Yangmei Chemical Co Ltd

In this morning's session, A-share market style shifted, with agricultural and non-ferrous metals cyclical sectors surging while semiconductor technology sectors pulled back. The Shanghai Composite Index reported at 3,946.99 points, up 0.36%, with combined turnover on the Shanghai and Shenzhen exchanges reaching 1.26 trillion yuan in the half-day session. The agricultural sector saw another wave of limit-ups, with Yasheng Group hitting its fourth consecutive limit-up, Dunhuang Seed achieving a third consecutive limit-up, and the Shenwan Agriculture, Forestry, Animal Husbandry and Fishery Index rising 1.53%. A World Meteorological Organization bulletin shows the probability of the El Niño event persisting until February 2027 is close to 100%, and it will reach super intensity in the coming months, with a peak expected around the end of 2026. Affected by this, global agricultural product prices have risen, with Chicago wheat futures hitting a three-year high. The fertilizer sector also moved, with Luhua Technology and other stocks hitting limit-up, and domestic urea quotes rising by 50 to 150 yuan per tonne in a single day. The non-ferrous metals sector rallied, with LME copper prices hitting a record high, touching 14,617 US dollars per tonne. Analysts at Guosen Futures noted that record-low copper concentrate processing fees, inventory divergence, and the start of peak-season restocking are supporting copper prices.

Luhua Technology disclosed its earnings forecast, expecting a net profit attributable to the parent company of 33 million to 55 million yuan in the first half of 2026, compared with a loss of 229 million yuan in the same period last year, turning from loss to profit year-on-year. Deducted non-recurring net loss is expected to be 67 million to 115 million yuan, compared with a loss of 239 million yuan in the same period last year. The company said the improvement in performance was mainly due to the recovery of the chemical market, with rising prices of products such as urea, hydrogen peroxide, and phosphorus trichloride, as well as the receipt of 155 million yuan in debt distribution from the bankruptcy reorganization case of Pingyuan Chemical.