Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report - This week's weekly oil prices closed lower. Geopolitical events such as the "blockade" of Venezuelan tankers and the situation in Russia - Ukraine affected the market. Global supply - demand remains weak, with global oil inventory drawdown this week. The monthly spreads of crude oil in three markets rebounded slightly on Friday, and the crack spreads of global gasoline and diesel continued to weaken. The U.S. refinery utilization rate is at a high level, and China's is fluctuating. The fundamental surplus is confirmed, and the geopolitical situation in Venezuela has limited impact on crude oil supply - demand. Attention should be paid to the Israel - Iran situation. There is a large surplus in the first quarter, and it is advisable to short - allocate monthly spreads and absolute prices [5]. 3. Summary by Relevant Catalogs Daily News - India's Reliance Industries resumed importing crude oil from Russia to supply the Jamnagar refinery [3]. - The White House ordered its troops to focus on isolating Venezuelan sanctioned oil for at least the next two months [3]. - Due to terminal maintenance delays, the loading volume of Caspian Pipeline Consortium (CPC) blend oil in December was cut by 33% to 1.14 million barrels per day [3]. - The supertanker "Kelly" loaded with oil cargo from Venezuela returned to Venezuelan waters [3]. - The U.S. will impose sanctions to deprive Maduro of resources including oil profits for the "Sun Group" [4]. Inventory - U.S. API crude oil inventory for the week ending December 19 was 2.391 million barrels, compared with the previous value of - 9.322 million barrels [4]. - U.S. API refined oil inventory for the week ending December 19 was 0.685 million barrels, compared with the previous value of 2.511 million barrels [4]. - U.S. API gasoline inventory for the week ending December 19 was 1.09 million barrels, compared with the previous value of 4.835 million barrels [4]. EIA Report - Commercial crude oil inventories excluding strategic reserves decreased by 1.274 million barrels to 424 million barrels, a decrease of 0.3% [16]. - U.S. Strategic Petroleum Reserve (SPR) inventory increased by 0.249 million barrels to 412.2 million barrels in the week ending December 12, an increase of 0.06% [16]. - U.S. domestic crude oil production decreased by 1000 barrels to 13.843 million barrels per day in the week ending December 12 [16]. - The four - week average supply of U.S. crude oil products was 20.521 million barrels per day, an increase of 0.82% compared with the same period last year [16]. - U.S. crude oil exports increased by 0.655 million barrels per day to 4.664 million barrels per day in the week ending December 12 [16]. - U.S. commercial crude oil imports excluding strategic reserves were 6.525 million barrels per day last week, a decrease of 0.064 million barrels per day compared with the previous week [16]. Price Changes - From December 18 - 24, 2025, WTI crude oil price changed by - $0.03, BRENT by - $0.14, and DUBAI by - $0.04 [3]. - SC price increased by 3.80, and OMAN decreased by 0.24 [3]. - Japanese naphtha CFR price and related spreads, Singapore fuel oil 380CST and related spreads, and prices of various domestic and international refined products also had corresponding changes [3].

