Guotai Haitong: Maintains "buy" rating on DONGYUE GROUP (00189) with a target price of HK$15.29.

Guotai Haitong released a research report stating that it maintains a "buy" rating for DONGYUE GROUP (00189) and forecasts the company's net profit attributable to shareholders for 2025-2027 to be 1.822 billion, 2.017 billion, and 2.410 billion RMB, respectively. Compared with similar companies in the industry, the company is given a 12x PE ratio for 2026, calculated at a Hong Kong dollar to Renminbi exchange rate of 0.91, corresponding to a target price of HK$15.29. Key points from Guotai Haitong: - The refrigerant business performance in H1 2025 increased by 209.77% year-on-year. - In H1 2025, the refrigerant division's external sales were 2.292 billion RMB, a 47.69% increase year-on-year, accounting for 30.71% of the group's total external sales; the division's profit was 1.03 billion RMB, a 209.77% increase year-on-year. The price increase of main products such as R32 and R410a in the refrigerant division in H1 2025 was the main reason for the division's performance growth. The price increase of these two products in H1 2025 was mainly due to quota restrictions. Shandong Dongyue Silicone Material subsidiary releases third-quarter performance The non-wholly-owned subsidiary of the company listed on the Shenzhen Stock Exchange's Growth Enterprise Market, Shandong Dongyue Silicone Material Co., Ltd., has released its unaudited financial data for the first three quarters of 2025 on the Shenzhen Stock Exchange website. The main financial data for Shandong Dongyue Silicone Material in the first three quarters of 2025 are: revenue of 490 million RMB; net profit attributable to Shandong Dongyue Silicone Material shareholders of 2.857 million RMB. Equity investment company Future Materials submits listing application materials to the SSE The company has received written notification from its equity investment company Shandong Dongyue Future Hydrogen Materials Co., Ltd., that Future Materials has submitted application materials for initial public offering and listing on the Shanghai Stock Exchange Sci-Tech Board to the Shanghai Stock Exchange, and the application has been accepted by the Shanghai Stock Exchange. Future Materials is a joint venture of the company and a limited company established in China, mainly engaged in the research, production, and sales of proton exchange membrane fluorides, their key raw materials, and derivative products. As of June 27, 2025, Dongyue Fluorosilicone Science Group Co., Ltd. holds 8.33% of the equity in Future Materials, and Shandong Dongyue Silicone Material Co., Ltd. holds 5.14% of the equity in Future Materials. Risk Warning: - Risks of downstream demand falling short of expectations. - Risks of product price fluctuations. - Risks of quotas falling short of expectations.