Guangdong Huate Gas Co., Ltd. (Huate Gas) (688268)

Individual Stock Analysis Report　|　Industry: Electronic Specialty Gases and Industrial Gases　|　Report Date: September 13, 2026　|　Data as of the September 11, 2026 close; observation period for the coming week: September 14–18, 2026. Shareholding structure data as of June 30, 2026; shareholder-count data as of July 31, 2026; margin-balance data as of September 9, 2026.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Huate Gas generated revenue of RMB 872 million in the first half of 2026, up 28.95% year on year; net profit attributable to the parent was RMB 92.8327 million, up 19.16%; non-GAAP net profit attributable to the parent was RMB 89.9442 million, up 19.29%; and net cash flow from operating activities was RMB 133 million, up 46.93%. Results recovered significantly from 2025. Growth was driven primarily by higher sales of photoresist and other mixed gases and fluorocarbon gases, as well as a 133% year-on-year increase in revenue from helium and related products. However, profit growth remained below revenue growth, indicating that pressure on product prices, gross margins and costs has not been fully eliminated.

The company’s core businesses remain electronic specialty gases and industrial gases. In 2025, specialty-gas revenue was RMB 924 million, accounting for approximately 67.4% of revenue from principal operations, with a gross margin of 35.76%; semiconductor revenue was RMB 655 million, with a gross margin of 38.35%. The company has disclosed more than 57 specialty-gas products that have achieved import substitution and has capabilities covering multi-category R&D, purification, blending, certification and gas-supply services. Domestic substitution, semiconductor capacity expansion and the localization of customer supply chains provide the foundation for medium- to long-term growth.

In 2025, revenue grew only 1.70%, net profit attributable to the parent declined 26.75%, and gross margin from principal operations fell to 29.30%. Declining prices for traditional fluorocarbon products, weaker demand for hydrides, the release of new industry capacity, and higher expenses and depreciation and amortization jointly constrained profitability. The company is currently advancing the Jiangsu Huate Semiconductor Materials Production Base project and plans to raise no more than RMB 700 million through a private placement. However, the project remains at the proposal stage, and its additional capacity and earnings have not yet materialized.

As of September 11, 2026, the share price was RMB 127.55, approximately 20.2% below the August 18 closing price. MACD was negative and the moving-average structure was weak. Large-order funds recorded net outflows over both the past 5 and 10 trading days, while the share price was approaching the RMB 123–125 support zone. In valuation terms, trailing-twelve-month PE was approximately 101–108x and PB approximately 6x. Even based on analysts’ consensus expectations, 2026 forward PE remained approximately 66x, indicating that the market has already priced in relatively high expectations for subsequent earnings recovery and volume growth in high-value-added products.

2. Company Overview

2.1 Basic Information

2.2 Principal Businesses and Product Portfolio

• Specialty gases: Revenue of RMB 924 million in 2025, accounting for approximately 67.4% of revenue from principal operations, with a gross margin of 35.76%. Products include cleaning, etching and auxiliary gases; dilute mixed lithography gases; epitaxy, deposition and film-forming gases; doping and ion-implantation gases; and medical, food, calibration and laser gases.
• Ordinary industrial gases: Revenue of RMB 289 million in 2025, accounting for approximately 21.1% of revenue from principal operations, with a gross margin of 15.06%; this business mainly contributes scale.
• Equipment and engineering: Revenue of RMB 157 million in 2025, accounting for approximately 11.5% of revenue from principal operations, with a gross margin of 17.51%. Products and services cover gas cylinders, storage tanks, vaporizers, skid-mounted units, cryogenic pressure vessels, as well as gas-supply system design, installation and maintenance and high-purity clean gas-supply system services.
• By application area, semiconductor revenue was RMB 655 million in 2025, with a gross margin of 38.35%; food and medical/healthcare revenue was RMB 96 million, with a gross margin of 34.26%; and revenue from other application areas was RMB 618 million, with a gross margin of 18.93%.
• By product, revenue from photoresist and other mixed gases was RMB 312 million in 2025, with a gross margin of 39.60%; carbon oxides was RMB 116 million, with a gross margin of 57.60%; hydrides was RMB 106 million, with a gross margin of 27.98%; fluorocarbon gases was RMB 222 million, with a gross margin of 21.26%; and ordinary industrial gases was RMB 289 million, with a gross margin of 15.06%.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Huate Gas operates in the middle of the semiconductor and high-end manufacturing value chains. It is a specialty-gas company providing R&D, production, purification, blending, certification and supply services for high-purity gases. The company is not a mining or resource enterprise and does not possess natural-resource reserves measured in the form of mines, oil and gas fields or similar assets. Its resource base is primarily reflected in gas-feedstock supply channels, production bases, product qualifications, customer certifications and accumulated technical processes.

