Core Viewpoint - Yonghe Co., Ltd. (SH605020) expects a significant increase in net profit for the first three quarters of 2025, projecting a year-on-year growth of 211.59% to 225.25% [1][2] Financial Performance - The company anticipates a net profit attributable to shareholders of 456 million to 476 million yuan for the first three quarters of 2025, an increase of 310 million to 330 million yuan compared to the same period last year [2] - For Q3 2025, the expected net profit is between 185 million to 205 million yuan, reflecting a year-on-year growth of 447.64% to 506.85% and a quarter-on-quarter increase of 6.34% to 17.83% [2] - The net profit excluding non-recurring gains and losses for the first three quarters of 2025 is projected to be between 442 million to 462 million yuan, a year-on-year increase of 212.93% to 227.10% [2] - The Q3 2025 net profit excluding non-recurring items is expected to be between 174 million to 194 million yuan, with a year-on-year growth of 396.82% to 453.92% and a quarter-on-quarter increase of 1.71% to 13.40% [2] Industry Context - The performance increase is attributed to the sustained high demand in the refrigerant industry, driven by supply-side quota policies and steady growth in downstream demand [3] - The reduction in production quotas for second-generation refrigerants (HCFCs) and the implementation of quota management for third-generation refrigerants (HFCs) have optimized the supply-demand structure [3] - The steady growth in demand from sectors such as air conditioning and cold chain logistics supports rising product prices and improved profit margins [3] Operational Efficiency - The company has optimized production efficiency at its Shaowu Yonghe base, enhancing the quality and sales scale of products like HFP, FEP, PTFE, and PFA [3] - The transition from "capacity construction" to "efficiency release" is expected to lead to continuous profitability starting from Q4 2024 [3] - The company aims to broaden its profit margins and improve operational efficiency through lean management, market share expansion, and cost control [3] Company Background - Yonghe Co., Ltd. specializes in the research, production, and sales of fluorochemical products, with a comprehensive industrial chain covering fluorite resources, hydrofluoric acid, fluorocarbon chemicals, and fluorinated polymers [7] - The company reported a revenue of 2.445 billion yuan for the first half of 2025, marking a year-on-year increase of 12.39% [7] - The net profit attributable to shareholders for the same period was 271 million yuan, reflecting a year-on-year growth of 140.82% [7]

Core Viewpoint - The prices of third-generation refrigerants have increased as of September 2025, while prices of PVDF and HFP have decreased [2] Group 1: Refrigerant Prices - As of September 30, 2025, the prices for third-generation refrigerants R32, R125, and R134a are 62,500 yuan/ton, 45,500 yuan/ton, and 52,000 yuan/ton, reflecting increases of 4.17%, 0.00%, and 0.97% respectively compared to the end of August [2][4] - The price of R22 has decreased by 4.23% month-on-month to 34,000 yuan/ton, but has increased by 13.33% year-on-year [2] Group 2: Fluorspar and Hydrofluoric Acid Prices - As of September 30, 2025, the prices for wet and dry fluorspar are 3,628 yuan/ton and 3,828 yuan/ton, showing month-on-month increases of 10.07% and 9.50% respectively [2][4] - The market price for anhydrous hydrofluoric acid is 11,704 yuan/ton, with a month-on-month increase of 11.83% [2][4] Group 3: Air Conditioning Production Trends - Domestic air conditioning production is expected to decline year-on-year in October, November, and December 2025, with production volumes of 11.53 million units, 12.96 million units, and 16.36 million units respectively, reflecting year-on-year decreases of 17.98%, 14.70%, and 8.60% [3] - Since June 2024, the export volume of R32 has shown an upward trend due to increased overseas demand and enhanced production capacity of domestic air conditioning companies [3] Group 4: Investment Recommendations - The reduction of second-generation refrigerant quotas and the maintenance of third-generation refrigerant production quotas at baseline levels indicate a tightening supply-demand relationship [4] - The prices of refrigerants have been steadily increasing since 2025, with significant year-on-year price increases for R32, R134a, and R125 of 64.47%, 55.22%, and 40.00% respectively [4] - Companies such as Juhua Co., Ltd., Sanmei Co., Ltd., and Jinshi Resources are recommended for investment due to their strong positions in the refrigerant industry and complete industrial chains [4]

