EBSCN·2025-06-04 09:16Investment Rating - The report maintains an "Overweight" rating for the petrochemical and transportation sectors [4] Core Views - The importance of energy security has been highlighted due to escalating geopolitical tensions and tariff conflicts, with China's reliance on oil and gas imports reaching 72% and 43% respectively in 2024 [1] - The "Three Oil Giants" are focusing on independent innovation to achieve high-quality development, with specific targets for domestic production and technology advancements set for 2024 and beyond [2] - The report suggests a positive outlook for undervalued, high-dividend, and well-performing companies in the "Three Oil Giants" and oil service sectors, as well as for domestic material companies benefiting from the trend of domestic substitution [3] Summary by Sections 1. Industry Overview - Geopolitical uncertainties and tariff conflicts are posing challenges to China's energy security, emphasizing the need for increased domestic oil and gas production [1] 2. Company Innovations - The "Three Oil Giants" are advancing in key technologies to enhance domestic production capabilities, with specific goals for equipment localization and technological breakthroughs by 2024 [2] 3. Investment Recommendations - The report recommends focusing on the "Three Oil Giants" (China National Petroleum, Sinopec, CNOOC) and oil service companies, as well as material companies that are expected to benefit from domestic substitution trends [3]