Core Viewpoint - China Chemical (601117.SH) continues to expand its global market presence, reporting a slight increase in contract value for the first three quarters of 2025, amounting to approximately 2846 billion yuan, compared to the same period last year [1][2]. Group 1: Financial Performance - In 2024, China Chemical achieved an operating revenue of 1866.13 billion yuan, with the contract value of 2846 billion yuan being approximately 1.53 times its 2024 revenue [2]. - The company has shown steady growth in operating performance, with continuous increases in revenue and net profit from 2018 to 2024 [2][5]. - For the first half of 2025, the company reported an operating revenue of 907.22 billion yuan, remaining stable year-on-year, while the net profit attributable to shareholders was approximately 31 billion yuan, reflecting a year-on-year growth of 9.26% [6]. Group 2: Contract and Business Segments - In the first nine months of 2025, China Chemical signed 3566 contracts with a total value of 2845.61 billion yuan, with the construction engineering contracting business being the core segment [2][3]. - Within the construction engineering sector, the chemical engineering field accounted for 1876 contracts worth 2261.70 billion yuan, representing 52.61% of the total number of new contracts and 79.48% of the total contract value [3]. - The company’s domestic and international contract values were 2309.09 billion yuan and 536.52 billion yuan, respectively, making up 81.15% and 18.85% of the total [3]. Group 3: Research and Development - China Chemical has invested over 60 billion yuan in R&D for both 2023 and 2024, with total R&D investment from 2020 to 2024 amounting to approximately 269 billion yuan [7][9]. - The company holds 5730 authorized patents and 348 proprietary technologies as of June 2025, indicating a strong focus on innovation [9]. - The workforce includes 5824 R&D personnel, accounting for 11.42% of the total staff, highlighting the emphasis on technological advancement [10].

Core Viewpoint - China Chemical Engineering and China First Heavy Industries have signed a strategic cooperation agreement to enhance collaboration in international engineering and high-end equipment manufacturing [1] Group 1 - The meeting was held on October 22 between the chairman of China Chemical Engineering, Mo Dingge, and the chairman of China First Heavy Industries, Lv Zhiqiang [1] - The discussions focused on deepening cooperation in the fields of international engineering and high-end equipment manufacturing [1] - The strategic cooperation agreement was signed following the meeting, indicating a formal commitment to collaboration [1]

Core Points - The successful completion of the civil construction for the gasification framework of the China Coal Yulin Phase II project marks a significant transition from construction to equipment installation [2] - The gasification framework, described as the "energy heart" of the project, features two buildings each standing at 105 meters, showcasing industry-leading design and construction standards [2] - The project team implemented an innovative construction solution involving "tiered pumping + ultra-high pressure delivery pipes" to address challenges associated with concrete pumping at high altitudes [2] - A comprehensive safety management system was established to mitigate risks associated with high-altitude work, ensuring zero safety incidents and zero personnel casualties during construction [2] - The project aims to enhance regional energy structure optimization, improve clean coal utilization, and contribute to national energy security [2] Company and Industry Summary - The China Chemical Tianchen Company is responsible for the overall contracting of the Yulin Phase II project, indicating its significant role in the energy sector [2] - The project is expected to play a crucial role in advancing clean energy initiatives and ensuring energy security for the country [2] - The innovative construction techniques and rigorous safety measures reflect the company's commitment to high standards in project execution and risk management [2]

Core Insights - The professional engineering sector saw a rise of 0.71% on October 22, with Zhonghua Rock and Soil leading the gains [1] - The Shanghai Composite Index closed at 3913.76, down 0.07%, while the Shenzhen Component Index closed at 12996.61, down 0.62% [1] Stock Performance - Zhonghua Rock and Soil (002542) closed at 4.46, up 10.12% with a trading volume of 1.99 million shares and a transaction value of 884 million [1] - China Aluminum International (601068) closed at 5.93, up 10.02% with a trading volume of 475,200 shares and a transaction value of 267 million [1] - Tianwo Technology (002564) closed at 9.02, up 10.00% with a trading volume of 555,900 shares and a transaction value of 490 million [1] - Other notable performers include Zhongyan Dadi (003001) up 7.06% and Beifang International (000065) up 5.44% [1] Capital Flow - The professional engineering sector experienced a net inflow of 413 million in main funds, while retail funds saw a net outflow of 742,620 [2][3] - Major stocks like Beifang International and Tianwo Technology attracted significant main fund inflows of 207 million and 110 million respectively [3] - Conversely, retail investors showed a net outflow from several stocks, including Tianwo Technology and Zhonghua Rock and Soil [3]

Core Viewpoint - The company has reported stable operations and normal load for several new material projects, indicating a positive outlook for its production capabilities and future growth potential [1][2]. Group 1: Production Status - The company’s phase change material project, Sai Ding Ke, has been running smoothly since its production began at the end of last year [1]. - The Inner Mongolia new material coal-to-ethylene glycol project has been operating at full capacity since its launch in November last year [1]. - The Tianchen Yaolong caprolactam project is running at full capacity, while the Tianchen Qixiang adiponitrile project is operating at 85% capacity [1]. - The Hualu new material aerogel project is also producing at full capacity [1]. - The Tianchen Quanzhou project is ready for operation and is preliminarily planned to start in 2026 due to market conditions [1]. - The Wuhuan Xiangyun phosphorus-fluorine new material project has been completed and is expected to begin trial production by the end of the year [1]. - The Western new material ultra-high molecular weight polyethylene project has been completed but has not yet started formal production [1]. Group 2: Future Plans and Capacity - The company is actively engaging with investors regarding the status of its new materials business, including the construction and production plans for various materials such as adiponitrile, aerogel, caprolactam, PBAT, and propylene oxide [2]. - The company is expected to provide insights into the contribution of each new material category to total revenue and its revenue plans for the new materials segment from 2025 to 2027 [2].

