China Risun Group (01907) rose more than 4%. As of the time of writing, the stock was up 4.1% to HK$2.79, with a turnover of HK$69.4979 million. On the news front, Founder Securities noted that current chemical product prices have surged significantly. Following the US-Iran conflict, chemical product prices increased rapidly, with most rising over 30%. As of May 6, methanol prices were up more than 36%, representing an increase of 893 yuan per ton compared to the same period. The substantial rise in chemical product prices is expected to boost the company's chemical segment performance, with 2026 forecasted to be a year of significant earnings growth for Risun Group's chemical business. Guotou Securities International also stated that the company has managed to remain profitable even during the industry's downturn through cost reduction and efficiency improvements, demonstrating excellent cost control capabilities. Considering the rise in chemical product prices this year, the firm has raised its net profit forecasts for 2026, 2027, and 2028. Given the company's cyclical nature, a "Buy" rating is maintained with a target price of HK$4.2.
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