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].

Group 1 - ADNOC and ADQ have established a joint venture, Taziz, which signed a contract worth $1.99 billion with China National Chemical Engineering Group for the construction of the UAE's first PVC production plant [1] - The PVC plant is a core component of a chlor-alkali complex with an annual capacity of 1.9 million tons, also producing VCM, EDC, and caustic soda to meet domestic supply and export demand [1] - The project is expected to be completed and operational by the fourth quarter of 2028 [1] Group 2 - Taziz is also developing supporting infrastructure for the chemical hub, including oil pipelines, marine terminals, and storage facilities, with investments from companies like Mitsui & Co. and GS Energy [1] - Earlier in February, Taziz signed a $1.7 billion contract with Samsung Engineering for the construction of a methanol plant with an annual capacity of 1.8 million tons [1]

Investment Rating - The report maintains a "Positive" investment rating for the construction and engineering industry [11]. Core Insights - In September, central enterprise orders improved, and the decline in investment narrowed. The manufacturing PMI fell significantly in October, indicating a marginal weakening in industry prosperity, while the construction PMI slightly decreased, aligning with seasonal trends [6][20]. - Fixed asset investment in September was 4.5 trillion yuan, down 7.1% year-on-year, with a cumulative fixed asset investment of 37.2 trillion yuan for the year, a decrease of 0.5% year-on-year. Narrowly defined infrastructure investment showed a smaller decline compared to previous months [7][25]. - The physical workload showed improvement in October, with cement output declining at a slower rate, and cement dispatch volumes increased marginally [8][50]. - Project funding is being prioritized, with a funding rate of 59.7% for construction sites as of October 28, showing a slight week-on-week increase [9][57]. Summary by Sections Investment & Orders - Central enterprise orders improved in September, with most central enterprises showing positive growth in domestic orders. Notably, China Chemical and China Railway Construction saw significant growth rates of 18.11% and 9.38%, respectively [7][42][44]. - The overall order growth for major construction central enterprises in Q3 was 5.02% year-on-year, indicating a positive trend in both domestic and overseas markets [42][44]. Physical Workload - Cement production saw a year-on-year decline of 5.2% from January to September, with a more pronounced drop of 8.6% in September alone. However, cement dispatch volumes showed a week-on-week increase of 8.0% in late October [8][50]. Project Funding - The funding rate for construction projects was reported at 59.7%, with non-residential projects at 61.15% and residential projects at 52.81% as of late October. The issuance of special bonds reached 39.646 billion yuan year-to-date, with a 90% completion rate [9][59].

Investment Rating - The industry investment rating is "Overweight" indicating that the industry is expected to outperform the overall market performance [26]. Core Insights - The construction and decoration sector showed a weekly increase of 1.85%, outperforming major indices such as the Shanghai Composite Index and Shenzhen Component Index [4][6]. - The approval of the "Chengdu-Chongqing Economic Circle Land Space Planning (2021-2035)" by the State Council aims to enhance regional competitiveness and support the construction of new transportation channels [11][12]. - Key companies in the sector have secured significant contracts, with Chongqing Construction winning projects totaling 18.39 billion yuan, representing 6.7% of its 2024 revenue [15][16]. Summary by Sections 1. Market Performance - The construction sector's weekly increase of 1.85% outperformed the Shanghai Composite Index, which rose by 1.08% [4]. - The best-performing sub-sectors included decorative curtain walls (+5.31%), professional engineering (+4.28%), and infrastructure private enterprises (+2.59%) [6][9]. 2. Major Changes in the Industry - The State Council's approval of the Chengdu-Chongqing Economic Circle plan aims to deepen regional collaboration and enhance overall competitiveness [11]. - The Ministry of Transport reported significant infrastructure investments in various provinces, including 203.81 billion yuan in Sichuan, achieving 76% of the annual target [12]. 3. Key Company Developments - Zhongyan Dadi won a contract for a sports land project in Beijing worth 74 million yuan, accounting for 9.4% of its 2024 revenue [13]. - Chongqing Construction also secured contracts for the Huangjueping Yangtze River Bridge project, totaling 18.39 billion yuan, and the Jiangwan project worth 781 million yuan [15][16]. 4. Investment Analysis - The current industry outlook is considered weak, but regional investments are expected to gain momentum as national strategies are implemented. Recommended companies include China Chemical, China Railway, and China Railway Construction [3][11].