Investment Rating - The report maintains a neutral investment rating for the oil and petrochemical industry, with specific recommendations for various companies based on their performance and market conditions [9]. Core Insights - The geopolitical tensions surrounding Venezuela and U.S. sanctions are expected to support international oil prices, despite recent declines [6]. - The downstream polyester sector is showing signs of tightening supply and improving demand, leading to positive expectations for companies like Tongkun Co. and Wankai New Materials [9]. - The report highlights the potential for refining companies to improve cost structures due to falling oil prices and competitive dynamics in the market [9]. Summary by Sections Oil Price Trends - As of December 19, Brent crude oil prices closed at $60.47 per barrel, down 1.06% from the previous week, while WTI prices fell 1.60% to $56.52 per barrel [16]. - The report notes a significant drop in Venezuelan oil production and exports due to U.S. sanctions, which may create upward pressure on oil prices [6][8]. Company Recommendations - Recommended companies include: - **Tongkun Co.** for polyester filament - **Wankai New Materials** for bottle-grade PET - **Hengli Petrochemical**, **Rongsheng Petrochemical**, and **Oriental Rainbow** for large refining operations [9]. - **China National Petroleum** and **CNOOC** for their high dividend yields [9]. - **CNOOC Services** and **Haiyou Engineering** for offshore oil services [9]. - **Satellite Chemical** for its competitive advantage in ethane-to-ethylene projects [9]. Market Dynamics - The report indicates that the overall oil price is expected to stabilize at a neutral level for 2026, with improving operational quality for oil companies [9]. - The upstream exploration and production sector remains robust, with high capital expenditures anticipated for offshore services [9]. Valuation Metrics - The report provides valuation metrics for key companies in the oil and petrochemical sector, including market capitalization, EPS, PE, and PB ratios [10][11].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report This week, oil prices have declined due to a rapid weakening of global supply and demand. On - land and on - water inventories have significantly increased, and the Dubai monthly spread has further weakened. Geopolitical incidents include the US seizing Venezuelan oil tankers and ongoing Russia - Ukraine negotiations. There are rumors that Russia has found more ways to export crude oil. The CPC No. 3 berth is expected to resume on the 17th. Global gasoline and diesel crack spreads are declining, US refinery operations have recovered to over 94%, and domestic refinery operations are fluctuating. The fundamental surplus has intensified. If there are no new geopolitical changes, the surplus in the first quarter will be close to that during the pandemic. In the short term, short positions in monthly spreads and absolute prices are recommended. [5] 3. Summary by Relevant Catalogs 3.1 Oil Price Data - From December 11 - 17, 2025, WTI crude oil price changed by $0.67, BRENT by $0.76, and DUBAI by $0.32. Other related indicators such as NYMEX RB, HO - BRT also had corresponding changes [3] - During the same period, SC - BRT changed by - 1.28, SC - WTI by - 1.19, domestic gasoline - BRT by - 73.00, and domestic diesel - BRT by - 82.00 [3] - Japan naphtha - BRT changed by - 8.34, Singapore 380 - BRT by - 1.83, and other indicators also had different degrees of change [3] 3.2 Daily News - Venezuelan Defense Minister Lopez said on the 17th that US President Trump's remarks about blocking the Caribbean Sea were "delusions", and Venezuela stated that its oil exports were continuing [3] - The EU Parliament approved an agreement to gradually phase out Russian natural gas imports by the end of 2027 [3] 3.3 Inventory - US API crude oil inventory for the week ending December 12 was - 932200 barrels, gasoline inventory was 483500 barrels, and refined oil inventory was 251100 barrels [3] - According to the EIA report, commercial crude oil inventory (excluding strategic reserves) decreased by 1274000 barrels to 424 million barrels, a decrease of 0.3%. Strategic Petroleum Reserve (SPR) inventory increased by 249000 barrels to 4122 million barrels, an increase of 0.06%. US domestic crude oil production decreased by 1000 barrels to 1384300 barrels per day [4] - US crude oil exports increased by 655000 barrels per day to 4664000 barrels per day, and commercial crude oil imports (excluding strategic reserves) decreased by 6400 barrels per day to 6525000 barrels per day [16] - The four - week average supply of US crude oil products was 2052100 barrels per day, an increase of 0.82% compared to the same period last year [16]

