Company Overview - Sinopec Engineering is one of the largest energy and chemical engineering companies in China, with leading technical capabilities and strong backing from its controlling shareholder, Sinopec Group [1] - The company has a solid business foundation within the group, with accelerated overseas expansion contributing to performance growth [1] - Financial performance is robust, with a consistently high dividend payout ratio, and a dividend yield exceeding 5%, providing stable returns for investors [1] Industry Insights - The "two oil giants" (China National Petroleum and China Petroleum & Chemical) maintain a leading market position, with the petrochemical industry experiencing a slight revenue decline of 2.6% year-on-year in H1 2025, and total profits down by 10.3% [2] - There is a clear trend of "reducing oil and increasing chemicals," with demand for petrochemical products still showing growth potential; China's ethylene apparent consumption increased by 9.94% year-on-year from January to November 2025 [2] - Policy support for coal chemical development is evident, with planned projects in Xinjiang exceeding 900 billion [2] - Global refining capacity continues to grow, particularly in the Middle East and Asia-Pacific, with major oil and gas companies' capital expenditures projected to reach $153.35 billion in 2024, a year-on-year increase of 4.82% [2] Company Performance - In the refining and petrochemical sectors, the company has leading technology, with new contracts continuing to grow at a rate of 24.35% in Q1-Q3 2025; the value of uncompleted contracts as of Q3 2025 is 215.47 billion, which is 3.36 times the expected revenue for 2024 [2] - The controlling shareholder has substantial strength, with Sinopec Group planning capital expenditures of 164.3 billion in 2025, including 22.3 billion for refining and 44.9 billion for chemicals; new contracts from the group increased by 60.63% in Q1-Q3 2025, accounting for 53.82% of total contracts [2] - The company is accelerating its overseas business, with overseas revenue growing by 92.0% year-on-year in H1 2025 and new overseas contracts increasing by 38.56% in Q1-Q3 2025 [2] - Revenue and profit remain stable, with H1 2025 revenue increasing by 10.14% and net profit attributable to shareholders rising by 4.83%; the dividend payout ratio has consistently exceeded 63% from 2021 to 2024, with a TTM dividend yield of 5.33% as of December 24, 2025, and expected to remain above 5% in 2025 and 2026 [2]

Group 1 - The core viewpoint of the report is that Sinopec Engineering (02386) is acquiring the East China Pipeline Design Institute, which will enhance the company's qualifications in the pipeline transportation sector and strengthen its overall competitiveness [1][2]. - The acquisition price for the East China Pipeline Design Institute is set at 191 million yuan [2]. - The East China Pipeline Design Institute, established in 1993, specializes in the storage and transportation of petroleum and chemical products, and has a net profit of 10.48 million yuan for 2024, with a net asset value of 168 million yuan as of August 31, 2025 [3]. Group 2 - The acquisition will consolidate the company's capabilities in providing integrated EPC services across the entire business chain, from design to procurement and construction [3]. - The transaction will enhance the company's qualifications and execution capabilities in long-distance pipelines and storage facilities, facilitating entry into emerging markets such as hydrogen pipelines and aviation fuel pipelines [3]. - The company has seen a rapid increase in new contracts, with a total of 91.3 billion yuan signed in the first three quarters of 2025, representing a year-on-year growth of 24.4%, including 54.5 billion yuan domestically and 36.9 billion yuan overseas [4].

Core Viewpoint - The acquisition of the East China Pipeline Design Institute by Sinopec Engineering (02386) is expected to enhance the company's qualifications in the pipeline transportation sector, thereby strengthening its overall competitiveness [1][2]. Group 1: Acquisition Details - The company announced that its wholly-owned subsidiary, Nanjing Engineering Company, signed a share transfer agreement to acquire 100% of the East China Pipeline Design Institute for a consideration of 191 million yuan [2]. - The East China Pipeline Design Institute, established in 1993, specializes in the storage and transportation of petroleum and chemical products, with a projected net profit of 10.48 million yuan for 2024 and a net asset value of 168 million yuan as of August 31, 2025 [3]. Group 2: Business Expansion and Competitiveness - The acquisition will solidify the company's integrated EPC service capabilities from design to procurement and construction, enhancing its qualifications and execution capabilities in long-distance pipelines and storage facilities [3]. - The transaction is expected to facilitate the company's entry into emerging markets such as hydrogen pipelines, aviation fuel pipelines, and long-distance chemical pipelines, as well as expand its engineering services in the Middle East [3]. Group 3: Market Growth and Contract Acquisition - The company has accelerated its domestic and international market expansion, achieving a new contract amount of 91.3 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 24.4% [4]. - The company’s uncompleted contract amount reached 215.5 billion yuan as of September 2025, reflecting a year-on-year increase of 24.8%, indicating strong future growth potential [4]. - The ongoing development of China's modern industrial system and the high-quality growth of the petrochemical industry are expected to benefit the company, particularly in the context of the Belt and Road Initiative [4].

