Core Viewpoint - China Chemical Engineering Corporation's stock has experienced fluctuations, with a recent decline of 2.02% and a year-to-date increase of 17.36% [1] Financial Performance - For the period from January to September 2025, China Chemical achieved a revenue of 135.845 billion yuan, representing a year-on-year growth of 1.26% [2] - The net profit attributable to shareholders for the same period was 4.232 billion yuan, reflecting a year-on-year increase of 10.28% [2] Stock Market Activity - As of January 30, the stock price was 8.72 yuan per share, with a total market capitalization of 53.25 billion yuan [1] - The trading volume on January 30 was 550 million yuan, with a turnover rate of 1.02% [1] - The stock has seen a net outflow of 30.8308 million yuan from main funds, with significant buying and selling activity from large orders [1] Shareholder Information - As of September 30, 2025, the number of shareholders increased to 111,200, a rise of 19.23% from the previous period [2] - The average number of circulating shares per shareholder decreased by 15.74% to 54,562 shares [2] Dividend Distribution - Since its A-share listing, China Chemical has distributed a total of 10.569 billion yuan in dividends, with 3.915 billion yuan distributed over the last three years [3] Institutional Holdings - As of September 30, 2025, the second-largest circulating shareholder was Hong Kong Central Clearing Limited, holding 182 million shares, a decrease of 112 million shares from the previous period [3] - China Securities Finance Corporation remained stable with 98.6542 million shares, while other major ETFs also saw reductions in their holdings [3]

Investment Rating - The industry investment rating is "Buy" [4] Core Viewpoints - The report emphasizes that the construction industry is at a valuation bottom, combined with a seasonal uptick in spring, recommending "undervalued & well-positioned" large state-owned enterprises [4] - The report highlights a positive trend in new orders for major construction state-owned enterprises, with a notable increase in overseas orders outpacing domestic orders [4] - The cash flow situation is improving due to local government debt management and enhanced cash flow control at the enterprise level [4] - The report suggests that market capitalization management is becoming mainstream, with an emphasis on increasing dividend rates and stabilizing dividend amounts [4] - Investment recommendations include major state-owned enterprises such as China State Construction, China Railway Construction, and others based on business performance, valuation, cash flow, and market capitalization management [4] Summary by Sections Industry Overview - The construction sector is experiencing a recovery with improved order volumes and a focus on core engineering business [4] - The report notes that major state-owned enterprises have shown positive growth in new orders, with overseas orders increasing significantly [4] Valuation Analysis - The report indicates that the price-to-book (PB) ratios for leading construction state-owned enterprises have returned to historical lows, suggesting potential for valuation recovery [4] Cash Flow Management - The report states that the net cash flow from operating activities in the construction industry has improved, indicating better cash flow management practices [4] Market Capitalization Management - The report discusses the trend of increasing dividend payouts among major state-owned enterprises, reflecting a commitment to shareholder returns [4] Investment Recommendations - The report recommends investing in companies such as China State Construction, China Railway Construction, and others based on their strong fundamentals and attractive valuations [4]

Group 1 - The core viewpoint of the articles indicates that the chemical industry is experiencing a prolonged period of negative growth in PPI, with projections suggesting a recovery phase starting around 2026 as domestic and international demand rebounds [2][3] - The chemical market has seen significant price increases recently, with epoxy propylene prices rising by 7.9% in the week of January 12-18, indicating potential upward momentum in the sector [2] - The chemical industry is characterized by a cyclical nature, typically following a five-year cycle of "profit upturn - capacity expansion - profit bottoming - capacity clearance/demand expectation improvement," suggesting a favorable outlook for the upcoming phase [2] Group 2 - Major chemical companies, such as China National Chemical Corporation, hold over half of the global market share, which may lead to a decrease in capital expenditure intensity and an increase in dividend payout ratios in the coming years [3] - The recent winter storm in the U.S. has disrupted natural gas and electricity supplies, affecting chemical production in key areas like Texas, which may impact global supply stability for major chemical products [3] - The domestic chemical sector is at a dual inflection point in terms of capacity and inventory cycles, with potential supply declines from overseas benefiting domestic production rates and overall industry recovery [3] Group 3 - Relevant Hong Kong-listed companies in the chemical sector include Sinopec (600028), Sinopec Oilfield Service (600871), Sinopec Engineering (02386), Shanghai Petrochemical (600688), and others [4]

