The tungsten hexafluoride (WF6) industry is entering an upcycle characterized by simultaneous increases in both volume and price. Domestic leaders such as Peric Special Gases Co.,Ltd. (ASX: 688146), Haohua Chemical Science&Technology Corp.,Ltd. (ASX: 600378), and Grandit Co.,Ltd. (ASX: 688549) are positioned to capture the benefits of this favorable cycle, leveraging their established production capacities.
As a critical electronic specialty gas for advanced semiconductor processes and memory chip manufacturing, the global supply of tungsten hexafluoride is tightening. This positive industry trend is expected to benefit leading Chinese producers. The companies with notable capacity advantages currently include Peric Special Gases, Haohua Chemical, and Grandit. Among them, Peric Special Gases has an existing WF6 capacity of 2,000 tons per year, while Haohua Chemical and Grandit each have a capacity of 600 tons per year.
In the secondary market, the share prices of these related companies have recently surged collectively. From the beginning of the year through June 3rd, Peric Special Gases saw its share price increase by 352%. During this period, the stock hit multiple daily price limits, with its intraday price surpassing 200 yuan on June 3rd, reaching a new all-time high since its listing.
Supply Chain Tightness Drives WF6 Price Increases
Peric Special Gases and Haohua Chemical Lead in Capacity
Due to tight raw material supply, major overseas tungsten hexafluoride suppliers are planning significant price hikes. According to reports, core suppliers like SK Specialty and Foosung have formally notified major Korean chipmakers, including Samsung Electronics, SK Hynix, and DB HiTek, of plans to raise WF6 prices substantially in 2026, with increases estimated at 70% to 90%. Furthermore, Japanese suppliers Kanto Denka Kogyo and Central Glass have informed clients like Samsung that, affected by export controls on materials like tungsten powder from China, their inventories may only last until late May or June, with supply for the second half of the year uncertain, prompting recommendations to seek alternative suppliers.
Growing demand is also fueling the upswing in the WF6 market. Research indicates that tungsten hexafluoride is a key precursor for tungsten fill processes in 3D NAND manufacturing. As the number of stacked layers continues to advance towards 300+, the demand for tungsten deposition per wafer increases significantly, driving continuous growth in WF6 consumption per unit. Disclosures from a Korean semiconductor specialty gas company show that South Korea is now the world's largest WF6 market, where adding a single memory semiconductor production line can generate an additional annual demand of approximately 150 to 300 tons. Concurrently, as memory chip integration increases and wafer sizes expand, WF6 usage continues its upward trend.
Export data from China this year shows a simultaneous rise in both volume and price for WF6. According to customs statistics, the average export price per kilogram for WF6 from January to April was $68.75, $69.11, $116.72, and $149.79, respectively, showing continuous year-on-year and month-on-month growth. In terms of export volume, a total of 156.03 tons were exported from January to April, representing a 7.10% year-on-year increase.
As industry supply-demand dynamics tighten, leading domestic WF6 producers are expected to benefit fully from this industry upcycle, capitalizing on their existing capacity advantages. The key domestic players with established WF6 production layouts currently include Peric Special Gases, Haohua Chemical, and Grandit.
As a leader in the sector, Peric Special Gases recently stated that its current WF6 capacity is 2,000 tons per year, with product purity at 6N grade, fully meeting the requirements for 3D NAND, HBM, and advanced logic chip processes. Its current capacity utilization is at a high level. Driven by sustained capital expenditure growth in downstream memory chips and AI-fueled HBM demand, robust demand for WF6 products is expected to persist for an extended period. The company has recently received inquiries from some clients regarding product supply. A new project to add 1,000 tons of annual WF6 capacity is expected to be completed and operational by 2027.
Haohua Chemical is also one of the few domestic companies with large-scale WF6 production capability. The company recently stated that its WF6 capacity is 600 tons per year, and its products can be applied in storage media, with supply to major domestic and international storage media manufacturers.
