1. Report Industry Investment Rating There is no information provided regarding the industry investment rating in the given content. 2. Core Viewpoints of the Report The report presents a comprehensive analysis of the large refining and chemical industry, covering key aspects such as project spreads, product prices, profit margins, inventory levels, and operating rates across different segments including polyester, refining, and chemicals. It also tracks the performance and financial forecasts of major private refining and chemical companies [2][8][9]. 3. Summary According to Relevant Catalogs 3.1. Big Refining Weekly Data Briefing - **Project Spreads**: Domestic key large refining projects had a weekly spread of 2,564 yuan/ton, a decrease of 24 yuan/ton (1% decrease) compared to the previous week. Foreign key large refining projects had a weekly spread of 1,212 yuan/ton, a decrease of 2 yuan/ton (0% decrease) [2]. - **Polyester Sector**: POY/FDY/DTY industry average prices were 6,407/6,618/7,732 yuan/ton respectively, with week - on - week decreases of 114/79/54 yuan/ton. Their weekly average profits were 72/ - 54/88 yuan/ton, down 54/30/14 yuan/ton week - on - week. Inventory levels were 11.8/21.9/29.5 days, down 5.0/4.2/2.0 days. The filament开工率 was 91.0%, a 0.0 percentage point decrease. Downstream, the loom operating rate was 66.5%, up 2.4 percentage points, and the raw material inventory of weaving enterprises was 11.1 days, up 0.9 days, while the finished product inventory was 24.0 days, down 1.7 days [2]. - **Refining Sector**: Domestic refined oil prices of gasoline, diesel, and aviation kerosene decreased this week. In the US, the price of aviation kerosene decreased [2]. - **Chemical Sector**: The average price of PX this week was 794.4 dollars/ton, an increase of 6.9 dollars/ton compared to the previous week, and the spread over crude oil was 336.7 dollars/ton, up 4.5 dollars/ton. The PX operating rate was 86.3%, a 1.0 percentage point decrease [2]. - **Related Listed Companies**: Private large refining and polyester filament companies include Hengli Petrochemical, Rongsheng Petrochemical, Hengyi Petrochemical, Tongkun Co., Ltd., and Xin凤鸣 [2]. 3.2. Big Refining Weekly Report 3.2.1. Big Refining Index and Project Spread Trends The report provides historical data and trends on the performance of the large refining index, including the comparison of the performance of the petrochemical index and six private large refining companies over different time periods (recent week, recent month, recent three months, recent year, and since the beginning of 2025). It also shows the trends of domestic and foreign large refining project spreads in relation to Brent oil prices [8]. 3.2.2. Polyester Sector - **Price and Profit Analysis**: Analyzes the prices, spreads, and profit margins of various polyester products such as PX, MEG, PTA, POY, FDY, DTY, polyester staple fiber, and polyester bottle chips. It also examines the relationships between these products and raw materials like crude oil and PTA [9]. - **Operating Rate and Inventory Analysis**: Tracks the operating rates of PX, PTA, MEG, and polyester filaments, as well as the inventory levels of PTA, polyester filaments, and polyester staple fiber. It also analyzes the operating rates and inventory levels of downstream weaving enterprises [9]. - **Sales and Production Ratio**: Analyzes the sales - to - production ratios of polyester filaments and polyester staple fiber in the Jiangsu and Zhejiang regions [47][69]. 3.2.3. Refining Sector - **Domestic Refined Oil**: Compares the prices and spreads of domestic gasoline, diesel, and aviation kerosene with crude oil prices in both yuan/ton and dollars/barrel units [82][84][92]. - **US Refined Oil**: Analyzes the prices and spreads of US gasoline, diesel, and aviation kerosene in relation to crude oil prices in both yuan/ton and dollars/barrel units [94][103]. - **European Refined Oil**: Examines the prices and spreads of European gasoline, diesel, and aviation kerosene in relation to crude oil prices in both yuan/ton and dollars/barrel units [108][115]. - **Singapore Refined Oil**: Analyzes the prices and spreads of Singapore gasoline, diesel, and aviation kerosene in relation to crude oil prices in both yuan/ton and dollars/barrel units [120][130]. 3.2.4. Chemical Sector Analyzes the prices and spreads of various chemical products such as polyethylene LLDPE, EVA foaming material, EVA photovoltaic material, homopolymer polypropylene, styrene, acrylonitrile, PC, MMA, etc., in relation to crude oil prices [136][146].

