CITIC Securities: Maintain DONGYUE GROUP "Buy" rating with a target price of HKD 15.29

According to the Zhitong Finance APP, Guotai Junan has released a research report stating that it maintains an "Overweight" rating for DONGYUE GROUP (00189), projecting the company's net profit attributable to shareholders for 2025-2027 to be 1.822 billion, 2.017 billion, and 2.410 billion yuan, respectively. Based on comparable companies in the same industry, it assigns a 12x PE for 2026, corresponding to a target price of HKD 15.29 when calculated at an exchange rate of 0.91 for HKD to RMB. Guotai Junan's main points are as follows: Refrigerant business performance in H1 2025 increased by 209.77% year-on-year In H1 2025, the refrigerant segment's external sales amounted to 2.292 billion yuan, a year-on-year increase of 47.69%, accounting for 30.71% of the group's total external sales; the segment's profit was 1.03 billion yuan, a year-on-year increase of 209.77%. In H1 2025, the prices of major products in the refrigerant segment, such as R32 and R410a, saw significant increases, which were the main reasons for the segment's performance growth. The price increases for these two products in H1 2025 were mainly related to quota restrictions. Subsidiary Dongyue Silicon Materials releases third-quarter performance The company's non-wholly-owned subsidiary, Shandong Dongyue Organic Silicon Materials Co., Ltd., listed on the Shenzhen Stock Exchange's ChiNext, has released its third-quarter report for 2025 on the Shenzhen Stock Exchange website. The following are the key unaudited financial data for Dongyue Silicon Materials for the first three quarters of 2025: revenue of 490 million yuan; net profit attributable to shareholders of Dongyue Silicon Materials of 2.857 million yuan. Investee company Future Materials has submitted listing application materials to the Shanghai Stock Exchange The company has received written notification from its investee company, Shandong Dongyue Future Hydrogen Energy Materials Co., Ltd., that Future Materials has submitted application materials for an initial public offering and listing on the Sci-Tech Innovation Board of the Shanghai Stock Exchange, and the application has been accepted by the Shanghai Stock Exchange. Future Materials is an associate company of the firm and a joint-stock company established in China, primarily engaged in the research, production, and sales of fluorinated proton exchange membranes, their key raw materials, and derivative products. As of June 27, 2025, Dongyue Fluorosilicon Technology Group Co., Ltd. holds an 8.33% stake in Future Materials, while Shandong Dongyue Organic Silicon Materials Co., Ltd. holds a 5.14% stake. Risk Warning Risks of downstream demand falling short of expectations; risks of product price fluctuations; risks of quotas falling short of expectations