• The company mainly purchases gas feedstocks, crude products, gas cylinders, storage tanks, tank containers, tube trailers, steel plates, aluminum materials, valves and other components related to gas equipment. Gas-feedstock suppliers mainly include basic chemical raw-material companies, air-separation companies, large metal and steel smelting companies, petrochemical companies and gas companies producing crude products.
• Ordinary industrial gases and some bulk gases are sensitive to air-separation, chemical and energy costs. Product prices are readily affected by raw materials, energy, transportation and regional supply and demand. Electronic specialty gases also incur comprehensive costs related to purification, blending, gas-cylinder treatment, analytical testing, hazardous-goods storage and transportation, quality systems and customer certification.
• The company generally signs annual or long-term framework agreements with major suppliers and strengthens the supply of key raw materials through strategic cooperation, long-term agreements, multi-channel procurement and inventory management. During actual production, suppliers are generally notified 1–3 days in advance to prepare materials based on orders.
• The company does not have absolute pricing power over upstream segments such as basic gases, chemical raw materials, gas cylinders, valves and transportation, and remains a price taker for some raw materials overall. Its relative advantages primarily derive from purification technology, quality control, product certification and the ability to integrate procurement across multiple categories.
• The research materials do not disclose the proportion of procurement from major suppliers or supplier-concentration data. Therefore, the specific degree of supplier-concentration risk cannot be determined on this basis.
• Downstream customers mainly include integrated-circuit manufacturers, new-display-panel companies, photovoltaic-cell and module companies, optical-fiber and cable companies, third-generation semiconductor companies, and medical, food and high-end equipment manufacturing companies.
• Semiconductor and display-panel customers impose high requirements for gas purity, impurity content, stability, continuous supply and safety management. New suppliers generally undergo factory audits, sample testing, small-batch trials and large-batch validation. The certification cycle may last 1–3 years, and customer switching costs are relatively high once a product has entered the supply chain on a stable basis.
• The company has disclosed that it has entered the supply chains of customers including Semiconductor Manufacturing International Corporation, Yangtze Memory Technologies, China Resources Microelectronics, Hua Hong Semiconductor, Silan Microelectronics and Innoscience, and has entered the supply chains of international customers including Intel, Micron, Texas Instruments, GlobalFoundries, TSMC, UMC, Samsung, SK hynix, Infineon and Kioxia through distribution or direct sales. The above customer list and coverage rates are primarily based on the company’s annual reports and rating reports. Some customers may be served through distributors or indirectly and should not all be understood as direct customers of the company.
• Direct-sales revenue was RMB 1.045 billion in 2025, with a gross margin of 31.97%; distribution revenue was RMB 325 million, with a gross margin of 20.71%. Direct sales accounted for approximately 76.3% of revenue from principal operations and were the main sales model.
• Sales to the five largest customers were RMB 319 million in 2025, accounting for approximately 22.51% of revenue; the corresponding figures were RMB 290 million and 20.77% of annual sales in 2024, and RMB 299 million and 19.94% in 2023. These concentration figures are based on public databases and annual reports compiled in the research materials. They cover multiple years, but the denominator descriptions differ across years; the latest annual report should prevail.
• Overall customer concentration is moderate and does not indicate dependence on a single customer. However, semiconductor, display-panel and large manufacturing customers generally possess strong procurement-management and payment-bargaining power. Industry competition has gradually shifted from technology-certification competition to comprehensive competition involving technology, cost, scale and supply stability.
• Domestic new capacity was gradually released in 2025, placing pressure on fluorocarbon-product prices. The industry showed a pattern of demand growth but a lower price center, with sales-volume growth diverging from profit growth, indicating that downstream cost reduction and increased industry supply are transmitting pressure to specialty-gas suppliers.
• As of December 31, 2025, the carrying value of consolidated accounts receivable was RMB 367 million, equivalent to approximately 25.9% of full-year revenue of RMB 1.41875 billion and approximately 2.7x 2025 net profit attributable to the parent of RMB 135 million. Dividing year-end accounts receivable by revenue gives a rough equivalent of approximately 94 days of revenue, but this calculation does not use average accounts receivable for the beginning and end of the period and is not equivalent to the company’s officially disclosed accounts-receivable turnover days. During the same period, accounts payable were RMB 90 million, notes payable were RMB 52 million and contract liabilities were RMB 28 million. Accounts payable were equivalent to approximately 9.3% of annual principal operating costs of RMB 969 million, or approximately 34 days of costs on a static basis. Accounts receivable were clearly higher than accounts payable and contract liabilities, indicating that the company has certain payment-term exposure and working-capital occupation downstream and has not been able to fully offset downstream payment terms through upstream credit.
• In terms of customer concentration, the five largest customers accounted for approximately 22.51% of revenue in 2025, compared with 20.77% in 2024 and 19.94% in 2023. Customer concentration was moderate, with no clear dependence on a single customer. Supplier-concentration data is absent from the research materials, so the specific degree of upstream supplier-concentration risk cannot be determined. Customer names, coverage rates and certain supply relationships are primarily based on the company’s annual reports, rating reports or public databases. Some customers may involve distribution or indirect supply relationships; the latest annual report should prevail.

