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Dongyue Group (189)
21-06-2017, 03:53 PM, (This post was last modified: 21-06-2017, 04:17 PM by bmann025.)
Post: #1
Dongyue Group (189)
After the long suspension, a spectacular year is looming.

The recent positive profit alert reports a net profit increase of approx. 130% in the first 5 months.
http://www.hkexnews.hk/listedco/listcone...612905.pdf

Assuming the increase is maintained in June, that would equal an 6 months EPS of approx. 0.39 HKD with a share price of currently 3.45 HKD.

One of the reasons:

"China's refrigerants are booming in the first half of 2017. 
...
[font=font-size:12pt;]Besides the low supply in domestic markets, also the worldwide HFC capacity is facing a reduced volume, which drives the price for refrigerants up. Furthermore, strengthened environmental protection measurements in China are causing huge pressure on manufacturers, leading to increasing costs and limited production.[/font]  

After all, the environmental pressure has forced production of Chinese HFC down by about 20% currently. As especially small and medium-sized manufacturers are not able to invest in cleaner production, larger manufacturers can use the reduced supply of refrigerants to quote higher prices for their products. "
http://www.cnchemicals.com/Press/89548-China's%20refrigerants%20are%20booming%20in%20the%20first%20half%20of%202017.html

With the rising demand (especially for air conditioners) and the sharply reduced supply, this doesn't seem to change quickly... 

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27-06-2017, 12:11 PM,
Post: #2
RE: Dongyue Group (189)
I haven't found any daily charts of Chinese refrigeration chemicals prices, only one for US R22 futures:
https://www.tradingview.com/chart/R22!/

However, there is a chart for China Hydrofluoric acid prices:
http://www.sunsirs.com/uk/prodetail-123.html

Next link details the use of hydrofluoric (HF) acid globally.
"Fluorocarbons accounted for 63% of hydrofluoric acid consumption in 2014. The refrigerant and air conditioning gases markets account for almost half of the total fluorocarbon consumption globally."
https://www.ihs.com/products/fluorspar-a...dbook.html

Hence, I would think that HF chart correlates with the demand of Dongyue's business.

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29-06-2017, 08:00 AM, (This post was last modified: 29-06-2017, 08:01 AM by bmann025.)
Post: #3
RE: Dongyue Group (189)
A new project for their property development business
http://www.hkexnews.hk/listedco/listcone...281062.pdf

and a new partner
http://www.hkexnews.hk/listedco/listcone...281030.pdf

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01-07-2017, 12:32 PM,
Post: #4
RE: Dongyue Group (189)
More information about price increases of some products (from May 14)

CHINA: Huge increases in the price of a vital component in the production of HFCs could place further pressure on global refrigerant gas prices.

The price of fluorspar, a mineral from which HFC component hydrofluoric acid is produced, has hit a four-year high in the home of the world’s largest producer, China.

Fluorspar prices have risen by nearly 40% since February, leading to increases in China of around 60% in the price of R22 and R134a, a 130% increase in the price HFC component R125, and a massive 160% rise in the cost of R32.

The increases are blamed on new environmental constraints in China on both fluorspar mining and in the production of hydrofluoric acid. Since the end of 2016 China’s environmental law enforcement efforts have been significantly strengthened. As a result, the production of products like hydrofluoric acid, a highly corrosive chemical, has come under new environmental protection and safety requirements.

http://www.coolingpost.com/world-news/fl...rigerants/

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07-09-2017, 05:20 AM, (This post was last modified: 07-09-2017, 05:22 AM by bmann025.)
Post: #5
RE: Dongyue Group (189)
Dongyue has done well in recent weeks, though - I have to admit - not exactly for the reason I thought.

Profit in 3 main segments (Fluoropolymer, Organic silicone and Dichloromethane, PVC and Liquid Alkali)
increased even more than Refrigerants.

Overall profit increased sharply as expected after the profit alert and despite property development profits declined sharply. The the 'old' development project is now almost entirely sold and the 'new' project just acquired recently.

Now hydrofluoric acid retreated by 34% in the last 3 months (hydrochloric acid as well). And I don't know what that means.
http://www.sunsirs.com/uk/prodetail-123.html

Could it mean demand for products, such as Fluoropolymer and Refrigerants is declining as well, or is this the best of all worlds, with a widening gap between cost of input and output products?

I still could not find price charts of Dongyue's many output products, except PVC. And that is up 24% in 3 months. But that is only one of many products.
http://www.sunsirs.com/uk/prodetail-107.html

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10-10-2017, 10:33 AM,
Post: #6
RE: Dongyue Group (189)
Over 50% increase in the price of HF during the last 2 1/2 weeks.

Whatever that means ... Share price also going up ...

http://www.sunsirs.com/uk/prodetail-123.html

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