Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of over 15% relative to the industry index in the next six months [5][19]. Core Views - The company's performance in the first half of 2025 was impacted by fluctuations in oil prices, leading to a decline in revenue and net profit. However, the mid-term dividend distribution has helped boost investor confidence [1][9]. - The report anticipates a recovery in the refining industry supported by government policies aimed at reducing excessive competition, which may benefit the company's performance in the future [8][10]. Financial Summary - **Revenue and Profit Forecasts**: The company is projected to achieve revenues of 243.94 billion, 254.75 billion, and 265.98 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 77.49 billion, 93.11 billion, and 110.57 billion yuan [10]. - **Earnings Per Share (EPS)**: The expected EPS for 2025, 2026, and 2027 are 1.10 yuan, 1.32 yuan, and 1.57 yuan respectively [10]. - **Valuation Ratios**: The price-to-earnings (P/E) ratios for the next three years are projected to be 16.1x, 13.4x, and 11.3x, indicating a potentially attractive valuation [10]. Operational Performance - **Sales and Profit Margins**: In the first half of 2025, the company's revenue was 103.89 billion yuan, a decrease of 7.69% year-on-year, with a net profit of 3.05 billion yuan, down 24.08% year-on-year. The overall sales gross margin was 11.96%, slightly up from the previous year [1][2]. - **Cash Flow**: The net cash flow from operating activities increased by 55.42% year-on-year to 19.48 billion yuan, primarily due to an increase in customer deposits [3]. Product and Market Dynamics - **Product Performance**: The company experienced an increase in production volume for its main products, but average selling prices declined significantly. The production volumes for refining products, PTA, and new materials were 12.12 million, 8.43 million, and 3.21 million tons respectively, with price declines of -5.61%, -19.41%, and -14.17% [4]. - **Raw Material Prices**: The average prices for key raw materials such as coal, butanediol, crude oil, and PX decreased by -20.19%, -9.37%, -6.96%, and -18.83% respectively, which helped mitigate the impact of falling product prices on the company's performance [4].

Core Viewpoint - Morgan Stanley reiterates that "anti-involution" will be the thematic trade for the Chinese market over the next 18 to 24 months, with a broader scope than the previous supply-side reform [1] Group 1: Policy Insights - The "anti-involution" policy closely resembles the 2021 regulatory approach aimed at preventing disorderly capital expansion, but it has a wider range, focusing on streamlining local government endorsements and investment subsidies [1] - Three industrial ecosystems are affected by this policy, with renewable energy stocks prioritized due to their superior revenue structure compared to real estate and macro stocks, and stronger policy enforcement compared to e-commerce stocks [1] Group 2: Market Implications - The "anti-involution" policy is crucial for the Chinese stock market, as higher ROI is a prerequisite for the institutionalization process and market expansion of onshore stocks, benefiting large industry leaders [1] - A list of preferred Chinese stocks benefiting from the "anti-involution" policy includes Daqo New Energy, Hengli Petrochemical, CATL, Zhongsheng Holdings, Baosteel, SF Holding, GAC Group, PetroChina, and ZTO Express [1]

Group 1 - The board of directors guarantees the announcement's content is free from false records, misleading statements, or significant omissions, and assumes legal responsibility for its authenticity, accuracy, and completeness [1] - The shareholders' meeting was held on September 9, 2025, at a specified location in Suzhou, Jiangsu Province [1] - The meeting was presided over by the chairman, Fan Hongwei, and utilized a combination of on-site and online voting methods, complying with relevant laws and regulations [1] Group 2 - The proposal for the 2025 semi-annual profit distribution plan was approved during the meeting [1] - The legal representatives from Beijing Tianyuan Law Firm confirmed that the meeting's procedures and voting results were lawful and valid [2]

Group 1 - The company announced the convening of its third extraordinary general meeting for 2025 on September 9, 2025 [2] - The meeting approved the "2025 Semi-Annual Profit Distribution Plan" [2]

北京市天元律师事务所 关于恒力石化股份有限公司 召开 2025 年第三次临时股东会的法律意见 本所及经办律师依据《证券法》、《律师事务所从事证券法律业务管理办法》和 《律师事务所证券法律业务执业规则（试行）》等规定及本法律意见出具日以前已 经发生或者存在的事实，严格履行了法定职责，遵循了勤勉尽责和诚实信用原则， 进行了充分的核查验证，保证本法律意见所认定的事实真实、准确、完整，所发表 的结论性意见合法、准确，不存在虚假记载、误导性陈述或者重大遗漏，并承担相 应法律责任。 京天股字（2025）第 550 号 本所及经办律师同意将本法律意见作为本次股东会公告的法定文件，随同其他 公告文件一并提交上海证券交易所（以下简称"上交所"）予以审核公告，并依法 对出具的法律意见承担责任。 本所律师按照律师行业公认的业务标准、道德规范和勤勉尽责精神，对公司提 供的文件和有关事实进行了核查和验证，现出具法律意见如下： 一、本次股东会的召集、召开程序 公司第十届董事会于 2025 年 8 月 21 日召开第一次会议做出决议召集本次股东 会，并于 2025 年 8 月 23 日通过指定信息披露媒体发出了《召开股东会通知》。该 《召 ...

