Fluorochemical Weekly Report: Market Waiting for Demand to Restore, Listed Companies' Q1 Revenue to Fall Generally

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One week market

Refrigerant: Although the price war has receded, market demand still needs to be restored

This week, transactions in the refrigerant market were light, and mainstream product prices remained stable on the sidelines. Weekly market characteristics: The prices of fluorite powder, hydrofluoric acid, and tetrachloroethylene are weak and stable, while the prices are weak and stable; Strong cost support for calcium carbide and recovery of downstream demand, with prices exploring upward movement; Multiple trichloroethylene factories underwent centralized maintenance in May, with strong expectations of price increases; Other raw materials have been affected by weak downstream demand, resulting in price fluctuations and a downward trend; Refrigerant cost support is slightly loose. It should be noted that this week is during the May Day holiday, and due to high-speed restrictions and downstream customer vacations, overall trading has been poor. Refrigerant factories are mainly reducing production burden, and the market has a strong wait-and-see atmosphere. In the short term, prices will maintain a slightly profitable level and slowly rise.

Fluoropolymers: The prices of fluorinated monomers are gradually bottoming out, and the prices of fluorinated polymers are stabilizing and consolidating

This week, the fluoropolymer market continued to shrink and stabilize, with rapid supply growth, slowing demand growth, and significantly squeezing costs. Scale competition has led to significant price fluctuations and cost linkage characteristics. From a product perspective, the prices of TFE, VDF, and HFP monomers have gradually bottomed out after continuous adjustments, and there is limited room for further decline. The collective support for the cost of fluoropolymers is stabilizing and strengthening. From the perspective of demand market, industries such as automobiles, coatings, wind power, machinery, aerospace, and environmental protection have a slow growth rate of around 10%; Popular industries such as semiconductors, photovoltaics, lithium batteries, energy storage, fluorinated pharmaceuticals, and fluorinated pesticides continue to grow rapidly, with a growth rate of around 30%. From a comprehensive perspective of supply and demand, the application industry is characterized by shrinking and slowing growth. Although the multi-point flowering growth is foreseeable in the future, the short-term market will still be bleak and poised for consolidation.

Fluorinated lithium salts: Strong costs drive strong prices of fluorinated products

This week, the price of lithium carbonate has increased, and downstream demand has also improved. Cost pressure has stimulated the attitude of lithium salt manufacturers towards high prices, and the fluorinated lithium salt market is operating steadily. With the upward trend in the actual transaction of lithium carbonate and the slow increase in downstream operating load, the on-site transactions of lithium carbonate have improved, and production enterprises are gradually going out of stock, resulting in continued bullish prices. In terms of supply, the production capacity of lithium hexafluorophosphate is relatively abundant, and the competition among production enterprises is fierce. However, under cost pressure, enterprises have a mentality of favoring prices, and some manufacturers are holding back and reluctant to sell. The price is stable and optimistic. The operating load of downstream power batteries is slowly recovering, and there may be some replenishment behavior in the pursuit of rising sentiment. Industry Online predicts that as the price of lithium carbonate begins to decline, there may be a pullback in the prices of lithium industry chain products. Under cost pressure, there may be room for upward adjustment in the prices of fluorinated lithium salts.

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First quarter report of listed companies

Juhua Group achieved a revenue of 4.576 billion yuan in the first quarter, a year-on-year decrease of 0.68%

In the first quarter of 2023, Juhua Group achieved a revenue of 4.576 billion yuan, a year-on-year decrease of 0.68%; The net profit attributable to shareholders of the listed company was 153 million yuan, a year-on-year decrease of 34.89%; Basic earnings per share are 0.057 yuan.

Juhua Group stated that in the first quarter, the company's production and operation showed a characteristic of increasing in volume, decreasing in price, and not increasing in revenue. The company's main products, except for a slight decrease in the production of food packaging materials, have seen year-on-year growth in both production and export volume; Affected by factors such as oversupply of products, intensified market competition, weak demand growth, and a decline in international commodity prices, the prices of the company's main products and raw materials have generally declined.