Group 1: Fund Analysis - The public FOF fund scale increased in Q4 2025, with a new issuance scale of 458.54 billion yuan, primarily in bond-type funds [6][7] - The proportion of positive returns for FOF was 49%, with the top performer being CITIC Securities' selected fund [6][8] - Fund managers are optimistic about the market outlook, focusing on structural opportunities with technology and cyclical sectors as the main themes [6][11] Group 2: Electric Vehicle Market - The European electric vehicle market is entering a new phase, with a projected penetration rate of 29% in 2025 and 35% in 2026 due to supply-side drivers and supportive policies [14][15] - The introduction of affordable electric models by European automakers is expected to stimulate consumer demand significantly [15] - Chinese lithium battery companies are positioned to capitalize on the growth of the European market, enhancing their competitive landscape [14][16] Group 3: Construction and Decoration Industry - The construction state-owned enterprises are expected to benefit from strategic and professional restructuring policies initiated by the state [18][19] - The market share of major construction state-owned enterprises remains relatively low, with significant competition and operational pressure evident [19][20] - Recommendations include companies like China Communications Construction, China Railway, and China Chemical, which are likely to enhance their competitiveness through restructuring [21] Group 4: Beauty and Personal Care - The beauty industry in China is transitioning from incremental expansion to competitive positioning, with domestic brands gaining market share [23][24] - The company aims to achieve 30 billion yuan in sales by 2030, driven by research and development, brand expansion, and global operations [25] - The application of AI in production and marketing is expected to enhance operational efficiency and support long-term growth [25] Group 5: Basic Chemicals - The price of hafnium has surged by 21.64% since the beginning of 2026, driven by high demand in sectors like semiconductors and aerospace [27][28] - The company is advancing its zirconium-hafnium separation project, which is expected to significantly contribute to future earnings [29] - Hafnium's unique properties make it essential in high-tech applications, indicating strong future demand [28] Group 6: Electronics - The company is set to benefit from the high demand for PCB and packaging substrates, with projected net profits for 2025 expected to increase by 68% to 78% [31][32] - The expansion of production capacity is ongoing, with new facilities in Thailand and South China expected to enhance growth potential [33] - The company is recognized as a leading provider of electronic circuit technology, with a positive outlook for future performance [33]

行业专题报告 | 建筑装饰 建筑央企有望受益于国资央企战略性/专业化重组 证券研究报告 2026 年 01 月 28 日 核心结论 行业评级 超配 政策层面：导向明确，加强国资央企战略性、专业化重组。2024 年 12 月， 国务院国资委召开中央企业负责人会议便已经提出"加大力度推进战略性重 组和专业化整合"。2025 年下半年国资委表述开始频繁，比如 2025 年 9 月， 国务院国资委副主任李镇在国新办举行的新闻发布会上表示，下一步"大力 推动国资央企战略性专业化重组整合"；2025 年 12 月，国务院国资委主任 张玉卓在《充分激发各类经营主体活力》一文中强调，要"加强战略性、专 业化重组，加大力度合并'同类项'，避免重复建设和无序竞争"；2025 年 12 月国务院国资委召开中央企业负责人会议，以及 2026 年 1 月国新办举行 新闻发布会介绍 2025 年国资央企高质量发展情况，均表明 2026 年国资央 企要"大力推进战略性、专业化重组整合和高质量并购"。 行业层面：需求承压，专业化重组或助力建筑央企提升综合竞争力。大建筑 央企市占率相对较低：2024 年八大建筑央企合计市占率达到 21.4%， ...

