Core Insights - Fluorinated materials are essential in various industries, acting as a "vitamin" for industrial applications, and are crucial for national strategic security and high-quality industrial development [1] - The city of Quzhou in Zhejiang Province aims to establish itself as "China's Fluorine Valley," targeting a fluorochemical output value exceeding 30 billion yuan for the year [1] Industry Overview - China's fluorochemical industry has rapidly expanded due to abundant fluorite resources, with over a thousand companies forming a complete industrial chain [2] - By the end of 2024, China's total fluorochemical production capacity is expected to exceed 10 million tons, with a total output of over 6.5 million tons and a total output value of approximately 160 billion yuan [2] Market Dynamics - The global fluorochemical industry is characterized by a tripartite structure of resources, technology, and market, with China being the largest consumer of fluorinated materials [3] - The global fluorochemical market is projected to exceed 300 billion yuan in 2024, driven by demand from new energy vehicles and semiconductors [3] Applications of Fluorinated Materials - Fluorinated materials have extensive applications across traditional and emerging industries, including AI, where they play a critical role in cooling solutions for data centers [4] - The shift to immersion cooling technology in data centers is driven by the need for efficient heat dissipation, with fluorinated liquids providing superior insulation and cooling capabilities [4] Future Growth Potential - The demand for cooling liquids is expected to surge, with predictions of 89,000 tons required for new AI data centers by 2028, alongside additional needs from traditional servers [5] - The future of fluorinated materials is promising, with potential applications expanding into quantum technology, biomanufacturing, hydrogen energy, and more [5]

Core Viewpoint - The report from Tianfeng Securities highlights Juhua Co., Ltd. as a leading state-owned enterprise in the fluorochemical industry, projecting steady growth in performance from 2013 to 2024, with refrigerant gross profit accounting for over 60% of its revenue [1] Group 1: Company Overview - Juhua's product portfolio includes seven categories: fluorochemical raw materials, fluorinated refrigerants, fluoropolymers, fluorinated fine chemicals, food packaging materials, petrochemical materials, and basic chemical products [1] - The company's revenue and net profit attributable to shareholders are expected to grow at a CAGR of 8.7% and 20.4% respectively from 2013 to 2024, driven mainly by increased volume in the refrigerant and basic chemical segments [1] Group 2: Market Position and Projections - By 2025, Juhua is projected to have a production quota of 271,000 tons for its third-generation refrigerants (excluding R23), holding a market share of 34%, making it the industry leader [1] - The company leads in the market share of mainstream third-generation refrigerants, with R32, R125, and R134a accounting for 42%, 21%, and 25% of its total quota, respectively, and 41%, 34%, and 33% of the domestic total quota [1] Group 3: Future Outlook and Valuation - Juhua's multiple fluoropolymer production capacities rank among the top three in the country, and the company has developed a series of electronic fluorinated liquids through years of research and development [1] - Given its leadership position in the fluorochemical industry, the company is assigned a target price of 39.5-41.2 yuan per share based on a 24-25 times PE ratio for 2025, with an initial coverage rating of "Buy" [1]

Group 1 - The report highlights a decline in social financing growth, with government bonds contributing negatively, while corporate bonds show strong performance [2][21] - There is a recovery in medium to long-term loans for residents, supported by new policy financial tools introduced by the end of September [2][22] - The M2-M1 spread has narrowed to a new low, indicating an increase in the liquidity of funds, driven by market risk appetite and the performance of the equity market [2][22] Group 2 - The PPI has shown a narrowing decline, indicating a potential entry into an upward cycle, with various macro policies yielding positive effects [4][28] - The CPI remains negative, primarily due to falling food prices, while core CPI shows resilience with a slight increase [4][30] - The report suggests that the PPI may turn positive in the first half of 2026, depending on the effectiveness of policies and improvements in demand [4][29] Group 3 - The titanium dioxide industry is closely linked to domestic demand and real estate, with opportunities remaining in external demand despite anti-dumping investigations [8][36] - The industry has a significant portion of outdated capacity, with about 20% of production facilities over 20 years old [8][37] - The report recommends focusing on leading companies with integrated operations, such as Longbai Group, which has a comprehensive titanium supply chain [8][37] Group 4 - Juhua Co., Ltd. is positioned to benefit from the rising demand for refrigerants, with a projected CAGR of 8.7% in revenue and 20.4% in net profit from 2013 to 2024 [10][32] - The company holds a leading market share in the production of third-generation refrigerants, with a production quota of 271,000 tons for 2025 [10][33] - Juhua's diverse product portfolio includes fluorinated chemicals and advanced petrochemical materials, enhancing its competitive edge in the market [10][34]

