Analysis of Driving Factors for the Strong Performance of Dongyue Silicon Materials (300821) and Its Industry Impact

Dongyue Silicon Materials (300821) is a professional manufacturer of silicone materials listed on the ChiNext board, mainly engaged in products such as silicone rubber and silicone oil. It is a leading enterprise in China’s fluorosilicone industry and has been selected into the global TOP10 silicone enterprises [0]. Its recent strong performance is mainly driven by multiple factors:

1. Skyrocketing silicone prices
   : The price of DMC has risen from a low level to 12,500 yuan/ton, becoming the core driving force [0];
2. Industry production cuts to support prices
   : The industry operating rate is only 73.62%, inventory remains low, and the supply-demand pattern has improved [0];
3. New energy demand pull
   : Demand growth in areas such as lithium battery new materials has brought new growth points to traditional chemicals [0];
4. Cost advantage
   : The company’s production cost is 10%-15% lower than the industry average, with outstanding competitiveness [0];
5. Sector capital pursuit
   : The chemical sector as a whole has received capital attention, and Penghua Chemical ETF has seen a net purchase of over 15.4 billion yuan in three months [0].

• Cross-domain correlation
  : The expansion of the new energy industry and the traditional chemical sector have formed a synergistic effect, and the demand for silicone as a key material continues to rise [0];
• Industry structural opportunities
  : Industry production cuts and demand growth drive prices upward, and leading enterprises benefit from industry integration [0];
• Company competitive barriers
  : Cost advantages and industry status support its risk resistance in the price fluctuation cycle [0].

• Price fluctuation risk
  : The price of silicone products is greatly affected by supply and demand. If the industry operating rate rebounds or demand falls short of expectations, prices may correct [3];
• Increased industry competition
  : As industry prosperity improves, new entrants or capacity expansions may intensify competition [0];
• Policy regulatory risk
  : Tighter environmental protection policies in the chemical industry may increase compliance costs [0].

• Expansion in new energy field
  : The company can further expand new energy-related businesses such as lithium battery new materials to open up growth space [0];
• Industry integration opportunities
  : Leading enterprises are expected to expand market share through mergers and acquisitions [0];
• Continuation of cost advantages
  : Continuously optimize production processes to consolidate the cost-leading position [0].

The strong performance of Dongyue Silicon Materials (300821) reflects the dual benefits of the improved supply-demand pattern in the silicone industry and the growth of new energy demand. With its industry status and cost advantages, the company has strong competitiveness in the current industry cycle. Investors should pay attention to the price trend of silicone, changes in industry operating rates, and the release of new energy demand [1][3].