New Stock Preview | Aiming to solidify integrated and localized layout, can Shenzhen Capchem Technology (300037.SZ) break free from the electrolyte cyclical valuation framework?

Six months later, the world's second-largest battery electrolyte supplier, Shenzhen Capchem Technology (300037.SZ), has launched a second bid for the Hong Kong Stock Exchange, armed with an impressive report card. After first filing on January 27 this year, Shenzhen Capchem Technology submitted its listing application to the Main Board of the Hong Kong Stock Exchange for the second time on August 28, with CITIC SEC and CICC as joint sponsors. Unlike the caution shown at its first filing earlier this year, Shenzhen Capchem Technology's second filing can be described as brimming with confidence. The company's revenue for the first half of 2026 soared to 7.455 billion yuan, a year-on-year surge of 75.74%, with net profit for the period approaching the 1 billion yuan mark, growing at a rate of 99.20%. This explosive report card of "growing both revenue and profit" has completely reversed the volatile trend of "growing revenue without growing profit" seen over the previous three years. As the listing process advances, Shenzhen Capchem Technology has also unveiled its ambition for a global layout. According to the prospectus, the funds raised in this Hong Kong listing will be focused on four major engines: first, opening up the two key meridians by expanding domestic production of key raw materials such as LiFSI and building overseas capacity in Malaysia to construct an integrated and localized supply chain; second, betting on the future by increasing R&D investment in frontier areas such as batteries, organic fluorine, and semiconductor chemicals; third, digital upgrading; and fourth, supplementing working capital. From the earnings explosion to the second listing and fundraising, can Shenzhen Capchem Technology ride this tailwind to truly accelerate in the fiercely competitive global new energy track? Declining gross margin causes profit-side volatility, while multiple factors drive the latest earnings explosion As one of the earliest domestic companies to enter the lithium battery industry, after nearly three decades of accumulation, Shenzhen Capchem Technology has formed three core business segments around electronic chemicals and functional materials that are mutually synergistic: battery chemicals, organic fluorine chemicals, and electronic information chemicals. Among these, battery chemicals are the company's core product, accounting for as much as 69.4% of revenue in 2025, while organic fluorine chemicals and electronic information chemicals accounted for 14.8% and 15.2%, respectively. According to Frost & Sullivan data, based on 2025 battery electrolyte revenue, Shenzhen Capchem Technology is the world's second-largest battery electrolyte supplier. In addition, from 2020 to 2025, Shenzhen Capchem Technology achieved the largest global market share by battery electrolyte revenue (excluding China). However, a standout market position did not directly linear profit growth. From 2023 to 2025, Shenzhen Capchem Technology fell into a typical "growing revenue without growing profit" predicament: revenue climbed steadily from 7.472 billion yuan to 9.628 billion yuan, with a compound annual growth rate of 13.51%; but net profit hovered around the 1 billion yuan mark, recording 1.014 billion, 951 million, and 1.097 billion yuan, respectively, showing clear volatility. Breaking down the revenue structure, the company's growth was mainly driven by the twin engines of battery chemicals and electronic information chemicals, but the growth logic of the two is completely different. Among them, battery chemicals followed a "volume offsetting price" path. Dragged down by industry "involution," the average selling price of this segment was halved from 23,800 yuan/ton in 2023 to 12,600 yuan/ton in 2025. However, thanks to explosive sales growthsoaring from 212,000 tons to 530,000 tonseconomies of scale successfully offset downward pricing pressure, driving revenue up against the trend from 5.053 billion yuan to 6.679 billion yuan. By contrast, electronic information chemicals fought a beautiful "value war." Through a structural transformation toward higher-value-added semiconductor chemicals, this business not only pushed the average selling price up from 12,900 yuan/ton to 15,000 yuan/ton, but also steadily expanded sales from 73,000 tons to 97,000 tons. This rare pattern of simultaneous volume and price growth made it the most valuable growth pole during the reporting period. However, sustained growth on the revenue side was not transmitted synchronously to the profit side, with the core crux being the continued bleeding of gross margin. Dragged down by the price war in battery chemicals, Shenzhen Capchem Technology's sales gross margin slid from 28.4% in 2023 all the way to 23.4% in 2025, declining for two consecutive years and directly suppressing the profit release space of the main business. Despite the continued decline in gross margin, Shenzhen Capchem Technology's net profit in 2025 nevertheless grew from 951 million yuan to 1.097 billion yuan, mainly because the joint venture recorded a profit of 123 million yuan in 2025. Excluding this factor, Shenzhen Capchem Technology's profit side in 2025 remained weak and sluggish. Entering the first half of 2026, the dual explosion in Shenzhen Capchem Technology's revenue and profit was the result of multiple factors working together. On the revenue side, a qualitative leap was achieved: battery chemicals broke away from the previous passive situation of "volume offsetting price" and successfully switched to a "simultaneous volume and price growth" channel driven by a strong recovery in downstream energy storage and power battery demand; at the same time, electronic information chemicals, with the acceleration of its high-end transformation, continued its highly prosperous "simultaneous volume and price growth" trend. Under the resonance of these two engines, the company's first-half revenue directly surged 75.74% year-on-year. The substantial release on the profit side was driven by the twin wheels of "main business repair" and "investment income." On the one hand, as prices stabilized in battery chemicals and with hexafluorophosphate lithium self-supply (Shilei) as well as LiFSI/additive integration cost reductions working together, the company's overall gross margin was able to stabilize. On the other hand, the profitability of the joint venture continued to be released, recording attributable profit of approximately 175 million yuan in the first half, significantly thickening earnings year-on-year. Under the resonance of internal and external factors, Shenzhen Capchem Technology delivered a high-growth report card with profit nearly doubling. Short-term performance depends on the battery