EBSCN·2025-07-29 13:00Investment Rating - The report maintains an "Overweight" rating for the petrochemical and chemical fiber industry [1] Core Insights - The report highlights that the supply-side clearing pattern is improving, and the industry is awaiting a recovery in prosperity [1] - The report emphasizes the ongoing elimination and upgrading of outdated chemical facilities, which is expected to stabilize the supply side of the industry [4] - The polyester filament industry is experiencing a continuous increase in concentration, with leading companies likely to benefit from the recovery in industry prosperity [5][7] Summary by Sections Industry Overview - The chemical industry is undergoing a phase of eliminating outdated facilities, with a focus on safety and efficiency improvements. A plan has been issued for the period from 2024 to 2029 to phase out non-compliant production facilities and upgrade existing ones [4] - The domestic refining capacity is expected to be maintained at around 1 billion tons, with a target utilization rate of over 80% for major products by 2025 [4] Polyester Filament Sector - The domestic polyester filament capacity has grown from 33.28 million tons in 2019 to 43.16 million tons in 2023, with an annual growth rate of 5%. The growth rate is expected to slow down significantly due to high oil prices and weakened supply-demand dynamics [5] - The industry is shifting from extensive expansion to refined operations, with a focus on high-value-added products, which is expected to enhance the market competitiveness of leading companies [5][7] Investment Recommendations - The report suggests focusing on leading companies in the "refining-chemical fiber" sector, including Tongkun Co., Ltd., Xinfengming Group, Hengli Petrochemical, Rongsheng Petrochemical, Hengyi Petrochemical, and Dongfang Shenghong, as they are expected to benefit from the ongoing industry recovery [8]