year - Krypton: 190 RMB/cubic meter, flat month-on-month, down 39.68% year-on-year - Neon: 110 RMB/cubic meter, flat month-on-month, down 12% year-on-year [4][6]. Production Capacity - The average operating load rate for China's industrial gas sector is 66.73%, down 1.88 percentage points month-on-month [4][8]. Key Company Forecasts - Hangyang Co. (002430.SZ): - Closing price: 30.27 RMB - EPS forecast for 2024A: 0.94 RMB, 2025E: 1.07 RMB, 2026E: 1.22 RMB, 2027E: 1.38 RMB - PE ratio forecast for 2024A: 32.29, 2025E: 28.32, 2026E: 24.86, 2027E: 21.86 - Shaanxi Guo (601369.SH): - Closing price: 10.73 RMB - EPS forecast for 2024A: 0.60 RMB, 2025E: 0.67 RMB, 2026E: 0.73 RMB, 2027E: 0.78 RMB - PE ratio forecast for 2024A: 17.78, 2025E: 16.01, 2026E: 14.70, 2027E: 13.76 [5].

Investment Rating - The report assigns an "Accumulate" rating for the industrial gas industry [1] Core Insights - The industrial gas prices are experiencing low fluctuations for liquid oxygen and nitrogen, while liquid argon prices continue to rise significantly year-on-year. Rare gas prices are also fluctuating at low levels. Notable events include Hangyang winning a bid for a large 4.5K low-temperature system, marking its entry into the superconducting field, and Guanggang Gas changing its fundraising project to focus on the Wuhan semiconductor and Huaxing Optoelectronics T8 projects [2][3] Summary by Sections Price Trends - Liquid oxygen average price: 328 RMB/ton, down 2.4% month-on-month, unchanged year-on-year - Liquid nitrogen average price: 357 RMB/ton, down 1.7% month-on-month, up 1% year-on-year - Liquid argon average price: 1029 RMB/ton, down 6.79% month-on-month, up 139% year-on-year - Rare gases average prices show the following trends: - High-purity helium (cylinder): 590.46 RMB/cylinder, down 2.58% month-on-month, down 10.39% year-on-year - Xenon: 20500 RMB/cubic meter, unchanged month-on-month, down 29.31% year-on-year - Krypton: 190 RMB/cubic meter, unchanged month-on-month, down 39.68% year-on-year - Neon: 110 RMB/cubic meter, unchanged month-on-month, down 12% year-on-year [4][5][6] Production Capacity - The average operating load rate for China's industrial gas sector is 66.73%, down 1.88 percentage points month-on-month [8] Key Events - Hangyang Group has successfully bid for a large 4.5K low-temperature system project, marking its entry into the superconducting equipment sector. Guanggang Gas has announced changes to its fundraising projects, redirecting funds to the Wuhan semiconductor project and Huaxing Optoelectronics T8 project [4][5]

Investment Rating - The industry investment rating is "Overweight" [5][6]. Core Insights - The weekly average price of liquid oxygen and nitrogen has slightly increased, while the price of liquid argon continues its significant year-on-year upward trend. Rare gases are experiencing low-level fluctuations [2][5]. - Hangyang Group has won a bid for a nitrogen production equipment project at a refinery in West Africa, which is the largest refining project in the region with an annual crude oil processing capacity of 10 million tons and a total investment of approximately $6 billion [2][5]. - The successful trial operation of a high-pressure CO2 compressor by ShanGu CCS marks a significant breakthrough in key technology equipment for carbon capture and storage (CCS) in China [2][5]. Price Trends - As of January 29, 2026, the weekly price data for gases is as follows: 1. Liquid Oxygen: Average price of 336 CNY/ton, up 0.9% month-on-month, down 0.6% year-on-year 2. Liquid Nitrogen: Average price of 364 CNY/ton, up 0.5% month-on-month, up 2% year-on-year 3. Liquid Argon: Average price of 1104 CNY/ton, down 3.83% month-on-month, up 144.83% year-on-year 4. Rare Gases: High-purity helium gas (cylinder): Average price of 80.21 CNY/cubic meter, down 5.32% month-on-month, down 17.85% year-on-year [5][6]. Industry Operating Rates - The average weekly operating load rate for China's industrial gas sector is 66.73%, a decrease of 1.88 percentage points month-on-month [4][9]. Recommended Stocks - Recommended stocks include Hangyang Co., Ltd. and ShanGu Power, with related stocks being Fostar and Zhongtai Co., Ltd. [5][6].