Investment Rating - The report maintains a "Buy" rating for key companies in the construction and decoration industry, highlighting their long-term growth potential and attractive dividend yields [12][11][15]. Core Insights - The fourth quarter is expected to see institutions locking in profits, with a shift towards defensive market styles. High-quality stocks with clear long-term growth logic, low valuations, and high dividend yields are likely to attract capital [15][11]. - The construction sector has significantly lagged since the beginning of the year, with a year-to-date increase of only 11.0%, ranking 21st among 30 industries, and is still at historical low valuation levels [22][11]. - Key high-growth areas include: 1. **Overseas Expansion**: The trend of Chinese construction companies expanding overseas is expected to accelerate due to urbanization and industrialization in emerging markets, as well as the relocation of some manufacturing capacities from China [15][11]. 2. **Regional Prosperity**: Regions like Sichuan, Xinjiang, and Tibet are anticipated to receive policy support, leading to sustained high levels of infrastructure investment [15][11]. 3. **Cleanroom Engineering**: The semiconductor cleanroom sector is expected to benefit from the ongoing demand for AI and advanced manufacturing [15][11]. 4. **Commercial Satellites**: The report highlights the growth potential in the satellite energy supply systems, particularly focusing on Shanghai Port and East Pearl Ecology [15][11]. Summary by Sections Investment Recommendations - Recommended companies include: - China Chemical (PE 6.8X, expected dividend yield 2.6%) [12][11]. - Precision Steel Structure (PE 11.1X, expected dividend yield 6.3%) [12][11]. - China National Materials (PE 7.5X, expected dividend yield 5.3%) [12][11]. - Jianghe Group (PE 12X, expected dividend yield 6.7%) [12][11]. - Sichuan Road and Bridge (PE 9.5X, expected dividend yield 6.3%) [12][11]. - Yaxiang Integration (sub-industry share 98%) [12][11]. - Shanghai Port (expected dividend yield 55.4%) [12][11]. - East Pearl Ecology (focus on satellite communication) [12][11]. Market Performance Overview - The construction sector saw a weekly increase of 1.85%, ranking 10th among 31 A-share industries, with notable performances from sub-sectors like decoration and chemical engineering [16][11]. - Key stocks that performed well include Dongyi Risheng (27.68%), Chongqing Construction (25.24%), and Yaxiang Integration (19.17%) [16][11]. Industry Dynamics - The report emphasizes the importance of long-term growth logic, low valuations, and high dividend yields in the current market environment, suggesting that these factors will attract investor interest [22][11]. - The cleanroom engineering sector is projected to see significant growth driven by the AI boom, with global investments in semiconductor cleanrooms expected to reach approximately $168 billion by 2025 [32][11].

Investment Rating - Industry Rating: Outperform the market (maintained rating) [5] Core Viewpoints - The construction index rose by 1.53% this week, outperforming the broader market by 0.21 percentage points, with sectors like clean rooms and chemical engineering showing strong performance [1][4] - High demand in the semiconductor-related clean room sector and the chemical engineering industry chain is recommended for investment, particularly in regions like Xinjiang and Tibet where infrastructure growth is expected [1][3] - The clean room sector shows a high level of order backlog, with significant contracts signed by companies like Yaxiang Integration and Shenghui Integration, indicating robust future performance [2][13] - The coal chemical investment landscape is promising, with projected investments exceeding 1 trillion yuan nationally, driven by green energy initiatives and the International Maritime Organization's net-zero emissions framework [3][16][20] - Anticipated infrastructure stimulus in the fourth quarter is expected to benefit the construction sector, with a focus on major transportation projects and regional opportunities in high-growth areas [22][25] Summary by Sections 1. Industry Investment Opportunities - Focus on the high-demand semiconductor clean room sector, with Yaxiang Integration reporting an order backlog of 6.105 billion yuan and a significant improvement in gross margins [2][13] - The coal chemical sector is projected to see investments of nearly 500 billion yuan in Xinjiang alone, with a national total exceeding 1 trillion yuan, indicating a strong growth trajectory [3][19] - The fourth quarter is expected to see increased infrastructure spending, with special bonds and long-term treasury bonds being issued at a rapid pace, enhancing investment in construction [22][23] 2. Market Performance Review - The construction index's performance this week reflects a positive trend, with notable gains in individual stocks such as Hainan Development (+27%) and Chongqing Construction (+25%) [4][29] - The clean room engineering sector is highlighted for its low valuation compared to peers, making it an attractive investment opportunity [14][15] 3. Investment Recommendations - Emphasis on infrastructure projects in regions with high growth potential, particularly in water conservancy, railways, and aviation, with specific recommendations for companies like Sichuan Road and Bridge and China Communications Construction [36][37] - Attention to the nuclear power sector and emerging business directions, with recommendations for companies like Libat and China Nuclear Engineering [38] - The clean room sector is expected to benefit from domestic substitution trends and the demand for new display panel production lines, with a focus on companies like Baicheng Co. and Shenghui Integration [38]