business, while the pace of high-margin product ramp-up determines long-term value After achieving a dual explosion in revenue and profit in the first half of 2026, a key question has emerged in investors' minds: has Shenzhen Capchem Technology moved from "growing revenue without growing profit" into a new cycle of "growing both revenue and profit"? The answer to this question must be analyzed from both short- and medium-term perspectives. In the short term, looking at battery chemicals, the core is "volume has a floor, price depends on upstream, and profit depends on self-supply." Among these, the shipment side has relatively strong certainty. The company disclosed a long-term contract with Contemporary Amperex Technology for 20262028 of about 300,000 tons, increasing by 50,000/100,000/150,000 tons, and with the advancement of overseas bases in Malaysia, the United States, Poland Phase II, and the Middle East, the prospectus states a total electrolyte production capacity plan of 1.5 million tons/year under the "15th Five-Year Plan," to be released according to demand, so overall shipments will not be the main contradiction. The real variables are price and gross margin. The finished electrolyte industry is operating at only just over 60% utilization and has weak pricing power. Profit elasticity does not lie in finished electrolyte, but in raw materials such as hexafluoro, LiFSI, and VC. In the first half of 2026, the average price of hexafluoro was about 118,000 yuan/ton, once spiking before falling back to about 107,000 yuan/ton in August. Institutions judge the full year to be in tight balance, with supply and demand easing after new technical upgrades are released in 2027. Therefore, Shenzhen Capchem Technology's Hong Kong fundraising to step up LiFSI, solvents, additives, and domestic integration is essentially not a bet on electrolyte price increases, but rather using self-supply to turn "locked volume but not locked price" long-term orders into stable gross margin. On the joint venture side, attributable joint venture profit in the first half of 2026 was about 175 million yuan, with Shilei's hexafluoro technical upgrade to 36,000 tons as the core; if hexafluoro stabilizes at 100,000110,000 yuan/ton, this part will continue to thicken profit, while if it falls back below 80,000 yuan, the battery segment's gross margin and joint venture income will retreat in both directions. In the medium term, looking at the profit structure, the key is whether the two high-gross-margin lines of electronic information chemicals and organic fluorine can raise their weight in profit. Electronic information chemicals are the most certain "profit amplifier," and this is the segment with the greatest explosive potential in Shenzhen Capchem Technology's medium-term performance. In the first half of 2026, this business achieved revenue of 956 million yuan, up 40.8% year-on-year, with gross margin as high as 51.7%, far exceeding the profitability of battery chemicals. The growth logic of electronic information chemicals mainly has two main lines. First, the basic plate of capacitor chemicals is solid. Shenzhen Capchem Technology has a global capacitor chemicals market share of about 50%, holding an absolute leading position. With the explosive demand for MLPC (multilayer polymer capacitors) and supercapacitors from AI servers, this category is ushering in structural incremental growth. The supplement of new capacity in Yidu will further consolidate this advantage. Second, semiconductor chemicals will open the second growth curve of electronic information chemicals. The company's products such as high-purity ammonia water, sulfuric acid, hydrogen peroxide, and isopropanol have already entered the semiconductor supply chain, while semiconductor fluorine-containing coolants benefit from the AIDC (artificial intelligence data center) liquid cooling trend. Expansion in Tianjin, Nantong, and Huizhou is advancing, directly benefiting from the broader logic of domestic substitution of semiconductor materials. It is worth noting that the current capacity utilization rate of this segment is only just over 50%, meaning that without large-scale new capital expenditure, considerable profit increment can be released simply through capacity ramp-up. This is the line with the highest "input-output ratio" among the three business lines. Organic fluorine has a slower pace but determines valuation: first-half revenue was 708 million yuan, under pressure, while gross margin remained above 50%; existing fluorinated liquids total 5,500 tons (hydrofluoroether 3,000 + perfluoropolyether 2,500), with construction/planning expanding toward semiconductor coolants and data center immersion liquid cooling. Haishifu Sanming's 30,000-ton high-end fluorine fine chemicals and fluorine new materials research center, and Haidefu Phase 1.5's additional 5,000 tons of high-end fluoropolymers, are advancing domestic substitution and higher-value-added varieties. This line has a long certification cycle and slow customer introduction, but once semiconductor coolants and immersion liquid cooling ramp up, the company can shift from an "electrolyte processing" valuation to a "fluorine + semiconductor materials" valuation. Overall, whether Shenzhen Capchem Technology has entered a new cycle of "growing both revenue and profit" is determined in the short term by hexafluoro prices, self-supply rate, and Shilei joint venture income, and in the medium term by the revenue proportion of electronic information and organic fluorine. The high growth in 2026 comes more from battery volume-price repair + high hexafluoro prices + joint venture income, and still carries cyclical elasticity; after 2027, if hexafluoro falls back to 80,000100,000 yuan/ton due to the release of technical upgrade capacity, the battery segment's gross margin and investment income will come under pressure. At that point, whether the company can avoid returning to "growing revenue without growing profit" depends on whether electronic chemicals capacity utilization rises from just over 50% to a high level, whether semiconductor wet electronic chemicals and AI capacitors ramp up, and whether organic fluorine fluorinated liquids and high-end fluorine fine chemicals are realized on the semiconductor/AIDC customer side. If the revenue share of high-gross-margin electronic information chemicals and organic fluorine continues to rise, and overseas integrated cost reductions offset raw material declines, Shenzhen Capchem Technology will shift from a cyclical elasticity stock to a platform-type electronic chemicals stock, with narrower profit volatility and a valuation re-rating; if hexafluoro plunges while electronics and organic fluorine ramp slowly, the battery business will still drag down the whole, profit will again show volatility, and the valuation will find it hard to escape the electrolyte cyclical framework.