Market Performance - The professional engineering sector increased by 0.91% on January 28, with Tongguan Mining Construction leading the gains [1] - The Shanghai Composite Index closed at 4151.24, up 0.27%, while the Shenzhen Component Index closed at 14342.9, up 0.09% [1] Top Gainers in Professional Engineering Sector - Tongguan Mining Construction (code: 920019) closed at 28.00, up 15.27% with a trading volume of 226,100 shares and a transaction value of 618 million yuan [1] - China Aluminum International (code: 601068) closed at 6.64, up 9.93% with a trading volume of 665,600 shares and a transaction value of 426 million yuan [1] - Roman Co., Ltd. (code: 605289) closed at 74.80, up 7.67% with a trading volume of 101,500 shares and a transaction value of 760 million yuan [1] Top Losers in Professional Engineering Sector - Zhite New Materials (code: 300986) closed at 37.65, down 12.99% with a trading volume of 962,600 shares and a transaction value of 374 million yuan [2] - Zhenhai Co., Ltd. (code: 603637) closed at 11.98, down 9.99% with a trading volume of 239,300 shares and a transaction value of 289 million yuan [2] - Feiguishang (code: 605598) closed at 61.30, down 5.03% with a trading volume of 71,400 shares and a transaction value of 443 million yuan [2] Capital Flow Analysis - The professional engineering sector experienced a net outflow of 419 million yuan from institutional investors, while retail investors saw a net inflow of 476 million yuan [2] - The net outflow from retail investors amounted to 56.46 million yuan [2] Individual Stock Capital Flow - For Asia Xiang Integration (code: 603929), the net inflow from institutional investors was 15.7 million yuan, while retail investors had a net outflow of 19.41 million yuan [3] - China Aluminum International (code: 601068) saw a net inflow of 10 million yuan from institutional investors, with retail investors experiencing a net outflow of 74.75 million yuan [3] - Tongguan Mining Construction (code: 920019) had a net inflow of 58.91 million yuan from institutional investors and a small net inflow of 2.24 million yuan from retail investors [3]

Group 1: Patent Awards - China Chemical Tianchen Company won 1 gold and 2 excellence awards at the 13th Tianjin Patent Awards, marking its first gold award and recognition of its innovation capabilities [1][3] - The gold award-winning patent, a production process for natural soda ash, is a world-first technology with complete independent intellectual property rights, contributing to 55% of global natural soda ash production capacity over the past decade [1] - The two excellence award patents focus on a multi-phase liquid distribution structure for reactors and an efficient evaporator for the purification of adiponitrile, both of which enhance domestic production capabilities and support green development in the chemical industry [2] Group 2: Digital Transformation - China Chemical Tianchen Company was selected for the "2025 Tianjin Manufacturing Digital Transformation Service Provider Resource Pool," reflecting its strong technical capabilities and industry experience [3][4] - The company has implemented a full-process digital service system, achieving digital collaboration in design, construction, and operation, and has completed over ten engineering technology innovations by 2025 [4] - The company aims to provide digital consulting, production, and infrastructure services to help local enterprises overcome transformation challenges and enhance manufacturing quality [4] Group 3: Drilling Services in Iraq - China Petroleum Bohai Drilling successfully completed cementing services for two wells in Iraq's Maysan oilfield, achieving high efficiency and receiving praise from the client [5][6] - The company developed a salt-resistant cement system and optimized construction parameters to address complex geological conditions, resulting in a 28% increase in compressive strength and a 100% quality pass rate for cementing operations [5][6] - The project achieved a 20% improvement in overall operational efficiency and a 100% success rate for first-time cementing, setting a record for the best performance in 11 years [6]

中国化学：每股现金红利0.1元（含税），股权登记日：2026-1-29，除息除权日：2026-1-30，数据来源 《中国化学2025年半年度权益分派实施公告》；申万一级行业：建筑装饰，非红利低波 （H30269.CSI）成分股，非红利质量（931468.CSI）成分股。 众兴菌业：每10股派发现金红利1.50元（含税），股权登记日：2026-2-2，除息除权日：2026-2-3，数 据来源《众兴菌业：2025年前三季度分红派息实施公告》；申万一级行业：农林牧渔，非红利低波 （H30269.CSI）成分股，非红利质量（931468.CSI）成分股。 红利低波（H30269.CSI）指数，选取50只流动性好、连续分红、红利支付率适中、每股股息正增长以 及股息率高且波动率低的证券作为指数样本，采用股息率加权，截至1月26日，该指数近1年股息率为 4.60%；红利低波ETF华夏（159547）是跟踪该指数综合费率最低的ETF，每季度评估可分红，联接基 金A类021482；联接基金C类021483。 红利质量（931468.CSI）指数，选取50只连续现金分红、股利支付率较高且兼具较高盈利能力特征的上 市公司证券作为指 ...