Investment Rating - The industry investment rating is "Overweight" [5][16]. Core Insights - The average weekly price of liquid oxygen and nitrogen has slightly increased, while the price of liquid argon continues its significant year-on-year upward trend. Rare gases are experiencing low-level fluctuations [2][5]. - Hangyang Group has won a bid for a nitrogen production equipment project at a refinery in West Africa, which is the largest refining project in the region with an annual crude oil processing capacity of 10 million tons and a total investment of approximately 6 billion USD [2][5]. - The successful trial operation of a high-pressure CO2 compressor by ShanGu CCS marks a significant breakthrough in carbon capture and storage technology in China [2][5]. Price Trends - As of January 29, 2026, the weekly price data for gases is as follows: 1. Liquid Oxygen: Average price is 336 CNY/ton, with a 0.9% increase month-on-month and a 0.6% decrease year-on-year 2. Liquid Nitrogen: Average price is 364 CNY/ton, with a 0.5% increase month-on-month and a 2% increase year-on-year 3. Liquid Argon: Average price is 1104 CNY/ton, with a 3.83% decrease month-on-month and a 144.83% increase year-on-year 4. Rare Gases: High-purity helium gas (cylinder) is 80.21 CNY/cubic meter, with a 5.32% decrease month-on-month and a 17.85% decrease year-on-year [5][6][10]. Company Recommendations - Recommended stocks include Hangyang Co., Ltd. and ShanGu Power, with related stocks being Fostar and Zhongtai Co., Ltd. [5][6].

Investment Rating - The report assigns a "Buy" rating to the company, indicating a favorable outlook for its performance relative to the market [8]. Core Insights - The company is enhancing its industrial system through initiatives such as "casting chains, extending chains, supplementing chains, and strengthening chains," which aims to create a comprehensive industrial chain in chemical new materials and new energy [1]. - The demand for polycarbonate (PC) is expected to continue growing, driven by applications in various industries including home appliances, automotive, and high-tech fields such as rail transportation and aerospace [4]. - The company is positioned as a leader in the domestic market with a complete industrial chain from pure benzene to polycarbonate, which enhances its competitive edge [4]. Summary by Relevant Sections Latest Developments - The company is developing a new energy industrial chain that includes a 600,000 tons/year propane dehydrogenation and a 300,000 tons/year direct oxidation epoxy propane facility, integrating with existing production lines [1]. - The completion of projects such as a 250,000 tons/year electrolyte solvent and a 200,000 tons/year high-performance polypropylene is expected to enhance production capabilities [1]. Product Focus - The company specializes in chemical new materials and new energy, with products spanning phenolic ketone, new energy materials, specialty chemicals, and industrial gases [4]. - The polycarbonate industry chain is experiencing sustained demand growth, with the company producing differentiated products that meet or exceed international standards [4]. Market Trends - The consumption of bisphenol A (BPA) is projected to grow, with a compound annual growth rate (CAGR) of 16.59% over the next five years, driven by the expansion of downstream industries [4]. - The expected year-on-year growth for BPA consumption in 2024 is approximately 19.14%, indicating robust market dynamics [4].

Investment Rating - The industry investment rating is "Overweight" [4][15]. Core Insights - The weekly average price of liquid gas has slightly decreased, while the weekly average price of liquid argon continues to show a significant year-on-year increase. Rare gases are experiencing low-level fluctuations [2][4]. - Notable events include Guanggang Gas winning a supply contract for TCL's 8.6 generation OLED printing and Hangyang successfully winning contracts for four sets of 100,000 cubic meter air separation units for the National Energy Yulin Circular Economy Coal Comprehensive Utilization Project [2][4]. Price Trends - As of January 22, 2026, the weekly price situation for gases is as follows: 1. Liquid Oxygen: Average price of 333 RMB/ton, down 0.3% month-on-month, down 3.8% year-on-year 2. Liquid Nitrogen: Average price of 362 RMB/ton, up 0.2% month-on-month, down 1.6% year-on-year 3. Liquid Argon: Average price of 1,148 RMB/ton, down 2.63% month-on-month, up 131.22% year-on-year 4. Rare Gases: - High-purity helium (cylinder): Average price of 84.71 RMB/cubic meter, down 2.06% month-on-month, down 13.24% year-on-year - High-purity helium (40L cylinder): Average price of 607.14 RMB/cylinder, down 0.15% month-on-month, down 7.86% year-on-year - Xenon: Average price of 20,785.71 RMB/cubic meter, down 1.02% month-on-month, down 28.33% year-on-year - Krypton: Average price of 190 RMB/cubic meter, unchanged month-on-month, down 39.68% year-on-year - Neon: Average price of 110 RMB/cubic meter, unchanged month-on-month, down 12% year-on-year [4][6][7]. Company Recommendations - Recommended stocks include Hangyang Co., Ltd. and Shaanxi鼓动力, with related stocks being Zhengfan Technology, Fostar, and Zhongtai Co., Ltd. [4][5].