Investment Rating - The investment rating for the basic chemical industry is optimistic (maintained) [1] Core Views - The PTA industry is experiencing severe losses, but there is potential for a positive turnaround due to limited future capacity expansion and high industry concentration [5][27] - The domestic PTA industry's effective capacity has increased from 46.69 million tons in 2019 to 84.27 million tons in 2024, with an average annual compound growth rate of 12.5% [21][23] - The industry concentration ratio (CR7) for PTA has reached 76%, indicating that leading companies have significant pricing power, which supports industry self-discipline and a potential recovery [22][27] Summary by Sections Industry Trends - The chemical industry index underperformed the CSI 300 index by 1.11% this week, with 75.6% of the 545 tracked chemical stocks showing weekly gains [17] - The CCPI (China Chemical Product Price Index) increased by 0.23% to 3885 points [20] PTA Industry Analysis - The PTA industry is projected to add 8.7 million tons of new capacity in 2025, with major contributions from companies like Dongfang Shenghong, Sanfangxiang, and Xin Fengming [5][21] - As of late October 2025, the PTA price spread has fallen below 100 yuan, indicating significant industry losses [25][27] Key Product Tracking - The inventory days for polyester filament yarn have significantly decreased, indicating improved market conditions [29][30] - The domestic urea market price has stabilized at 1596 yuan/ton, with a cautious outlook due to supply-demand pressures [45] Recommended and Beneficiary Stocks - Recommended stocks include Hengli Petrochemical, Rongsheng Petrochemical, Xin Fengming, and Tongkun Co., among others [5][27] - Beneficiary stocks include Hengyi Petrochemical, Sanfangxiang, and Dongfang Shenghong [5][27]

Investment Rating - The industry investment rating is "Positive" as indicated by the report's outlook on the refining sector [149]. Core Insights - The report highlights a rebound in oil prices, which has led to an increase in inventory replenishment among textile enterprises, resulting in a significant reduction in long filament inventory [1]. - Brent crude oil prices increased to $65.94 per barrel, up by $4.65 from the previous week, while WTI prices rose to $61.50 per barrel, an increase of $3.96 [1][13]. - The report notes that the domestic price difference for key refining projects is 2374.85 CNY/ton, a decrease of 30.36 CNY/ton (-1.26%) week-on-week, while the international price difference is 1213.16 CNY/ton, down by 2.88 CNY/ton (-0.24%) [2]. Refining Sector Summary - The report discusses the impact of geopolitical events on oil prices, including potential trade agreements between the US and China, and sanctions against Russia, which have contributed to a favorable environment for oil price recovery [1][13]. - The report indicates that the refining sector is experiencing a mixed performance, with some companies seeing stock price increases while others face declines [1][136]. Chemical Sector Summary - The chemical sector is facing weak overall demand, with oil price rebounds not translating into significant price support for chemical products [1]. - Specific products such as EVA and pure benzene have seen price declines due to weak downstream demand, leading to narrowed price differentials [1][51]. Polyester & Nylon Sector Summary - The report notes that polyester filament prices have slightly decreased, but the rebound in oil prices has stimulated replenishment sentiment among downstream textile enterprises, leading to a notable reduction in filament inventory [1][89]. - The average price for polyester filament is reported at 6439.29 CNY/ton for POY, with a slight decrease in profitability [1][112].