Sanmei Group's revenue in the first quarter was 778 million yuan, a year-on-year decrease of 34.12%

On April 20th, Sanmei Corporation released its first quarter report for 2023. The financial report shows that the company's operating revenue in the first quarter was 778 million yuan, a year-on-year decrease of 34.12%; The net profit attributable to shareholders of the listed company was 19.9722 million yuan, a year-on-year decrease of 89.65%; The net profit attributable to shareholders of the listed company after deducting non recurring gains and losses was 21.7181 million yuan, a year-on-year decrease of 87.66%; Basic earnings per share are 0.03 yuan.

The business data released by the company shows that in the first quarter of 2023, the sales of the company's main product fluorine refrigerant showed little year-on-year change, but the sales of fluorine foaming agent and hydrogen fluoride decreased by more than 30% year-on-year. In addition, the average price of fluorine refrigerant products decreased by 28.55% year-on-year, compressing the company's profits.

Yonghe Group's revenue in the first quarter was 939 million yuan, a year-on-year increase of 28.17%

Yonghe Group's total operating revenue in the first quarter was 939 million yuan, a year-on-year increase of 28.17%, net profit attributable to the parent company was 29.2195 million yuan, a year-on-year decrease of 59.75%, gross profit margin was 16.73%, a year-on-year decrease of 21.88%, net profit margin was 3.13%, a year-on-year decrease of 68.46%, sales expenses, management expenses, and financial expenses were a total of 97.1391 million yuan, with three expenses accounting for 10.35% of the revenue, a year-on-year increase of 20.89%, net assets per share being 8.69 yuan, a year-on-year increase of 10.76%, operating cash flow per share being -0.64 yuan, a year-on-year decrease of 333.82%, Earnings per share was 0.11 yuan, a year-on-year decrease of 59.26%.

According to the announcement of Yonghe Co., Ltd., in the first quarter of 2023, there was no increase in revenue or profit. Its main products, fluorocarbon chemicals, fluoropolymer materials, and chemical raw materials, saw significant year-on-year sales growth, with revenue increasing by 14.38%, 35.17%, and 109.53% respectively. However, due to a decline in the prices of major products, an increase in the prices of some raw materials, and an increase in marketing expenses, its profit margin is limited.

Haohua Technology's revenue in the first quarter was 2.058 billion yuan, a year-on-year increase of 11.01%

On April 29th, Haohua Technology released a quarterly report stating that in the first quarter of 2023, the company achieved a revenue of 2.058 billion yuan, a year-on-year increase of 11.01%, a net profit of 228 million yuan, and a year-on-year increase of 2.37% in performance. Basic earnings per share of 0.2521 yuan, total assets of 14.889 billion yuan, total liabilities of 6.42 billion yuan, and asset liability ratio of 43.12%.

The operating data disclosed by the company for the same period shows that in the first quarter of 2023, the purchase prices of the company's main raw materials such as chloroform and MDI significantly decreased, while the product structure of special tires and other products was adjusted, resulting in a significant increase in average prices, supporting the company's profit margin.

Dongyangguang's revenue in the first quarter was 2.715 billion yuan, a year-on-year decrease of 4.48%

Dongyangguang's main revenue in the first quarter was 2.715 billion yuan, a year-on-year decrease of 4.48%; The net profit attributable to the parent company was 65642500 yuan, a year-on-year decrease of 77.2%; Deduction of non net profit of 88.1731 million yuan, a year-on-year decrease of 71.57%; The debt ratio is 56.11%, the investment income is 38.0706 million yuan, the financial expenses are 69.3209 million yuan, and the gross profit margin is 14.3%.

Luxi Chemical's revenue in the first quarter was 6.581 billion yuan, a year-on-year decrease of 14.0%

According to the 2023 first quarter report of Luxi Chemical, the company's main revenue was 6.581 billion yuan, a year-on-year decrease of 14.0%; The net profit attributable to the parent company was 322 million yuan, a year-on-year decrease of 75.6%; Deduction of non net profit of 303 million yuan, a year-on-year decrease of 76.78%; The debt ratio is 49.6%, the investment income is 529600 yuan, the financial expenses are 77061700 yuan, and the gross profit margin is 12.82%.

Data shows that in the first quarter of 2023, the prices of caprolactam and dimethylformamide, the main products of Luxi Chemical, declined year on year, affecting the company's profits. However, with the recovery of market demand, the performance is expected to improve.