Grandit previously disclosed that it possesses WF6 product capacity of 600 tons per year. Furthermore, according to its financial reports, its high-purity WF6 with 5N5 purity is at a leading level among domestic peers, and the product has been certified and supplied in volume to major domestic clients like SMIC and Huahong Group.
In the first quarter of this year, these companies generally reported earnings growth. During the period, Peric Special Gases and Haohua Chemical achieved net profits attributable to shareholders of 101 million yuan and 308 million yuan, representing year-on-year increases of 16.86% and 66.73%, respectively. Grandit achieved a net profit attributable to shareholders of 6 million yuan, turning a profit compared to a loss in the same period last year.
Reflected in profitability levels, the gross sales margins for Peric Special Gases, Haohua Chemical, and Grandit during the period were 30.20%, 23.97%, and 15.71%, respectively, representing increases of 1.4, 1.28, and 7.63 percentage points year-on-year.
Simultaneously, institutional research interest in some of these companies has increased. From the beginning of the year through June 3rd, Peric Special Gases received research from 123 institutions across 6 sessions, while Haohua Chemical received research from 17 institutions across 2 sessions.
Recently, companies in the WF6 industry chain have seen sustained high activity in the secondary market. From the beginning of the year through June 3rd, the share price gains for Peric Special Gases, Haohua Chemical, and Grandit reached 352.13%, 30.32%, and 58.77%, respectively. During this period, Peric Special Gases hit multiple daily price limits, with its intraday price breaking through 200 yuan on June 3rd to set a new post-listing high.
Peric Special Gases Shortens WF6 Price Adjustment Cycle
Potential for Volume, Price, and Profit Synergy in Q2
Peric Special Gases is one of the domestic companies with the largest revenue scale in electronic specialty gases. According to data, the company ranked ninth globally and first domestically in sales revenue for integrated circuit electronic specialty gases.
In recent years, Peric Special Gases has pursued a dual-growth strategy focusing on "Electronic Specialty Gases + Trifluoromethanesulfonic Acid Series." In the electronic specialty gas segment, with nitrogen trifluoride and tungsten hexafluoride as core products, the company is expanding into high-value-added electronic gases and precursor materials to enhance self-sufficiency and further capture overseas market share. By the end of 2025, in addition to its 2,000-ton WF6 capacity, the company also had nitrogen trifluoride capacity of 18,500 tons, placing its capacity among the world's leaders. In the trifluoromethanesulfonic acid series segment, building on traditional applications like pharmaceutical intermediates and catalysts, the company is extending product applications into the new energy field. By the end of 2025, its trifluoromethanesulfonic acid series products covered over 90% of global clients, with a combined market share of approximately 70%.
In 2025, sales volumes for the company's core products generally increased. Sales of nitrogen trifluoride, tungsten hexafluoride, and trifluoromethanesulfonic acid were 10,578.56 tons, 1,329.64 tons, and 319.60 tons, representing year-on-year growth of 13.27%, 3.40%, and 32.64%, respectively.
In terms of business composition, electronic specialty gases contribute the main revenue source for Peric Special Gases, while revenue from the trifluoromethanesulfonic acid series has grown significantly. In 2025, revenue from electronic specialty gases and the trifluoromethanesulfonic acid series was 1.927 billion yuan and 299 million yuan, representing year-on-year growth of 12.42% and 44.85%, respectively. These two businesses contributed 86.56% and 13.44% of total revenue, with the share from trifluoromethanesulfonic acid series products increasing by 2.58 percentage points year-on-year.
Regarding product profitability, the gross margin for the company's electronic specialty gases declined in that year, while the gross margin for trifluoromethanesulfonic acid improved markedly. In 2025, the gross margin for electronic specialty gases was 24.93%, a decrease of 2.95 percentage points year-on-year. The gross margin for trifluoromethanesulfonic acid series products was 46.08%, an increase of 10.99 percentage points year-on-year. The company's financial reports indicate that its trifluoromethanesulfonic acid series products maintain strong momentum and are expected to become a new growth driver.
