UBS: Maintains "Buy" rating on DONGYUE GROUP (00189) with a target price lowered to 17.5 Hong Kong dollars.

UBS released a research report stating that it maintains a "buy" rating on DONGYUE GROUP (00189), based on the company's performance last year and the outlook for its main products this year. The company's earnings per share forecast for 2026 to 2028 was lowered by 3% to 4%, and the target price was reduced from HK$17.6 to HK$17.5. The report mentioned that DONGYUE GROUP's net profit increased by 102% year-on-year last year, in line with preliminary performance and the bank's expectations. Gross profit grew by 44%, with a gross profit margin of 31%. Based on spot prices of its main products, the bank estimates the company's full-year net profit to be approximately 2.4 billion RMB. Looking ahead to 2026, the bank expects the profitability of the polymer and organosilicon businesses to rebound, while the profitability of the refrigerant business is expected to remain at a high level.