JHEC(SH:600273) Jin Rong Jie·2025-12-22 08:17Core Viewpoint - Jiahuan Energy is a core enterprise in the China Chemical New Materials (Jiaxing) Park, focusing on a circular economy model that integrates energy, chemicals, and new chemical materials into its industrial chain [1][3]. Group 1: Company Overview - Jiahuan Energy has established a circular economy model that includes both internal and external cycles, enhancing resource and energy utilization while reducing costs and improving operational efficiency [3]. - The company is a leading producer of fatty alcohols, benefiting from a stable supply chain and a mature production process, with a domestic market demand of approximately 1 million tons per year and a compound annual growth rate of 3-5% [1][4][5]. Group 2: Production and Capacity - The second phase of the fatty alcohol production line is currently in equipment debugging, with expected capacity release next year, and the company has coordinated with downstream customers for capacity absorption [5][6]. - The PVC second phase has entered trial production, aimed at ensuring stable operation of the chlor-alkali unit and enhancing the overall value of the industrial chain [2][8]. Group 3: Financial Strategy - The company maintains a policy of continuous cash dividends and share buybacks, reflecting its commitment to stable profitability and cash flow management [2][7]. - All related party transactions are essential for production operations and are conducted at market prices, ensuring fairness and compliance with necessary review procedures [6]. Group 4: Market Dynamics - The price of palm oil, a key raw material for fatty alcohols, has been high due to increased demand from downstream sectors and reduced supply caused by seasonal production declines in Indonesia [4][5]. - The company’s stable partnerships with upstream and downstream players contribute to its ability to maintain quality and meet market demands effectively [5].