Currently, Peric Special Gases continues to improve its performance. Following a 12.43% year-on-year increase in net profit attributable to shareholders to 346 million yuan in 2025, the company achieved a net profit attributable to shareholders of 101 million yuan in the first quarter of this year, a 16.86% year-on-year increase. The growth was attributed to increased market demand, adjustments to some product selling prices, and profit growth driven by sales increases.
Behind Peric Special Gases' profit recovery is the successful pass-through of tungsten powder costs this year. Research indicates that since 2025, the price of tungsten powder, a core raw material for WF6, rose rapidly, significantly impacting product profitability. In the first quarter of 2026, tungsten powder prices maintained their rapid upward trend, with an average price reaching 1.7396 million yuan per ton (a year-on-year increase exceeding 453%). However, cost pass-through was successful, and the company's quarterly gross margin has shown a recovery trend. It is anticipated that the product repricing process will be gradually completed in the second quarter. Globally, due to export restrictions on Chinese tungsten products, Japanese core suppliers have issued warnings of potential WF6 supply disruptions, creating significant uncertainty for supply in the second half of 2026. The company's products are expected to benefit continuously, potentially gaining access to overseas core clients and achieving simultaneous growth in volume, price, and profit.
In response to the rapid rise in upstream tungsten powder prices, Peric Special Gases is shifting its WF6 product pricing mechanism from an annual to a shorter cycle. The company recently stated that it is transitioning its price adjustment mechanism gradually from annual to quarterly, with plans to further evolve towards monthly adjustments. This aims to more promptly and accurately reflect current-period revenue and profit contributions. The pricing logic is based on cost pass-through, but core profitability stems from the company's technological processes, quality control, and stable supply capabilities. Customer acceptance is undergoing a phased transition, with some overseas clients already proposing long-term agreements to lock in orders, offering price concessions in exchange for guaranteed incremental supply.
Sustained Growth in Haohua Chemical's Core Businesses
WF6 Prices Adjusted with Reference to Market Fluctuations
Haohua Chemical is a leader in China's fluorine chemical industry. The company has a presence in electronic chemicals, high-end manufacturing chemical materials, and carbon reduction businesses, forming a core business structure. Its electronic chemicals business centers on fluorine-containing electronic specialty gases, with main products including nitrogen trifluoride, sulfur hexafluoride, carbon tetrafluoride, and fluorocarbon gases, holding a leading market position.
In recent years, the high-end fluorine materials segment has constituted the main revenue pillar for Haohua Chemical. In 2025, this segment achieved revenue of 9.939 billion yuan, contributing nearly 60% of the company's total revenue. The segment's gross margin reached 21.61%, an increase of 8.20 percentage points year-on-year. As for the electronic chemicals segment, it generated revenue of 1.138 billion yuan, accounting for approximately 6.82% of the total. This segment's gross margin was 24.12%, a decrease of 2.99 percentage points year-on-year.
The company's profitability continues to improve. Following a 37.07% year-on-year increase in net profit attributable to shareholders to 1.444 billion yuan in 2025, the company achieved a net profit attributable to shareholders of 308 million yuan in the first quarter of this year, a 66.73% year-on-year increase. The strong first-quarter performance was primarily due to significant efficiency gains from integrated management in the fluorine chemical business, high market prices for refrigerants, recovery in the lithium battery business market, and the company's internal operational excellence and efficiency improvements.
In the first quarter, the core business segments continued to perform synergistically. The company's financial reports show that overall sales revenue for the core fluorine chemical business segment increased by 40.60% year-on-year, with gross profit up 69.45% and gross margin improving by 3.93 percentage points. The high-end manufacturing chemical materials segment maintained stable growth, with overall sales revenue up 5.61%, gross profit up 18.28%, and gross margin increasing by 4.36 percentage points. Revenue from the carbon reduction and engineering technical services segment grew 55.50% year-on-year, with gross profit up 24.56%.
