Core Points - China Chemical's stock price decreased by 2.10% on November 14, trading at 7.94 CNY per share with a market capitalization of 48.49 billion CNY [1] - The company reported a year-to-date stock price decline of 2.02% and a 1.98% drop over the last five trading days, while experiencing a 6.72% increase over the last 20 days [1] - For the first nine months of 2025, China Chemical achieved a revenue of 136.3 billion CNY, reflecting a year-on-year growth of 1.15%, and a net profit of 4.23 billion CNY, up 10.28% year-on-year [2] Financial Performance - The company has distributed a total of 9.96 billion CNY in dividends since its A-share listing, with 3.31 billion CNY distributed over the last three years [3] - As of September 30, 2025, the number of shareholders increased by 19.23% to 111,200, while the average number of circulating shares per person decreased by 15.74% to 54,562 shares [2][3] Shareholder Structure - The second-largest circulating shareholder is Hong Kong Central Clearing Limited, holding 181.82 million shares, a decrease of 111.2 million shares from the previous period [3] - China Securities Finance Corporation is the seventh-largest shareholder with 98.65 million shares, unchanged from the previous period [3] - Huatai-PB CSI 300 ETF and E Fund CSI 300 ETF are also among the top ten shareholders, with both experiencing a decrease in shareholding [3] Business Overview - China Chemical Engineering Co., Ltd. was established on September 23, 2008, and listed on January 7, 2010 [1] - The company's main business segments include chemical engineering (82.74%), infrastructure (10.08%), and other services [1]

Core Viewpoint - China Chemical Engineering's subsidiary, China Wuhuan Engineering Co., has commenced the foundation work for the Indonesia Nitric Acid Ammonium project, marking the transition to the construction phase of the project [1] Group 1: Project Details - The Indonesia BBP Nitric Acid Ammonium project is the eighth total contracting project for the company in the Indonesian market, located in Surabaya, East Java [1] - The project plans to construct a facility with a daily production capacity of 455 tons of nitric acid, 580 tons of liquid ammonium nitrate, and 240 tons of solid ammonium nitrate [1] - The project will also include the construction of utilities, auxiliary facilities, and external works [1] Group 2: Economic Impact - The execution of the project is expected to create numerous job opportunities locally, alleviating employment pressure and training a group of technical workers and management talents [1] - Upon completion, the project will promote the development of related local industries and reduce Indonesia's dependence on imported ammonium nitrate products [1] Group 3: Company Commitment - The project team is committed to the mission of "creating quality projects and achieving customer success," emphasizing practical responsibility and striving for advanced positions [1] - The company aims to ensure that all key milestones are completed on time and with high quality [1]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company achieved a revenue of 135.845 billion yuan in the first three quarters, representing a year-on-year growth of 1.26%. The net profit attributable to shareholders was 4.232 billion yuan, up 10.28% year-on-year, while the net profit after deducting non-recurring items was 4.014 billion yuan, reflecting a growth of 3.43% [5][11]. Financial Performance - The company reported a comprehensive gross margin of 9.43%, an increase of 0.35 percentage points year-on-year. The expense ratio for the first three quarters was 5.65%, up 0.26 percentage points year-on-year. The net profit margin attributable to shareholders was 3.12%, an increase of 0.25 percentage points year-on-year [11]. - The cash collection ratio improved to 103.00%, up 10.90 percentage points year-on-year, indicating a positive cash flow from operating activities [11]. Contract and Project Updates - The company signed new contracts totaling 284.561 billion yuan from January to September, a slight increase of 0.2% year-on-year. The construction engineering contract amount was 273.564 billion yuan, up 0.9% year-on-year, with the chemical engineering segment contributing 226.170 billion yuan, a growth of 6.8% [11]. - The company is advancing its chemical industrial projects, with significant contributions expected from the Xinjiang coal chemical projects, which are projected to release orders worth approximately 700 to 800 billion yuan [11]. Shareholder Returns - The company declared a mid-term cash dividend of 1.00 yuan per 10 shares, with a payout ratio of 19.69%, totaling 611 million yuan, reflecting a commitment to shareholder returns [11]. Future Growth Potential - The company aims for a compound annual growth rate of no less than 15% in net profit attributable to shareholders by 2025, with a target of 6.067 billion yuan in net profit after deducting non-recurring items, representing a 10% increase from 2024 [11].