Core Viewpoint - Zhejiang Juhua Co., Ltd. is a leading player in the fluorochemical industry, with steady revenue and net profit growth projected from 2013 to 2024, driven primarily by refrigerants and basic chemical products [1][2] Group 1: Company Overview - Established in 1998, Zhejiang Juhua is a major manufacturer in fluorochemical and chlor-alkali chemical new materials, with its controlling shareholder being Juhua Group Co., Ltd. and actual controller being the Zhejiang State-owned Assets Supervision and Administration Commission [1] - The company's product categories include fluorochemical raw materials, fluorinated refrigerants, fluorinated polymers, fluorinated fine chemicals, food packaging materials, petrochemical materials, and basic chemical products [1] Group 2: Financial Performance - From 2013 to 2024, the company's revenue and net profit attributable to shareholders are expected to grow at a CAGR of 8.7% and 20.4%, respectively, with over half of the revenue coming from refrigerants and petrochemical materials [1] - In 2024, the revenue contribution from refrigerants and petrochemical materials is projected to be 38% and 17%, respectively, while nearly 60% of gross profit is expected to come from refrigerants, accounting for 64% in 2024 [1] Group 3: Industry Dynamics - The introduction of production quotas for third-generation fluorinated refrigerants in 2024 is expected to benefit the company as the industry experiences an upturn, with significant price increases anticipated compared to 2023 [2] - The company holds a leading market share of 34% in third-generation refrigerant production quotas for 2025, with major products like R32, R125, and R134a representing 42%, 21%, and 25% of its total quotas, respectively [2] Group 4: Product Development and Capacity - The company ranks among the top three in the production capacity of various fluoropolymers, with FKM and PVDF being the largest in China [3] - Despite a 7% year-on-year increase in external sales of fluorinated polymers in 2024, the average price has decreased by 17%, indicating supply-demand pressures in the industry [3] Group 5: Strategic Initiatives - The company is expanding its basic chemical product offerings to enhance its supply chain, including chlor-alkali, coal chemical, and sulfuric acid products [4] - Investments of approximately 1.6 billion yuan are being made in projects for PTT and PDO to transition the petrochemical segment towards advanced specialty materials [4] Group 6: Profit Forecast - The projected net profits attributable to shareholders for 2025, 2026, and 2027 are 4.44 billion, 5.43 billion, and 6.59 billion yuan, respectively, with corresponding EPS of 1.65, 2.01, and 2.44 yuan [4] - The current price corresponds to PE ratios of 22.66, 18.53, and 15.28 for the respective years, with a target price range of 39.5 to 41.2 yuan per share based on a PE of 24-25 for 2025 [4]

Industry Overview - The cooling liquid market is experiencing significant growth, particularly in data center liquid cooling systems, with multiple domestic companies actively expanding their capabilities [4][6] - Companies are focusing on the development of fluorinated cooling liquids, which are essential for efficient thermal management in high-performance computing environments [6][8] Company Summaries - **Juhua Co., Ltd.**: The company has a production capacity of 4,000 tons per year for hydrogen fluoride ether D series products and plans to expand its perfluoropolyether production to 5,000 tons per year, with an initial phase of 1,000 tons already operational [3][4] - **New Chemical Materials Co., Ltd.**: The company has established a production capacity of 3,000 tons per year for hydrogen fluoride ether and 2,500 tons per year for perfluoropolyether, targeting applications in precision instruments, semiconductor equipment cleaning, and data center cooling [3][4] - **Dongyangguang**: The company is integrating the supply chain for liquid cooling solutions and has formed a strategic partnership with Zhongji Xuchuang to promote global market solutions for liquid cooling [3][4] - **Runhe Materials**: The company is focused on providing energy-efficient and low-carbon immersion cooling solutions, with future R&D aimed at developing cost-effective cooling liquids for energy storage and high-frequency communication chips [3][4] - **Changlu Chemical New Materials**: The company has built a production facility with a capacity of 500 tons per year for perfluoropolyether and 300 tons per year for hydrogen fluoride ether, with plans for further expansion [6] - **Zhejiang Noah Fluorochemical**: The company has developed several immersion fluorinated cooling liquid products suitable for different cooling technologies [6] - **Billion Space**: The company holds an 11.5892% stake in Nantong Zhanding, which produces electronic fluorinated liquids for semiconductor manufacturing and immersion cooling applications, benefiting from the growing demand for AI computing [6][8]

