TF Strong Buy on 北化股份: Q2 Results Beat Expectations, Focus on the 'Rare Earth' in the Ammunition Industry Chain, Continuous High Growth and Asset Injection Expected

English summary

### TF Strong Buy on 北化股份: Q2 Results Beat Expectations, Focus on the 'Rare Earth' in the Ammunition Industry Chain, Continuous High Growth and Asset Injection Expected Time: 2026-07-30 18:19:20 Content: TF Strong Buy on 北化股份: Q2 results beat expectations, focus on the 'rare earth' in the ammunition industry chain, continuous high growth, and after the change of actual controller, high-quality asset injection is expected. 1. Nitrocellulose is known as the 'rare earth' of the ammunition industry chain, and its strategic value continues to rise. As the 'food' of the ammunition system, nitrocellulose directly determines the range of shells, weapon reliability, and the upper limit of military production capacity. Under future high-tech warfare forms, its strategic value will upgrade from 'basic material' to 'decisive element'. Currently, nitrocellulose exports show a trend of both volume and price rising. Affected by further contraction of domestic production capacity (Hebei Jianmin explosion and suspension) and the complexity of global geopolitical landscape, nitrocellulose prices are expected to continue rising in the medium and long term. ...