HK Stock Market Move | Befar Group (06745) rose by over 10% to reach a new high in its listing. Some products have seen significant price increases. It is expected that net profit in the first half of the year will increase by more than double compared to the same period last year.

Befar Group (06745) rose more than 10% in early trading, reaching a high of 3.4 Hong Kong dollars, setting a new record high. As of the time of publication, it rose by 6.91% to 3.25 Hong Kong dollars, with a trading volume of 32.7896 million Hong Kong dollars. On the news front, Befar Group previously released a profit announcement, expecting a net profit attributable to the parent company of 344 million yuan in the first half of the year, an increase of 208.25% year-on-year; the non-net profit attributable to the parent company was 286 million yuan, reversing the previous loss. Mainly due to the impact of international political factors and geopolitical conflicts, the prices of global chemical raw materials have risen, and the business outlook of some of the company's products has improved. The prices of the main products epoxy propane, chloropropane, and propylene have increased significantly compared to the same period last year, leading to an increase in gross profit. Cathay Haitong previously released a research report stating that Befar Group will complete the production capacity release of 240,000 tons of oxychlorination PO and 742,000 tons of MTBE by 2025. With high-cost overseas production capacity exiting, stricter domestic policy control eliminating outdated production capacity, it is expected that the industry structure will be optimized in the future. The company's production capacity scale is leading in the industry, and the co-production process improves raw material utilization efficiency. The profit elasticity of new carbon-three and carbon-four businesses will be fully released.