Group 1 - Company Hualu Hengsheng announced that as of December 30, 2025, it has repurchased approximately 6.9971 million shares, accounting for 0.33% of the company's total share capital [1] - The highest repurchase price was 28 yuan per share, while the lowest was 20.75 yuan per share [1] - The total amount of funds spent on the share repurchase was approximately 167 million yuan [1]

Group 1 - The agricultural chemical sector increased by 0.98% on December 30, with Yuntianhua leading the gains [1] - The Shanghai Composite Index closed at 3965.12, showing no change, while the Shenzhen Component Index rose by 0.49% to 13604.07 [1] - Key stocks in the agricultural chemical sector included Yuntianhua, which rose by 3.81% to a closing price of 33.82, and Zhejiang Yi, which increased by 3.56% to 10.18 [1] Group 2 - The agricultural chemical sector experienced a net outflow of 153 million yuan from institutional investors, while retail investors saw a net inflow of 244 million yuan [2] - Notable declines in the sector included Guoguang Co., which fell by 5.59% to 13.17, and Ying Tai Biological, which decreased by 1.77% to 3.88 [2] - The trading volume for the agricultural chemical sector was significant, with Yuntianhua recording a trading volume of 671,000 shares [1][2] Group 3 - Yuntianhua had a net inflow of 35.64 million yuan from institutional investors, while retail investors had a net outflow of 59.10 million yuan [3] - Other companies like Hongda Co. and Hubei Yihua also saw positive net inflows from institutional investors, indicating varied investor sentiment across the sector [3] - The overall market sentiment reflected a mixed performance, with some stocks gaining while others faced declines [2][3]

证券代码：600426 证券简称：华鲁恒升 公告编号：临 2025-079 山东华鲁恒升化工股份有限公司 关于股份回购进展公告 本的比例为 0.33%，回购成交的最高价为 28.00 元/股、最低价为 20.75 元/股，支 付的资金总额为人民币 16,720.61 万元（不含交易费用）。 上述股份回购符合法律法规的规定及公司回购股份方案的要求。 三、 其他事项 公司将严格按照《上市公司股份回购规则》《上海证券交易所上市公司自律监 管指引第 7 号——回购股份》等相关规定，在回购期限内根据市场情况择机做出回 购决策并予以实施，同时根据回购股份事项进展情况及时履行信息披露义务，敬 请广大投资者注意投资风险。 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： | 回购方案首次披露日 | 2025/4/18，由董事长提议 | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 回购方案实施期限 | 2025 年 4 月 4 月 | 30 | 日~2026 | ...

Summary of Key Points Core Viewpoint - Hualu Hengsheng (600426.SH) has announced a share buyback program, indicating a commitment to returning value to shareholders through repurchasing shares [1] Group 1: Share Buyback Details - As of December 30, 2025, the company has repurchased a total of 6.997081 million shares, which represents 0.33% of the company's total share capital [1] - The highest price paid for the repurchased shares was 28.00 CNY per share, while the lowest price was 20.75 CNY per share [1] - The total amount spent on the share buyback was 167.2061 million CNY, excluding transaction fees [1]

Group 1 - The chemical sector has regained momentum, with the chemical ETF (516020) experiencing a price increase of 1.4% after a low opening, reaching a maximum intraday gain of 1.63% [1] - Key stocks in the sector, including Hengyi Petrochemical, Rongsheng Petrochemical, and Xin Fengming, saw significant gains, with Hengyi Petrochemical rising over 6% and others increasing by more than 5% [1][2] - A recent conference on the high-quality development of the fertilizer industry highlighted the industry's transition towards quality and efficiency, aligning with the "14th Five-Year Plan" and the upcoming "15th Five-Year Plan" [1] Group 2 - According to Huaxin Securities, the chemical industry remains in a weak position overall, with mixed performance across sub-sectors due to past capacity expansions and weak demand, although some sectors like lubricants have exceeded expectations [3] - The chemical ETF (516020) is currently at a price-to-book ratio of 2.57, which is considered relatively reasonable based on historical data, suggesting potential for medium to long-term investment [3] - According to Everbright Securities, the basic chemical industry is expected to see strong demand from new materials, particularly in emerging applications like AI and OLED, which will drive growth in core materials such as photoresists [5] Group 3 - The chemical ETF (516020) tracks the CSI Sub-Industry Chemical Theme Index, covering various sub-sectors and concentrating nearly 50% of its holdings in large-cap leading stocks, which provides an opportunity to capitalize on strong market leaders [5] - The ETF also includes significant positions in sectors like phosphate and nitrogen fertilizers, as well as fluorine chemicals, allowing for a comprehensive approach to investment opportunities in the chemical sector [5]