The company operates in the midstream segment of high-purity gas R&D, production, certification and supply services. Overall, it is neither a high-margin upstream resource company nor a downstream company with pricing power derived from an end-user brand. Ordinary industrial gases and equipment-engineering businesses have relatively thin margins, while electronic specialty gases, mixed lithography gases, high-purity carbon oxides and advanced-process-related new products have higher margins and technical-certification barriers. Future profit improvement will depend primarily on upgrading the product mix of high-margin products and semiconductor businesses, import substitution and customer volume growth, as well as cost control, capacity utilization and reduced downstream price competition—not on possessing pricing power over basic raw materials.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The 2026 Interim Report was disclosed on August 26, 2026, covering January 1–June 30, 2026, and was unaudited. The 2025 Annual Report was disclosed on April 10, 2026, and the auditor issued a standard unqualified opinion. In the first half of 2026, non-GAAP net profit attributable to the parent was RMB 89.9442 million, up 19.29%; basic EPS was RMB 0.78, up 20.00%; and weighted-average return on equity was 4.34%, 0.43 percentage points higher than in the same period of the previous year.

Revenue was broadly stable in 2025, but profits came under significant pressure due to price competition for traditional fluorocarbon products, temporarily weaker demand for certain hydride products, and higher expenses and depreciation and amortization. In the first half of 2026, revenue, net profit attributable to the parent and operating cash flow all returned to growth. Net cash flow from operating activities was RMB 133.45 million, up 46.93%. However, profit growth remained below revenue growth, and pressure on gross margins and product prices had not been fully eliminated. As of June 30, 2026, net assets attributable to shareholders of the listed company were RMB 2.66012 billion, up 32.15% from the end of 2025; total assets were RMB 3.67592 billion, up 2.60% from the end of 2025; and period-end share capital was 127.68 million shares. The substantial increase in net assets was mainly related to the large-scale conversion of Huate Convertible Bonds and an increase in capital reserves.

3.2 Earnings Forecasts

The forecasts above represent the aggregation by Tonghuashun F10, as of September 11, 2026, of forecasts from 8 institutions during the preceding 6 months. They are excerpts and compilations from institutional research reports, not official company guidance. Revenue forecasts are less completely disclosed than net profit and EPS forecasts, and some institutions’ revenue forecasts are listed more than once; therefore, the revenue consensus should be used for reference only. Institutional differences mainly arise from the ramp-up speed of high-value-added products such as helium and germane, product prices, project capacity ramp-up and the intensity of industry competition.