Core Viewpoint - Yonghe Co., Ltd. (605020.SH) is experiencing significant growth in its performance, with a projected net profit increase of 211.59% to 225.25% year-on-year for the first three quarters of 2025, driven by the high demand in the refrigerant industry [1][2] Financial Performance - The company expects a net profit of 4.56 billion to 4.76 billion yuan for the first three quarters of 2025, with the third quarter alone projected to yield a net profit of 1.85 billion to 2.05 billion yuan, marking a year-on-year increase of 447.64% to 506.85% [2][3] - In Q4 2024, Yonghe's revenue was 12.27 billion yuan, up 7.64% year-on-year, with a net profit of 1.05 billion yuan, reflecting a 384.97% increase [3] Industry Dynamics - The growth is attributed to the sustained high demand in the refrigerant industry, with production quotas for second-generation hydrofluorocarbons (HCFCs) being reduced and third-generation hydrofluorocarbons (HFCs) continuing to face quota management, leading to an optimized supply-demand structure [2][4] - The company has secured a total HFCs product quota of 58,200 tons, positioning it among the top in the industry to benefit from supply-side reforms [4][5] Product and Operational Efficiency - Yonghe has optimized its production lines, enhancing the quality and scale of products such as HFP, FEP, PTFE, and PFA, transitioning from capacity construction to efficiency release [2][4] - The fluorocarbon chemical business, which is the company's primary revenue driver, achieved 13.1 billion yuan in revenue in the first half of 2025, accounting for 53.58% of total revenue, with a gross margin increase to 32.43% [4][5] Cash Flow and Profitability - The company's cash flow from operating activities for the first half of 2025 reached 3.37 billion yuan, a year-on-year increase of 209.39%, indicating improved financial health [3]

Core Viewpoint - Yonghe Co., Ltd. expects a significant increase in net profit attributable to shareholders for the first three quarters of 2025, driven by the sustained high demand in the refrigerant industry [1][3]. Financial Performance - The company anticipates a net profit of between 456 million to 476 million CNY for the first three quarters, representing a year-on-year growth of 211.59% to 225.25% [1]. - For the third quarter alone, Yonghe expects a net profit of 185 million to 205 million CNY, indicating a year-on-year increase of 447.64% to 506.85% and a quarter-on-quarter growth of 6.34% to 17.83% [3]. Industry Context - The refrigerant industry continues to experience high demand due to supply-side quota policies and steady growth in downstream demand, particularly in air conditioning and cold chain sectors [6][8]. - The transition from second-generation refrigerants (HCFCs) to third-generation refrigerants (HFCs) is ongoing, with production quotas tightening, which enhances the supply-demand structure [6][8]. Operational Strategy - Yonghe Co., Ltd. is optimizing its product structure and enhancing operational efficiency across its production bases, which is expected to lead to sustained profitability starting from Q4 2024 [6]. - The company is leveraging its complete industrial chain from fluorite mining to fine chemical products to capture market opportunities and improve profitability through lean management and market expansion [6][8]. Market Outlook - The overall outlook for the refrigerant market remains optimistic, with expectations of continued demand growth driven by consumer upgrades and technological innovations [11]. - The domestic refrigerant market is primarily driven by air conditioning (62.18%), refrigerators (4.78%), and automotive applications (9.87%) [8].

Core Viewpoint - Yonghe Co., Ltd. (605020.SH) expects a net profit attributable to shareholders of 456 million to 476 million yuan for the first three quarters of 2025, representing a year-on-year increase of 211.59% to 225.25% due to the sustained high prosperity of the refrigerant industry [1] Industry Summary - The refrigerant industry continues to maintain a high prosperity level, benefiting from supply-side quota policies and steady growth in downstream demand. The production quotas for second-generation fluorinated refrigerants (HCFCs) are continuously reduced, and third-generation fluorinated refrigerants (HFCs) are still subject to production quota management, which strengthens supply-side constraints and optimizes the supply-demand structure [1][1] - Steady growth in demand from downstream sectors such as air conditioning and cold chain supports continuous price increases and steady improvement in gross margins [1] Company Summary - The company is optimizing production line efficiency at its Shaowu Yonghe production base, enhancing the yield and sales scale of products such as HFP, FEP, PTFE, and PFA, transitioning from "capacity construction" to "efficiency release" [1] - From the fourth quarter of 2024, Shaowu Yonghe is expected to achieve sustained profitability [1] - The company leverages its full industry chain layout from upstream fluorite resources to downstream fluorinated fine chemicals, seizing market opportunities through lean internal management, expanding market share, and strengthening cost control to further widen profit margins and enhance operational efficiency [1]

