The fluorochemical sector on the A-share market demonstrated robust strength on July 1st.
Do-Fluoride New Materials Co.,Ltd. (SHE: 002407) hit the daily limit-up shortly after opening, closing at 55.25 yuan per share with a total market capitalization reaching 65.771 billion yuan, successfully achieving its third consecutive trading day limit-up. The stock has accumulated a gain of over 400% in the past year.
According to shareholder data, as of March 31st, the number of company shareholders reached 254,800.
The overall fluorochemical sector was active that day. By the morning close, Zhejiang Sanmei Chemical Industry Co.,Ltd. (SHH: 603379) achieved its second consecutive limit-up, Zhejiang Yongtai Technology Co.,Ltd. (SHE: 002326) also hit the limit-up, while stocks like Lecron Industrial Development Group Co.,Ltd. (SZE: 300343) and Zhejiang Juhua Co.,Ltd. (SHH: 600160) followed suit with gains. The Wind Fluorochemical Index rose over 7% for the day.
Market analysis suggests this rally for Do-Fluoride is closely tied to supply-demand dynamics in the semiconductor materials sector. Monitoring data indicates that domestic prices for UP-grade and UPS-grade electronic-grade hydrofluoric acid reached 7,885 yuan/ton and 8,750 yuan/ton respectively on June 29th, representing increases of 19% and 17% since the beginning of the year. This price surge is driven by both cost and demand factors: rising prices for upstream sulfuric acid and fluorite have pushed production costs higher, while the rapid expansion of the AI computing power industry is driving semiconductor manufacturing upgrades, leading to a significant increase in wafer fab consumption of high-purity wet electronic chemicals.
Public information shows that high-purity electronic-grade hydrofluoric acid is one of the most widely used wet electronic chemicals, primarily applied in wafer cleaning and etching processes. With the gradual advancement of advanced processes like 3nm and 2nm, the number of chip etching layers continues to increase, driving rapid growth in industry demand for ultra-high-purity G5-grade electronic-grade hydrofluoric acid.
Do-Fluoride previously stated in investor relations activities that the company's current capacity for semiconductor-grade hydrofluoric acid is 40,000 tons, with capacity utilization maintained at a high level, and current market prices have risen approximately 20% to 30%. The company's self-developed semiconductor-grade hydrofluoric acid (G5 grade) is already being supplied in stable, bulk quantities to leading global and domestic semiconductor companies such as TSMC, Samsung, Hua Hong, and ChangXin Memory Technologies.
Furthermore, reports indicate that Do-Fluoride signed a long-term supply agreement for lithium hexafluorophosphate with BYD on June 28th, securing orders for the next three years. The company also has a presence in new energy materials such as lithium hexafluorophosphate and the novel lithium salt LiFSI.
In response to the recent rapid stock price increase, Do-Fluoride issued an announcement regarding abnormal stock trading volatility on the evening of July 1st. The announcement noted that the cumulative deviation of the stock's closing price over three consecutive trading days exceeded 20%, constituting an abnormal trading volatility situation.
The company specifically highlighted in the announcement that sales revenue from semiconductor-grade hydrofluoric acid for the 2025 fiscal year and the first quarter of 2026 accounts for less than 2% of total operating revenue and will not have a material impact on operating performance; the company currently has no tungsten hexafluoride production line, no substantive products, and has not signed any legally binding substantive order agreements. As of July 1st, the company's stock price had accumulated a gain of 40.48% over ten consecutive trading days, indicating potential market over-enthusiasm and irrational speculation, with a relatively high risk of a short-term price correction. The company reminded investors to rely on official announcements from designated media, make rational decisions, and be mindful of secondary market speculation risks.
From an industry perspective, analysis points out that the fluorochemical industry chain has entered a prolonged growth cycle, with development potential across all segments from resource-side fluorite to high-end fluorinated materials and fluorine-containing fine chemicals. Research estimates suggest that mainland China wafer fabs' demand for G5-grade electronic-grade hydrofluoric acid could reach 50,000 to 60,000 tons annually by 2028, representing a 30% to 50% increase from 2025. However, the company's announcement also emphasizes that semiconductor-grade hydrofluoric acid revenue constitutes a low proportion, and investors should prudently assess related risks.
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