Gelonghui, March 30, 丨 According to the Credit Suisse report, Dongyue Group (0189.HK) made a net profit of 3.9 billion yuan last year, an increase of 86% year-on-year. Excluding the impact of one-time sales revenue, the core profit was 2.6 billion yuan, an increase of 27% year-on-year, in line with the bank's and market expectations. According to the bank, the average price of polyvinylidene fluoride (PVDF), a material for lithium batteries and solar energy, in the second half of the year was 228,000 yuan per ton, down 25% from the first half of the year. Entering 2023, the decline in PVDF prices has accelerated. Since the beginning of the year, it has dropped 33%, but gross margin is still resilient, because the price of PVDF raw materials (that is, R142b coolant) has also dropped 50% since the beginning of the year. The bank lowered the Group's earnings forecast per share by 9% to 14% in 2023-34. As the PVDF price fell and earnings were expected to deteriorate this year, the rating was downgraded from “outperforming the market” to “neutral” target price from HK$10 to HK$8. Dongyue Group is now down more than 3% to HK$815, with a total market capitalization of HK$18.3 billion.