3.3 Valuation and Institutional Ratings

At the September 11, 2026 close, the share price was RMB 127.55. Based on share capital of 127.68 million shares as of June 30, 2026, total market capitalization was approximately RMB 16.28 billion. Based on period-end net assets attributable to the parent of RMB 2.66012 billion, net assets per share were approximately RMB 20.83, corresponding to PB of approximately 6.12x. Based on 2025 basic EPS of RMB 1.13, static PE was approximately 112.9x. Based on the trailing four quarters, TTM EPS was approximately RMB 1.26, corresponding to PE(TTM) of approximately 101x. Intraday data from CFi.cn on September 11, 2026 showed PE of approximately 105.92x, non-GAAP PE of approximately 116.69x and PB of approximately 5.87x. Differences from calculations based on the closing price reflect different intraday prices and data-refresh times. Based on EPS from Tonghuashun’s institutional consensus, forecast PE for 2026–2028 was approximately 66.1x, 53.1x and 44.4x, respectively; based on the forecast ranges, the corresponding ranges were approximately 54.0–82.8x, 40.6–64.7x and 33.8–53.4x. Institutional target prices varied widely. The main target prices disclosed in the research materials ranged from approximately RMB 122.72 to RMB 261.96. The lower targets mainly used 2026 or 2027 PE of approximately 49–52x, while the higher target relied on 2026 PE of 88–111x. The current valuation corresponds to approximately 101x TTM PE and approximately 6.1x PB. Valuation based on historical financial-report figures is high, and even based on consensus expectations, 2026 forward PE remains approximately 66x. Valuation already incorporates strong expectations for earnings improvement. The share price is relatively sensitive to volume growth in helium, germane and new electronic specialty-gas products and to project capacity ramp-up. 2026 profit growth is also affected by the low base in 2025 and cannot simply be equated with a stable long-term growth rate.

4. Recent News and Announcements

4.1 2026 Interim Earnings Forecast and Interim Report

On July 21, 2026, the company disclosed its interim earnings forecast, estimating net profit attributable to shareholders of the listed company for January–June 2026 at approximately RMB 92.9909 million, an increase of RMB 15.0837 million or approximately 19.36% year on year. On August 26, 2026, the company disclosed its Interim Report: revenue of RMB 872.39 million, up 28.95%; net profit attributable to the parent of RMB 92.8327 million, up 19.16%; non-GAAP net profit attributable to the parent of RMB 89.9442 million, up 19.29%; net cash flow from operating activities of RMB 133.45 million, up 46.93%; and basic EPS of RMB 0.78, up 20.00%. The company did not distribute interim profits or capitalize capital reserves. Growth was mainly driven by higher sales volumes and gross profit from core specialty gases such as photoresist and other mixed gases and fluorocarbon gases.

4.2 Growth in Helium and Semiconductor Businesses

The company disclosed that revenue from helium and related products accounted for approximately 20% of total operating revenue and increased 133% year on year. Revenue from the semiconductor sector was approximately RMB 342.89 million, up 28.22%. The company stated that changes in helium supply and demand, higher product prices, the development of supply-assurance systems and higher sales of mixed lithography gases and fluorocarbon gases jointly drove first-half growth. The 133% growth in helium revenue is segment revenue growth and does not equate to the company’s overall earnings growth. Public information does not disclose a complete quarterly breakdown or standalone net profit contribution for the business.

4.3 Proposed Private Placement and Construction of the Jiangsu Huate Semiconductor Materials Production Base

On August 29, 2026, the company disclosed its proposal and related documents for the 2026 private placement of A-shares to specific investors. It plans to issue no more than 38.304611 million shares and raise no more than RMB 700 million. The upper limit of the issuance is approximately 30% of pre-issuance total share capital. The proceeds are intended to fund the first phase of the Jiangsu Huate Semiconductor Materials Production Base project with RMB 600 million and supplement working capital with RMB 100 million. Total project investment is approximately RMB 615.34 million, while aggregate investment totals approximately RMB 715.34 million. The project is located in Nantong, Jiangsu, and is intended to be implemented through means including loans to the wholly owned subsidiary Jiangsu Huate. Its main purpose is to improve the company’s semiconductor-material and electronic-specialty-gas capacity footprint in the Yangtze River Delta. As of September 13, 2026, the matter remained at the proposal stage following approval by the board of directors and still required approval by the shareholders’ meeting, review by the Shanghai Stock Exchange and registration approval by the China Securities Regulatory Commission. The actual issue size, timing and project returns remain uncertain.

