Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Insights - The petrochemical industry is expected to benefit from the recently introduced stable growth plan, positioning the company as a leading private refining enterprise [8]. - The company is projected to recover its profitability as the industry moves away from excessive competition and implements stable growth policies [8]. - The company has a strong partnership with Saudi Aramco, which will enhance raw material supply stability and expand sales channels [8]. Financial Projections - Total revenue is forecasted to be 325,112 million RMB in 2023, with a slight increase to 326,475 million RMB in 2024, followed by a decline to 311,311 million RMB in 2025 [1]. - The net profit attributable to the parent company is expected to drop significantly to 724.48 million RMB in 2024, before rebounding to 1,899.02 million RMB in 2025 and reaching 4,091.34 million RMB by 2027 [1]. - The earnings per share (EPS) is projected to be 0.12 RMB in 2023, decreasing to 0.07 RMB in 2024, and then increasing to 0.41 RMB by 2027 [1]. Market Position and Competitive Advantage - The company operates a world-class integrated refining and chemical project with significant processing capabilities, allowing it to adapt to market conditions effectively [8]. - The company’s product structure is flexible, and its technology is mature and reliable, representing the most advanced levels globally [8]. - The company is enhancing its competitive edge through strategic collaborations and technological advancements in key product areas [8].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The LLDPE and PP markets are expected to show a volatile trend today. For LLDPE, the market is influenced by cost support and macro - policy promotion on the positive side, while facing weak demand on the negative side. For PP, similar factors are at play, with cost support and macro - policy driving growth, but also suffering from weak demand [4][6][7][8]. 3. Summary by Related Catalogs LLDPE Overview - **Fundamentals**: In June, the PMI was 49.7%, up 0.2 percentage points from the previous month, remaining in the contraction range for three consecutive months. The Caixin PMI in June was 50.4, 2.1 percentage points higher than in May, back above the critical point. On July 14, the US threatened to impose secondary sanctions on Russian crude oil within 50 days. On July 18, the Ministry of Industry and Information Technology announced a growth - stabilization plan for key industries including the petrochemical sector. In the supply - demand aspect, it's the off - season for agricultural films, and the packaging film market has slightly improved, with overall weak downstream demand. The current spot price of LLDPE delivery products is 7180 (unchanged), and the fundamentals are generally neutral [4]. - **Basis**: The basis of the LLDPE 2509 contract is - 36, with a premium - discount ratio of - 0.5%, which is neutral [4]. - **Inventory**: The comprehensive PE inventory is 58.7 million tons (+3.3), which is bearish [4]. - **Disk**: The 20 - day moving average of the LLDPE main contract is downward, and the closing price is below the 20 - day line, which is bearish [4]. - **Main Position**: The net position of the LLDPE main contract is short, and the short position is increasing, which is bearish [4]. - **Expectation**: The LLDPE main contract shows a volatile trend on the disk. Driven by the macro - growth - stabilization plan, with the off - season for agricultural film demand and weak downstream demand, and a neutral industrial inventory, it is expected that PE will show a volatile trend today [4]. - **Likely Factors**: Cost support and macro - policies promoting the growth of the petrochemical industry are positive factors, while weak demand is a negative factor [6]. PP Overview - **Fundamentals**: Similar to LLDPE, the macro - economic indicators in June show a certain situation. The supply - demand side is in the off - season for downstream demand, and the demand for pipes, plastic weaving, etc., is weak. The current spot price of PP delivery products is 7140 (unchanged), and the fundamentals are generally neutral [7]. - **Basis**: The basis of the PP 2509 contract is 127, with a premium - discount ratio of 1.8%, which is bullish [7]. - **Inventory**: The comprehensive PP inventory is 56.6 million tons (-1.5), which is neutral [7]. - **Disk**: The 20 - day moving average of the PP main contract is downward, and the closing price is below the 20 - day line, which is bearish [7]. - **Main Position**: The net position of the PP main contract is short, and the short position is decreasing, which is bearish [7]. - **Expectation**: The PP main contract shows a volatile trend on the disk. Driven by the macro - growth - stabilization plan, with weak downstream demand for pipes, plastic weaving, etc., and a neutral industrial inventory, it is expected that PP will show a volatile trend today [7]. - **Likely Factors**: Cost support and macro - policies promoting the growth of the petrochemical industry are positive factors, while weak demand is a negative factor [8]. Spot, Futures, and Inventory Data - **LLDPE**: The spot price of delivery products is 7180 (unchanged), the price of the 09 contract is 7216 (unchanged), the basis is - 36 (unchanged), the number of warehouse receipts is 5822 (unchanged), the comprehensive PE factory inventory is 58.7 million tons (unchanged), and the PE social inventory is 53.7 million tons (unchanged) [9]. - **PP**: The spot price of delivery products is 7140 (unchanged), the price of the 09 contract is 7013 (unchanged), the basis is 127 (unchanged), the number of warehouse receipts is 10083 (unchanged), the comprehensive PP factory inventory is 56.6 million tons (unchanged), and the PP social inventory is 25.8 million tons (unchanged) [9]. Supply - Demand Balance Tables - **Polyethylene**: From 2018 to 2024, the production capacity, output, net import volume, and apparent consumption of polyethylene have shown different growth trends. In 2025E, the production capacity is expected to reach 4319.5, with a growth rate of 20.5% [14]. - **Polypropylene**: From 2018 to 2024, the production capacity, output, net import volume, and apparent consumption of polypropylene have also changed. In 2025E, the production capacity is expected to be 4906, with a growth rate of 11.0% [16].