恒力石化股份有限公司 证券代码：600346 证券简称：恒力石化 公告编号：2025-060 本次股东会由公司董事会提议召开，董事长范红卫女士主持会议，采取现 场投票和网络投票相结合的表决方式。会议的召集、召开及表决均符合《公司 恒力石化股份有限公司 2025年第三次临时股东会决议公告 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。 重要内容提示： 本次会议是否有否决议案：无 一、 会议召开和出席情况 | 1、出席会议的股东和代理人人数 | 953 | | --- | --- | | 2、出席会议的股东所持有表决权的股份总数（股） | 5,627,255,779 | | 3、出席会议的股东所持有表决权股份数占公司有表决权股 | 79.9428 | | 份总数的比例（%） | | (四) 表决方式是否符合《公司法》及《公司章程》的规定，股东会主持情况 等。 (一) 股东会召开的时间：2025 年 9 月 9 日 (二) 股东会召开的地点：苏州市吴江区盛泽镇南麻工业区恒力路一号 (三) 出席会议的普通股股东和恢复表决权的优先股股东 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 17.20 and a sector rating of "Outperform" [1][5]. Core Views - The company demonstrates operational resilience and enhanced integration advantages, despite a year-on-year decline in revenue and net profit for the first half of 2025. The report highlights the company's improved management efficiency and financial metrics, alongside steady growth in product sales [3][8]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved total revenue of RMB 1,039.44 billion, a decrease of 7.68% year-on-year, and a net profit attributable to the parent company of RMB 30.50 billion, down 24.08% year-on-year. The second quarter saw revenue of RMB 468.98 billion, a decline of 13.45%, and a net profit of RMB 9.99 billion, down 46.81% year-on-year [3][9][10]. Profitability and Cost Management - The gross profit margin for the first half of 2025 was 11.96%, an increase of 0.10 percentage points year-on-year. The profit margins for refining products, PTA, and polyester products were 17.95%, 3.49%, and 11.82%, respectively. The company has also reduced its financial expenses by 18.41% year-on-year [8][9]. Production and Sales Growth - The company reported steady growth in production and sales volumes for its refining products, PTA, and new materials, with respective increases of 9.53%, 1.64%, and 8.64% year-on-year. The integrated operational model is expected to enhance competitiveness as smaller, less efficient refineries exit the market [8][9]. Future Earnings Forecast - The forecasted net profits for 2025, 2026, and 2027 are RMB 72.73 billion, RMB 86.09 billion, and RMB 102.02 billion, respectively. The expected earnings per share for the same years are RMB 1.03, RMB 1.22, and RMB 1.45, with corresponding price-to-earnings ratios of 16.6x, 14.1x, and 11.9x [5][7]. Shareholder Returns and Strategic Initiatives - The company plans to distribute a cash dividend of RMB 5.63 billion, representing an 18.46% payout ratio. The actual controller has also announced plans to increase shareholding, which is expected to boost market confidence [8][9].

Core Viewpoint - The report highlights the resilience of Hengli Petrochemical's operations and the enhancement of its integrated advantages, maintaining a "buy" rating for the company [1][6]. Financial Performance - In the first half of 2025, Hengli Petrochemical achieved total revenue of 103.944 billion yuan, a year-on-year decrease of 7.68%, with a net profit attributable to shareholders of 3.050 billion yuan, down 24.08% [2]. - The second quarter saw total revenue of 46.898 billion yuan, a decline of 13.45% year-on-year, and a net profit of 999 million yuan, down 46.81% [2]. Operational Efficiency - The company's gross profit margin for the first half of 2025 was 11.96%, an increase of 0.10 percentage points year-on-year, with refining products, PTA, and polyester products' gross margins at 17.95%, 3.49%, and 11.82%, respectively [3]. - The net profits of subsidiaries Hengli Refining and Hengli Petrochemical (Dalian) were 1.649 billion yuan and 471 million yuan, reflecting year-on-year growth of 51.24% and 45.65% [3]. - The expense ratio for the first half of 2025 was 4.43%, a decrease of 0.22 percentage points year-on-year, with financial expenses down 18.41% to 2.507 billion yuan [3]. Production and Sales Growth - The production of refining products, PTA, and new materials in the first half of 2025 was 12.1167 million tons, 8.4327 million tons, and 3.2101 million tons, representing year-on-year increases of 9.53%, 1.64%, and 8.64% respectively [4]. - Sales volumes for the same categories were 9.396 million tons, 7.6037 million tons, and 2.8742 million tons, with year-on-year increases of 9.89%, 3.52%, and 10.59% respectively [4]. Strategic Initiatives - The company is focused on a world-class integrated collaborative model, emphasizing "large-scale, large-size, and integration" while introducing top international equipment and processes [4]. - Hengli Petrochemical plans to distribute cash dividends of 563 million yuan, with a payout ratio of 18.46% [5]. - The actual controller plans to increase shareholding by no less than 500 million yuan and no more than 1 billion yuan within 12 months starting from April 9, 2025, enhancing market confidence [5]. Future Outlook - The company expects net profits of 7.273 billion yuan, 8.609 billion yuan, and 10.202 billion yuan for 2025, 2026, and 2027 respectively, with corresponding earnings per share of 1.03 yuan, 1.22 yuan, and 1.45 yuan [6]. - The integrated advantages and operational resilience are anticipated to support future performance recovery as smaller, less efficient refineries exit the market [4][6].

