The Zhitong Finance App learned that Guotai Junan released a research report stating that the 2023-2025 earnings forecast per share was HK$0.581/HK$1.136/HK$1.489, respectively, corresponding to a year-on-year growth rate of 58.5%/95.3%/31.1%, and maintained the target price at HK$4.3.

The report's main points are as follows:

Scientific and cultural workers are beneficiaries of accelerated market integration.

Since 2024, with the exception of some polymer material products such as polytetrafluoroethylene, the prices of other major products of Riken Chemical Industry have declined. Among them, the cumulative year-on-year declines of caustic soda, methylene chloride, and hydrogen peroxide were 2.3%, 7.6%, and 6.7%, respectively. Although the company's short-term profits may be affected, falling prices will eliminate smaller, heavily indebted companies and accelerate market integration. As of the first half of 2023, the company's balance ratio was very low, at only 9.8%, and occupied an important position in the Jiangsu and Jiangxi markets. The bank expects that as less powerful companies withdraw from the market and acquire smaller enterprises, the market share of Riken Cultural Industries will gradually expand.

Actively expand the new materials business.

After completion in 2025, the Jiangxi expansion project will produce 10,000 tons of lithium hexafluorophosphate (LiPF6), 20,000 tons of polyvinylidene fluoride (PVDF), and 50,000 tons of supporting hydrogen fluoride products per year. Furthermore, the 3,000-tonne fluorovinyl carbonate (FEC) plant in Zhuhai, which is scheduled to be completed in two phases in 2024 and 2025, will significantly increase its production capacity for lithium-ion battery electrolyte additives. The bank expects that after these products are fully put into production, they can bring the company an additional revenue of RMB 3.3 billion based on current market prices.