Investment Rating - The investment rating for China Petroleum & Chemical Corp. is Equal-weight [4][62]. Core Views - The report suggests that the share price of China Petroleum & Chemical Corp. is expected to rise in absolute terms over the next 15 days due to a sharp increase in oil prices amid concerns over energy supply disruptions from the Middle East [1]. - The report estimates a 70% to 80% probability for this scenario, indicating a "very likely" outcome [1]. Summary by Sections Stock Information - Current stock price as of June 12, 2025, is Rmb5.89 with a price target of Rmb6.00 [4]. - The 52-week price range is Rmb7.64 to Rmb5.25 [4]. - The market capitalization is approximately Rmb660.52 billion [4]. Valuation Methodology - The valuation methodology includes applying a slight discount to the multiples of international peers to reflect lower realized prices of refined oil products [7]. - A 42% A-H premium is applied to derive the price target for Sinopec - A [7]. Market Context - The report highlights that the share price could rebound after recent trading weakness linked to oil prices [1]. - The average daily trading value for the stock is Rmb920 million [4].

Investment Rating - The report maintains an "Overweight" rating for the oil and petrochemical industry [5] Core Viewpoints - OPEC+ increased production by 180,000 barrels per day in May, which is below the planned increase, while geopolitical conflicts are driving oil prices upward [1] - OPEC maintains its global oil demand growth forecast, expecting an increase of 1.3 million barrels per day in 2025, with strong demand from aviation, gasoline, liquefied gas, and naphtha [1] - The geopolitical situation in the Middle East is escalating, with attacks on energy facilities by Iran and Israel, leading to significant disruptions in oil production and refining [2] - The "Big Three" oil companies in China are focusing on increasing reserves and production to ensure energy security, with capital expenditures projected to grow at a CAGR of 6.6% from 2018 to 2024 [3] Summary by Sections OPEC and Oil Demand - OPEC+ is expected to see a cumulative production increase of 180,000 barrels per day by May 2025, with a significant portion of this increase coming from Saudi Arabia [1] - The demand for aviation fuel is projected to grow by 450,000 barrels per day in 2025, while gasoline demand is expected to rise by 380,000 barrels per day [1] Geopolitical Risks - The ongoing conflict between Iran and Israel has led to attacks on energy infrastructure, causing production halts and operational shutdowns in major facilities [2] - The risk of Iran closing the Strait of Hormuz remains, which could severely impact global oil trade, as approximately 11% of global maritime trade passes through this route [2] Investment Recommendations - The report suggests a focus on the "Big Three" oil companies (China National Petroleum, Sinopec, and CNOOC) and their associated oil service companies, as well as leading oil transportation firms [3] - The anticipated short-term increase in oil prices due to geopolitical tensions and the long-term favorable supply-demand dynamics support a positive outlook for the sector [3]

为担保项目公司能及时履行融资文件项下的还款义务，本公司于 2025 年 6 月 17 日与中国建设银行（亚洲）股份有限公司（作为代理行，简称"建银亚洲"） 签署了《融资担保协议》，本公司将为项目公司向建银亚洲提供一项连带责任保 证，当项目公司未能按照融资文件的约定支付款项时，本公司将按照《融资担保 协议》的约定向建银亚洲支付其到期未付款项，本公司相应可能承担的担保金额 上限预计本金不超过人民币 4,307,160,000 元及对应的利息等费用，担保期限自 《融资担保协议》签署之日起至项目公司在融资文件项下的付款义务全部履行完 毕之日或 2027 年 4 月 30 日（以较早之日为准）止。 股票代码：600028 股票简称：中国石化 公告编号：2025-23 中国石油化工股份有限公司 有关本次担保的重大进展，本公司将根据有关规定及时履行后续披露义务。 特此公告。 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 承董事会命 副总裁、董事会秘书 黄文生 中国石油化工股份有限公司（简称"本公司"）已于 2025 年 1 月 18 日披 ...

Group 1 - The State Intellectual Property Office of China has granted a patent for "catalysts for degrading ozone and their preparation methods" to China Petroleum & Chemical Corporation (Sinopec), Sinopec Safety Engineering Research Institute, and Sinopec Qingdao Petroleum & Chemical Co., Ltd. The patent was announced under CN115888781B and was applied for on September 2021 [1][2] - China Petroleum & Chemical Corporation, established in 2000, is primarily engaged in the petroleum, coal, and other fuel processing industries. The company has a registered capital of 12,173.97 million RMB and has invested in 261 enterprises, participated in 5,000 bidding projects, and holds 5,000 patents [1] - Sinopec Safety Engineering Research Institute, founded in 2021, focuses on research and experimental development. It has a registered capital of 49.9 million RMB, invested in 4 enterprises, participated in 1,144 bidding projects, and holds 1,747 patents [1] - Sinopec Qingdao Petroleum & Chemical Co., Ltd., established in 1952, is also engaged in the petroleum, coal, and other fuel processing industries. The company has a registered capital of 159.477 million RMB, invested in 7 enterprises, participated in 3,491 bidding projects, and holds 30 patents [2]