Investment Rating - The industry investment rating is "Overweight" [4] Core Insights - The report indicates a slight decline in the weekly average price of liquid gas, while the weekly average price of liquid argon continues to show a significant year-on-year increase. Rare gases are experiencing low-level fluctuations in their weekly average prices. Notable events include Guanggang Gas winning a supply contract for TCL's 8.6 generation OLED printing and Hangyang successfully winning contracts for four sets of 100,000 cubic meter air separation units for the National Energy Yulin Circular Economy Coal Comprehensive Utilization Project [2][4]. Price Trends - As of January 22, 2026, the weekly price data for gases is as follows: 1. Liquid Oxygen: Average price of 333 CNY/ton, down 0.3% month-on-month, down 3.8% year-on-year 2. Liquid Nitrogen: Average price of 362 CNY/ton, up 0.2% month-on-month, down 1.6% year-on-year 3. Liquid Argon: Average price of 1,148 CNY/ton, down 2.63% month-on-month, up 131.22% year-on-year 4. Rare Gases: - High-purity helium (cylinder): Average price of 84.71 CNY/cubic meter, down 2.06% month-on-month, down 13.24% year-on-year - Bottled high-purity helium (40L): Average price of 607.14 CNY/bottle, down 0.15% month-on-month, down 7.86% year-on-year - Xenon: Average price of 20,785.71 CNY/cubic meter, down 1.02% month-on-month, down 28.33% year-on-year - Krypton: Average price of 190 CNY/cubic meter, unchanged month-on-month, down 39.68% year-on-year - Neon: Average price of 110 CNY/cubic meter, unchanged month-on-month, down 12% year-on-year [4][5]. Company Recommendations - Recommended stocks include Hangyang Co., Ltd. and Shaanxi鼓动力, with related stocks being Zhengfan Technology, Fostar, and Zhongtai Co., Ltd. [4][5].

Investment Rating - The report assigns an "Accumulate" rating for the industrial gas industry [2][7]. Core Insights - The average weekly price of liquid oxygen and liquid nitrogen remains stable year-on-year, while the average price of liquid argon continues to rise year-on-year. Rare gases are experiencing low-level fluctuations [3][6]. - The acquisition of South Korean gas company DIG Airgas by Air Liquide has been completed, which will double the number of employees in Korea and increase total sales to €900 million, enhancing the group's position in this growing economy [3][6]. Price Trends - As of January 15, 2026, the weekly price data for gases is as follows: 1. Liquid Oxygen: Average price of 335 CNY/ton, down 0.3% month-on-month, down 8.7% year-on-year 2. Liquid Nitrogen: Average price of 361 CNY/ton, down 0.6% month-on-month, down 5% year-on-year 3. Liquid Argon: Average price of 1179 CNY/ton, down 1.01% month-on-month, up 117.83% year-on-year 4. Rare Gases: High-purity helium (cylinder): Average price of 86.5 CNY/cubic meter, down 0.98% month-on-month, down 12.18% year-on-year; Xenon: Average price of 21,000 CNY/cubic meter, stable month-on-month, down 27.59% year-on-year; Krypton: Average price of 190 CNY/cubic meter, stable month-on-month, down 39.68% year-on-year; Neon: Average price of 110 CNY/cubic meter, stable month-on-month, down 12% year-on-year [6][8][11]. Industry Operating Rates - The average weekly operating load rate for China's industrial gas sector is 66.73% as of December 31, 2025, with a month-on-month decrease of 1.88 percentage points [5][9]. Recommended Stocks - Recommended stocks include Hangzhou Oxygen Plant (杭氧股份) and Shaanxi鼓动力 (陕鼓动力), with related stocks being Zhengfan Technology (正帆科技), Fostar (福斯达), and Zhongtai Co. (中泰股份) [6][7].