Investment Rating - The industry investment rating is "Neutral" based on the performance of the industry index relative to the benchmark [136]. Core Insights - The report highlights that the "Golden September" season is approaching, leading to improved orders in the downstream long filament sector [1]. - The Brent crude oil average price for the week ending September 5, 2025, was $67.67 per barrel, reflecting a decrease of 0.99% [2]. - Domestic and foreign refining project price differentials were tracked, with domestic projects at 2361.03 CNY/ton (-1.28%) and foreign projects at 1133.43 CNY/ton (+4.45%) [2]. Summary by Sections Refining Sector - Geopolitical risks have increased due to attacks on oil tankers, while U.S. oil demand has decreased, leading to concerns about supply exceeding demand [1]. - Brent and WTI crude oil prices were reported at $65.5 and $61.9 per barrel, respectively, showing declines from the previous week [14]. - The domestic and international product price differentials have widened, with domestic diesel and gasoline prices slightly down [14]. Chemical Sector - The report indicates a mixed trend in refining product price differentials, with olefins showing slight improvement while aromatics have narrowed [1]. - Polyethylene prices fluctuated, while polypropylene prices remained stable with a slight widening of price differentials [53]. - EVA prices increased due to strong demand from the photovoltaic sector, with significant widening of price differentials [53]. Polyester Sector - The cost structure for the polyester industry has shifted downwards, but demand for long filaments has improved as the peak season approaches [1]. - The average price for polyester long filaments has increased, leading to improved profitability [104]. - The report notes a decrease in supply for long filaments, with domestic and foreign orders showing slight increases [104]. Major Refining Companies - The stock performance of six major refining companies was tracked, with notable changes in their stock prices over the past week and month [124]. - The report indicates that the refining index has increased by 41.24% since September 4, 2017, outperforming the broader market indices [125].

Core Insights - Hengli Group ranks 3rd in the 2025 China Private Enterprises 500 Strong list with a revenue of 871.5 billion yuan, marking its fifth consecutive year in this position [1] - The company has a workforce of 210,000, significantly larger than Tencent's 112,100 employees, highlighting its substantial scale in the industry [1] Group 1: Business Strategy - Hengli Group has established a complete industrial chain from crude oil to consumer products, including petrochemicals and textiles, which is rare in the industry [2] - The company began its journey in 1994 by acquiring a local textile factory for 3.69 million yuan, quickly turning it profitable within a year [2] - In 2002, Hengli expanded into upstream chemical fiber production, investing 2.2 billion yuan to establish Jiangsu Hengli Chemical Fiber Co., becoming a leader in the chemical fiber industry [4] Group 2: Market Adaptation - Hengli's strategic moves during economic downturns, such as acquiring production lines during the 1997 Asian financial crisis and investing in equipment during the 2008 financial crisis, allowed it to capitalize on recovery periods [8] - The company entered the petrochemical sector in 2010 with the establishment of the Dalian Changxing Island Industrial Park, which became a significant project for private enterprises in China's refining industry [4] Group 3: Recent Developments - Hengli is currently expanding into shipbuilding through Hengli Heavy Industry, acquiring the idle STX (Dalian) shipyard and building large oil tankers and bulk carriers [8][9] - The shipbuilding division has already launched over 70 vessels and has orders scheduled until 2029, positioning itself as a major player in the global shipbuilding market [9] - Hengli Heavy Industry is also preparing for a backdoor listing, with leadership transitions indicating a focus on nurturing the next generation of management [12]