Group 1 - The chemical sector has regained momentum, with the chemical ETF (516020) experiencing a maximum intraday increase of 1.63% and closing up 1.4% [1][8] - Key stocks in the sector include Hengyi Petrochemical, which surged over 6%, and other companies like Rongsheng Petrochemical and New Fengming, which rose over 5% [1][8] - The recent high-quality development conference for the fertilizer industry highlighted the transition towards quality and efficiency in the sector, alongside new quota policies for refrigerants that are expected to optimize supply-demand dynamics [10][10] Group 2 - According to Huaxin Securities, the chemical industry remains weak overall, with mixed performance across sub-sectors due to past capacity expansions and weak demand, although some sectors like lubricants have exceeded expectations [3][10] - The chemical ETF (516020) has a price-to-book ratio of 2.57, indicating a relatively reasonable valuation position within the last decade [3][10] - According to Everbright Securities, the basic chemical industry is expected to see significant growth by 2025, driven by strong demand in new materials and emerging applications such as AI and OLED [4][11] Group 3 - The chemical ETF (516020) tracks the CSI sub-sector chemical industry theme index, covering various segments, with nearly 50% of its holdings in large-cap stocks like Wanhua Chemical and Salt Lake Potash [4][11] - Investors can also access the chemical sector through linked funds of the chemical ETF, providing a diversified investment approach [5][11]

Summary of Key Points from the Conference Call on the Chemical Industry Investment Strategy for 2026 Industry Overview - The chemical industry is undergoing significant changes on the supply side, with European capacity being reduced due to cost pressures and domestic fixed asset investment growth slowing down, which may lead to improved profits in certain sub-industries [1][2] - The China Chemical Price Index (CCPI) and the gross profit margin of the Yangtze Chemical Sector are at historically low levels, indicating a cyclical fluctuation in the industry, with a potential upward cycle on the horizon [1][4] Core Insights and Arguments - The investment strategy for the chemical industry in 2026 can be summarized as "supply optimization, rising momentum," following three years of downturn from 2023 to 2025 [2] - The International Monetary Fund (IMF) predicts a global GDP growth rate of approximately 3.09% for 2026, with China's growth at 4.2%, suggesting resilient external demand [5] - Emerging fields such as new energy, energy storage, and AI infrastructure are positively impacting the demand for chemical products, with significant growth in new energy vehicle production and global energy storage installations [6] Performance of Domestic and Overseas Companies - Domestic chemical leaders experienced a year-on-year decline in performance in the first half of 2025, but overseas companies faced a faster decline, with Europe shutting down 11 million tons of capacity across 21 major production bases [7] - China's market share in the chemical sector increased from less than 10% in 2020 to 43% in 2023 due to the closure of European capacities [7] Policy Impacts - The domestic anti-involution policy is positively influencing the governance of disorderly competition and promoting the exit of outdated capacities, which is expected to enhance industry profitability [8] - Energy consumption dual control and environmental policies are likely to become key drivers for supply optimization, aiming to reduce excess capacity through stricter project approvals and enhanced regulation [9] Sub-Industry Focus - Notable sub-industries include the silicon-based industry chain, polyester industry chain, spandex, soda ash, chlor-alkali, high-demand refrigerants, chromium salts, and phosphate rock industry chain, as well as new materials related to tires and new energy [3][10] - The organic silicon industry is expected to recover from a low point due to limited new supply and collaborative production cuts among companies [11] - The polyester industry chain is nearing the end of its expansion cycle, with downstream demand remaining strong, and leading companies are negotiating to improve profitability [12] Challenges and Opportunities - The soda ash market faces challenges due to its significant exposure to the real estate sector, but long-term demand from photovoltaic glass is expected to rise [15] - The chlor-alkali industry shows stable demand for caustic soda, while PVC demand is fluctuating, with no new PVC capacity expected in 2026 [16] Noteworthy Companies and Investment Opportunities - High-quality companies in the chemical sector include Wanhua (MDI leader), Hualu (coal chemical leader), Longbai (titanium concentrate and titanium dioxide leader), and Huafeng (spandex) [19] - New material companies such as Guocera Songjing (related to solid-state batteries) and Dongcai Shengquan (high-frequency resin) are also highlighted for their growth potential [20][21]

Core Viewpoint - The report highlights the stability of international oil prices and suggests focusing on undervalued leading companies in the chemical industry, the impact of "anti-involution" on supply, and the importance of self-sufficiency in electronic materials and certain new energy materials amid price increases [1][7]. Industry Dynamics - During the week of December 22-28, 34 out of 100 tracked chemical products saw price increases, while 32 experienced declines, and 34 remained stable. 55% of products had month-over-month price increases, 35% saw decreases, and 10% remained unchanged [2]. - The average price of WTI crude oil was $56.74 per barrel with a weekly increase of 0.14%, while Brent crude oil was $60.64 per barrel with a 0.28% increase. Geopolitical tensions in Ukraine have affected energy infrastructure [3]. - The average price of pure MDI decreased by 4.23% to 18,100 CNY/ton, while the average price of polymer MDI fell by 2.39% to 14,300 CNY/ton. The demand from downstream industries remains weak [4]. - Acetic acid prices increased by 2.93% to 2,496 CNY/ton, with a production increase of 2.71% to approximately 238,900 tons. The overall operating rate for acetic acid was 72.15% [5][6]. Investment Recommendations - As of December 27, the SW basic chemical sector's P/E ratio is 25.60, and the P/B ratio is 2.33. The SW oil and petrochemical sector's P/E ratio is 13.17, and the P/B ratio is 1.28. The report suggests focusing on undervalued leading companies, the impact of "anti-involution," and the importance of self-sufficiency in electronic materials and new energy materials [7]. - Long-term investment themes include potential demand recovery supported by policies, continuous supply-side optimization, and growth in emerging sectors such as semiconductor materials and new energy materials [7]. - Recommended stocks include Wanhua Chemical, Hualu Hengsheng, and others, with a focus on companies in sectors like fluorochemicals, agriculture, refining, and textiles [7][8].

