In-Depth Analysis Report on the Impact of Skyrocketing Sulfur Prices on Yuegui Co., Ltd.

Based on collected data and market information, I present to you the

:

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Yuegui Co., Ltd. (000833.SZ) is the

of the skyrocketing sulfur price cycle. The company adopts a pyrite-based sulfuric acid production process, rather than sulfur-based sulfuric acid production, maximizing its cost advantage and achieving explosive performance growth amid skyrocketing sulfur prices[1][2].

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Time Node	Sulfur Price (Yuan/ton)	Increase vs. H2 2024
H2 2024	900-1000	Benchmark
Q1 2025	1500	+67%
Q2 2025	2800	+211%
Q3 2025	3600	+300%
December 2025	4150	+320%
2026 Forecast	5000+	+450%+

Sulfur prices hit a 10-year high, with a cumulative year-to-date increase of 185% in 2025 and an average price exceeding 2,400 yuan/ton[3][4].

1. Supply-Side Contraction
   :
   • Expected decline in global high-sulfur crude oil production (reduced output from the Middle East and Russia)
   • Russia has shifted from a sulfur exporter to an importer
   • Continuous tightness in international imported resources

2. Demand-Side Surge
   :
   • Indonesian nickel-cobalt projects have a sulfur demand of over 7 million tons (1 ton of nickel consumes 10 tons of sulfur)
   • The lithium iron phosphate industry is expected to produce over 3.6 million tons in 2025, bringing 1.06 million tons of new sulfur demand
   • Accelerated industrialization of solid-state batteries has driven high-purity sulfur demand from the “kilogram level” to the “ton level”[5]

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Yuegui Co., Ltd. is mainly engaged in

, with core subsidiaries including Yunliu Mining, etc.:

Product	Capacity/Reserves	Remarks
Pyrite Concentrate	1.2 million tons/year	48% grade (highest in the industry)
Sulfuric Acid	520,000 tons/year	Pyrite-based production process
Pyrite Resources	Over 200 million tons of reserves	Highest-quality pyrite in China
Pyrite Self-Sufficiency Rate	Over 80%	Leading in the industry

The company also operates sugar, pulp and other businesses, but the sulfur chemical segment contributes the majority of its profits[1][6].

Comparison Dimension	Yuegui Co., Ltd.	Sulfur-Based Sulfuric Acid Enterprises
Raw Material Source	Pyrite (self-owned mines)	Sulfur (purchased externally)
Raw Material Cost	Stable and controllable	Skyrocketing (+320%)
Sulfuric Acid Production Cost	Relatively low	Severely inverted
Relative Advantage	Approximately 200 yuan/ton lower	Facing losses

: Skyrocketing sulfur prices have led to severe cost inversion for sulfur-based sulfuric acid enterprises, resulting in large-scale production cuts or shutdowns, a sharp reduction in the circulation of commodity sulfuric acid, and a subsequent rise in sulfuric acid prices (reaching 773 yuan/ton in 2025, a 740% increase from the lowest point)[2][7].

2025 Q3 results show:

Indicator	Value	Year-on-Year Change
Net Profit Year-on-Year Growth	134.64%	Sharp Growth
Gross Profit Margin	38.75%	Increased 11.64 percentage points year-on-year
Pyrite Concentrate Sales Revenue Year-on-Year Growth	21%	Growth in both volume and price
Raw Ore Capacity Utilization	Nearly 100%	Full production and sales

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Sulfur price increase → Production cuts by sulfur-based sulfuric acid enterprises → Tightened sulfuric acid supply → Sulfuric acid price increase
                      ↓
              Stable production cost of pyrite-based sulfuric acid at Yuegui Co., Ltd.
                      ↓
              Expanded price spread of sulfuric acid products → Improved gross profit margin

There is a

between sulfur and pyrite, and rising sulfur prices drive a simultaneous increase in pyrite prices:

• Pyrite prices (Q3 2025) rose over 53% from the start of the year
• Yuegui Co., Ltd.'s pyrite concentrate (48% grade), as a high-grade product, has stronger premium capacity
• With over 200 million tons of pyrite resource reserves, the resource value has been significantly reassessed[1][2]

Industrial Chain Link	Impact	Yuegui Co., Ltd.'s Position
Upstream Sulfur Ore	General price increase	Beneficiary on the resource side
Midstream Sulfuric Acid	Tight supply	Beneficiary on the production capacity side
Downstream Phosphate Fertilizer/Titanium Dioxide	Cost pressure	Indirect transmission

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Time Period	Increase
Past 1 Year	+82.74%
Past 6 Months	+77.31%
Past 3 Months	+49.76%
Since 2026	+8.87%

The stock price has continued to strengthen since H2 2024, hitting a record high[8].

Indicator	Yuegui Co., Ltd.	Chemical Industry Average
Dynamic Price-to-Earnings Ratio (PE)	18x	Approximately 25x
Price-to-Book Ratio (PB)	4.42x	-
ROE	13.43%	-

Valuation is at a historical low, with sufficient margin of safety[8].

The market generally regards Yuegui Co., Ltd. as “the core beneficiary of the sulfur price rally cycle”:

With its high-grade pyrite resources, cost advantages of pyrite-based sulfuric acid production, and high performance elasticity, Yuegui Co., Ltd. has become the top choice for investors[1][2]

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1. Sulfur price correction risk
   : The short-term price increase is too large, and a technical correction may occur
2. Downstream demand fluctuations
   : Sluggish traditional demand for phosphate fertilizers, titanium dioxide, etc. may affect sulfuric acid prices
3. Policy risk
   : Tighter environmental protection policies in the chemical industry may affect production
4. Market sentiment risk
   : The stock price has increased significantly in the short term, and there may be profit-taking pressure

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Dimension	Evaluation
Benefit Certainty	★★★★★ (Direct beneficiary, significant cost advantage)
Performance Elasticity	★★★★★ (134% year-on-year net profit growth)
Valuation Rationality	★★★★☆ (18x PE, at historical low)
Upside Sustainability	★★★★☆ (Long-term tight supply and demand for sulfur)

: The skyrocketing sulfur prices constitute a for Yuegui Co., Ltd. With its pyrite resource self-sufficiency rate, cost advantages in sulfuric acid production, and high elasticity of performance growth, the company is the optimal investment target in the sulfur price rally cycle. Focused attention is recommended[1][2][7].

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[1] Eastmoney - “The Top Beneficiary of Sustained Sulfur Price Rises: Yuegui Co., Ltd.” (https://caifuhao.eastmoney.com/news/20251108090042153283310)

[2] Gudaobang - “Sulfuric Acid Prices Surge: Unveiling Systemic Impacts and Investment Opportunities in the A-Share Industrial Chain” (https://gudaobang.com/m_view.php?id=595)

[3] Securities Times - “Sulfur Prices Surge Over 320% to a New High: Who is Boosting and Who is Under Pressure?” (https://www.stcn.com/article/detail/3533606.html)

[4] Ministry of Commerce of the People’s Republic of China - “Why Are Sulfur Prices So Crazy?” (https://price.mofcom.gov.cn/article/yjzx/hyzx/nyhg/202512/64108.html)

[5] Eastmoney - “Sulfur Prices May Exceed 5,000 Yuan/ton in 2026!” (https://caifuhao.eastmoney.com/news/20251120192402864235830)

[6] CNINFO - Yuegui Co., Ltd. 2024 Annual Report (http://static.cninfo.com.cn/finalpage/2025-03-28/1222925474.PDF)

[7] Guben Community - “Sulfuric Acid Prices Surge: Unveiling Systemic Impacts and Investment Opportunities in the A-Share Industrial Chain” (https://gudaobang.com/m_view.php?id=595)

[8] Jinling API - Yuegui Co., Ltd. Company Profile and Market Data