Summary of Conference Call Records Company and Industry Overview - **Companies Involved**: 新宙邦 (Xinjubang) and 阿科力 (Acoly) - **Industry**: New materials, specifically focusing on lithium battery materials, organic fluorine chemicals, and cooling technologies for data centers Key Points and Arguments Xinjubang's Business and Market Position - Xinjubang has a comprehensive industrial layout with 10 production bases globally by the end of 2024, including 9 in China and 1 in Europe, enhancing customer service and loyalty [2][5] - The company benefits from the growth in the new energy storage, automotive, and AI industries, with lithium battery materials expected to see both volume and price increases [2][5] - Current prices for new energy materials are at historical lows, with lithium hexafluorophosphate prices dropping significantly from 600,000 RMB/ton in 2021 to around 50,000-60,000 RMB/ton now [6] - Domestic apparent consumption of lithium hexafluorophosphate is projected to grow over 30% year-on-year in 2024, with further growth of 20%-30% expected in 2025 due to the development of new energy vehicles [2][6] Organic Fluorine Chemicals Market - The organic fluorine chemicals market is seen as a golden industry, with applications in pharmaceuticals, pesticides, and semiconductors [7] - Xinjubang aims to expand its market share as 3M plans to exit the market, which will create opportunities for domestic companies [7][11] Liquid Cooling Technology - Liquid cooling technology is emerging as a preferred solution for data centers, especially with the rise of AI, which increases cooling demands [9][10] - Immersion cooling is highlighted for its superior heat dissipation efficiency, making it suitable for high-power single-cabinet data centers [10] Acoly's Business Transformation - Acoly is transitioning from its original polyether amine business to focus on the development of cyclic olefin copolymer (COC) materials, which are crucial for optical lenses and pharmaceutical packaging [4][16] - Acoly plans to establish a 10,000-ton COC production facility by the end of 2026, with an additional 20,000-ton expansion planned for 2027 [4][18] - The company has already secured small orders for pharmaceutical packaging, indicating market interest and potential for growth [18][19] Competitive Landscape and Future Outlook - The COC market is characterized by high production difficulty, with only a few companies globally capable of producing it, giving Acoly a competitive edge [17][20] - Acoly is optimistic about its future growth potential, with expectations of significant market share and valuation increases due to successful technology breakthroughs [20] Financial Projections - Xinjubang is projected to achieve a compound annual growth rate (CAGR) of over 20%, potentially reaching 30% by 2026, driven by the demand for its products in the AI and new energy sectors [12] Additional Important Insights - The exit of 3M from the PFAS market, which generates approximately $1.3 billion annually, is expected to benefit domestic companies like Xinjubang and Acoly [11][12] - The overall new energy industry is currently facing challenges with overcapacity and slight losses, but improvements in supply dynamics are anticipated by 2026 [15]