Investment Rating - The report maintains a "Buy" rating for Sinopec Engineering (2386.HK) [4][6] Core Insights - The acquisition of East China Pipeline Design Institute enhances the company's pipeline transportation business qualifications, expected to improve overall competitiveness [2] - The company has seen rapid growth in new contracts, with a total of 913 billion yuan signed in the first three quarters of 2025, representing a year-on-year increase of 24.4% [3] - The company is well-positioned to benefit from the modernization of China's industrial system and the high-quality development of the petrochemical industry, particularly in the Middle East market [3] Summary by Sections Acquisition and Business Expansion - The company announced the acquisition of 100% equity in East China Pipeline Design Institute for 191 million yuan, which will strengthen its integrated EPC service capabilities from design to procurement and construction [1][2] - The East China Pipeline Design Institute, established in 1993, has a projected net profit of 10.48 million yuan for 2024 and a net asset value of 168 million yuan as of August 31, 2025 [2] Market Growth and Contract Acquisition - The company has accelerated its market expansion, achieving a 24.4% year-on-year increase in new contracts, with domestic contracts growing by 16.3% and overseas contracts by 38.6% [3] - The total uncompleted contract amount reached 2,155 billion yuan, a 24.8% increase year-on-year, indicating strong future revenue potential [3] Financial Forecast and Valuation - The report forecasts net profits for 2025-2027 to be 2.595 billion, 2.760 billion, and 2.902 billion yuan respectively, with corresponding EPS of 0.59, 0.63, and 0.66 yuan per share [4] - The company is expected to maintain a low valuation with high dividend value, supported by its resource advantages from Sinopec Group [4]

Group 1: Company Overview - The report covers Damai Entertainment (1060.HK), a leading platform in live entertainment, driven by ticketing and IP derivatives [1][6][8] - The company is positioned in a high-growth sector, benefiting from the recovery and structural upgrade of offline entertainment consumption [1][8] - Expected adjusted net profits for FY26-28 are projected at 1.06 billion, 1.35 billion, and 1.58 billion CNY respectively [1][8] Group 2: Industry Insights - The live performance market is experiencing a significant increase, with ticket sales for large concerts expected to exceed 26 billion CNY in 2024, a year-on-year growth of 78.1% [6] - The demand for live entertainment is driven by both personal enjoyment and social needs, with an increase in repeat attendance [6] - The supply side is expanding with diversification in lower-tier cities and various performance categories [6] Group 3: IP Business - Alibaba's IP licensing platform, Aliyu, is a leading player in the market, with a projected GMV of 4.1 billion USD in 2024 [7] - The company is enhancing its collaboration with top IPs, which is expected to contribute significantly to revenue growth [7] - The film industry is still in a recovery phase, with a total box office of 29.23 billion CNY in the first half of 2025, reflecting a year-on-year increase of 22.91% [7] Group 4: Company Financials - Sinopec Engineering (02386.HK) is highlighted as a leading energy and chemical engineering firm with strong technical capabilities and a solid financial performance [10][12] - The company has a high dividend payout ratio, with a dividend yield exceeding 5%, providing stable returns for investors [10][12] - Expected target price for 2026 is set at 9.50 HKD per share, based on a 13x PE ratio [10] Group 5: Market Trends - The petrochemical industry is facing revenue stability but profit pressures, with a slight revenue decline of 2.6% year-on-year in H1 2025 [11] - The trend of "reducing oil and increasing chemicals" is evident, with a 9.94% year-on-year increase in ethylene consumption [11] - Global refining capacity continues to grow, particularly in the Middle East and Asia-Pacific regions, with a projected capital expenditure of 153.35 billion USD in 2024 [11] Group 6: Aviation Sector - Bank of China Aviation Leasing (02588.HK) is positioned to benefit from the rising aviation industry and the ongoing interest rate cut cycle [14][15] - The company ranks fifth globally with a fleet of 483 aircraft, poised to gain from increased revenues as the aviation market recovers [14][15] - Expected total revenue for 2025-2027 is projected at 2.63 billion, 2.85 billion, and 2.94 billion USD, with net profits of 761 million, 894 million, and 964 million USD respectively [16] Group 7: Medical Sector - Weisi Medical (688580.SH) is experiencing steady growth, with projected net profits of 133 million, 165 million, and 184 million CNY for 2025-2027 [4][18] - The company focuses on rehabilitation as its core business while expanding into aesthetic and urology sectors [18][19] - The company emphasizes product innovation in non-invasive brain-machine interfaces, aiming to create a comprehensive neuro-rehabilitation system [19]

