Shares of DONGYUE GROUP (00189) extended their rally, climbing more than 13% in early trading before settling at a 10.24% gain to HK$14.54, with turnover reaching HK$605 million.

The surge follows the company's release of its 2026 interim results on August 20, which showed revenue of RMB 8.06 billion, an 8% increase year-on-year. Net profit attributable to shareholders rose 31.84% to RMB 1.027 billion during the period. The company attributed the growth to a market-wide uplift in the fluorosilicon industry, which drove price increases across several core products.

During the first half of the year, DONGYUE GROUP completed construction and commenced production on several key projects, including a new energy center and an expansion of its R32 refrigerant production capacity.

Analysts at Industrial Securities noted that domestic appliance sales are under pressure due to a high comparison base, reduced government subsidies, and inventory buildup in distribution channels, while exports face headwinds from geopolitical disruptions. However, long-term contract prices between upstream producers and air conditioner manufacturers have exceeded expectations this year.

The brokerage highlighted that if cross-strait trade restrictions ease in the second half of the year, refrigerant exports would directly benefit. Historically, refrigerant exports show strong seasonality, with shipments concentrated in Q3-Q4. As this year marks the final year of the baseline for the second batch of A5 country quotas, there is added incentive to secure a stronger baseline if cross-strait access opens, particularly benefiting high-GWP refrigerant varieties.