格隆汇10月22日丨中国化学(601117.SH)在投资者互动平台表示，公司正在积极开展生物质制绿色甲 醇、垃圾气化制氢应用场景定制化技术开发。 ...

格隆汇10月22日丨中国化学(601117.SH)在投资者互动平台表示，公司正在积极开展生物质制绿色甲 醇、垃圾气化制氢应用场景定制化技术开发。 ...

乡村振兴有温度。中国化学东华公司供图 近日，中国化学所属东华工程科技股份有限公司收到甘肃省华池县城壕镇余家砭村村民委员会发来的感谢 信，对公司在乡村振兴工作中提供的切实帮助表示感谢。 公司通过捐赠5万元资金，用于为该村购置30盏太阳能路灯及维修文化广场，进一步改善了村民的生活条 件。新安装的太阳能路灯有效解决了村民夜间出行难题，为村庄带去了便利与温暖。维修后的文化广场面貌 焕然一新，地面完成硬化、墙面得到翻新，现已成为村民日常交流与文化娱乐的重要场所，丰富了群众精神 文化生活。 除基础设施帮扶外，公司积极推动当地产业发展。上半年，公司累计采购华池县农特产品26.47万元，带动了 群众产业致富的积极性，并促进了当地生产企业提升产品品质、完善产业链，为乡村振兴筑牢产业根基。 未来，中国化学东华公司将继续秉持央企责任担当，在推动乡村振兴中展现更大作为，为助力美丽乡村建设 贡献更多力量。(孙宇) ...

Macro Dynamics - Dalian Commodity Exchange will expand the range of products available for qualified foreign institutional investors starting from October 28, 2025, adding linear low-density polyethylene, polyvinyl chloride, and polypropylene average monthly price futures contracts [2] - As of October 9, 2025, the total funds in China's futures market exceeded 2 trillion yuan, reaching approximately 2.02 trillion yuan, a 24% increase from the end of 2024 [3] Company Dynamics - China Chemical reported a cumulative contract amount of 284.56 billion yuan for the first three quarters of 2025, with domestic contracts accounting for 230.91 billion yuan and overseas contracts for 53.65 billion yuan [13] - Chow Tai Fook plans to increase the retail prices of its "fixed price" gold products by approximately 12% to 18% by the end of October 2025, due to the continuous rise in gold prices [14] - Yushutech announced the release of the H2 bionic humanoid robot, which stands 180 cm tall and weighs 70 kg, showcasing its agility and elegance [15] Financial Institutions - Goldman Sachs reported that China's exports have evolved, with the overseas revenue share of listed companies increasing from 14% in 2018 to 16% currently, driven mainly by the automotive, retail, and capital goods sectors [7] Market Data - On October 20, 2025, the A-share market saw all three major indices rise, with the ChiNext Index increasing by 1.98%, and significant gains in sectors such as superhard materials and coal mining [8][9] - As of October 17, 2025, the total margin balance in the two markets decreased by 27.19 billion yuan, with the Shanghai Stock Exchange reporting a margin balance of 1.22 trillion yuan [10] - The Hang Seng Index closed up 2.42% on October 20, 2025, with notable movements in stocks such as China Eastern Airlines and Shandong Gold [11]

Investment Rating - The industry investment rating is currently neutral, indicating that the industry is expected to perform in line with the overall market [22]. Core Insights - The fixed asset investment and manufacturing investment growth rates have continued to decline, with a cumulative year-on-year decrease of 0.5% for fixed asset investment from January to September 2025, and a 4.0% year-on-year increase in manufacturing investment, which is a decline of 1.1 percentage points compared to the previous month [3][4]. - Infrastructure investment is under pressure, with a year-on-year growth of 3.3% for total infrastructure investment and 1.1% for infrastructure investment excluding electricity, both showing a decline in growth rates compared to the previous month [4]. - Real estate investment remains low, with a year-on-year decrease of 13.9% from January to September 2025, and construction starts down by 18.9% [10]. Summary by Sections Economic Overview - The GDP growth for the first three quarters of 2025 is reported at 5.2%, with quarterly growth rates of 5.4%, 5.2%, and 4.8% respectively [3]. Infrastructure Investment - Infrastructure investment growth is under pressure, with specific sectors like transportation, water conservancy, and public utilities showing varying degrees of decline [4]. - Eastern regions experienced a year-on-year investment decline of 4.5%, while central and western regions saw a slight increase of 1.5% [4]. Real Estate Investment - Real estate investment has shown a significant decline, with expectations of a slow recovery due to challenges in supply and inventory replenishment [10]. Investment Recommendations - The report suggests that the overall industry is weak, but regional investments may gain traction with the implementation of national strategic layouts. Recommended companies include China Chemical, China Energy Construction, China Railway, and China Railway Construction among others [14].