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].

Investment Rating - The report maintains a rating of "Increase" for the industry, indicating a positive outlook for investment opportunities in the sector [5]. Core Insights - The fire incident at Jiangxi Yangfan's workshop may impact the supply of intermediates for photoinitiators, particularly affecting the supply of photoinitiator 907, which is crucial for the PCB industry [1][2]. - The demand for photoinitiator 907 is expected to rise due to the recovery in electronic terminal consumption and the increasing computational requirements from emerging industries like AI [2]. - The domestic production and sales of photoinitiators have been on the rise, with prices anticipated to rebound from their current low levels as the supply-demand balance improves [3]. Summary by Sections Industry Overview - Yangfan New Materials' subsidiary experienced a fire, leading to a temporary halt in production and potential supply chain disruptions for photoinitiators [1]. - The company reported a revenue of 346 million yuan in 2024, accounting for 47.3% of the total revenue of the listed company [1]. Demand Drivers - The PCB industry is a significant driver for the demand of photoinitiator 907, with major suppliers being Jiurichuang and Yangfan New Materials [2]. - The recovery in consumer electronics and the growth of AI-related industries are expected to sustain high demand for PCB products, thereby boosting the photoinitiator market [2]. Market Trends - The market for photoinitiators has seen continuous growth in production and sales, with recent price fluctuations due to environmental policies and external factors [3]. - The report suggests that the current low-profit environment may lead to the exit of some smaller players, enhancing market concentration and benefiting leading companies in the photoinitiator sector [3].