Group 1 - The prices of third-generation refrigerants R32, R125, and R134a have increased as of July 31, 2025, reaching 55,000 yuan/ton, 45,500 yuan/ton, and 50,000 yuan/ton respectively, with increases of 4.76%, 0%, and 2.04% compared to the end of April [1][2] - The price of R22 remains stable at 35,000 yuan/ton, unchanged from the previous month, but up 14.75% year-on-year; the price difference is 26,842 yuan/ton, down 0.55% from the end of last month [1][2] - The prices of fluorinated polymers have decreased, with PTFE suspension medium, dispersion emulsion, and dispersion resin priced at 37,000 yuan/ton, 28,000 yuan/ton, and 40,000 yuan/ton respectively as of July 31, 2025 [2] Group 2 - The production of household air conditioners is expected to decline year-on-year from August to October 2025, with total production volumes of 11.443 million units, 10.662 million units, and 12.356 million units respectively, showing year-on-year growth rates of -2.79%, -12.70%, and -12.10% [2] - Zhongxin Fluorine Materials expects a net profit of 4.7589 million to 6.0809 million yuan for the first half of 2025, recovering from a loss of 23.1287 million yuan in the same period last year [3] - Yonghe Co. reported a revenue of 2.445 billion yuan for the first half of 2025, a year-on-year increase of 12.39%, with a gross margin of 25.29%, up 7.36 percentage points from the previous year, and a net profit of 271 million yuan, a year-on-year growth of 140.82% [3] Group 3 - The supply-demand relationship for second and third-generation refrigerants remains tight, with a reduction in second-generation refrigerant quotas and a stable total production quota for third-generation refrigerants [3] - The refrigerant prices have been steadily increasing since 2025, with a notable rise in July, indicating a high level of industry prosperity and potential for significant profit growth for related production companies [3]

Investment Rating - The report gives a "Bullish" rating for the refrigerant industry, indicating a positive outlook for the next six months [75]. Core Insights - The report highlights that the prices of third-generation refrigerants have been steadily increasing since 2025, with significant growth in the first half of the year. The production quotas for second-generation refrigerants are being reduced, while the total production quota for third-generation refrigerants remains at baseline levels, leading to a tightening supply-demand relationship [7][69]. - Companies such as Juhua Co., Ltd. and Sanmei Co., Ltd. are expected to see substantial profit increases, reflecting a high level of industry prosperity [69]. Summary by Sections Refrigerant Prices and Production - As of July 31, 2025, the prices for third-generation refrigerants R32, R125, and R134a are 55,000 CNY/ton, 45,500 CNY/ton, and 50,000 CNY/ton, respectively, showing increases of 4.76%, 0%, and 2.04% compared to the end of April [7][16]. - The production of R32, R134a, and R125 in July 2025 has increased by 49.68%, 66.11%, and 32.74% year-on-year, respectively [17]. Market Trends - The report notes a decline in air conditioning production in August 2025, with expected further declines in September and October, with production figures of 11.44 million units, 10.66 million units, and 12.36 million units, reflecting year-on-year decreases of -2.79%, -12.70%, and -12.10% [39]. - The report also mentions a decrease in refrigerator production, with August 2025 figures at 7.62 million units, down 9.50% year-on-year [40]. Company Performance - Zhongxin Fluorine Materials expects a net profit of 4.76 million to 6.08 million CNY for the first half of 2025, recovering from a loss of 23.13 million CNY in the same period last year [60]. - Yonghe Co., Ltd. reported a revenue of 2.445 billion CNY for the first half of 2025, a year-on-year increase of 12.39%, with a net profit of 271 million CNY, up 140.82% [63]. Investment Recommendations - The report suggests focusing on leading companies in the refrigerant industry and those with a complete industrial chain, such as Juhua Co., Ltd. and Sanmei Co., Ltd., as well as companies related to fluorine chemical raw materials like Jinshi Resources [69].

Group 1 - The company expects to achieve a net profit attributable to shareholders of 255 million to 280 million yuan for the first half of 2025, representing an increase of 142.32 million to 167.32 million yuan compared to the same period last year, with a year-on-year growth of 126.30% to 148.49% [1][2] - The company anticipates a net profit attributable to shareholders after deducting non-recurring gains and losses of 250 million to 275 million yuan, which is an increase of 143.87 million to 168.87 million yuan year-on-year, reflecting a growth of 135.56% to 159.12% [1][2] - The previous year's net profit attributable to shareholders was 112.68 million yuan, with a total profit of 137.13 million yuan [2] Group 2 - The main reasons for the profit increase include the rise in refrigerant prices due to reduced production quotas for second-generation fluorinated refrigerants (HCFCs) and the continuation of third-generation fluorinated refrigerants (HFCs) quota management policies, which have strengthened supply constraints while downstream demand has steadily increased [1][3] - The company has optimized its product structure by focusing on improving production efficiency and product quality of fluorinated polymer materials, leading to increased production and sales volume, along with a decrease in raw material costs [3]

