HK Stock Market Move | Befar Group (06745) rose nearly 6% in the morning session, with shareholders' profit attributable to them in the first half of the year increasing by 1.74 times year-on-year. The company's chlor-alkali business has stabilized and rebounded.

Befar Group (06745) rose nearly 6% in the morning session, and as of the time of writing, it is up 5.9%, priced at HKD 3.23, with a transaction volume of HKD 31.9597 million. On the news front, recently, Befar Group announced its interim results for 2026, with revenue of approximately RMB 8.26 billion, an increase of about 12.32% year-on-year; gross profit of approximately RMB 1.013 billion, an increase of about 64.14% year-on-year; and net profit attributable to equity shareholders of approximately RMB 373 million, a year-on-year increase of 1.74 times. The announcement stated that the revenue growth was mainly due to the stable operation of new facilities at Binhao New Materials, which boosted product sales, as well as the prices of the company's main products, including propylene oxide, chloropropene, and epichlorohydrin, being higher than those of the same period last year. Zhongtai pointed out that Befar Group's chlor-alkali segment achieved revenue of RMB 3.35 billion in the first half of 2026, an increase of 8.5% year-on-year, accounting for 40.5% of the total. Geopolitical conflicts in the Middle East have pushed up the prices of propane raw materials, leading to a simultaneous rise in propylene oxide prices; according to Baichuan Yingfu, the average price of propylene oxide in the first half of 2026 was RMB 9,440/ton, a year-on-year increase of 25.1%, with the average price in the second quarter of 2026 being approximately RMB 10,030/ton, reflecting increases of 36.4% quarter-on-quarter and 13.3% year-on-year; the company benefited from earlier low-cost raw material inventory, effectively capitalizing on the rise in product prices, which expanded the price spread and enhanced gross profit.