Core Viewpoint - Hengli Petrochemical's stock price declined by 4.15% to 16.87 yuan, reflecting ongoing market challenges and investor sentiment [1] Company Performance - The stock price reached an all-time high of 49.80 yuan on February 18, 2021, indicating significant volatility since that peak [1] - Research analyst Xu Junyi from Guojin Securities issued a report on February 9, 2021, suggesting a "buy" rating for the company, with a focus on potential earnings of 25 billion yuan as a lower limit [1]

Market Overview - The refining and trading sector experienced a decline of 1.28% on October 24, with Hengli Petrochemical leading the drop [1] - The Shanghai Composite Index closed at 3950.31, up 0.71%, while the Shenzhen Component Index closed at 13289.18, up 2.02% [1] Stock Performance - Notable gainers in the refining and trading sector included: - Chenghua Shihua (000637) with a closing price of 5.15, up 10.04% on a trading volume of 717,100 shares and a turnover of 347 million yuan [1] - Runbei Hangke (001316) closed at 33.75, up 2.12% with a trading volume of 29,100 shares and a turnover of 98.45 million yuan [1] - Major decliners included: - Hengli Petrochemical (600346) closed at 16.87, down 4.15% with a trading volume of 339,700 shares and a turnover of 579 million yuan [2] - Guangju Energy (000096) closed at 11.72, down 3.78% with a trading volume of 225,700 shares and a turnover of 26.6 million yuan [2] Capital Flow - The refining and trading sector saw a net outflow of 382 million yuan from institutional investors, while retail investors contributed a net inflow of 183 million yuan [2] - The sector's capital flow details indicate that: - Chenghua Shihua experienced a net outflow of 38.31 million yuan from institutional investors [3] - Huajin Co. (000059) had a net inflow of 15.34 million yuan from retail investors [3]

Core Viewpoint - The coal chemical concept sector has shown a positive performance, with a 1.49% increase, ranking 10th among concept sectors, driven by significant gains in several stocks [1][2]. Group 1: Sector Performance - The coal chemical concept sector increased by 1.49%, with 79 stocks rising, including notable gainers such as Shaanxi Black Cat, Shanxi Coking Coal, and Yunmei Energy, which hit the daily limit [1][2]. - Major stocks in the sector saw significant increases, with Zhongke Technology, Hengli Petrochemical, and Aerospace Power rising by 6.35%, 5.83%, and 5.09% respectively [1]. - Conversely, stocks like Beiken Energy, Weili, and Huayi Group experienced declines, with drops of 2.74%, 2.43%, and 2.36% respectively [1]. Group 2: Capital Flow - The coal chemical concept sector attracted a net inflow of 786 million yuan, with 47 stocks receiving net inflows, and 7 stocks exceeding 100 million yuan in net inflow [2]. - Shanxi Coking Coal led the net inflow with 182 million yuan, followed by Shaanxi Black Cat, Shanxi Coal, and Meijin Energy with net inflows of 169 million yuan, 168 million yuan, and 133 million yuan respectively [2]. - The net inflow ratios for Shaanxi Black Cat, Yunmei Energy, and Shanxi Coking Coal were 44.11%, 40.88%, and 23.39% respectively, indicating strong investor interest [3].

Core Insights - The refining and trading sector experienced a significant increase of 2.74% on October 23, with Hengli Petrochemical leading the gains [1] - The Shanghai Composite Index closed at 3922.41, up 0.22%, while the Shenzhen Component Index also rose by 0.22% to 13025.45 [1] Sector Performance - Hengli Petrochemical (600346) closed at 17.60, up 5.83% with a trading volume of 399,700 shares and a transaction value of 693 million [1] - Hengyi Petrochemical (000703) saw a rise of 5.27%, closing at 66.9 with a trading volume of 389,500 shares [1] - Other notable performers included Guangju Energy (000096) with a 4.91% increase, closing at 12.18, and Tongkun Co., Ltd. (601233) up 4.54% to 14.29 [1] Capital Flow - The refining and trading sector saw a net inflow of 77.8 million in main funds, while speculative funds experienced a net outflow of 114 million [2] - Retail investors contributed a net inflow of 36.18 million to the sector [2] Individual Stock Capital Flow - China Petroleum (601857) had a main fund net inflow of 142 million, but speculative funds saw a net outflow of 108 million [3] - Hengli Petrochemical (600346) recorded a main fund net inflow of 55.12 million, with speculative funds experiencing a net outflow of 10 million [3] - Guangju Energy (000096) had a main fund net inflow of 35.57 million, while speculative funds saw a net inflow of 1.09 million [3]