Core Viewpoint - The company held a performance briefing on September 19, 2025, to discuss its business layout, product applications, and performance, addressing investor inquiries through an online platform [1]. Group 1: Business Developments - The company has officially commenced production and sales in Huizhou, with ongoing capacity ramp-up [2]. - The subsidiary project in Liuyang is progressing, with updates to be announced [2]. - The company is involved in the establishment of the Shenzhen Tainuo Collaborative Venture Capital Fund with Shanghai Xinwei Technology Group, focusing on investments in humanoid robots [1]. Group 2: Product Applications - The company has invested in Saiwan Yushan, which has an annual production capacity of 36,000 sets of silicon carbide ceramic boats and is involved with new Huawei chip technologies [1]. - The company is validating and promoting UV-curable conductive materials and tungsten tendon ropes for humanoid robots, with samples being tested by several domestic manufacturers under confidentiality agreements [1]. - Electronic fluorinated liquids are primarily used as diluents for anti-fingerprint materials in electronic consumer products, while diamond wire is utilized for glass cutting, also targeting the electronic consumer goods sector [2]. Group 3: Financial Performance - Investors are concerned about the company's ability to turn a profit this year, with expectations of continued pressure on performance due to the photovoltaic industry [2]. - The company indicated that specific performance details will be disclosed in future announcements and periodic reports [2].

Group 1: Investment and Partnerships - The company has established the Shenzhen Tainuo Collaborative Venture Capital Fund in partnership with Shanghai Xinwei Technology Group, which holds significant stakes in various tech firms, including investment in humanoid robots [2] - The company is currently in discussions regarding potential control by Hunan State-owned Assets, with due diligence being conducted [3] Group 2: Product Development and Applications - The company is validating and promoting two products: UV-curable conductive materials for humanoid robot electronic skin and tungsten tendon ropes for dexterous hands [3] - The subsidiary Yishang New Energy has been absorbed by its wholly-owned subsidiary Gengchi New Energy, focusing on graphite composite bipolar plates for hydrogen fuel cells and flow battery electrodes [3] - The company’s diamond wire products are suitable for cutting third-generation semiconductors, including silicon carbide [4] Group 3: Financial Performance and Outlook - The company anticipates significant pressure on its performance this year due to the photovoltaic industry, with hopes of turning a profit remaining uncertain [5] - The company is currently ramping up production at its Huizhou facility, which has officially started production and sales [4]

Investment Rating - The report maintains an "Overweight" rating for the basic chemical industry [6] Core Views - The basic chemical industry saw a weekly increase of 2.36% from September 8 to September 12, 2025, ranking 12th among all Shenwan first-level industries [6][12] - The report highlights the significant potential of liquid cooling solutions in data centers, with multiple domestic companies actively investing in this area [10][29] Summary by Sections Industry Overview - The basic chemical industry has shown a relative return of -3.0%, 1.2%, and 8.5% over the past month, three months, and twelve months respectively [4] - Absolute returns for the same periods are 6.2%, 17.4%, and 51.0% [5] Sub-industry - Liquid Cooling Fluids - Liquid cooling technology includes cold plate liquid cooling, immersion liquid cooling, and spray liquid cooling [14] - Cold plate liquid cooling transfers heat from high-heat components to a liquid, while immersion liquid cooling involves fully submerging servers in cooling liquid [15][16] - Fluorinated liquids are preferred in immersion cooling due to their non-flammable and stable properties [16] Company Insights - **Juhua Co., Ltd.**: Produces electronic fluorinated liquids with a capacity of 4,000 tons/year for hydrogen fluoride ether D series and 5,000 tons/year planned for perfluoropolyether [8][19] - **New Chemical Co.**: Completed capacity construction for hydrogen fluoride ether at 3,000 tons/year and perfluoropolyether at 2,500 tons/year, focusing on data center cooling applications [20] - **Dongyang Sunshine**: Integrates liquid cooling components and materials, forming strategic partnerships for global market promotion [21][22] - **Runhe Materials**: Develops low-cost, high-performance cooling solutions for energy storage and data centers [23][24] - **Changlu Chemical New Materials**: Established production facilities for perfluoropolyether and hydrogen fluoride ether, with plans for further capacity expansion [25] - **Zhejiang Noah Fluorine Chemical**: Developed multiple immersion fluorinated cooling liquid products for various cooling technologies [25] Investment Recommendations - The report suggests focusing on Juhua Co., Ltd. due to its strong positioning in the liquid cooling market [10][29]

Group 1 - The core point of the article is that Wihua New Materials (603310.SH) does not produce electronic fluorinated liquids and focuses on chlorotoluene and trifluoromethylbenzene intermediates [1] Group 2 - The company currently specializes in the production of intermediates related to chlorotoluene and trifluoromethylbenzene [1]