Shanghai Huayi (SH:600623) Dong Jian Yan Bao·2025-06-26 14:22Group 1: Report Overview - The report is about a research on Huayi Group in the chemical raw materials industry, with a research date of June 26, 2025 [1][2][16] Group 2: Research Participants - Participating research institutions include China Europe Fund, Tianfeng Securities, Shenwan Hongyuan, Kaiyuan Securities, Orient Securities, etc [2] - The proportion of research institutions is as follows: 39% are fund management companies, 50% are securities companies, 6% are trust companies, and 6% are others [20] Group 3: Core Views - The company leverages its wide - ranging upstream and downstream product coverage to build an integrated industrial chain, develop a circular economy, improve resource utilization, reduce emissions and costs, and enhance overall competitiveness [23] - The high cash and high debt of the company are due to the capital - intensive nature of the chemical industry, with large - scale and long - cycle projects requiring substantial capital investment, and the company's external financing for project construction and the operation of its subsidiary finance company [23] - Many projects are in the early stage, and the company will balance capital expenditure and dividend needs, with cash flow sufficient to cover them. The company has signed a non - competition agreement regarding the Qinzhou project [24] - The power plant supplying steam has a long - term cooperation with the company, and the second - phase project is underway. The company can further reduce costs through steam return supply [24] - Recently, coal prices have declined, the price difference between different coal sources has decreased, and the proportion of freight has increased. The company adjusts its procurement ratio according to market conditions [24]