HK Stock Market Move | DONGYUE GROUP (00189) rises by over 10% again, domestic quota scheme for refrigerants remains largely unchanged from the previous year.

DONGYUE GROUP (00189) rose by over 10%, up 8.01% to HK$17.13 at the time of publication, with a turnover of HK$329 million. On the news front, the draft policy on refrigerant quotas for 2027 has been issued for consultation. The domestic refrigerant quota plan for 2027 is generally consistent with that of 2026, with HFC-245fa prohibited from converting to other varieties and the conversion ratio of other varieties to HFC-245fa increased to a maximum of 50%. Benefiting from quota production and the continued improvement in market supply and demand, refrigerant prices are expected to experience a recovery. China Securities Co., Ltd. previously released a research report stating that DONGYUE GROUP is a leading player in second and third generation refrigerants, with high market share in core products such as R22 and R32, and industry pricing power. In the long run, there is still significant room for price increases in third generation refrigerants, and the company is expected to benefit deeply. The bank pointed out that the lucrative profits in the refrigerant sector are expected to continue to support the research and development of high-end fluorine materials.