On June 1, Dongyue Group rose 7.1% at open, trading at HK$17.5/share, with trading volume of HK$15.997 million. The rally extends a strong recent run, with the stock accumulating nearly 60% gains year-to-date.
The movement is driven by continued catalysts from US and UK policy shifts on HFCs refrigerants. The US EPA formally signed a final rule significantly relaxing GWP limits for multiple core sub-sectors, effectively extending the legal usage life of third-generation refrigerants in the US. The UK Department for Environment also announced a postponement of its proposed fluorinated gas phase-down steps. Since global HFCs production capacity is predominantly concentrated in China, with domestic quotas at only 797,800 tonnes and virtually zero supply growth, extended overseas demand combined with rising domestic refrigerant prices positions Chinese producers to benefit significantly. A global refrigerant restocking cycle may be forming.
Dongyue Group, as a leading fluorochemical company, will reach total capacity of 120,000 tonnes after its R32 project under construction comes online, giving it a notable quota advantage in this tightening supply environment.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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