Price Trends - The benchmark price for diesel has increased for the fourth consecutive week, rising by 3.1 cents per gallon to $3.868 per gallon, marking a total increase of 24.8 cents per gallon over the last four weeks, reaching levels not seen since early July 2024 [1] - The average weekly gasoline price has seen a significant spread, with the price on August 4 being 76.4 cents per gallon lower than diesel, which has now widened to 92.9 cents per gallon [2] Oil Supply and Demand - Overall oil prices have risen despite a bearish supply/demand scenario outlined in the International Energy Agency (IEA) report, which does not forecast prices but provides insights into global petroleum supply and demand [3] - The IEA reported a notable decline in global petroleum supply in October, dropping by 440,000 barrels per day, resulting in a total supply of 108.2 million barrels per day [4] - For 2025, the IEA expects total demand to average 103.9 million barrels per day, with a peak of 105 million barrels per day in the third quarter and 104.8 million barrels per day in the fourth quarter [5] Future Projections - Looking ahead, the IEA estimates a full-year average demand of 104.7 million barrels per day for next year, with peak demand projected at 105.7 million barrels per day for both the third and fourth quarters [6] - Global observed oil inventories increased by 77.7 million barrels per day in September, the highest level since July 2021, with a total increase of 313 million barrels or an average of 1.15 million barrels per day over the first nine months of the year [7]

Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core View of the Report - This week, oil prices remained volatile. News of potential negotiations between Russia and Ukraine on Thursday and the suspension of oil exports from Russia's Novorossiysk port due to an attack on Friday caused intraday fluctuations. The fundamentals maintain a pattern of oversupply and increased uncertainty regarding Russian sanctions risks. The US sanctions on Russia will take effect on November 21, and the short - term statements of the US and Russia will affect market expectations. The US EIA commercial crude oil inventory has increased, while the global oil inventory has slightly decreased. Due to high gasoline and diesel profits, the refinery operations in Europe and the US have recently recovered, and the maintenance rate of Middle Eastern refineries remains high. In the short term, the interruption of Russian ports supports the Dubai monthly spread, but the global supply pressure and the potential OPEC production increase plan limit the upside. In the short term, the monthly spread and absolute prices will maintain a volatile pattern, and a short - selling strategy is recommended for the fourth quarter [6]. 3. Summary by Relevant Catalogs 3.1 Price Data - **Crude Oil Prices**: From November 11 - 17, BRENT crude oil price decreased by $0.57 to $63.82, DUBAI decreased by $0.18 to $65.00. SC increased by 0.70 to 458.10, and OMAN decreased by $0.40 to $64.46 [3]. - **Product Prices**: From November 11 - 17, NYMEX RB, RBOB - BR, NYMEX HO, HO - BRT, and other product prices showed corresponding changes. For example, the change in the difference between DUBAI - BRT was 0.22, and the change in the difference between SC - BRT was 0.68 [3]. - **Domestic Product Prices**: From November 11 - 17, domestic gasoline price increased by 20.00 to 7100, and the difference between domestic gasoline - BRT increased by 54.00 to 3335. Domestic diesel price increased by 5.00 to 6440, and the difference between domestic diesel - BRT increased by 35.00 to 3118 [3]. 3.2 Daily News - US President Trump said he would not rule out any possibilities regarding Venezuela and that any country doing business with Russia would be sanctioned, and Iran might be added to the list [3][4]. - Three Iraqi energy officials stated that the Iraqi government is discussing applying to the US Treasury for a six - month exemption to allow Lukoil to sell its stake in the West Qurna - 2 oilfield [4]. - Market news reported that Sudan's energy facilities were attacked, and oil exports were interrupted [4]. - As of the week ending November 17, the crude oil arrival volume of Shandong independent refineries was 2.67 million tons, a decrease of 75,000 tons from the previous week, a decline of 2.73%. Compared with the same period last year, the arrival volume was 2.039 million tons, a decrease of 483,000 tons, a decline of 19.15%. The arriving crude oil was mainly medium - quality crude oil, with 795,000 tons of Russian crude oil arriving, and no new diluted bitumen arrived [4]. 3.3 Inventory - **US Inventory**: In the week ending November 7, US crude oil exports decreased by 1.551 million barrels per day to 2.816 million barrels per day, domestic crude oil production increased by 211,000 barrels to 13.862 million barrels per day, the API crude oil inventory was 1.3 million barrels (previous value: 6.521 million barrels), and the commercial crude oil inventory excluding strategic reserves increased by 6.413 million barrels to 428 million barrels, an increase of 1.52%. The US strategic petroleum reserve (SPR) inventory increased by 798,000 barrels to 410.4 million barrels, an increase of 0.19% [5][17]. - **Japanese Inventory**: As of the week ending November 8, Japan's commercial crude oil inventory decreased by 353,966 kiloliters to 10,379,001 kiloliters compared with the previous week [6]. - **Venezuelan Inventory**: As of the week ending November 12, the total refined oil inventory at the Port of Fujairah in the UAE was 21.181 million barrels [17]. - **Gasoline and Diesel Inventory**: From November 7 - 13, both gasoline and diesel inventories decreased. Gasoline inventory was 10.4149 million tons, a decrease of 1.52%, and diesel inventory was 12.8156 million tons, a decrease of 0.63%. The refinery profits of major and independent refineries rebounded [6].