Core Viewpoint - The acquisition of East China Pipeline Design Institute by Sinopec Refining Engineering is a strategic move to position itself in the emerging trillion-yuan market of hydrogen energy and chemical pipelines, leveraging the institute's key qualifications in pipeline design [1][3][23]. Group 1: Acquisition Details - Sinopec Refining Engineering's subsidiary, Nanjing Engineering, acquired 100% of East China Pipeline Design Institute for 191 million RMB, with the institute's net assets valued at 168 million RMB and a projected net profit of 10.48 million RMB for 2024 [3][22]. - The strategic value of the acquisition lies in the institute's "Class A qualification" in oil and gas pipeline transportation, which is a critical entry requirement for large-scale pipeline projects [5][25]. Group 2: Market Opportunities - The acquisition positions Sinopec Refining Engineering to tap into the burgeoning hydrogen energy market, which is expected to account for 18% of global energy demand by 2050, according to the International Hydrogen Council [9][27]. - The current challenges in the hydrogen industry, particularly in storage and transportation, highlight the importance of pipeline solutions, which can reduce costs significantly compared to traditional transport methods [10][30]. Group 3: Strategic Implications - The integration of East China Pipeline Design Institute's resources will enhance Sinopec Refining Engineering's capabilities in providing comprehensive EPC services, crucial for competing in both traditional and emerging markets [7][27]. - The acquisition is also seen as a strategic move to strengthen Sinopec's position in the Middle East, where there is a growing demand for energy transition infrastructure, including hydrogen pipelines [11][35]. Group 4: Future Outlook - The pipeline construction market in China, including hydrogen pipelines, is projected to exceed 1.8 trillion RMB by 2030, indicating significant growth potential for Sinopec Refining Engineering [10][31]. - The timing of the acquisition aligns with China's 14th Five-Year Plan and the upcoming 15th Five-Year Plan, positioning the company to capitalize on the expected surge in demand for energy infrastructure [16][36].

Investment Rating - The report assigns a "Buy" rating to Sinopec Engineering (02386.HK) with a target price of HKD 9.50 per share based on a 2026 PE of 13 times [1][5]. Core Insights - Sinopec Engineering is one of the largest energy and chemical engineering companies in China, with leading technical capabilities and strong backing from its parent company, Sinopec Group. The company is expanding its overseas business, contributing to performance growth. Additionally, it has a solid financial performance with a high dividend payout ratio, offering a stable yield of over 5% for investors [1][18]. Company Overview - Sinopec Engineering provides comprehensive services across the entire industry chain and lifecycle, focusing on refining and petrochemical engineering. It has a strong international competitive edge and a history of over 70 years [23][26]. - The company is backed by Sinopec Group, which holds a 62.52% stake, ensuring a stable business foundation [30][34]. Industry Analysis - The petrochemical industry is experiencing pressure on profits, with a slight revenue decline of 2.6% year-on-year in H1 2025, while total profits fell by 10.3%. However, the demand for petrochemical products remains, driven by the "reduce oil, increase chemicals" trend [2][17]. - Policy support for coal chemical development is evident, with significant investments planned in Xinjiang, exceeding 900 billion [2][17]. Financial Performance - For H1 2025, Sinopec Engineering reported a revenue increase of 10.14% year-on-year and a net profit increase of 4.83%. The company has maintained a dividend payout ratio above 63% over the past four years, with a current dividend yield of 5.33% [3][4]. - The company's revenue is projected to grow steadily, with estimates of 70.66 billion in 2025 and 78.10 billion in 2026, reflecting a growth rate of 10.06% and 10.53% respectively [4][18]. Growth Drivers - The company has seen a 24.35% increase in new contracts signed in Q1-Q3 2025, with a backlog of contracts amounting to 215.47 billion, which is 3.36 times the expected revenue for 2024 [3][39]. - The overseas revenue for H1 2025 increased by 92% year-on-year, indicating strong growth potential in international markets [3][39].