4.4 Potential Dilution Pressure from Refinancing

In its calculation of diluted current-period returns, the company used the upper-limit issuance of 38.304611 million shares and total share capital of 127.68 million shares as of June 30, 2026. If issued at the upper limit, the expansion of share capital could create short-term dilution pressure on EPS. If the funded project is commissioned successfully and generates returns, it could strengthen the company’s semiconductor-material and electronic-specialty-gas capacity. These effects currently belong to proposal calculations and project planning and cannot be incorporated into the company’s results in advance.

4.5 Completion of Earlier Shareholder and Executive Disposal Plans

On September 10, 2026, the company disclosed the results of a share-disposal plan involving shareholders and senior management. The disposal period was June 10–September 9, 2026. Zhang Suiping planned to dispose of no more than 1.197 million shares and actually disposed of 1.19177 million shares, representing approximately 0.933%, at RMB 191.02–228.82 per share, for proceeds of approximately RMB 239.26 million. Board secretary Wan Lingzhi planned to dispose of no more than 4,375 shares and actually disposed of 4,275 shares, representing approximately 0.003%, for approximately RMB 809,400. Guo Zhanquan planned to dispose of no more than 900 shares and actually disposed of 700 shares, representing approximately 0.001%, for approximately RMB 137,100. None of the three shareholders reached the upper limit of the original plan, but the disposal period had expired and the disposals did not result in a change of control.

4.6 DuoFu-Related Shareholders Plan to Dispose of Shares Through Block Trades

On September 3, 2026, the company disclosed a new shareholder disposal plan. Xiamen Huahong Duofu Investment Partnership (Limited Partnership), Xiamen Huahe Duofu Investment Partnership (Limited Partnership) and Xiamen Huajin Duofu Investment Partnership (Limited Partnership) plan to dispose of no more than 2.553 million shares in aggregate through block trades between September 28 and December 27, 2026, representing no more than approximately 2.01% of total share capital. This remains a disposal plan and had not been implemented as of September 13, 2026. The actual quantity, price and timing remain uncertain. The announcement stated that the plan would not result in a change of control, but it could increase short-term market supply pressure.

4.7 Recent Share Changes and Convertible-Bond Conversion

As of September 13, 2026, no new large-scale ordinary-share repurchase plan disclosed by the company during August–September 2026 had been identified. On January 21, 2026, the company completed the cancellation of 308,556 shares held in its dedicated repurchase securities account. In June 2026, it completed the repurchase and cancellation of certain restricted shares, involving approximately 81,000 shares. Huate Convertible Bonds were redeemed early during the first half of 2026, and approximately 7,766,661 shares were newly issued through convertible-bond conversion. These matters affected the company’s share-capital structure but were not ordinary-share repurchases newly occurring in September.

4.8 Regulatory, Policy and Inquiry Developments

As of September 13, 2026, no new announcement issued by the company in September 2026 concerning violations of information-disclosure rules, major administrative penalties, disciplinary action by the exchange or regulatory warnings had been identified. The company’s refinancing documents stated that it had not been subject to regulatory measures or penalties by securities regulators or stock exchanges during the preceding five years. The company benefits from industry trends including semiconductor import substitution, electronic-specialty-gas supply-chain security and integrated-circuit capacity expansion. However, no major policy announcement newly issued in September 2026 that could be directly linked to specific company orders or subsidy amounts had been identified.

4.9 No Recent Major M&A or Asset-Reorganization Announcements Identified

As of September 13, 2026, no formal announcement concerning major M&A, major asset restructuring or the acquisition of a target had been identified during August–September 2026. The recent major capital operation was the private placement to specific investors and construction of the Jiangsu Huate Semiconductor Materials Production Base, which is not an M&A transaction.

4.10 Overall Impact of Recent News and Key Uncertainties

Positive factors include: first-half 2026 growth in revenue, net profit attributable to the parent and non-GAAP net profit attributable to the parent of 28.95%, 19.16% and 19.29%, respectively; operating cash-flow growth exceeding net profit growth; 133% year-on-year growth in revenue from helium and related products; and the proposed construction of the Jiangsu semiconductor-materials production base. Cautionary factors include: potential share-capital expansion and short-term EPS dilution from the private placement; the DuoFu-related shareholders’ planned disposal of no more than 2.553 million shares; the relationship between some earnings growth and changes in helium prices and supply and demand; and the fact that the refinancing and funded projects have not been completed and have not yet generated additional capacity or profit. As of September 13, 2026, the research materials had identified no major new announcements issued between September 11 and September 13. Subsequent information should be based on announcements from the Shanghai Stock Exchange and the company.