Group 1: Report Overview - Report Type: Crude Oil Daily Report [1] - Date: August 14, 2025 [2] Group 2: Research Team - Energy and Chemical Research Team Members: Li Jie (Crude Oil and Asphalt), Ren Junchi (PTA, MEG), Peng Haozhou (Industrial Silicon and Carbon Market), Peng Jinglin (Polyolefins), Liu Youran (Pulp), Feng Zeren (Glass and Soda Ash) [4] Group 3: Market Review and Operation Suggestions - **Market Performance**: WTI's opening price was $64.00, closing at $63.08, with a high of $64.34, a low of $63.06, a decline of 1.38%, and a trading volume of 26.96 million hands; Brent's opening price was $66.8, closing at $66.11, with a high of $67.06, a low of $65.98, a decline of 0.78%, and a trading volume of 22.81 million hands; SC's opening price was 491.7 yuan/barrel, closing at 489.5 yuan/barrel, with a high of 493.6 yuan/barrel, a low of 486.7 yuan/barrel, a decline of 0.97%, and a trading volume of 7.75 million hands [6] - **Inventory Data**: As of the week of August, US crude oil inventories increased by 1.519 million barrels week - on - week, exceeding market expectations, while gasoline inventories decreased [6] - **Market Analysis**: US and Russian leaders are about to have direct talks. The US hopes to pressure Russia - Ukraine to cease fire through sanctions. Russian crude oil has a relatively complete export channel, so the impact of sanctions is still short - term. US gasoline consumption during the peak season this year is lower than expected, and refined oil consumption is not optimistic. If the US finally imposes secondary tariffs on Russian oil, it may be an opportunity to enter short positions [7] Group 4: Industry News - **IEA Monthly Report**: The forecast for total global oil supply in 2025 was raised from 105.1 million barrels per day to 105.5 million barrels per day, and the forecast for 2026 was raised from 106.4 million barrels per day to 107.4 million barrels per day. The forecast for global oil demand growth in 2025 was lowered from 704,000 barrels per day to 685,000 barrels per day, and the forecast for 2026 was lowered from 722,000 barrels per day to 699,000 barrels per day [8] Group 5: Data Overview - **Data Sources**: Bloomberg, wind, CFTC, EIA, and the Research and Development Department of Jianxin Futures [11][12][14] - **Data Charts**: Include global high - frequency crude oil inventories, WTI and Brent fund positions, spot prices of WTI, Oman, and Dtd Brent, US crude oil production growth rate, and EIA crude oil inventories [13][15][19]

Group 1 - International oil prices experienced a decline due to expectations of continued production increases from OPEC+ and key technical support levels [1] - As of the latest close, NYMEX light crude oil futures for August delivery fell by $0.41 to $65.11 per barrel, a decrease of 0.63%, while Brent crude oil futures for August delivery dropped by $0.16 to $67.61 per barrel, a decline of 0.24% [1] - Analysts expect OPEC+ to maintain a cautious approach towards production increases, potentially postponing planned increases indefinitely if significant price drops are observed [1] Group 2 - Under the OPEC+ mechanism, eight oil-producing countries plan to increase production by approximately 411,000 barrels per day in August, continuing a trend of 410,000 barrels per day increases since May [2] - The decision regarding this production increase is expected to be finalized at the OPEC+ meeting on July 6, signaling a continued rise in global supply [2] - NYMEX crude oil is trading around the 200-day moving average of $65.17 per barrel, with potential upward targets of $67.44 and $71.20 if it stabilizes above this level; otherwise, it may drop to around $62.20 [2]

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - The core driver of current oil price valuation is the development of the Israel - Iran conflict, which has intensified concerns about the supply side of the oil market. Overall, the center of oil prices will continue to move upward with large amplitude [1][3]. - For fuel oil, the supply - demand situation of high - sulfur fuel oil is stronger than that of low - sulfur fuel oil, and the LU - FU spread still has downward space [3]. - For asphalt, the short - term cost - end crude oil price fluctuates greatly, and BU is restricted by the demand side, with limited upward space and smaller increases than crude oil and fuel oil [3][4]. - For polyester, PX is expected to fluctuate with the cost side, TA has a situation of increasing supply and weak demand, and EG prices will fluctuate in the short term [4]. - For rubber, the rubber price will fluctuate under the situation of increasing supply and weak demand [6]. - For methanol, the price is expected to fluctuate strongly with increased volatility [6]. - For polyolefins, short - term price fluctuations will increase, and investors are advised to avoid risks in the short term [6][7]. - For PVC, the fundamentals still have pressure, and it is not recommended to continue short - selling before the market provides obvious space [7]. 