Investment Rating - The report rates the industry as "Buy" [6] Core Insights - TSMC expects capital expenditure to reach USD 52-56 billion in 2026, an increase of 27%-37% from 2025 [2][3] - Longxin Technology plans to raise CNY 29.5 billion for technology upgrades in memory chip manufacturing [3] - China State Grid anticipates fixed asset investment of CNY 4 trillion during the 14th Five-Year Plan, a 40% increase from the previous plan [4] Summary by Sections Semiconductor Industry - TSMC's revenue for Q4 2025 is expected to grow by 20.5% year-on-year, with a net profit increase of approximately 35% [3] - The cleanroom sector is expected to benefit from increased capital expenditures in semiconductor manufacturing, with companies like Yaxin Integration showing significant revenue growth [3] Power and Infrastructure - China State Grid's investment plan aims to enhance system regulation capabilities and support large-scale development of new energy storage [4] - China Power Construction and China Energy Engineering are leading firms in power construction, with significant market shares in hydropower and energy storage [4] Cleanroom and Emerging Technologies - Yaxin Integration reported a 165.2% year-on-year increase in revenue for December, indicating strong demand in the cleanroom sector [3] - The report recommends companies involved in cleanroom technology, commercial aerospace, and controlled nuclear fusion as potential investment opportunities [8] Recommended Companies - The report highlights several companies for investment, including Yaxin Integration, China State Grid, and China Power Construction, based on their strong market positions and growth potential [8][9]

Group 1 - Since 2022, the chemical industry has faced price declines due to new capacity coming online and falling crude oil prices, leading to a decrease in overall profitability as companies adopt a price-for-volume strategy to capture market share [1] - In 2024, most chemical prices are stabilizing at low levels, with profitability still under pressure; however, the introduction of growth stabilization measures may lead to the elimination of some outdated capacities, improving the overall supply-demand balance and potentially enhancing product profitability [1] - According to Huatai Securities, by the second half of 2025, the profitability of bulk chemicals is expected to hit a ten-year low due to weak demand and the end of supply-side increases, with the current downturn resembling the bottom of the basic chemical sector in late 2015 [1] Group 2 - The chemical industry is characterized as a typical cyclical industry, usually experiencing a five-year cycle that includes phases of "profit upturn - capacity expansion - profit bottoming - capacity clearance/demand expectation improvement" [2] - With capital expenditure growth turning negative, anti-involution trends, global interest rate cuts, and domestic demand expansion, there is optimism for the chemical sector entering a "dawn" phase at the beginning of the 14th Five-Year Plan [2] - The chemical industry chain includes several Hong Kong-listed companies such as Sinopec (600028)(00386), Sinopec Oilfield Service (600871)(01033), and Shanghai Petrochemical (600688)(00338) [3]

Core Viewpoint - The report from Huatai Securities indicates that the profitability of bulk chemicals is expected to reach a ten-year low in the second half of 2025 due to weak demand and the end of supply-side increments [1] Group 1: Industry Outlook - The current downturn in the chemical raw materials and products industry is characterized by a fixed asset completion growth rate turning negative starting June 2025 after three years of profit stagnation [1] - The new capacity for bulk chemicals is projected to be limited in 2026-2027, indicating a challenging environment for the industry [1] - The textile, clothing, and rubber-plastic products sectors are experiencing a continuous decline in inventory, marking a transition from active destocking to passive restocking for chemical raw materials and products [1] Group 2: Future Projections - Huatai Securities believes that the bulk chemicals sector is at a dual inflection point concerning capacity and inventory cycles, with a potential recovery expected as domestic and international demand rebounds in 2026 [1] - The sales volume of Chinese chemicals accounts for over half of the global market, suggesting that future capital expenditure intensity for companies will significantly decrease compared to the period from 2015 to 2025, while dividend payout ratios are expected to rise [1]

Core Viewpoint - The report highlights the growth trends in China's chemical pesticide raw material production, indicating a positive outlook for the industry from 2025 to 2032 [1] Industry Summary - In November 2025, China's chemical pesticide raw material production reached 325,000 tons, reflecting a year-on-year increase of 4.2% [1] - From January to November 2025, the cumulative production of chemical pesticide raw materials was 3.753 million tons, showing a cumulative growth of 7.7% [1] - The report provides a comprehensive analysis of the pesticide industry, including market trends and strategic insights for the period from 2026 to 2032 [1] Company Summary - Listed companies in the pesticide sector include Yangnong Chemical (600486), Adama Agricultural Solutions A (000553), Xianda Co., Ltd. (603086), ST Hongtai (000525), Noposion (002215), Lier Chemical (002258), Runfeng Co., Ltd. (301035), and Xin'an Chemical (600596) [1]

Core Viewpoint - China Chemical Engineering Donghua Company has signed a strategic cooperation framework agreement with the Tianjin Seawater Desalination and Comprehensive Utilization Research Institute of the Ministry of Natural Resources to collaborate on the downstream applications of new materials such as graphene and the comprehensive utilization of seawater resources [1] Group 1 - The agreement focuses on joint research and development, platform construction, and achievement transformation [1] - The collaboration aims to enhance the application of graphene and other new materials in various industries [1] - The partnership will also address the comprehensive utilization of seawater resources, indicating a commitment to sustainable practices [1]