Investment Rating - The investment rating for the construction and decoration industry is "Positive" (maintained) [4] Core Views - Infrastructure investment is experiencing a short-term bottoming out, with cumulative year-on-year growth turning negative for the first time since 2004. In 2025, narrow infrastructure (excluding electricity) completed 18.08 trillion yuan, down 2.20% year-on-year, while broad infrastructure totaled 24.50 trillion yuan, down 1.48% year-on-year. December saw significant declines, with narrow and broad infrastructure down 12.22% and 15.95% year-on-year, respectively. Despite this, major strategic projects are expected to continue, and infrastructure investment is anticipated to stabilize and recover gradually [5][12][22]. Summary by Sections Infrastructure Investment - In 2025, narrow infrastructure investment completed 18.08 trillion yuan, down 2.20% year-on-year, while broad infrastructure totaled 24.50 trillion yuan, down 1.48% year-on-year. December saw a year-on-year decline of 12.22% for narrow infrastructure and 15.95% for broad infrastructure, with significant drops in water conservancy and public facilities management [5][12]. New Orders - New orders in 2025 showed a pattern of stability among central enterprises, with China State Construction, China Railway, China Electric Power, and China Energy achieving new orders of 4.15 trillion yuan, 2.75 trillion yuan, 1.33 trillion yuan, and 1.45 trillion yuan, respectively. Local state-owned enterprises exhibited more significant differentiation, with Shanghai Construction, Shaanxi Construction, and Pudong Construction seeing declines of 35%, 25%, and 23% year-on-year, while Sichuan Road and Bridge saw a substantial increase of 47% year-on-year [6][17]. Market Performance - The construction and decoration index rose by 1.88% during the week, with chemical engineering, steel structure, and international engineering leading the gains at 10.70%, 7.71%, and 4.49%, respectively. A total of 123 stocks in the construction sector rose, with the top five performers being Huawi Design (+51.92%), Zhite New Materials (+49.21%), and others [8][28]. Company Dynamics - Several companies reported significant changes in their financial performance for 2025. For instance, China Metallurgical Group expects a net profit decline of 76.28% to 80.73% due to ongoing losses in the real estate sector and substantial asset impairment provisions. In contrast, companies like Xinjiang Jiaojian anticipate a net profit increase of 50.14% to 125.22% [24][25].

Investment Rating - The report maintains a "Buy" rating for the construction and building materials sectors, with specific recommendations for several companies [9]. Core Insights - The report emphasizes a balanced allocation between traditional cyclical sectors and emerging growth industries, particularly in the context of improving real estate transaction data and liquidity in the market [12][19]. - The construction materials sector has shown resilience, with price increases observed in waterproofing materials, aluminum formwork, and engineering pipe materials since Q3 2025, indicating a strengthening self-repair capability within the sector [12][14]. - The report highlights the ongoing demand for high-end materials in commercial aerospace, including high-temperature fiber materials and perovskite materials in solar wing energy systems [12]. Summary by Sections Industry Overview - The construction materials sector has been leading the market, driven by improved real estate transaction data and expectations of a spring rally in cyclical sectors [12]. - The report notes that from January to December 2025, the new construction area in real estate decreased by 20.4% year-on-year, but there are signs of recovery in major cities [12][19]. Key Companies and Developments - Zhejiang Weixing New Materials announced plans to acquire an 88.26% stake in Beijing Songtian Cheng for approximately 111 million yuan, aiming to enhance its product chain in municipal pipeline systems [3]. - The report recommends several companies for investment, including Yaxiang Integration, Zhongcai International, China Chemical, Qibin Group, and others, with target prices and expected earnings per share provided [9][38]. Market Dynamics - The report indicates that the cement price remained stable at 353 yuan per ton, with a significant drop in the average shipment rate to 29.5% due to seasonal factors [29]. - The glass market has shown stability, with the average price of float glass holding steady at 61 yuan per weight box, despite a year-on-year decline of 18.5% [2][29]. Emerging Trends - The report identifies a potential recovery in investment in Q1 2026, supported by government policies aimed at stimulating the economy, which may benefit cyclical sectors [17]. - The demand for electronic fabrics and cleanroom materials is expected to remain high, driven by advancements in AI and increased PCB investments [13][27]. Recommendations - The report suggests focusing on waterproofing and engineering pipe materials as key opportunities in the construction sector, with a positive outlook for these segments due to expected price increases and improved market conditions [20][21].