Core Viewpoint - The company anticipates profit growth channels primarily through innovation and expansion of small variety polyether amine applications, as well as improving capacity utilization of polyether amine and polyether products [1] Group 1: Profit Growth Channels - The company expects to enhance profit growth by expanding the application fields of small variety polyether amines [1] - The annual production expansion project of 35,000 tons of alkyl glycosides is projected to generate additional revenue upon completion and production [1] - The expansion of flake and granular alkyl glycosides in the cosmetics sector is also expected to contribute to growth [1] Group 2: Industry Outlook - If the chemical industry fully recovers by 2026, the company's overall revenue is likely to increase correspondingly [1]

Core Insights - Changhua Chemical's stock price increased by 5.15% on November 11, reaching 38.39 CNY per share, with a trading volume of 294 million CNY and a turnover rate of 15.04%, resulting in a total market capitalization of 5.381 billion CNY. The stock has risen for three consecutive days, with a cumulative increase of 8.34% during this period [1] Company Overview - Changhua Chemical Technology Co., Ltd. is located at No. 20 Beijing Road, Jiangsu Yangtze River International Chemical Park. The company was established on October 26, 2010, and went public on August 3, 2023. Its main business involves the research, production, and sales of polyether products [1] - The revenue composition of Changhua Chemical is as follows: POP accounts for 65.34%, soft foam PPG for 26.68%, CASE polyether and specialty polyether for 6.80%, and other (supplementary) products for 1.18% [1] Fund Holdings - According to data from the top ten holdings of funds, one fund under Penghua Fund has a significant position in Changhua Chemical. The Penghua Honghe Mixed A Fund (001325) held 99,500 shares in the third quarter, representing 4.98% of the fund's net value, making it the third-largest holding. The estimated floating profit today is approximately 187,100 CNY, with a total floating profit of 279,600 CNY over the three-day increase [2] - The Penghua Honghe Mixed A Fund (001325) was established on May 25, 2015, with a latest scale of 13.9925 million CNY. Year-to-date returns are 54.6%, ranking 737 out of 8147 in its category; the one-year return is 37.83%, ranking 1358 out of 8056; and since inception, the return is 90.08% [2] Fund Manager Profile - The fund manager of Penghua Honghe Mixed A (001325) is Liu Fangzheng. As of the report date, Liu has a cumulative tenure of 10 years and 248 days, with total fund assets of 811 million CNY. The best fund return during his tenure is 128.22%, while the worst return is -1.2% [3]

Core Viewpoint - Changhua Chemical, established in 2010 and listed on the Shenzhen Stock Exchange in 2023, is a significant player in the domestic polyether product sector, known for its technological advantages and stable product quality [1] Group 1: Business Overview - Changhua Chemical's main business includes the research, production, and sales of polyether products, classified under the basic chemical industry [1] - The company is part of several concept sectors, including new materials, share buybacks, social security heavy holdings, nuclear fusion, superconductivity, and nuclear power [1] Group 2: Financial Performance - For Q3 2025, Changhua Chemical reported a revenue of 1.991 billion yuan, ranking 20th among 79 companies in the industry, with the industry leader, Sinochem International, generating 35.716 billion yuan [2] - The net profit for the same period was 76.0674 million yuan, placing it 33rd in the industry, while the top performer, Hangyang Co., reported a net profit of 850 million yuan [2] Group 3: Financial Ratios - As of Q3 2025, Changhua Chemical's debt-to-asset ratio was 43.98%, exceeding the industry average of 34.74%, and significantly higher than the previous year's 14.52% [3] - The gross profit margin for Q3 2025 was 7.12%, below the industry average of 19.93%, and an increase from 3.95% in the previous year [3] Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 45.12% to 14,000, while the average number of circulating A-shares held per account decreased by 31.09% to 3,806 [5]

Group 1: New IPOs and Companies - A total of 7 new stocks will be available for subscription this week, including 5 from the ChiNext board, 1 from the Sci-Tech Innovation board, and 1 from the Shanghai main board [1] - Huahong Semiconductor, a leading specialty process wafer foundry, is set to launch its IPO on the Sci-Tech Innovation board, aiming to raise 18 billion yuan, marking the largest IPO on the board this year [2][3] - Changhua Chemical specializes in the large-scale production of polyether products, while Jinkai Biotechnology provides CDMO services for small molecule drugs [6][7] - Minbao Optoelectronics focuses on green lighting products, and Huakong Technology is a leader in the global smart hardware ODM sector [8][9] - Mengguli is a major supplier of lithium battery cathode materials, and Blue Arrow Electronics is an important semiconductor packaging and testing company in South China [10][11] Group 2: Financial Performance - Huahong Semiconductor reported revenues of 6.737 billion yuan, 10.63 billion yuan, and 16.786 billion yuan from 2020 to 2022, with net profits of 505 million yuan, 1.66 billion yuan, and 3.009 billion yuan respectively [3] - Changhua Chemical's revenues were 1.879 billion yuan, 3.028 billion yuan, and 2.312 billion yuan from 2020 to 2022, with net profits of 73.06 million yuan, 87.55 million yuan, and 89.38 million yuan [6] - Jinkai Biotechnology achieved revenues of 464 million yuan, 549 million yuan, and 717 million yuan from 2020 to 2022, with net profits of 58.94 million yuan, 84.55 million yuan, and 161.45 million yuan [7] - Minbao Optoelectronics reported revenues of 1.059 billion yuan, 1.497 billion yuan, and 1.465 billion yuan from 2020 to 2022, with net profits of 177 million yuan, 170 million yuan, and 245 million yuan [8] - Huakong Technology's revenues were 59.866 billion yuan, 83.759 billion yuan, and 92.646 billion yuan from 2020 to 2022, with net profits of 2.191 billion yuan, 1.893 billion yuan, and 2.564 billion yuan [9] - Mengguli's revenues were 1.646 billion yuan, 2.827 billion yuan, and 3.234 billion yuan from 2020 to 2022, with net profits of 799.55 million yuan, 1.045 billion yuan, and 923.29 million yuan [10] - Blue Arrow Electronics reported revenues of 571 million yuan, 736 million yuan, and 752 million yuan from 2020 to 2022, with net profits of 184.35 million yuan, 77.27 million yuan, and 71.42 million yuan [11]

Group 1: Company Performance and Projects - The company has a low direct export amount to the U.S., which constitutes a minimal percentage of total revenue [3] - The production capacity of the high-performance polyether series has reached 970,000 tons, with ongoing projects to expand capacity [5][7] - The company’s nylon 66 project has entered the debugging and trial production phase, with expected contributions to revenue and profit pending [3] Group 2: Product Advantages and Market Position - The company’s POP products feature advantages such as water resistance, low viscosity, high solid content, low VOC, and high whiteness [4] - The polyether products are primarily used in various industries, including soft furniture, automotive, and construction [4][6] - The company is focusing on high-value-added products to improve profitability amidst low margins in basic polyether products [5] Group 3: Financial Management and Investor Relations - The company has a commitment to cash dividends, distributing RMB 1.00 per 10 shares in 2021 and 2022, and RMB 1.50 per 10 shares in 2023, with a proposed RMB 0.80 per 10 shares for 2024 [8] - The company emphasizes maintaining transparent information disclosure to protect the rights of minority investors [8] - The company has implemented a market value management system to enhance long-term investment value [7] Group 4: Risk Management and Credit Evaluation - The company employs a "payment in advance" sales model while offering credit to select high-quality customers, assessing credit risk through a robust evaluation system [5] - Measures such as optimizing contract terms and purchasing credit insurance are in place to mitigate credit risk [5]