5. Share-Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

Huate Gas closed at RMB 127.55 on September 11, 2026, after a marked surge and retracement. It had fallen approximately 20.2% from the August 18 close of RMB 159.89. On September 1, it also recorded a high-volume decline with turnover value of approximately RMB 1.493 billion and a turnover rate of 8.25%. The current price is close to the lower Bollinger Band and recent low support around RMB 123. However, MACD is negative, moving averages are broadly bearish, and large-order funds recorded net outflows over both the past 5 and 10 trading days, indicating that the short-term trend remains weak. The intraday low of RMB 123.36 on September 11 was followed by a recovery, indicating some support around RMB 123. Whether a rebound can continue will depend on trading volume, breaks through resistance levels and the performance of related sectors.

5.3 Short-Term Outlook (Coming Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is a subjective scenario analysis based on closing data as of September 11, 2026, historical prices and publicly available technical indicators. It does not constitute investment advice or a definitive forecast of future share prices.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weights, Not Statistical Probabilities)

• Weak range-bound consolidation (higher subjective weight, approximately 50% to 60%; this is a subjective heuristic judgment based on current technical indicators, fund flows and chip structure, not a statistical probability): Reference price range of RMB 123–134. Trigger conditions are support around RMB 123–125, without a sustained material increase in turnover value, while the price fails to stabilize above the RMB 133–134 resistance zone. Oversold-repair demand near the lower Bollinger Band coexists with negative MACD, bearish moving averages and continued large-order outflows. Weak range-bound trading can serve as the current base-case observation scenario.
• Further downside (medium subjective weight, approximately 30%; this is a subjective heuristic judgment, not a statistical probability): Reference price range of RMB 118–125. Trigger conditions are an effective closing-price break below approximately RMB 123 accompanied by daily turnover value materially above the recent average, or simultaneous weakness in related sectors such as electronic specialty gases and semiconductor materials. A high-volume break below approximately RMB 123 could lead the price to seek support around RMB 118–121.
• Stronger rebound (low subjective weight, approximately 10% to 20%; this is a subjective heuristic judgment, not a statistical probability): Reference price range of RMB 134–146. Trigger conditions are a return above the RMB 134–138 resistance zone accompanied by consecutive increases in turnover value to at least materially above normal recent levels, while the MACD green bars contract, RSI recovers and the electronic-specialty-gas sector strengthens in tandem or the company provides a clear new catalyst. Even in a rebound, the RMB 138–146 area contains multiple moving-average and chip-based resistance levels; trend recovery requires confirmation from trading volume.

③ Fund-Flow and Liquidity Background

As of September 11, 2026, turnover rates over the past 5 trading days were 2.90%, 3.51%, 3.12%, 2.12% and 3.05%, averaging approximately 2.94%. Turnover value over the past 5 days was approximately RMB 353–597 million, with approximately RMB 492 million on September 11, while September 1 reached approximately RMB 1.493 billion. Recent activity has therefore fallen materially from the high-volume day. The margin balance was approximately RMB 959 million as of September 9, 2026, accounting for approximately 5.75% of free-float market capitalization. In terms of shareholding structure, as of June 30, 2026, the ten largest holders of tradable shares held approximately 63.4359 million shares in aggregate, accounting for approximately 49.69% of tradable shares. The largest shareholder, Guangdong Huate Investment Co., Ltd., held approximately 20.86%; Shi Pingxiang, Zhang Suihua and Shi Sihui were also among the leading shareholders. National Social Security Fund Portfolio 503 held approximately 0.78% and UBS AG approximately 0.73%, both newly entering the ten largest tradable shareholders. Investment partnerships including Xiamen Huahong Duofu, Huahe Duofu and Huajin Duofu were also present. The above shareholder data are as of June 30, 2026, are subject to disclosure lags and do not represent the real-time structure on September 11, 2026. In light of the recent decline in turnover value, large-order net outflows and the margin-balance ratio, the market shows some absorption but has not yet formed a clear strong-money-inflow structure. As trading activity declines, short-term prices may become more sensitive to fund inflows and outflows; actual slippage and order-book depth still need to be observed using intraday data.

