Guotou Securities·2026-01-09 00:34Investment Rating - The industry investment rating is "Leading the Market - A" [6] Core Insights - The restructuring of Sinopec and China Aviation Oil aims to enhance core competitiveness and optimize state-owned capital layout, addressing the issue of homogeneous competition in the aviation fuel sector [2][3] - The global aviation fuel demand is projected to grow to 389 million tons by 2025, with a year-on-year increase of 3.9%, indicating significant growth potential in this sector [3] - The merger will allow Sinopec to integrate its refining and distribution capabilities, while China Aviation Oil will benefit from a more stable upstream supply, enhancing the overall efficiency and cost-effectiveness of aviation fuel supply [3][4] Summary by Sections Restructuring Purpose - The restructuring aligns with recent state-owned enterprise reforms focused on core business enhancement and competitive advantage [2] - China Aviation Oil's current business model is primarily trade-oriented, necessitating a shift towards integration with larger state-owned enterprises [2] Strategic Significance - The merger is expected to create a comprehensive supply chain from refining to aircraft refueling, reducing intermediary costs and improving energy security for China's aviation industry [3] - The combined strengths of both companies will facilitate advancements in Sustainable Aviation Fuel (SAF) technology and its commercial application [4][6] Impact on SAF Industry - Sinopec is a pioneer in SAF production in China, having successfully tested its products on domestic aircraft models [4] - The merger will enhance the technological and operational capabilities in SAF development, promoting its large-scale commercialization and contributing to carbon reduction in the aviation sector [6]