Group 1 - The stock price of Hualu Hengsheng increased by 2.01% on December 29, reaching 31.47 CNY per share, with a trading volume of 201 million CNY and a turnover rate of 0.31%, resulting in a total market capitalization of 66.818 billion CNY [1] - The company has seen a year-to-date stock price increase of 49.42%, with a 5-day increase of 5.01%, a 20-day increase of 11.24%, and a 60-day increase of 24.48% [1] - Hualu Hengsheng's main business includes the production and sales of urea and methanol, with revenue composition as follows: 48.34% from new energy and new materials, 24.61% from chemical fertilizers, 10.82% from acetic acid and derivatives, 7.75% from other products, 7.33% from organic amines, and 1.15% from by-products and others [1] Group 2 - As of September 30, the number of shareholders for Hualu Hengsheng was 44,000, a decrease of 16.59% from the previous period, while the average circulating shares per person increased by 19.90% to 48,213 shares [2] - For the period from January to September 2025, Hualu Hengsheng reported operating revenue of 23.552 billion CNY, a year-on-year decrease of 6.46%, and a net profit attributable to shareholders of 2.374 billion CNY, down 22.14% year-on-year [2] - The company has distributed a total of 8.965 billion CNY in dividends since its A-share listing, with 4.775 billion CNY distributed in the last three years [3]

Summary of Hualu-Hengsheng Conference Call Company Overview - **Company**: Hualu-Hengsheng - **Industry**: Coal-based chemicals - **Main Products**: Urea (1.8 million tons per annum), DMF (250,000 tons per annum), acetic acid (500,000 tons per annum), hydrogen nitrate (600,000 tons per annum), polyol (750,000 tons per annum) [12][12] Key Points Industry Dynamics - **Caprolactam Price Recovery**: As of December 24, 2025, the market price of caprolactam was Rmb9,475 per ton, reflecting an 18% increase since early November due to producers limiting production to stabilize market expectations [2][2] - **Urea Capacity**: Domestic obsolete urea capacities are estimated to account for 10-12%, suggesting potential benefits for urea fundamentals from industry anti-involution [2][2] Profitability Outlook - **Product Spreads**: Current spreads for key products (urea, acetic acid, DMF, caprolactam) are at 10-year percentiles of 8%, 29%, 8%, and 15% respectively. Expected improvements in profitability for 2026 include: 1. Caprolactam spread improvement due to moderated supply growth and strong pricing willingness from producers 2. Stabilization of acetic acid and DMF profitability at trough levels amid slowing capacity additions 3. Urea profitability benefiting from exports and potential exit of obsolete capacities [3][3] Growth Drivers - **Medium and Long-term Earnings Growth**: 1. Recovery in product profitability driven by industry self-discipline and anti-involution measures 2. Incremental profit from the Jingzhou project, with Phase II ramping up capacity and Phase III planning TDI capacity of 300,000 tons per annum [4][4] Valuation and Ratings - **Price Target Increase**: Price target raised from Rmb32.1 to Rmb36.1, with a "Buy" rating maintained. The chemical industry has been re-rated due to enhanced self-discipline and price hikes [5][5] - **Earnings Forecasts**: 2025-2027 earnings estimates increased by 1-5%, with medium-term ROIC lifted from 15% to 18% [5][5] Financial Metrics - **Market Capitalization**: Rmb65.4 billion (approximately US$9.32 billion) - **Current Share Price**: Rmb30.79 as of December 24, 2025 - **52-week Range**: Rmb30.79 - Rmb19.88 - **Average Daily Volume**: 18,217,000 shares [6][6] Earnings Projections - **EPS Estimates**: - 2025E: Rmb1.54 (up 1% from previous estimate) - 2026E: Rmb2.22 (up 5%) - 2027E: Rmb2.78 (up 5%) [7][7] Risks - **Potential Risks**: Include weakening demand for coal chemical products, reduced cost competitiveness in low oil price environments, and faster-than-expected new urea capacity launches leading to oversupply [13][13] Conclusion - Hualu-Hengsheng is positioned to benefit from industry recovery and strategic project developments, with a positive outlook on profitability and valuation adjustments reflecting improved market conditions.