Do‑Fluoride New Materials Co. Ltd. Surges in the Wake of Solid‑State Battery Mania
Do‑Fluoride New Materials Co. Ltd. (002407.SZ), a specialist in cryolite and inorganic fluoride compounds, closed the trading day on September 5, 2025 at 15.19 CNY, registering a 9.99 % gain and a full‑day limit‑up. The move was driven by a confluence of sector‑wide momentum and company‑specific catalysts that reinforced investor confidence in the firm’s strategic positioning within the rapidly expanding solid‑state battery and energy‑storage ecosystems.
1. Sector‑Wide Acceleration in Solid‑State Battery Stocks
During the week of September 5, the Shenzhen Composite and ChiNext indices experienced pronounced volatility, yet the overall market trend turned sharply positive. In particular, the solid‑state battery sector achieved a record‑high weekly rally, with the sector index climbing sharply on Friday after a dip earlier in the week. Notable limit‑ups included Paterel, Gold Galaxy, and Tianhua New Energy, each pushing a near‑10‑share limit‑up, underscoring robust demand for advanced battery materials.
The surge is closely tied to industry announcements: on September 3, EVE Energy unveiled the operational start‑up of its “Dragon‑Qin II” all‑solid‑state battery line in Chengdu, while other major players have signaled the commercialization of polymer‑ and sulfide‑based chemistries. This macro‑trend has lifted the entire fluoride‑based materials sub‑segment, which includes Do‑Fluoride, into the spotlight.
2. Company‑Specific Catalysts
a. Product Alignment with Emerging Battery Architectures
Do‑Fluoride’s core product portfolio—anhydrous hydrogen fluoride, industrial hydrofluoric acid, ammonium bifluoride, and potassium fluoride—is a critical feedstock for the synthesis of solid‑state electrolyte materials. The company’s emphasis on cryolite and aluminum fluoride directly supports the production of high‑purity fluorides required in advanced battery chemistries. Recent investor‑relations disclosures from August 26 highlighted the firm’s focus on polymer and sulfide routes and its collaborations with top domestic universities, signalling early industrial‑scale capabilities that align with the sector’s trajectory.
b. Order Pipeline and Revenue Growth
According to the August 1 investor briefing, Do‑Fluoride’s energy‑storage battery supply chain has begun to stabilize, with domestic and international orders accumulating steadily. The firm’s management forecasts a 50 % YoY lift in lithium‑battery deliveries to 8.5 GWh for the second half of the year. Moreover, the projected 5 thousand‑twt annual shipment of lithium hexafluorophosphate, announced on August 26, is expected to benefit from a price rebound and improved capacity utilization—factors that could restore profitability margins.
c. Market Sentiment and Institutional Activity
The day’s trading volume, amounting to 24.77 % of the total shares traded, reflected an aggressive buying push. The company’s limit‑up status, coupled with a maximum sealed‑order volume of 150.5 million and a sealed‑stock count of 18.27 million, underscored the confidence of large institutional investors. These figures dovetail with the broader favorable financing environment: A‑share financing net inflows surpassed 18.7 billion CNY this week, with the electric‑power equipment and chemical sectors each attracting over 30 billion CNY in net financing, further buoying the chemical materials space.
3. Forward‑Looking Outlook
- Strategic Positioning: Do‑Fluoride’s existing product suite and ongoing R&D collaborations place it on a solid footing to meet the rising demand for high‑purity fluorides in solid‑state battery manufacturing.
- Order Expansion: The projected uptick in both domestic and foreign orders, particularly in the energy‑storage domain, signals a likely increase in revenue and margin recovery.
- Capital Allocation: With a market capitalization of 15.69 billion CNY and a 52‑week high equal to the current price, the firm’s valuation appears attractive against the backdrop of its growth trajectory.
In summary, Do‑Fluoride New Materials Co. Ltd. has leveraged sector momentum and its own strategic product alignment to achieve a notable market turnaround. The company’s forthcoming quarterly disclosures will be critical in confirming whether the current enthusiasm translates into sustained operational performance and shareholder value creation.