3. Summaries According to Related Catalogs 3.1 Research Views Crude Oil - On Tuesday, the WTI July contract closed up $3.07 to $74.84 per barrel, a 4.28% increase; the Brent August contract closed up $3.22 to $76.45 per barrel, a 4.40% increase; SC2507 closed at 552.5 yuan per barrel, up 31.9 yuan per barrel, a 6.13% increase [1]. - The Israel - Iran conflict is intensifying. The IEA has lowered the average oil demand growth forecast for 2025 to 720,000 barrels per day and for 2026 to 740,000 barrels per day. It is expected that the global oil supply will increase by 1.8 million barrels per day in 2025 [1]. - In the week ending June 13, the US API crude oil inventory decreased by 10.133 million barrels, the largest single - week decline since the week ending August 25, 2023 [1]. Fuel Oil - On Tuesday, the main fuel oil contract FU2509 on the SHFE closed up 0.03% at 3,247 yuan per ton; the low - sulfur fuel oil contract LU2508 closed down 1.25% at 3,806 yuan per ton [3]. - In May, the average commercial inventory level of crude oil and fuel oil at Shandong coastal ports was 8.7 million tons, a slight 0.91% decline month - on - month [3]. Asphalt - On Tuesday, the main asphalt contract BU2509 on the SHFE closed down 0.03% at 3,644 yuan per ton [3]. - Next week, refinery resumption is expected to drive a slight increase in production, but overall supply will remain low. Northern demand is relatively stable, while southern demand is weak due to rain [3][4]. Polyester - TA509 closed at 4,782 yuan per ton on the previous day, up 0.34%; EG2509 closed at 4,400 yuan per ton, up 0.59% [4]. - A 400,000 - ton/year synthetic gas - to - ethylene glycol plant in Shaanxi is restarting, and a 500,000 - ton PX plant in Japan has stopped for maintenance [4]. Rubber - On Tuesday, the main natural rubber contract RU2509 closed down 40 yuan per ton to 13,870 yuan per ton; the NR main contract closed down 20 yuan per ton to 12,140 yuan per ton [4]. - Increased rainfall in the producing areas has led to不畅 raw material output at the beginning of tapping, and downstream demand is weak [6]. Methanol - On Tuesday, the Taicang spot price was 2,615 yuan per ton, and the Inner Mongolia northern line price was 1,987.5 yuan per ton [6]. - The inland inventory is rising, but the MTO plant operating rate remains high, and the port inventory increase will slow down [6]. Polyolefins - On Tuesday, the mainstream price of East China PP was 7,150 - 7,280 yuan per ton. Due to high geopolitical uncertainty, short - term price fluctuations will increase [6][7]. Polyvinyl Chloride (PVC) - On Tuesday, the East China PVC market fluctuated and consolidated. With the downstream entering the off - season, the fundamentals are under pressure [7]. 3.2 Daily Data Monitoring - The report provides the basis, futures prices, spot prices, basis rates, and other data of various energy and chemical products such as crude oil, liquefied petroleum gas, asphalt, etc. on June 17 and 16 [8]. 3.3 Market News - On June 17, the Middle East geopolitical situation was tense. Israel's Defense Minister Katz said the Israeli military had destroyed the central area of Iran's Natanz nuclear facility [10]. - The IEA has lowered the average oil demand growth forecast for 2025 and 2026 and expects sufficient oil supply in the market until 2030 [10]. 3.4 Chart Analysis 4.1 Main Contract Prices - The report presents the closing price charts of main contracts of various energy and chemical products from 2021 to 2025, including crude oil, fuel oil, etc. [12][14][16][18][20][22]. 4.2 Main Contract Basis - It shows the basis charts of main contracts of various energy and chemical products from 2021 to 2025, such as crude oil, fuel oil, etc. [25][27][33][36]. 4.3 Inter - period Contract Spreads - The report provides the spread charts of inter - period contracts of various energy and chemical products, including fuel oil, asphalt, etc. [39][41][44][47][49][52][55]. 4.4 Inter - variety Spreads - It presents the spread charts of inter - variety contracts of various energy and chemical products, such as crude oil internal - external spreads, fuel oil high - low sulfur spreads, etc. [57][58][59][62][63]. 4.5 Production Profits - The report shows the production profit charts of various energy and chemical products, including ethylene - based ethylene glycol, PP, etc. [64][65][67]. 3.5 Team Member Introduction - The report introduces the members of the Everbright Futures Energy and Chemical Research Team, including the assistant director and energy and chemical director Zhong Meiyan, and analysts Du Bingqin, Di Yilin, and Peng Haibo [71][72][73][74]. 3.6 Contact Information - The company's address is Unit 703, 6th Floor, No. 729 Yanggao South Road, China (Shanghai) Pilot Free Trade Zone. The company phone is 021 - 80212222, and the customer service hotline is 400 - 700 - 7979 [76].