A verifiable volume-confirmation signal would be: if subsequent daily turnover value can remain above RMB 650 million and the closing price returns above the RMB 134–138 resistance zone, this could be viewed as an observation signal of renewed fund participation and stronger confirmation of a valid breakout. If volume rises but the closing price remains below RMB 123, the move would be closer to high-volume exit selling than healthy turnover.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observation framework, not a trading instruction: monitor whether the RMB 123–125 support zone produces declining volume, a halt in the decline and lower-shadow support.
• Observation framework, not a trading instruction: monitor whether the RMB 133–138 resistance zone can be breached on higher volume and held at the close.
• Observation framework, not a trading instruction: monitor whether large-order funds shift from net outflows over the past 5 days to consecutive net inflows.
• Observation framework, not a trading instruction: monitor whether turnover value can remain above RMB 650 million while the price stops making new lows.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices will also be affected by news flow, fund flows, the broader market environment and other factors. Technical indicators themselves have lags and limitations. This does not guarantee actual future performance or constitute a buy or sell recommendation. Investors should make independent judgments based on the latest market information and bear investment risks themselves.

6. Industry Structure and Competitor Analysis

6.1 Industry Status

Electronic specialty gases are important materials for semiconductor manufacturing, display panels, photovoltaics and third-generation semiconductors. The sector is characterized by a wide range of products, high purity requirements, long customer-certification cycles and stringent transportation and safety requirements. The global market has long been dominated by Linde, Air Liquide, Nippon Sanso Holdings, Air Products and certain semiconductor-material companies. The company’s 2024 annual report stated that foreign-invested companies still held relatively high shares of the global electronic-specialty-gas market and China’s high-end specialty-gas market, while domestic companies’ overall market shares remained relatively limited.

6.2 Competitive Landscape

• Domestic substitution is continuing. The research materials cite the company’s annual report as stating that fewer than 30% of electronic-specialty-gas varieties for integrated-circuit applications can be produced domestically and that high-end products remain dependent on imports. Huate Gas, Jinhong Gas, Nata Optoelectronic, Yankey Engineering and CSSC Special Gas have made breakthroughs in certain products.
• Industry concentration is not high. Electronic specialty gases encompass numerous products, and different companies tend to form differentiated competition in subsegments such as fluorocarbons, hydrides, lithography gases, fluorine-containing gases, ultra-pure ammonia and nitrogen trifluoride. No single company covers all products.
• The competitive model is gradually shifting from technology-certification competition toward comprehensive competition involving technology, cost, scale and supply stability. Domestic new capacity was gradually released in 2025, placing pressure on fluorocarbon-product prices and creating a pattern of demand growth but a lower price center, with sales-volume growth diverging from profit growth.
• Downstream demand for localized supply is increasing. Wafer fabs and display-panel manufacturers are placing greater emphasis on continuous supply, short transport distances, local warehousing, emergency response and supply-chain security. Multi-site deployment and localized service capabilities help companies obtain customer certifications and orders.
• The industry will benefit over the long term from semiconductor localization and import substitution of electronic specialty gases, but in the short term it faces pressure from domestic capacity expansion, product homogeneity, price competition and cost reductions by downstream wafer fabs.

6.3 Major Competitors

Compared with Jinhong Gas, Huate Gas is stronger in electronic-specialty-gas categories, mixed lithography gases and one-stop supply across multiple categories. Compared with Nata Optoelectronic and CSSC Special Gas, it has a broader product portfolio and emphasizes gas-cylinder treatment, blending and gas-supply services. Compared with Yankey Engineering, it is more focused on specialty gases rather than a diversified semiconductor-materials platform. Compared with Kaimeite Gas, its core advantages derive more from specialty-gas R&D, customer certification, purification processes and supply services. The company’s competitive barriers mainly arise from more than 57 import-substitution products, customer certifications and supply stability. However, data on customer coverage, advanced-process coverage and certain market positions are primarily self-disclosed by the company or sourced from rating reports and could not be fully cross-verified item by item through independent third parties.

