Xin Lang Cai Jing·2025-08-28 03:24Core Viewpoint - The report from China International Capital Corporation (CICC) indicates that the overall profitability of the refining industry is expected to improve due to stable oil prices since the third quarter, with a positive outlook for the petrochemical industry chain's profit recovery by 2026, maintaining a "outperform" rating for Rongsheng Petrochemical [1] Industry Summary - The implementation of the "anti-involution" policy in China is accelerating an industry reshuffle focused on eliminating inefficient capacity, regulating market competition, and improving supply quality [1] - Approximately 48.8 million tons of small-scale capacity, under 2 million tons, have yet to exit the market, accounting for about 5% of the current refining capacity [1] - There is 145 million tons of refining capacity between 200 million and 300 million tons per year, representing about 15% of the total [1] - Continuous advancement and implementation of anti-involution policies are expected to create a new development landscape for the refining industry [1] - The elimination of outdated facilities and optimization of capacity will further increase industry concentration, with resources concentrating towards leading enterprises [1] Company Summary - Rongsheng Petrochemical operates the world's largest integrated refining and chemical project with a capacity of 40 million tons per year at its green petrochemical base [1] - The company is expected to benefit continuously from the current competitive landscape characterized by limited increments and capacity reductions [1]