Core Viewpoint - Chemical concept stocks experienced a significant rise in the afternoon, with Hengli Petrochemical increasing by over 5%, and both Yanhai Co. and Hualu Hengsheng rising by over 4% [1] Group 1: Market Performance - The chemical ETF rose approximately 2% due to market influences [1] - Specific ETFs showed the following performance: - Chemical ETF (159870) increased by 2.34% to 0.701 - Chemical ETF (516020) increased by 2.06% to 0.742 - Chemical 50 ETF (516120) increased by 2.16% to 0.756 - Chemical Leader ETF (516220) increased by 1.98% to 0.773 - Petrochemical ETF (159731) increased by 1.94% to 0.789 - Chemical Industry ETF (516570) increased by 1.91% to 0.854 [2] Group 2: Industry Outlook - Some brokerages suggest that the profitability of chemical products may have bottomed out, with fundamental downward risks fully released [2] - Chemical blue-chip stocks are expected to experience a dual recovery in valuation and profitability [2] - The industry, constrained by supply shortages, is anticipated to be the first to show elasticity, emphasizing the importance of focusing on upward demand certainty and the value reassessment of high-dividend chemical resource stocks [2]

Group 1: Market Performance - The chemical sector has seen a counter-trend increase, with chemical ETFs, including Chemical ETF, Chemical 50 ETF, and Chemical Leading ETF, rising over 1.5% and achieving a year-to-date increase of over 20% [1] - Specific performance metrics include Chemical ETF at 1.75% increase and 20.59% year-to-date growth, with an estimated scale of 17.005 billion [2] Group 2: PTA Industry Insights - The PTA industry is experiencing a significant capacity expansion, with effective capacity projected to grow from 46.69 million tons in 2019 to 84.28 million tons by 2024, reflecting a CAGR of 12.5% [3] - The industry is facing a declining operating rate, which is expected to drop to 78% by August 2025, down from 90% in 2019, indicating a historical low [3] - The market is characterized by a high concentration of capacity among six major companies, which control approximately 75% of the market, facilitating a self-regulatory mechanism to avoid disorderly competition [4] Group 3: Future Outlook - The expansion of PTA capacity is nearing its end, with only one additional project expected to come online by October 2024, leading to a significant slowdown in new capacity additions [4] - The industry is anticipated to enter a new cycle of prosperity, supported by a stabilization in domestic demand and improved supply-demand dynamics [4] - Current valuations of leading companies in the chemical sector are at a low point, providing a strong margin of safety for investments, with expectations of maintaining market share and profitability in the medium to long term [5]

Group 1 - The chemical sector showed resilience on October 23, with the chemical ETF (516020) rebounding after an initial dip, reaching a maximum intraday increase of 1.24% and closing up 0.83% [1][2] - Key stocks in the sector included Hengli Petrochemical, which surged over 5%, and several others like Xin Fengming and Rongsheng Petrochemical, which rose more than 3% [1][2] - The city of Linyi announced a focus on the fine chemical industry as one of its 13 key industrial chains, emphasizing new fertilizers and rubber materials [1][3] Group 2 - East China Securities noted a shift in the global chemical landscape, with Europe experiencing a decline in production capacity, leading to the closure of 21 major chemical plants and a loss of over 11 million tons of capacity [3] - China's chemical industry is filling gaps in the international supply chain due to its cost and technological advantages, potentially reshaping the global chemical landscape [3][4] - The chemical ETF (516020) is currently at a low valuation, with a price-to-book ratio of 2.23, indicating a favorable long-term investment opportunity [3][4] Group 3 - The outlook for the chemical sector suggests structural optimization on the supply side, with a focus on resilient and advantageous product segments [4][5] - The ETF tracks the CSI segmented chemical industry index, covering various sub-sectors, with nearly 50% of its holdings in leading stocks like Wanhua Chemical and Salt Lake Potash [5]