Juhua Corp. Posts Q1 Net Profit of 1.173 Billion Yuan, Up 46% Year-on-Year

Juhua Corp. Delivers Strong Q1 Results With Net Profit Surging Nearly 50% Year-on-Year

In April, Juhua Corp. (600160.SH) officially disclosed its first-quarter 2026 earnings report. The data showed that the company achieved operating revenue of 6.018 billion yuan in Q1, a year-on-year increase of 3.75%, while net profit attributable to shareholders of the listed company reached 1.173 billion yuan, a significant year-on-year surge of 45.93%. Against a backdrop of moderate revenue growth, the nearly 50% leap in net profit demonstrated strong earnings elasticity.

Rising Refrigerant Prices Serve as Core Growth Driver

According to the announcement, the primary driver behind the performance improvement was the increase in refrigerant product prices. As a leading enterprise in China's fluorochemical industry, Juhua Corp.'s refrigerant business has long been one of its core profit contributors. In recent years, with the continued implementation of the global Kigali Amendment, quota controls on traditional high-GWP (Global Warming Potential) refrigerants have tightened, constraining supply of third-generation refrigerants and pushing overall product price levels upward.

From a profit structure perspective, Q1 revenue grew by only 3.75% while net profit surged 45.93%, indicating that product mix optimization and price increases contributed far more to profit growth than volume expansion. The rise in refrigerant unit prices directly elevated gross margin levels, significantly enhancing the company's profitability.

Industry Context: Fluorochemical Sector Continues Upward Cycle

Juhua Corp.'s impressive performance is not an isolated case but rather a microcosm of the broader upswing in the fluorochemical industry. On the demand side, global demand for refrigerants from sectors including air conditioning, heat pumps, and new energy vehicle thermal management continues to exhibit rigid growth. On the supply side, increasingly stringent environmental policies have constrained industry capacity expansion, leading to sustained improvement in the supply-demand landscape.

Furthermore, as the construction of artificial intelligence data centers accelerates, demand for high-performance cooling media in liquid cooling technologies is also growing rapidly. Emerging application scenarios such as fluorinated coolants are opening new growth opportunities for fluorochemical companies. Juhua Corp.'s advantages in full fluorochemical industry chain positioning are expected to enable it to continue benefiting from this trend.

Outlook: Upcycle Expected to Continue

Looking ahead to the remaining quarters of 2026, the refrigerant industry's upcycle is expected to persist. On one hand, the Kigali Amendment's HFC (hydrofluorocarbon) phase-down timeline will continue to compress production quotas for traditional refrigerants. On the other hand, the arrival of the peak summer cooling season will further boost end-user demand. With multiple favorable factors converging, Juhua Corp.'s full-year performance is worth anticipating.

However, it should be noted that sustained high refrigerant prices may trigger cost pressure transmission from downstream customers, as well as potential policy adjustment risks. Investors should monitor product price trends in subsequent quarters and the company's progress in expanding new business segments.