Chengdu Guibao Science Tech

Silicone leader Dongyue Silicone Materials issued a results forecast, projecting net profit for the first three quarters of 547 million to 567 million yuan, a year-on-year increase of 19,050% to 19,750%, igniting the silicone sector. Boosted by the news, silicone-related stocks rallied against the market in early trading on October 9, with Dongyue Silicone Materials surging by the 20% daily limit, Chenguang New Materials hitting the daily limit, and Xinyaqiang, Guibao Science and Technology, and Hoshine Silicon following higher. Dongyue Silicone Materials said that in the first three quarters of 2026, thanks to an improved market environment and industry supply-demand balance, prices of its main products rose, while industrial silicon procurement costs fell year on year, lowering overall unit production costs and lifting gross margins. China's domestic silicone market has rebounded since bottoming out in the fourth quarter of 2025, and DMC prices have climbed steadily in 2026. Data from SunSirs shows that as of October 8, DMC was quoted at 14,400 yuan per tonne, up more than 10% over the past 60 days. According to statistics from Securities Times Data Treasure, institutions unanimously forecast that nine silicone-related stocks are expected to post full-year profit growth in 2026, with Sanyou Chemical, Wynca Group, Sanfu Chemical, Hoshine Silicon, and Luxi Chemical expected to lead with gains exceeding 100%.

On October 9, the A-share silicone concept sector continued to strengthen. Dongyue Silicone hit the 20cm daily limit-up, Chenguang New Materials also hit limit-up, and Guibao Science and Technology, Xinyaqiang, and Hesheng Silicone followed with gains. Behind the sector's sustained strength are multiple factors including improved industry supply-demand dynamics, recovering product prices, and earnings repair at listed companies. At the end of 2025, the silicone industry's anti-involution conference was held, where companies reached a consensus to cut production by 30%, and silicone prices gradually recovered. Entering 2026, leading companies continued to reduce output and raise prices, effectively easing inventory pressure. Affected by the EU REACH environmental regulations and high energy costs, international chemical giants such as Dow and Wacker have announced shutdowns or reductions in silicone capacity, and the accelerated clearing of overseas capacity has provided market space for domestic companies with cost advantages. Taking the key intermediate product DMC as an example, the price was around 13,600 yuan per tonne in early September, rose to about 14,700 yuan per tonne in mid-September, and after entering October, mainstream market negotiation prices remained in the range of 14,400 to 15,000 yuan per tonne. On the evening of October 8, Dongyue Silicone disclosed its performance forecast for the first three quarters of 2026, expecting net profit attributable to the parent company of 547 million to 567 million yuan, a year-on-year increase of 19,050% to 19,750%, mainly driven by improved industry supply-demand dynamics that lifted prices of major products. In addition, expanding applications in semiconductors, data center cooling, and new energy are creating new growth opportunities. Jianghan New Materials' production facilities with annual capacity of 10,000 tonnes of 6N-grade silicon tetrachloride and 5,000 tonnes of 9N-grade TEOS are currently in the equipment installation stage and are expected to begin trial operation in early 2027. Industry insiders caution that whether new demand layouts can translate into actual performance still depends on the progress of project commissioning, customer certification, and demand realization at the relevant companies.