Regarding the electronic chemicals business, Haohua Chemical faced a year-on-year decline in the average market price of fluorine-containing gas products. The company adhered to a volume-over-price strategy, leveraging its advantages of a comprehensive range of specialty gases and strong customer support capabilities. It ramped up new capacity for products like nitrogen trifluoride and sulfur hexafluoride to consolidate and expand market share, while actively promoting new product applications and developing incremental clients. Overall, the segment's sales revenue increased by 20.92% year-on-year, with gross profit up 12.43%.
Haohua Chemical further explained that the recent price increase for WF6 is due to rising raw material costs driving up product prices. The selling price for WF6 products will be adjusted appropriately with reference to market fluctuations and cost changes.
Grandit Returns to Profitability in Q1
Plans Private Placement to Bolster Electronic Chemicals Business
Centered on its mission of "focusing on the semiconductor manufacturing support industry," Grandit is primarily engaged in the R&D, production, and sales of electronic wet chemicals, electronic specialty gases, and precursor materials. Its products are used in manufacturing processes such as cleaning, etching, and film formation in integrated circuits, display panels, and photovoltaics.
According to its financial reports, in electronic specialty gases, Grandit has undertaken several national key R&D projects. It has achieved mass production of high-purity chlorine gas (6N purity), high-purity hydrogen chloride (6N purity), hexafluorobutadiene (4N5 purity), fluoroform (5N purity), octafluorocyclobutane (5N purity), octafluorocyclopentene (4N purity), and high-purity tungsten hexafluoride (5N5 purity). The product technology is at a leading level among domestic peers and has been certified and supplied in volume to major domestic clients like SMIC and Huahong Group.
In 2025, Grandit reported a net loss attributable to shareholders of 16.5962 million yuan. Reasons for the loss included declining selling prices for some products, underperformance of its wholly-owned subsidiary Kaistone Fluorochemical, leading to a provision for goodwill impairment of 39.4279 million yuan, as well as some products not yet achieving economies of scale, increased R&D investment, and rising management costs.
Despite the loss, sales volumes for the company's main products actually grew overall that year. Cumulative sales for the electronic wet chemicals series and the electronic specialty gases & precursors series were 153,060.66 tons and 2,651.92 tons, representing year-on-year increases of 24.29% and 8.06%, respectively.
Data shows that electronic wet chemicals constitute the main revenue pillar for Grandit. In 2025, revenue from electronic wet chemicals was 879 million yuan, a 17.29% year-on-year increase, contributing over 70% of total revenue. The segment's gross margin was 12.65%, an increase of 0.60 percentage points year-on-year. Revenue from electronic specialty gases and precursors was 289 million yuan, a 17.26% year-on-year increase. This segment's gross margin was 17.43%, a decrease of 3.27 percentage points year-on-year.
In the first quarter of this year, Grandit returned to profitability, achieving a net profit attributable to shareholders of 6.3767 million yuan. The main reason was an improvement in product gross margin compared to the same period last year.
Recently, Grandit plans to implement a private placement to strengthen its electronic chemicals business layout. On May 15th, the company disclosed a private placement plan, proposing to issue shares via a bidding process to specific investors. The number of shares to be issued will not exceed 148 million, with total fundraising not exceeding 800 million yuan. The funds will be used for investing in and constructing a new project for an annual production of 60,000 tons of electronic-grade sulfuric acid, a North China production base project for key electronic materials in integrated circuits, and supplementing working capital, with planned fund allocations of 200 million yuan, 360 million yuan, and 240 million yuan, respectively.
This private placement aims to leverage the company's advanced technology to seize the window of growing downstream demand for products like electronic-grade sulfuric acid and nitric acid, supporting the continued expansion of its core business. The announcement indicates that the planned 60,000-ton annual electronic-grade sulfuric acid project will produce products with metal impurity control stably reaching G5 grade, with particles and other indicators meeting high-end process requirements. This can effectively fill the domestic capacity gap for high-end supply, aligning with incremental downstream demand for this product. The North China production base project for key electronic materials in integrated circuits will fill a supply gap in the North China region, enabling localized supply to meet the rigid demands of downstream industries.
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