中石化煉化工程（集團）股份有限公司 董事會薪酬委員會工作規則 （經公司2025年第五屆董事會第十次會議表決通過） 1 總則 2 薪酬委員會構成 2.1 薪酬委員會至少由三名董事組成，獨立董事應佔多數。薪酬委員會設主任一 名，由董事會指定的獨立董事委員擔任；可設副主任一名，由董事會指定的獨 立董事委員擔任。 薪酬委員會的日常辦事機構設在公司黨委組織部（人力資源部），負責承辦薪酬 委員會的有關具體事務。 1 1.1 為明確中石化煉化工程（集團）股份有限公司（「公司」）董事會（「董事會」）薪酬 委員會（「薪酬委員會」）的組成和職責，規範工作程序，根據和參考《中石化煉 化工程（集團）股份有限公司章程》（「《公司章程》」）、《中華人民共和國公司法》 和《香港聯合交易所有限公司證券上市規則》（「《上市規則》」）及其它有關規定， 並結合公司實際，特制定本工作規則（「本規則」）。 1.2 薪酬委員會是董事會下屬的專門委員會，向董事會負責。 2.2 薪酬委員會委員由董事長、二分之一以上獨立董事或者三分之一以上董事提 名，並由董事會任命。 2.3 薪酬委員會委員任期與董事任期一致。期間如有委員不再擔任公司董事職務， 亦同時不再擔 ...

2.1 提名委員會至少由三名董事組成，獨立董事應佔多數。提名委員會設主任一 名，由董事會指定的獨立董事或由董事長擔任；可設副主任一名，由董事會指 定的獨立董事或由董事長擔任。 提名委員會的日常辦事機構設在董事會辦公室，負責承辦提名委員會的有關具 體事務。 1 1.1 為明確中石化煉化工程（集團）股份有限公司（「公司」）董事會（「董事會」）提名 委員會（「提名委員會」）的組成和職責，規範工作程序，根據《中石化煉化工程 （集團）股份有限公司章程》（「《公司章程》」）、《中華人民共和國公司法》和《香 港聯合交易所有限公司證券上市規則》等有關規定，特制定本工作規則（「本規 則」）。 1.2 提名委員會是董事會下屬的專門委員會，向董事會負責。 中石化煉化工程（集團）股份有限公司 董事會提名委員會工作規則 （經公司2025年第五屆董事會第十次會議表決通過） 1 總則 2 提名委員會組織機構 3.1 提名委員會履行以下職責： （一）每年定期審閱董事會的結構、規模及組成（包括技能、知識及經驗方面），協助 董事會編製董事會技能表，並就任何為配合公司的策略而擬對董事會作出的變 動向董事會提出調整建議； （二）推薦適合成為董事會成 ...

董事會審計委員會工作規則 （經公司2025年第五屆董事會第十次會議表決通過） 1 總則 1.1 為明確中石化煉化工程（集團）股份有限公司（「公司」）董事會（「董事會」）審計委員會 （「審計委員會」）的組成和職責，規範工作程序，根據《中石化煉化工程（集團）股份有 限公司章程》（「《公司章程》」）、《中華人民共和國公司法》、《香港聯合交易所有限公司 證券上市規則》（「《上市規則》」）、香港會計師公會《審計委員會有效運作指引》等有關 規定，特制定本工作規則（「本規則」）。 2 審計委員會組織機構 2.1 審計委員會至少由三名董事組成，設主任一名，可設副主任一名，主任及副主任由董 事會指定的獨立董事擔任。審計委員會主任同時擔任公司首席獨立董事。所有委員必 須為非執行董事，多數委員必須為獨立董事。 審計委員會的日常辦事機構設在公司監督審計部，負責承辦審計委員會的有關具體事 務。 中石化煉化工程（集團）股份有限公司 1 2.2 審計委員會委員應符合以下要求： （一） 比較熟悉境內外有關法律、法規；比較熟悉公司業務、組織結構和管理控制 制度； （二） 具有財務、會計、審計、監察或者宏觀經濟等方面的有關知識；比較熟悉公 司經 ...