Big news from the Middle East again this weekend! These companies respond to the impact situation

More than 50 companies respond to the impact of Middle East conflicts on investor relations platforms.

Iran Proposes Six Conditions for Ceasefire

On March 21, Trump issued an ultimatum demanding Iran open the Strait of Hormuz within 48 hours. If Iran does not comply, the U.S. will strike and destroy all its power plants.

In response to the ultimatum, Iran stated that if Iran’s power plants and infrastructure become targets, all critical facilities in the Middle East, including energy and oil infrastructure, will be considered legitimate targets.

Regarding navigation through the Strait of Hormuz, Iran’s representative to the International Maritime Organization said Iran allows non-“hostile” ships to pass through the strait but requires coordination with Iran on security arrangements.

Iran’s armed forces announced that their military strategy has shifted from defense to offense, with tactical adjustments. The U.S. and Israel have already experienced part of this on the battlefield, and Iran promises to create more “surprises.”

Israeli Prime Minister Netanyahu said Israel’s goal is the current Iranian regime and the Islamic Revolutionary Guard Corps (IRGC). The Israeli military will directly target IRGC leaders, their infrastructure, and economic assets.

U.S. media reports that the Trump administration has begun planning for negotiations with Iran. The U.S. demands that any agreement include the reopening of the Strait of Hormuz, handling of Iran’s high-enriched uranium, and long-term commitments regarding Iran’s nuclear program, ballistic missile projects, and support for regional “proxy” groups.

Iranian media reports that Iran has proposed six conditions for a ceasefire: First, ensure that war does not occur again; Second, close U.S. military bases in the Middle East; Third, Iran’s aggressors pay compensation; Fourth, end all fighting on regional fronts; Fifth, establish a new legal framework for the Strait of Hormuz; Sixth, prosecute and hand over media personnel involved in anti-Iran activities.

Listed Companies Respond to the Impact of Middle East Geopolitical Conflicts

The ongoing escalation of Middle East conflicts has disrupted shipping through the Strait of Hormuz, affecting multiple sectors including petrochemicals, steel and building materials, non-ferrous metals, and shipping. Since March, investors have been most concerned about whether companies have products sold to Iran or the Middle East, and how the situation affects them. Listed companies have actively responded through public channels.

According to Securities Times and Data Treasure, over 50 companies have responded on investor relations platforms regarding the impact or potential impact since March. Overall, more than 10 companies indicated that Middle East conflicts have affected their business, with both positive and negative effects; nearly 30 companies reported minimal impact; the rest reported no impact, including Sichuan Jiuzhou, Satellite Chemical, Jianlin Home, and Sirui Pu.

Among the more affected companies, Gaomeng New Materials stated that rising international crude oil prices due to Middle East conflicts have driven up domestic chemical raw material prices. To cope with cost pressures, the company is maintaining close communication with upstream suppliers to ensure stable supply and reasonable pricing, optimizing production and technology to absorb costs, and negotiating price increases with downstream clients, hoping to overcome difficulties across the supply chain.

Times New Materials said that recent Middle East conflicts have had some impact on its operations and wind turbine blade costs. The company has implemented measures in its supply chain, focusing on optimizing procurement, negotiating fixed prices and long-term agreements to smooth fluctuations, and strengthening communication with customers to reduce and share risks.

CITIC Bo stated that the current tightening of shipping security in the Strait of Hormuz has created phased delivery obstacles for some Middle East projects. The main issue is that supporting components for steel structures intended for Middle Eastern projects may not arrive at the designated ports on time, risking project delays.

Some companies affected by geopolitical conflicts are experiencing changes in industry supply patterns, benefiting certain sectors, with increased expectations for chemical product prices, including Jianghan New Materials, Hebang Biotech, and Qixiang Tengda.

These Companies Are Less Affected by the Conflict

Among the nearly 30 companies reporting minimal impact from Middle East conflicts, most are in machinery, pharmaceuticals, light industry manufacturing, and power equipment sectors.

In terms of overseas revenue proportion, companies like Zhiou Technology, Yiyi Shares, Lingxiao Pump, and Construe have over 45% of their revenue from abroad in 2024.

Zhiou Technology’s revenue mainly comes from overseas markets. The company states that it has a small amount of products sold to the Middle East, and preliminary estimates show that sales in the Middle East in 2025 account for less than 0.3% of total revenue.

Construe’s overseas revenue proportion is close to 50%. Recently, the company indicated that the Middle East accounts for about 1.5% of total revenue, with limited short-term order impact.

In market performance, as of March 20, these companies have averaged a decline of over 6.5% since March. Ten companies outperformed the Shanghai Composite Index, with TianKang Biotech, Little Bear Electric, Guangli Technology, and Jichuan Pharmaceutical rising over 2%.

TianKang Biotech has increased over 6% since March. The company noted that recent geopolitical changes in the Middle East have affected global commodity markets. It closely monitors international market trends and raw material prices. Its long-term strategy of “sales-driven production and synchronized production and sales” means recent price fluctuations have limited impact on operations.

Little Bear Electric has risen over 3.8% since March. The company states that overseas revenue is not significant, with a broad customer base across Southeast Asia, Europe, and North America. The Middle East conflict has limited impact on the company.

Meanwhile, more than ten companies have fallen over 10% since March, including Construe, Saifen Technology, Zhitai New Materials, and LiuGong.

Performance Outlook

Among the companies less affected by Middle East conflicts, 15 have disclosed their 2025 performance forecasts (including pre-announcements based on the lower limit). Nine of these companies expect growth (including those returning to profit).

Suchen Chai A and Zhitai New Materials both project over 110% year-on-year increase in net profit for 2025. Suchen Chai A’s minimum net profit growth exceeds 140%. The company states that a small portion of engine products are sold to some Middle Eastern countries, accounting for a minor part of overall sales and profits, with no significant impact.

Guangli Technology expects to turn a profit in 2025. The company says that the current Middle East conflicts do not directly impact costs significantly.

Additionally, Zhongke Electric, Saifen Technology, and Little Bear Electric all project net profit increases of over 35% in 2025. Zhongke Electric’s minimum net profit growth is 50%. The company notes that the Oman project is minimally affected by regional tensions and will continue to monitor the situation and implement risk controls.

(Source: Data Treasure)