Core Viewpoint - The conference focused on "technological innovation and supply chain optimization to promote green transformation and high-quality development," highlighting the importance of clean coal gasification technology and its role in the coal chemical industry [1][2]. Group 1: Conference Overview - The conference was held in Yichang, Hubei, organized by Jin Energy Holding Equipment Manufacturing Group and China Chemical Saiding Engineering Co., with participation from various industry leaders and government officials [1]. - Key attendees included leaders from the China Nitrogen Fertilizer Industry Association, Jin Energy Group, and other relevant organizations, emphasizing collaboration and support for technological advancements [1]. Group 2: Technological Innovation and Industry Development - The clean gasification technology for smokeless coal was highly praised for its innovative value, with a call for continued research and development to enhance industry competitiveness [2]. - Experts noted the technology's advantages, including low energy consumption, stable operation, and environmental friendliness, which are crucial for upgrading traditional coal chemical industries and achieving carbon neutrality goals [2][3]. Group 3: Market Opportunities and Challenges - The traditional fixed bed gasification process faces challenges due to high energy consumption and environmental pressures, necessitating innovative solutions like the JM-S furnace technology [3]. - Jin Energy Group and Saiding Company aim to extend their industrial chain and improve profitability while fostering a more open and shared industrial ecosystem [3]. Group 4: Future Prospects and Collaborations - A significant agreement was signed with 16 potential partners, which could lead to the consumption of approximately 10 million tons of smokeless block coal annually, positively impacting coal sales for Jin Energy Group [3]. - The conference included presentations on technology optimization, project operations, and future trends in smokeless coal applications, indicating a proactive approach to industry challenges [3].

Core Viewpoint - The 2025 China Petroleum and Chemical Industry Green High-Quality Development Conference highlighted exemplary cases of comprehensive green transformation, with a focus on sustainable practices in the coal chemical wastewater treatment sector [1] Group 1: Conference Highlights - The conference took place in Guangzhou from October 28 to 29, 2025, recognizing typical cases of green transformation in the industry [1] - China Chemical's Donghua Engineering Technology Co., Ltd. was awarded for its project on "Zero Discharge of Coal Chemical Wastewater and Collaborative Development of Resource Recycling," which serves as a replicable model for the industry [1] Group 2: Key Innovations of the Case - The project emphasizes a comprehensive lifecycle governance system that addresses key challenges in coal chemical wastewater treatment, achieving systematic breakthroughs from source reduction to resource regeneration [1] - Four major innovative highlights were presented: 1. Implementation of lifecycle governance through key technologies such as source resource collaboration, biological enhancement treatment, low-consumption concentration, and salt resource recovery, leading to efficient recovery of water and salt [1] 2. System coupling optimization of "water-energy-waste" technology paths aimed at low-carbon, economical, and stable operations, overcoming high energy consumption and carbon emissions through energy-saving unit processes and process coupling [1] 3. Development of an intelligent control platform with real-time configuration and smart diagnostic models to enhance system monitoring sensitivity and operational efficiency [1] 4. Realization of a resource recycling loop for "wastewater-salt-acid-base" through efficient quality crystallization and precise impurity control, converting recovered salts into industrial-grade products and further into acids and bases, promoting a shift towards resource circular utilization [1]

Core Viewpoint - China Chemical's stock experienced a slight increase of 0.25% on November 11, with a trading volume of 609 million yuan, indicating stable market interest in the company [1] Financing Summary - On November 11, China Chemical had a financing buy-in amount of 78.54 million yuan, with a net financing buy of 885,700 yuan after repayments [1] - The total financing and securities balance reached 1.905 billion yuan, accounting for 3.86% of the circulating market value, which is below the 30th percentile level over the past year, indicating a low financing balance [1] - In terms of securities lending, 27,900 shares were repaid, with 6,000 shares sold, amounting to a selling value of 48,600 yuan, and a remaining securities lending balance of 25,680 yuan, also below the 10th percentile level over the past year [1] Financial Performance - As of September 30, China Chemical reported a total of 111,200 shareholders, an increase of 19.23% from the previous period, while the average circulating shares per person decreased by 15.74% to 54,562 shares [2] - For the period from January to September 2025, the company achieved a revenue of 136.3 billion yuan, reflecting a year-on-year growth of 1.15%, and a net profit attributable to shareholders of 4.232 billion yuan, which is a 10.28% increase year-on-year [2] Dividend Information - Since its A-share listing, China Chemical has distributed a total of 9.958 billion yuan in dividends, with 3.305 billion yuan distributed over the past three years [3] Institutional Holdings - As of September 30, 2025, the second-largest circulating shareholder is Hong Kong Central Clearing Limited, holding 182 million shares, a decrease of 112 million shares from the previous period [3] - China Securities Finance Corporation remains the seventh-largest circulating shareholder with 98.6542 million shares, unchanged from the previous period [3] - Huatai-PB CSI 300 ETF and E Fund CSI 300 ETF are also among the top ten circulating shareholders, with both experiencing a decrease in holdings [3]

Group 1 - On November 11, a total of 2 listed companies will have their restricted shares unlocked, with a total market value of approximately 140 million yuan [1] - The specific details of the restricted share unlocks are as follows: China Chemical (stock code: 601117) will unlock 19.7868 million shares under equity incentive restrictions, while Meiya Optoelectronics (stock code: 002690) will unlock 346,800 shares under equity incentive restrictions [1]

