Investment Rating - The report maintains a "Neutral" rating for Sinopec Engineering (02386) and lowers the target price by 6.25%, from HKD 8 to HKD 7.5 [1] Core Insights - Sinopec Engineering aims to achieve new orders of RMB 90 billion by 2026, with domestic orders at RMB 55 billion and overseas orders at USD 5 billion. This aligns with the view that domestic chemical demand has peaked [1] - For the fiscal year 2025, the company secured new orders of RMB 101 billion, with a record backlog of RMB 204 billion, of which overseas projects contributed 52%. However, the backlog turnover time has extended to 2.7 years, compared to the average of 2 years from 2018 to 2024, indicating prolonged execution cycles for overseas projects and a slowdown in domestic investment [1] - The forecast for the company's net profit after tax for 2026-2027 has been reduced by 3-4% due to the aforementioned factors [1] - The fiscal year 2025 saw a significant year-on-year decline of 27% in net profit after tax, which was much lower than expected, primarily due to a sharp drop in profit margins within the construction industry. Although management indicated that some projects are nearing completion, there is uncertainty regarding the recovery of short-term profit margins [1] - The company's dividend remained flat year-on-year [1]