HK Stock Market Move | DONGYUE GROUP (00189) rose more than 7% UK and US adjust the pace of phasing out three generations of refrigerants The overall refrigerant market is expected to gradually recover.

Dongyue Group (00189) surged more than 7%, up 7.1% to HK$17.5 as of press time, with a turnover of HK$1.355 billion. On the news front, the UK and the US have recently announced the postponement of quotas for the use of hydrofluorocarbons (HFCs), including third-generation refrigerants. The pace of HFC elimination to reduce carbon emissions has slowed down overall, mainly due to the rising prices of HFCs leading to increased operating costs in the refrigerant industry chain. Orient believes that the quota-driven third-generation refrigerants, with rigid supply, and the demand for refrigeration equipment continues to grow. The relaxation of control over third-generation refrigerants in the UK and the US will extend their demand cycle, and it is optimistic about the positive trend in the third-generation refrigerant industry. Companies with a leading share of quotas are expected to benefit, and it sees long-term value in sector allocation. According to Fluorine Resources Online, at present, refrigerant companies have a strong willingness to control prices, and industry consensus remains, with factory inventory at moderate levels and no concentrated sales pressure. The US and the UK postponing the elimination of HFCs is positive for domestic markets. As temperatures continue to rise and demand for replenishment domestically and internationally gradually increases, the overall refrigerant market is expected to gradually recover.