Summary of Key Points Core Viewpoint - On November 11, a total of 5 companies had their restricted shares unlocked, with a total unlock volume of 20.27 million shares, amounting to a market value of 19.4 million yuan based on the latest closing price [1]. Group 1: Unlock Volume - One company had an unlock volume exceeding 10 million shares [1]. - The companies with the highest unlock volumes were China Chemical, New Taige, and Chengdian Guangxin, with unlock volumes of 18.49 million shares, 760,300 shares, and 424,400 shares respectively [1]. Group 2: Unlock Market Value - One company had an unlock market value exceeding 10 million yuan [1]. - The companies with the highest unlock market values were China Chemical, New Taige, and Chengdian Guangxin, with market values of 14.9 million yuan, 1.674 million yuan, and 1.314 million yuan respectively [1]. Group 3: Unlock Ratio - The companies with the highest unlock ratios in terms of total share capital were Chengdian Guangxin, New Taige, and China Chemical, with ratios of 0.67%, 0.42%, and 0.3% respectively [1].

Investment Rating - The report maintains a "Positive" investment rating for the construction and engineering sector [9] Core Views - The construction sector exhibits characteristics such as low valuation, low institutional holdings, large market capitalization, and stable outlook for quality targets. The report identifies four key investment directions within the construction industry: 1) Companies with strong Q3 performance and short-term earnings certainty 2) High dividend yield stocks providing a safety cushion 3) Strong long-term growth potential 4) Large-cap stocks with low absolute valuations [5][6][7] Summary by Sections Valuation Metrics - As of the latest closing, the Jiangsu Construction Index has a PE ratio of 12.83, ranking 28th across all industries, with a 10-year percentile of 68.5%. The PB ratio stands at 0.84, ranking 31st, with a 10-year percentile of 16.22%. Notably, the construction sector and the banking sector are the only indices within the Jiangsu framework that are trading below book value [5][6] Institutional Holdings - The construction sector has historically low institutional holdings, which may reflect a weak outlook for the industry and a lack of attention from investors. This could lead to undervaluation of high-quality construction stocks [6] Market Capitalization - The construction sector has a limited number of listed companies, with eight major state-owned enterprises collectively valued at 941.19 billion, accounting for 47% of the Jiangsu Construction Index's market capitalization. These enterprises play a crucial role in stabilizing economic growth and are likely to be favored in a market shift towards undervalued sectors [6][7] Investment Directions - **Direction One**: Focus on companies with strong Q3 earnings, such as Sichuan Road and Bridge, China Chemical, and others, which show robust growth and sufficient order backlogs [7] - **Direction Two**: Invest in high dividend yield stocks like Jianghe Group (6.2%), Sichuan Road and Bridge (5.6%), and others, which provide a strong holding safety net [7] - **Direction Three**: Target companies with strong long-term growth potential, such as Honglu Steel Structure and others benefiting from semiconductor capital expenditure [7] - **Direction Four**: Invest in large-cap stocks with low absolute valuations, including eight major state-owned enterprises that are all trading below book value [7]

Core Viewpoint - The research by Zhang Xiaoheng's team at the University of Science and Technology of China introduces a new method for direct deaminative functionalization using N-nitroamines, which is simpler, safer, and more efficient than traditional processes [1][2][3]. Summary by Sections Research Significance - The study has the potential to revolutionize the field of organic chemistry, particularly in the synthesis of aromatic amines, which are foundational in pharmaceuticals, dyes, pesticides, and electronic materials [3][4]. - The method could significantly impact industrial applications, potentially leading to Nobel Prize recognition due to its groundbreaking nature [3]. Methodology - Traditional methods for processing aromatic amines have been dangerous, expensive, and inefficient, often producing hazardous byproducts [4][10]. - The new approach activates amines into a more stable N-nitroamine state, improving safety and allowing for easier subsequent reactions [10][11]. - The reaction mechanism involves several steps, including the transformation of amines into N-nitroamines, followed by proton migration and dehydration, ultimately leading to the formation of new chemical bonds [10][11]. Industrial Applications - The new method enhances safety and efficiency, allowing for a broader range of reactants and reducing the need for metal catalysts, which are often problematic in traditional methods [11][13]. - The process can be conducted in a single pot, eliminating the need for purification between reactions, which is a significant advancement for industrial scalability [15]. - This innovation could lead to substantial cost savings and reduced environmental impact in the production of agricultural chemicals and pharmaceuticals [16][18]. Impact on Daily Life - The improved deaminative process could lower production costs for essential agricultural products, such as herbicides, thereby reducing pollution and enhancing food security [16]. - In the pharmaceutical sector, the method could significantly decrease the production costs of complex drugs, such as Imatinib Mesylate, making them more accessible to patients [18][20]. - The technology has the potential to enhance the efficiency of drug development, allowing for faster iterations and potentially saving more lives [20]. Historical Context - N-nitroamines have been known since 1893, but their potential was largely unexplored until now, highlighting the innovative nature of Zhang's team's work [21].