Core Viewpoint - The report from Xinda Securities highlights that Rongsheng Petrochemical, as a leading private refining enterprise, is expected to benefit from the optimization of the industry landscape due to policy changes and market dynamics [1] Industry Summary - According to the National Development and Reform Commission (NDRC) policy, by 2025, the domestic crude oil processing capacity will be controlled within 1 billion tons, indicating that the expansion of refining capacity is nearing its end [1] - The NDRC reiterated in May 2025 the acceleration of phasing out outdated refining capacities, which, combined with the "anti-involution" policy direction and stricter tax reforms, increases the survival pressure on local refineries, leading to a potential acceleration in the elimination of outdated capacities [1] - It is anticipated that from 2025 to 2026, the growth rate of domestic refining capacity will significantly slow down, resulting in an improved supply-demand balance in the industry as new capacity is limited and outdated capacity is cleared [1] Company Summary - Rongsheng Petrochemical is positioned to leverage its scale, cost advantages, and integrated industrial chain to enhance its performance in a competitive environment characterized by the elimination of outdated capacities [1] - The company is expected to exhibit performance elasticity in the context of stock competition, benefiting from the overall industry dynamics [1]