Investment Strategy - The report emphasizes the strategic importance of Xinjiang in the context of national policies, highlighting its transition from a geographical hinterland to a frontline hub due to the Belt and Road Initiative. This shift positions Xinjiang as a key player in energy security and coal chemical industry development [7][8] - The report identifies two main investment themes: coal chemical investments and state-owned enterprise reforms in Xinjiang. It suggests that the external environment for coal chemical development is now favorable, driven by rising coal prices and the need for energy security [7][10] Xinjiang Index Situation - The Xinjiang index stands at 125.47, reflecting a week-on-week decrease of 3.43%. The coal chemical investment index is at 122.27, down 7.19%, while the state-owned enterprise reform index is at 130.68, down 0.61% [14] - The report lists the top gainers and losers in the market, with Huijia Times (603101.SH) up 13.82% and Guangdong Hongda (002683.SZ) down 12.21% [14] Key Data Tracking - Key prices in Xinjiang include Q5000 mixed coal at 100 CNY/ton, Q5200 mixed coal at 215 CNY/ton, and urea at 1430 CNY/ton, with a price difference of -130 CNY/ton compared to Shandong [18][27] - In September 2025, coal railway shipments from state-owned key coal mines reached 3.109 million tons, a year-on-year decrease of 1.77%, while the raw coal production in August was 42.2 million tons, down 2.18% year-on-year [18][30] Key News and Company Announcements - On October 14, a key evaluation meeting for the Xinjiang New Industry Group's 2 billion cubic meters/year coal-to-natural gas project was held, marking a significant step towards project approval and construction [33][37] - Several other coal chemical projects are progressing, including a 60,000 tons/year synthetic gas ethanol project and a 1.5 million tons/year coal clean utilization project, indicating a robust pipeline of developments in the sector [36][37] Overview of Target Companies - The report suggests focusing on companies involved in coal chemical investments in Xinjiang, such as Tebian Electric Apparatus, Jiufeng Energy, and Baofeng Energy, as well as service providers and local state-owned enterprises that may benefit from ongoing reforms [11][12][40]

Investment Strategy - The report emphasizes the strategic importance of Xinjiang in the context of national policies shifting from coastal economies to the Belt and Road Initiative, positioning Xinjiang as a frontier hub with significant resource advantages for energy security and coal chemical industry development [7][8][10] - The coal chemical industry in Xinjiang is expected to thrive due to favorable external conditions, including rising coal prices and the need for energy security, aligning with China's resource endowment and industrial policy [7][8][9] Xinjiang Index Situation - The Xinjiang index stands at 105.38, reflecting a week-on-week increase of 0.13%, while the Xinjiang coal chemical investment index is at 102.54, up by 0.43% [14] - The top three companies in terms of weekly gains include: - Jun Oil Co., Ltd. (002207.SZ) with a rise of 12.27% - Western Gold (601069.SH) up by 11.61% - Dexin Technology (603032.SH) increasing by 10.97% [14] Key Data Tracking - The report highlights key coal prices in Xinjiang, with Q5000 mixed coal priced at 100 CNY/ton and Q5200 mixed coal at 197 CNY/ton, both remaining stable week-on-week [19] - In April 2025, the coal railway shipment volume from state-owned key coal mines was 3.35 million tons, showing a year-on-year decrease of 3.76%, while the raw coal production in Xinjiang reached 39.239 million tons, an increase of 8.49% year-on-year [19] Key News and Company Announcements - Xinjiang Xinye Group is advancing a 15.5 billion CNY coal-to-natural gas project, with public participation approval underway, and the project is expected to produce 2 billion cubic meters of natural gas annually [31][34] - The report notes significant progress in various coal chemical projects, including the National Energy Group's coal-to-natural gas project, which has completed multiple equipment tenders [38][39] Overview of Target Companies - The report suggests focusing on companies involved in coal chemical investments in Xinjiang, including: - Tebian Electric Apparatus Stock Co., Ltd. - Baofeng Energy - Guanghui Energy - Hubei Yihua - Zhongji Health [11][12] - Companies providing services to coal chemical projects, such as mining services and transportation, are also highlighted as potential investment opportunities [11][12]