Group 1 - Morgan Stanley predicts that if regional conflicts escalate, oil prices could rise to $120 per barrel [1] - The bank's forecast for Brent crude oil futures in Q1 next year is set at $55 per barrel, excluding geopolitical risk premiums or significant oil supply disruptions [1] - The bank recommends increasing positions in high-quality Asian energy companies, specifically China National Petroleum Corporation (00857.HK), raising its H-share target price to HKD 8 due to breakthroughs in Xinjiang gas fields [1] Group 2 - The bank advises selling China Petroleum & Chemical Corporation (00386.HK), anticipating disappointing Q2 performance [1] - The most bearish outlook is on airline stocks, particularly Air China (00753.HK) and China Southern Airlines (01055.HK) [1] - For shipping companies, higher freight rates are expected to offset the negative impact of increased fuel costs, with a preference for Evergreen Marine and China COSCO Shipping Corporation (01919.HK) [1]

Group 1: Market Overview - The FTSE China A50 index component stocks showed a general decline in bank stocks while the oil industry demonstrated strength [1] Group 2: Insurance Sector - China Life Insurance, China Pacific Insurance, and Ping An Insurance reported market capitalizations of 375.90 billion, 345.08 billion, and 992.28 billion respectively, with trading volumes of 5.26 million, 15.94 million, and 4.92 million [4] - The stock performance for these companies was as follows: China Life -0.19 (-0.53%), China Pacific -0.32 (-0.58%), and Ping An +0.02 (+0.24%) [4] Group 3: Alcohol Industry - Major players in the liquor sector include Kweichow Moutai, Wuliangye, and Shanxi Fenjiu, with market capitalizations of 1795.74 billion, 209.72 billion, and 464.08 billion respectively, and trading volumes of 8.59 million, 30.41 million, and 53.76 million [4] - Stock changes were reported as follows: Kweichow Moutai -29.49 (-2.02%), Wuliangye -2.94 (-2.40%), and Shanxi Fenjiu -1.94 (-1.12%) [4] Group 4: Semiconductor Sector - Key companies include Northern Huachuang, Haiguang Information, and Cambrian Technology, with market capitalizations of 218.37 billion, 251.15 billion, and 316.16 billion respectively, and trading volumes of 13.82 million, 14.05 million, and 13.86 million [4] - Stock performance was as follows: Northern Huachuang +4.57 (+1.13%), Haiguang Information -3.18 (-0.53%), and Cambrian Technology -0.07 (-0.05%) [4] Group 5: Automotive Sector - Notable companies include BYD, Great Wall Motors, and Beijing-Shanghai High-Speed Railway, with market capitalizations of 280.83 billion, 1039.06 billion, and 185.40 billion respectively, and trading volumes of 49.75 million, 4.26 million, and 2.68 million [4] - Stock changes were reported as follows: BYD -11.34 (-3.21%), Great Wall Motors -0.46 (-2.08%), and Beijing-Shanghai High-Speed Railway +0.02 (+0.35%) [4] Group 6: Oil Industry - Major companies include COSCO Shipping, Sinopec, and China National Petroleum, with market capitalizations of 252.95 billion, 721.41 billion, and 1643.53 billion respectively, and trading volumes of 7.68 million, 15.71 million, and 11.47 million [4] - Stock performance was as follows: COSCO Shipping +0.06 (+1.02%), Sinopec +0.10 (+1.13%), and China National Petroleum +0.41 (+2.58%) [4] Group 7: Coal Industry - Key players include China Shenhua, Shaanxi Coal and Chemical Industry, and CATL, with market capitalizations of 781.23 billion, 192.64 billion, and 1127.70 billion respectively, and trading volumes of 22.00 million, 6.00 million, and 4.30 million [4] - Stock changes were reported as follows: China Shenhua -2.47 (-0.99%), Shaanxi Coal +0.30 (+0.77%), and CATL +0.15 (+0.76%) [4] Group 8: Food and Beverage Sector - Companies such as CITIC Securities, Guotai Junan, and Haitian Flavoring reported market capitalizations of 390.23 billion, 322.27 billion, and 227.37 billion respectively, with trading volumes of 11.01 million, 15.22 million, and 5.98 million [5] - Stock performance was as follows: CITIC Securities -0.11 (-0.42%), Guotai Junan -0.15 (-0.81%), and Haitian Flavoring -0.40 (-0.97%) [5]