7. Risk Factors

• Traditional fluorocarbon products face the release of new domestic capacity and cost-reduction pressure from downstream customers. Prices already declined in 2025. If the price center continues to fall, sales-volume growth may not translate into corresponding growth in gross profit and net profit.
• Demand for certain hydride products has temporarily weakened, while the 133% year-on-year increase in first-half revenue from helium and related products was related to changes in supply and demand and higher product prices. Changes in helium prices or supply-demand conditions could cause volatility in the growth and profit contribution of related businesses.
• The company plans to issue no more than 38.3046 million shares to specific investors and raise no more than RMB 700 million for the Jiangsu Huate Semiconductor Materials Production Base and supplementary working capital. The plan still requires approval by the shareholders’ meeting, review by the Shanghai Stock Exchange and registration approval by the China Securities Regulatory Commission. The issue size, timing, project-construction progress and investment returns remain uncertain.
• If the private placement is issued at the upper limit, the company’s share capital will expand materially, potentially diluting EPS in the short term. In addition, the funded project has not yet generated additional capacity or profit, which cannot be incorporated into earnings expectations in advance.
• As of the end of 2025, the carrying value of accounts receivable was RMB 367 million, approximately 25.9% of annual revenue and 2.7x net profit attributable to the parent, equivalent to approximately 94 days of revenue on a static basis. Accounts receivable were materially higher than accounts payable and contract liabilities. If downstream payment terms lengthen or collections slow, working-capital usage and cash-flow pressure could increase.
• The company does not have absolute pricing power over upstream segments such as basic gases, chemical raw materials, gas cylinders, valves and transportation. Ordinary industrial gases are sensitive to raw-material, energy, transportation and regional supply-demand conditions. If raw-material or energy costs rise but product prices cannot be passed through simultaneously, profitability may be compressed.
• As of September 11, 2026, the company’s PE on a TTM basis was approximately 101–108x and PB approximately 6x. Valuation is highly sensitive to volume growth in high-value-added products, capacity ramp-up and earnings recovery. If results fall below institutional expectations, the company may face simultaneous valuation and share-price adjustment pressure.
• Xiamen Huahong Duofu, Huahe Duofu and Huajin Duofu plan to dispose of no more than 2.553 million shares in aggregate through block trades between September 28 and December 27, 2026, representing no more than approximately 2.01% of total share capital. If implemented, the disposals could increase short-term market-supply pressure.
• The company’s customers are mainly semiconductor, display-panel and large manufacturing companies. The five largest customers accounted for approximately 22.51% of 2025 revenue, and downstream customers possess strong procurement and payment bargaining power. Changes in the certification, order or collection schedules of major customers could affect revenue recognition and the scale of accounts receivable.

8. Conclusion and Outlook

The company’s short-term growth momentum has begun to recover. Volume growth in the semiconductor business, mixed lithography gases, fluorocarbon gases and helium-related businesses is supporting the recovery of revenue and profit. Operating cash-flow growth exceeding net profit growth also indicates some improvement in operating quality. Over the medium to long term, more than 57 import-substitution products, a broad specialty-gas portfolio, customer-certification barriers and the planned Jiangsu base should enhance the company’s capacity footprint and supply capabilities in semiconductor materials and electronic specialty gases.

Whether earnings can continue to improve will depend on the volume-growth speed of high-value-added products such as helium and germane, customer certification and order conversion for new electronic specialty gases, the construction and capacity-ramp-up progress of the Jiangsu base, and whether price competition in traditional fluorocarbon products eases. Institutions are generally positive on profit growth for 2026–2028, but forecast ranges are wide. Moreover, 2026 profit growth includes the effect of the low base in 2025 and cannot simply be regarded as a stable long-term growth rate.

The company’s current valuation and technical picture both reflect high expectations and substantial sensitivity to volatility. Going forward, investors should simultaneously monitor whether revenue growth can convert into profit growth, whether gross margin stabilizes, whether the funded project proceeds as planned, and the impact of refinancing dilution and shareholder disposals on EPS and market supply.

Data Sources

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• Guangdong Huate Gas Co., Ltd. 2025 Annual Report
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• Securities Code: 688268 Securities Abbreviation: Huate Gas Announcement No.: 2024-064
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• Securities Code: 688268
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This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current as of the September 11, 2026 close; the observation period for the coming week is September 14–18, 2026. Shareholding structure data is as of June 30, 2026; shareholder-count data is as of July 31, 2026; and margin-balance data is as of September 9, 2026. Information may differ in timeliness; specific data should be based on the company’s formal announcements and authoritative data terminals. This report is for information compilation and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.