CHINA RISUN GP (01907) rose more than 4% during the trading session. As of writing, the stock was up 3.75%, trading at HK$2.77 with a turnover of HK$32.6644 million.
The catalyst behind the move is the ongoing geopolitical crisis in the Middle East, which has driven a significant surge in international crude oil prices, subsequently lifting chemical product prices in tandem.
Analysts at Founder Securities note that the current sharp increase in chemical prices, following US-Iran tensions, has seen prices for most chemical products rise by over 30%. Specifically, methanol prices have surged more than 36%, equivalent to an increase of 893 yuan per ton. This substantial rise in chemical product prices is expected to boost the company's chemical business and enhance profitability. The brokerage forecasts that 2026 will be a year of significant earnings growth for Risun Group's chemical segment and has assigned a "Strongly Recommended" rating to CHINA RISUN GP.
Additionally, it is noteworthy that on May 4, Risun Group announced the successful commissioning and full operational commencement of its 50,000-ton-per-year caprolactam-to-hexamethylenediamine (HMD) unit at the Yuncheng Park. The facility produced qualified products on its first run. This process, which produces HMD directly from caprolactam, breaks the long-standing foreign monopoly on adiponitrile technology. Adiponitrile is a key raw material for producing HMD, an intermediate for nylon 66, and is considered the "throat" of the nylon industry chain, representing a breakthrough in a critical "bottleneck" technology.
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