Investment Rating - The report maintains a positive outlook on the potassium fertilizer industry, highlighting the importance of securing supply chains and agricultural stability [1][2][3]. Core Insights - The price for potassium fertilizer contracts in China for 2025 has been set at $346 per ton CFR, which is a crucial development for ensuring supply for the upcoming agricultural seasons [1]. - Global potassium chloride demand is projected to exceed 80 million tons by 2030, driven by population growth and increased food quality demands, with a compound annual growth rate (CAGR) of approximately 2.3%-3.2% from 2023 to 2030 [3]. - The geopolitical situation, particularly the ongoing Russia-Ukraine conflict, continues to create uncertainties in the global potassium supply chain, prompting China to focus more on the security of strategic resources like potassium [2]. Summary by Sections Potassium Fertilizer Contracts - In June 2025, a significant potassium fertilizer import contract was finalized between Chinese companies and a Dubai-based supplier, establishing a price of $346 per ton, which is essential for maintaining supply stability [1]. Global Demand Forecast - By 2030, global potassium chloride demand is expected to rise by 12-17 million tons compared to 2023 levels, with China being the largest market, anticipated to require 17.5-18.5 million tons in 2024 [3]. Strategic Resource Security - The report emphasizes the need for China to enhance its focus on the security of strategic resources like potassium due to ongoing geopolitical tensions affecting supply chains [2].

Industry Overview - Recent surge in oil prices with Brent crude surpassing $70 for the first time in over two months [1] - Increased geopolitical tensions in the Middle East, particularly following the reduction of the U.S. diplomatic presence in Iraq [1] - China is projected to invest $168 billion in foreign energy projects from 2020 to 2024, with $50.28 billion allocated to six Middle Eastern countries [1] - Major oil and gas projects in these countries amount to $29.15 billion, showing a year-on-year growth trend [1] - The Middle East oil service market is valued at over $100 billion, with the oil service equipment market at least $10 billion [1] - Chinese oil service equipment companies are in the early stages of market penetration in the Middle East, indicating high growth potential with low market share [1] Company Insights - Jerry Holdings is recognized as a leading domestic private oil service equipment provider, excelling in completion equipment globally [2] - Potential Energy is identified as a leading third-party private oil and gas exploration and production company in China [2]

Group 1 - Central enterprises are intensively investing in strategic emerging industries and future industries, with a total scale of 600 billion yuan for the newly established funds by China Guoxin [2] - China Guoxin has invested in over 300 projects with a total amount exceeding 120 billion yuan, with nearly 80% allocated to strategic emerging industries [2] - The establishment of the hydrogen energy industry chain venture capital fund by Sinopec marks the largest fund focused on hydrogen energy in China, with an initial scale of 5 billion yuan [3] Group 2 - Local state-owned capital is accelerating the construction of an innovation upgrade ecosystem, with China Pacific Insurance launching a 500 billion yuan fund [4] - The Shanghai leading industry mother fund has selected 17 sub-funds with a total investment amount of 41.5 billion yuan, indicating a leverage ratio of 5.82 times [4] - Various regions are adopting models such as guiding funds and cross-regional cooperation funds to attract capital and upgrade industries [4][5] Group 3 - The introduction of a fault tolerance mechanism is aimed at activating patient capital, addressing the reluctance of some state-owned funds to invest [6][7] - Local state-owned assets in Guangdong, Shanghai, and Jiangsu are innovating systems to encourage investment, allowing for 100% loss in certain projects [7] - The transformation of state-owned funds into true long-term and patient capital is supported by the implementation of loss tolerance and differentiated assessment systems [7]

Group 1 - China Petroleum & Chemical Corporation (Sinopec) has applied for a patent related to seismic processing workflow data transfer methods and devices, with publication number CN120125000A, filed on December 2023 [1] - The patent aims to enhance dynamic memory management of seismic processing systems, allowing for real-time updates and management of module relationships and header information [1] - The proposed method addresses the need for dynamic changes in data flow within business processes, improving efficiency in seismic data handling [1] Group 2 - China Petroleum & Chemical Corporation was established in 2000, located in Beijing, primarily engaged in petroleum, coal, and other fuel processing industries, with a registered capital of approximately 12.17 billion RMB [2] - The company has invested in 249 enterprises, participated in 5,000 bidding projects, and holds 45 trademark records and 5,000 patent records [2] - Sinopec Petroleum Exploration Technology Research Institute, founded in 2022 in Nanjing, focuses on extraction activities with a registered capital of approximately 133.61 million RMB, having invested in 2 enterprises and participated in 195 bidding projects [2]