GTHT has released a research report maintaining an "Overweight" rating on DONGYUE GROUP (00189). The report forecasts the company's net profit attributable to shareholders for 2025-2027 at RMB1.822 billion, RMB2.017 billion, and RMB2.410 billion, respectively. Based on comparable industry peers, GTHT assigns a 12x P/E ratio for 2026. Using an exchange rate of HKD/RMB 0.91, the corresponding target price is HK$15.29.

Key highlights from GTHT's analysis include:

**Refrigerant Business Performance Surges 209.77% YoY in H1 2025** In the first half of 2025, DONGYUE GROUP's refrigerant segment reported external sales of RMB2.292 billion, up 47.69% year-on-year, accounting for 30.71% of the group's total external sales. The segment's profit reached RMB1.030 billion, a significant 209.77% increase year-on-year. The growth was primarily driven by notable price increases for key products such as R32 and R410a during H1 2025, largely due to quota restrictions.

**Affiliate DONGYUE Silicon Releases Q3 2025 Results** DONGYUE Silicon Materials Co., Ltd., a non-wholly owned subsidiary listed on the Shenzhen Stock Exchange's ChiNext board, has published its unaudited financial results for the first three quarters of 2025. Key figures include revenue of RMB490 million and net profit attributable to shareholders of RMB2.857 million.

**Associate Company FUTURE Materials Submits IPO Application to SSE STAR Market** DONGYUE GROUP received written notice from its associate company, Shandong DONGYUE FUTURE Hydrogen Energy Materials Co., Ltd., confirming that FUTURE Materials has submitted an application for an initial public offering on the Shanghai Stock Exchange's STAR Market. The application has been accepted by the exchange. FUTURE Materials, an equity-method affiliate incorporated in China, specializes in the research, production, and sales of fluorinated proton exchange membranes and related key raw materials. As of June 27, 2025, DONGYUE Fluorosilicone Technology Group holds an 8.33% stake in FUTURE Materials, while DONGYUE Silicon Materials owns 5.14%.

**Risk Factors** Potential risks include weaker-than-expected downstream demand, product price volatility, and quota-related uncertainties.