China chemical new materials sector "Helium prices likely to stabilize w..."

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China chemical new materials sector "Helium prices likely to stabilize w..."

Global Research

11 June 2026ab

China chemical new materials sector Equities

ChinaHelium prices likely to stabilize while upside is

priced in; downgrade Huate Gas to Neutral Chemicals

Richard Li

Analyst

richard-ze.li@ubs.com

Improving special gas industry cycle to drive earnings growth +86-21-3866 8802

Huate Gas and Guanggang Gas are the major electronic gas suppliers in China, with Amily Guo

more than 50% of revenue from IC downstream. UBS expects the DRAM/NAND supply Analyst

shortages to persist until Q228/Q427, which we believe could support fundamental S1460518050002

electronic specialty gas industry improvement. Investors believe Huate's profit could amily.guo@ubs.com

benefit more from higher helium prices, while we expect helium prices to remain stable +86-105-832 8845

in H226. We believe Huate's share price has baked in the impact of helium prices on Cheryl Wen

earnings growth, at 73x 2027E PE, above the peer average of 70x, while Guanggang Analyst

Gas’ 2027E PE (55x) remains below the industry average. We expect Guanggang Gas/ S1460525030002

Huate Gas to deliver net profit CAGRs of 52%/39% in 2026-28. Thus, we maintain our cheryl.wen@ubs.com

Buy rating on Guanggang Gas but downgrade our rating on Huate Gas to Neutral. +86-21-3866 8916

Jay LIN

Loose Russian supply has led helium prices to decline Analyst

The shutdown of Qatar’s helium facilities in March 2026, coupled with Russia’s helium S1460525070001

export control in April 2026, pushed up the domestic retail helium price to cRmb500/ jay.lin@ubs.com

+86-105-832 8044

cubic meter in April. However, the price fell back to cRmb250/cubic meter in May-June,