HK Stock Market Move | DONGYUE GROUP (00189) rises over 8% in intraday trading, chemical anti-inner circulation accelerates supply clearance, improving refrigerant supply and demand pattern.

DONGYUE GROUP (00189) rose by more than 8% during trading hours, and as of the time of writing, it rose by 6.31% to HK$11.12 with a turnover of HK$425 million. On the news front, according to Steelhome data, the price of R32 refrigerant remains stable at high levels, while the price of R134a refrigerant continues to rise. According to Baichuan Yingfu data, as of October 31, the prices of R32, R125, R410a, and R134a have increased by 46.51%, 8.33%, 27.83%, and 27.06% respectively compared to the beginning of the year. China Securities Co., Ltd. released a research report stating that the prices of chemical products in China have been declining for four consecutive years, and anti-cyclical policies and association self-regulatory actions have been introduced, indicating a possible turning point in the cycle. With expectations of marginal improvement in both supply and demand, attention should be paid to the improvement in supply structure and pro-cyclical sectors related to domestic demand. Among them, the fluorine chemical sector, including DONGYUE GROUP, is worth monitoring. Kaiyuan Securities believes that with the continuous advancement of the carbon peaking and carbon neutralization strategy, the second-generation refrigerant R22 is expected to be significantly reduced, and HFCs are expected to benefit from the rapid increase in penetration rate due to national policies.