The Zhitong Finance App learned that Minsheng Securities released a research report stating that after the HFCs quota is implemented, competition in the fluorine chemical industry chain may shift to competition for polymer fluoropolymers and other fluorine fine chemicals, and is optimistic about the project implementation opportunities brought by leading fluorine chemical companies relying on outstanding R&D capabilities. As of the first half of 2023, against the backdrop of no large capital expenditure on refrigerants, the total value of projects under construction in the fluorine chemical industry has reached a record high, and the intention of fluorine chemical companies to deploy fluoropolymers and fluorine fine chemicals is obvious. Relying on their strong R&D strength, leading fluorine chemical companies are expected to maintain their competitive advantage. With the continuous implementation of fluoropolymer projects and continuous product upgrades, the performance of leading fluorine chemical companies is expected to continue to increase.

Investment advice: It is recommended to focus on leading companies with a presence in the fluoropolymers sector: Juhua Co., Ltd. (600160.SH), Sanmei (603379.SH), Yonghe Co., Ltd. (605020.SH), and Haohua Technology (). 600378.SH

The main views of Minsheng Securities are as follows:

Minsheng Securities pointed out that China's PTFE production capacity is structurally scarce, and PTFE can be modified in various ways to upgrade products. While China exports PTFE every year, it also needs to import PTFE at a higher price. The domestic PTFE industry still has room for high-end upgrades. Currently, the main PTFE modification methods include filling modification, blending modification, and surface modification.

Demand for new energy sources is driving demand for PVDF. PVDF has excellent mechanical properties and processing performance, can achieve processes such as slurry coating to improve production efficiency, and PVDF has good chemical stability and does not react or deteriorate during circulation, so PVDF is also used in battery systems. Demand for PVDF is expected to soar as new energy is released.

FEP is currently mostly used in cables, and can be modified in a variety of ways. FEP is a copolymer of HFP and TFE, so FEP can be viewed as a modified material of PTFE. While retaining the properties of PTFE, it also has better thermoplasticity and is easy to process. High-speed extrusion of FEP cable materials on the premise of maintaining a flat surface is one of the barriers to the manufacturing process. In actual production, chemical modification, fusion blending modification, and adjustment of production equipment parameters are the main FEP extrusion improvement methods.

PFA production barriers are higher, and its fusible processing characteristics make it more advanced in application. PFA is a copolymer resin of TFE and perfluoroalkoxy vinyl ether. Its structure is similar to PTFE, which is equivalent to replacing a fluorine atom in PTFE with perfluoroalkoxy. Therefore, PFA inherits the excellent properties of PTFE, and the introduction of perfluoroalkoxy side groups also reduces the rigidity of the polymer chain, so PFA has good melt processing performance, so PFA is also known as “fusible polytetrafluoroethylene”.

China is the largest consumer market for fluorine rubber, and there is still room for improvement in the level of fluorine rubber research and development. China's fluorine rubber industry began to grow rapidly in this century, and at present, China is already the largest fluorine rubber consumer market. The most widely used types of fluororubber in China are type 26 and type 246, and the application scenarios of fluororubber are limited due to the double bonds that may be left during the preparation process.

Risk warning: Downstream demand falls short of expectations, project construction falls short of expectations, and raw material prices have risen sharply.