Investment Rating - The report maintains a positive outlook on the refrigerant industry, indicating a high level of prosperity and suggesting that related companies are likely to see significant improvements in profitability [8][66]. Core Insights - The prices of third-generation refrigerants R32, R125, and R134a have increased as of May 30, 2025, with respective prices of 51,000 CNY/ton, 45,500 CNY/ton, and 48,500 CNY/ton, reflecting increases of 4.08%, 1.11%, and 2.11% compared to the end of April [8][15]. - The production quotas for second-generation refrigerants are set to decrease in 2025, while the total production quota for third-generation refrigerants will remain at baseline levels, leading to a tightening supply-demand relationship for both generations [8][66]. - The domestic production of household air conditioners is expected to maintain a year-on-year growth trend from June to August 2025, with production volumes of 20.5 million units, 17.13 million units, and 12.09 million units, representing year-on-year growth rates of 11.50%, 6.30%, and 2.70% respectively [8][39]. Summary by Sections Refrigerant Tracking - As of May 30, 2025, the total inventory of R32, R134a, and R125 refrigerants was 4,042 tons, 3,380 tons, and 2,623 tons respectively, with slight fluctuations in inventory levels [8][21]. - The production of R22 in May 2025 was 32,082 tons, showing a year-on-year decrease of 15.19% but a month-on-month increase of 9.94% [8][28]. Fluoropolymer - The prices of fluoropolymers have shown fluctuations, with PTFE, PVDF, and HFP prices recorded at 41,000 CNY/ton, 62,000 CNY/ton, and 37,000 CNY/ton respectively as of May 30, 2025 [8][49]. - The production of PTFE, PVDF, and HFP in May 2025 was 12,946 tons, 10,538 tons, and 7,371 tons respectively, with year-on-year increases of 28.13%, 30.42%, and 34.02% [8][56]. Industry News - A new technology for the resource conversion of trifluoromethane has been developed, achieving international leading standards and promising significant reductions in greenhouse gas emissions [8][59]. - Juhua Co., Ltd. has been actively increasing its shareholding, reflecting confidence in future performance and growth [8][60].

Investment Rating - The report maintains a positive outlook on the refrigerant industry, indicating a high level of prosperity and suggesting that related companies are likely to see significant improvements in profitability [8][66]. Core Insights - The prices of third-generation refrigerants R32, R125, and R134a have increased as of May 30, 2025, with respective prices of 51,000 CNY/ton, 45,500 CNY/ton, and 48,500 CNY/ton, reflecting increases of 4.08%, 1.11%, and 2.11% compared to the end of April [8][15]. - The production quotas for second-generation refrigerants are set to decrease in 2025, while the total production quota for third-generation refrigerants will remain at baseline levels, leading to a tightening supply-demand relationship for both generations [8][66]. - The domestic production of household air conditioners is expected to maintain a year-on-year growth trend from June to August 2025, with production volumes of 20.5 million units, 17.13 million units, and 12.09 million units, representing year-on-year growth rates of 11.50%, 6.30%, and 2.70% respectively [8][39]. Summary by Sections Refrigerant Tracking - As of May 30, 2025, the total inventory of R32, R134a, and R125 refrigerants was 4,042 tons, 3,380 tons, and 2,623 tons respectively, showing a mixed change compared to the previous month [8][21]. - The production of R22 in May 2025 was 32,082 tons, a year-on-year decrease of 15.19% but a month-on-month increase of 9.94% [8][28]. Fluoropolymer - The prices of fluoropolymers have shown fluctuations, with PTFE, PVDF, and HFP prices recorded at 41,000 CNY/ton, 62,000 CNY/ton, and 37,000 CNY/ton respectively as of May 30, 2025 [8][49]. - The production of PTFE, PVDF, and HFP in May 2025 was 12,946 tons, 10,538 tons, and 7,371 tons respectively, with year-on-year increases of 28.13%, 30.42%, and 34.02% [8][56]. Industry News - A new technology for the resource conversion of trifluoromethane has been developed, achieving international leading levels and promising significant reductions in greenhouse gas emissions [8][59]. - Juhua Co., Ltd. has been actively increasing its shareholding, reflecting confidence in its future performance [8][60][61]. Investment Recommendations - The report suggests focusing on leading companies in the refrigerant industry and those with well-established supply chains in the fluorochemical sector, such as Juhua Co., Ltd., Sanmei Co., and Jinshi Resources [8][66].