Group 1 - The global interest rate cut cycle is entering its second half in 2026, characterized by "internal and external easing resonance" and a shift from "extraordinary to normal" [3][4][5] - The macro liquidity environment remains favorable, with the People's Bank of China expected to maintain a moderately loose monetary policy, focusing on stabilizing economic growth and reasonable price recovery [7][59] - The depreciation of the US dollar is anticipated due to continued interest rate cuts by the Federal Reserve and worsening fiscal conditions, which will support the appreciation of the RMB and strengthen the A-share market [8][62][63] Group 2 - The long-term low interest rate environment is reshaping the stock-bond allocation logic, with a shift towards equity markets as the attractiveness of fixed income products continues to rise [13][16][44] - The "stock-bond seesaw" effect is expected to further support the A-share market, as funds flow into equities amid a low interest rate environment [14][17][44] - The demand for "deposit migration" from residents is projected to become the largest marginal increment for the market, as a significant amount of fixed-term deposits mature in 2026 [19][20][44] Group 3 - The capital market's status is significantly upgraded in the post-real estate era, becoming a core hub for economic development and resource allocation [22][47] - Policies are being implemented to enhance shareholder returns, with a focus on increasing dividend payouts and improving profit quality, which is becoming a trend in the market [32][33][56] - The overall funding ecology is improving, with a transition from a "financing-oriented" approach to a "balanced investment and financing" model, enhancing market attractiveness and stability [32][47][56]

Group 1 - The core point of the article is that China Chemical announced the repurchase and cancellation of 211,200 restricted stocks due to the disqualification of six incentive targets based on their dismissal and unsatisfactory assessment results [1] - Following the cancellation, the total share capital of the company will decrease from 6,106,877,362 shares to 6,106,666,162 shares [1] - The cancellation date for the restricted stocks is set for January 19, 2026 [1]

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： 中国化学工程股份有限公司 关于 2022 年限制性股票激励计划部分限制性股票 回购注销实施的公告 证券代码：601117 股票简称：中国化学 公告编号：临 2026-003 根据中国化学工程股份有限公司（以下简称"公司"） 《2022 年限制性股票激励计划（草案）》（以下简称"《激励 计划》"）等相关规定，公司 6 名激励对象因撤职、考核结果不 达标，不符合解除限售条件，对其部分或全部限制性股票应由公 司回购，合计回购注销限制性股票 21.12 万股。 本次注销完成后，公司总股本将由 6,106,877,362 股变 更为 6,106,666,162 股。 本次注销股份的有关情况： 单位：万股 | 回购股份数量（万股） | 注销股份数量（万股） | 注销日期 | | --- | --- | --- | | 21.12 | 21.12 | 2026 年 1 月 19 日 | 实施情况：预计本次限制性股票将于 2026 年 1 月 19 日 完成注销。 1 一、本次 ...

Core Viewpoint - The successful initial power supply of the hydrogen production substation for the integrated green ammonia project in Eerduoke Banner, undertaken by China Chemical Engineering Fourth Construction Co., Ltd. (referred to as "the company"), marks a significant achievement in the company's "Big Push in the Fourth Quarter, Winning the 14th Five-Year Plan" campaign initiated in 2025 [1] Group 1 - The company has launched a campaign from October to December 2025 to mobilize employees towards achieving annual production and operational targets [1] - Several projects have commenced since the campaign began, including a 200,000-ton/year ethylene-based functional polyvinyl alcohol resin project for Jiangsu Wanhui New Materials Co., Ltd. and a petrochemical integration project for Hunan Petrochemical [1] - Major equipment installation tasks have been completed for the 300,000-ton/year nylon 6 polymerization project at Tianyue (Tianmen) New Materials Technology Co., Ltd. [1] Group 2 - The main structure of the central laboratory for the Shenhua Baotou coal-to-olefins project has been capped [1] - The non-ionic surfactant device project at the Zhanjiang integrated base has achieved mechanical completion [1] - The 36,000-ton lithium battery materials project for Baijierui (Jingmen) New Materials Co., Ltd. has been completed, and the first high-performance passenger car radial tire line at the Wanli Tire Cambodia base has successfully rolled off the production line [1]

Core Viewpoint - The report highlights the growth trends in China's chemical pharmaceutical raw materials industry, indicating a steady increase in production and market dynamics from 2025 to 2032 [1] Industry Summary - In November 2025, China's chemical pharmaceutical raw material production reached 331,000 tons, reflecting a year-on-year growth of 1.5% [1] - From January to November 2025, the cumulative production of chemical pharmaceutical raw materials in China was 3,358,000 tons, with a cumulative growth of 1.8% [1] - The report by Zhiyan Consulting provides insights into the supply and demand dynamics of the chemical pharmaceutical industry in China, projecting future trends from 2026 to 2032 [1] Company Summary - Listed companies in the sector include Heng Rui Medicine, East China Pharmaceutical, Lizhu Group, Baiyunshan, North China Pharmaceutical, Haizheng Pharmaceutical, Fosun Pharmaceutical, Kelun Pharmaceutical, Enhua Pharmaceutical, and Xianju Pharmaceutical [1]