Group 1 - Dow futures fell by 0.56%, S&P 500 futures dropped by 0.49%, and Nasdaq futures decreased by 0.50% [1] - Li Auto's pre-market shares fell over 2% after Meituan's CEO Wang Xing reduced his stake by 573,700 shares, cashing out over 600 million HKD, lowering his ownership from 20.94% to 20.61% [1] - Brain Regen Technologies saw a pre-market surge of over 40%, with a previous closing increase of 283%, reaching a record high of 60 USD per share, marking a year-to-date increase of over 50 times [1] - T-Mobile's pre-market shares dropped nearly 4% as SoftBank raised 4.8 billion JPY through the sale of T-Mobile shares [1] - A Boeing 787 aircraft operated by All Nippon Airways experienced a malfunction after landing, temporarily closing parts of the airport's runways and taxiways [1] Group 2 - Citigroup predicts gold prices will decline below 3,000 USD per ounce in the coming quarters due to weak demand and potential interest rate cuts by the Federal Reserve [2] - OpenAI is reportedly seeking new financial concessions from its major shareholder Microsoft, aiming for approximately 33% ownership in the restructured department in exchange for relinquishing future profit-sharing rights [2] - The International Energy Agency (IEA) forecasts that global oil supply growth will significantly outpace demand growth in the coming years, driven by a surge in electric vehicle sales, which are expected to reach a record 17 million units in 2024 and exceed 20 million in 2025 [2]

Investment Rating - The report maintains a positive outlook on the petrochemical industry, suggesting investment opportunities in key companies [3][5]. Core Insights - The EIA has continuously revised down its oil price forecasts for 2025 and 2026, now predicting an average of $66 and $59 per barrel respectively. The forecast for US natural gas prices is $4.1 and $4.8 per million British thermal units for the same years [6][7]. - Global oil demand growth is expected to remain stable, with IEA projecting increases of 740,000 and 760,000 barrels per day for 2025 and 2026 respectively. OPEC forecasts a demand increase of 1.3 million and 1.28 million barrels per day for the same years [10][11]. - On the supply side, OPEC is expected to contribute additional production, with EIA forecasting a global oil production increase of 1.38 million and 1.3 million barrels per day for 2025 and 2026 respectively [15][18]. Summary by Sections Upstream Sector - Brent crude oil futures closed at $65.41 per barrel, a 2.35% increase week-on-week. WTI futures rose by 2.41% to $62.49 per barrel [25]. - The US oil rig count decreased to 576, down by 2 from the previous week and down 28 year-on-year [38][41]. Refining Sector - The Singapore refining margin increased to $12.72 per barrel, while the US gasoline crack spread rose to $27.41 per barrel [6][19]. - The report anticipates improved refining profitability as oil prices adjust, with a gradual recovery expected as economic conditions improve [6][19]. Polyester Sector - PTA prices have risen, while PTA profitability has declined. The report notes that the overall performance of the polyester industry is average, with a potential improvement expected as new capacities come online [6][19]. Investment Recommendations - The report recommends focusing on high-quality refining companies such as Hengli Petrochemical, Rongsheng Petrochemical, and Dongfang Shenghong. It also suggests investing in companies with high dividend yields like China National Petroleum and CNOOC [21][22]. - For the downstream polyester sector, companies like Tongkun Co. and Wankai New Materials are highlighted as potential investment opportunities [21][22].