Hoshine Silicon Ind Co Ltd

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%.

Hoshine Silicon released its 2026 semi-annual report, achieving a net profit attributable to shareholders of the listed company of 324 million yuan, swinging to profit from a loss a year earlier. The company's operating revenue in the first half was 10.16 billion yuan, up 3.94% year-on-year. Net profit in the second quarter was 247 million yuan, while first-quarter net profit was 77 million yuan, with second-quarter net profit up 219% quarter-on-quarter.

Hoshine Silicon released its 2026 semi-annual report on the evening of August 25. In the first half, the company achieved operating revenue of 10.16 billion yuan, up 3.94 percent year on year, and net profit attributable to shareholders of 324 million yuan, successfully turning from loss to profit. Its overall gross margin was 18.39 percent, an increase of 10.47 percentage points from the same period last year, while the weighted average return on equity rose by 2.32 percentage points year on year. The improvement was mainly driven by higher capacity utilization and significantly increased production and sales of industrial silicon, as well as an improved supply-demand balance in the silicone industry and higher market prices for major products. For industrial silicon, direct smelting power consumption per tonne at most furnaces has fallen below 10,000 kilowatt-hours, while the silicone business reduced steam consumption through fluidized bed technical upgrades and a self-recuperative distillation column system. Under Hoshine Silicon's leadership, industry self-discipline has continued to advance. In June 2026, the industry raised emission reduction efforts to 40 percent, and on July 3, a monomer producers' meeting further confirmed that the reduction control ratio would rise to 60 percent, with DMC quotations returning to around 14,000 yuan per tonne. In the first half, the average domestic silicone DMC price was 14,400 yuan per tonne, up more than 13 percent year on year. The company also disclosed that team building for its optical fiber preform project, procurement of key equipment, and early-stage market development are progressing in an orderly manner. In the first half, sales volume of D4 products sold to major domestic optical fiber companies grew by more than 70 percent year on year.