Core Viewpoint - Sinopec's performance in Q3 2025 is expected to remain weak, with no signs of improvement in downstream operations, and potential increase in impairment losses compared to the same period last year [1] Summary by Category Financial Performance - Sinopec's Q3 2025 results are projected to be mediocre, reflecting ongoing challenges in the downstream sector [1] - Management has indicated a cautious outlook during the earnings call, suggesting that impairment losses may rise as the year-end approaches [1] Target Price Adjustments - Credit Lyonnais has lowered the target prices for Sinopec's H-shares and A-shares to HKD 4.4 and CNY 6, respectively, from previous targets of HKD 4.5 and CNY 6.3, while maintaining an "outperform" rating [1] Competitive Positioning - Among China's three major oil companies, Sinopec is ranked third in preference, with China National Petroleum Corporation (CNPC) being the top choice, followed by CNOOC [1]

Core Viewpoint - Sinopec's performance in Q3 2025 is expected to remain weak, with no signs of improvement in downstream operations, and potential increase in impairment losses compared to the same period last year [1] Company Summary - Sinopec's H-share and A-share target prices have been lowered to HKD 4.4 and RMB 6, respectively, from HKD 4.5 and RMB 6.3, while maintaining an "Outperform" rating [1] - Among China's three major oil companies, Sinopec is ranked third in preference, with PetroChina as the top choice and CNOOC as the second [1]

1. Report Industry Investment Rating - Most of the products in the energy and chemical industry are rated as "Cautiously Bearish", with only natural gas rated as "Cautiously Bullish" [1][2][5] 2. Core Viewpoints of the Report - The core driver of the oil market remains supply surplus, and oil prices are expected to decline. The fundamentals of most energy and chemical products are weak, with supply pressure and uncertain demand. However, natural gas may rise due to increased demand in the peak season [1][2][5] 3. Summary by Relevant Catalogs Crude Oil - **Core Viewpoint**: Cautiously bearish. The current core driver is supply surplus in the off - season, and the oil price center is expected to continue to decline [1][9] - **Logic**: OPEC+ may increase production in December. India's crude oil import increased in September. U.S. commercial crude and refined product inventories showed different trends. Geopolitical sanctions and macro - events provide some support, but overall, supply surplus dominates [9][10] - **Strategy**: Hold existing short positions and can add short positions lightly. Focus on the SC range of [455 - 470] [11] LPG - **Core Viewpoint**: Bearish. The price is anchored to the cost - end crude oil, and it turns weak as the cost side declines [1][15] - **Logic**: The short - term geopolitical risk eases, and the cost side (crude oil) corrects. The supply decreases slightly, the demand side shows some resilience, and the port inventory increases [15] - **Strategy**: Hold short positions. Focus on the PG range of [4250 - 4350] [16] L - **Core Viewpoint**: Bearish consolidation. Cost support weakens, and the supply is in a loose pattern [1][20] - **Logic**: Cost support weakens, social inventory decreases slightly, and the upper - middle stream inventory pressure is neutral. Import is expected to increase, and new device production will add to the supply. The demand peak season has insufficient restocking power [20] - **Strategy**: The market maintains a contango structure. Industries should sell at high prices. Be bearish at high levels. Focus on the L range of [6950 - 7100] [20] PP - **Core Viewpoint**: Bearish consolidation. The basis weakens, and there is a high de - stocking pressure in the future [1][25] - **Logic**: The spot price lags behind the futures price increase. The upstream device maintenance increases, but the demand is at the end of the peak season. The oil - based cost support is insufficient [25] - **Strategy**: The market maintains a contango structure. Industries should sell at high prices. Be bearish at high levels. Focus on the PP range of [6600 - 6800] [25] PVC - **Core Viewpoint**: Bearish rebound. Low - valuation provides support, but there is an over - supply problem [1][29] - **Logic**: Low - valuation supports, and the export may increase due to India's policy window. New production capacity has been released, and attention should be paid to whether upstream marginal devices can cut production. [29] - **Strategy**: The market maintains a high contango. Industries should hedge at high prices. Participate in short - term rebounds with light positions. Focus on the V range of [4600 - 4800] [29] PX - **Core Viewpoint**: Cautiously bearish. Short - term supply - demand improvement is against the backdrop of pressured oil prices [1][31] - **Logic**: Supply - side devices at home and abroad continue to reduce load, and demand is expected to weaken. PXN and PX - MX are at relatively high levels. The cost - end oil price rebounds but has limited upside [31] - **Strategy**: Look for opportunities to short at high prices. Arbitrage by going long PTA and short PX. Focus on the PX range of [6520 - 6630] [32] PTA - **Core Viewpoint**: Cautiously bearish. There is a short - term rebound due to supply - demand improvement and market speculation [2][34] - **Logic**: New devices are about to be put into production, but the processing fee is low, and future device maintenance may increase. Terminal demand shows slight improvement, but there is a risk of inventory accumulation in November [34] - **Strategy**: There is no obvious unilateral trend. Arbitrage by going long PTA and short PX. Look for opportunities to short on rebounds in the medium - long term. Focus on the TA range of [4530 - 4600] [35] MEG - **Core Viewpoint**: Cautiously bearish. Low valuation but lack of upward drive [2][37] - **Logic**: Domestic devices reduce load, overseas devices increase load slightly. New device production and the recovery of maintenance devices increase supply pressure. Terminal consumption improves slightly but lacks stability, and inventory may accumulate in November [37] - **Strategy**: Look for opportunities to short on rebounds. Focus on the EG range of [3980 - 4050] [38] Methanol - **Core Viewpoint**: Cautiously bearish. The fundamentals remain weak, and attention should be paid to the inventory de - stocking inflection point [2][41] - **Logic**: High inventory suppresses the spot price. The supply side has pressure with high import in October. The demand side shows slight improvement, and the cost support is weak and stable [41] - **Strategy**: Hold short positions carefully. Look for opportunities to go long on the 01 contract at low prices. Arbitrage by MA1 - 5 reverse spread. Focus on the MA range of [2180 - 2230] [43] Urea - **Core Viewpoint**: Cautiously bearish. Low valuation but potential downside risk [2][45] - **Logic**: Supply is relatively loose as production resumes. Domestic agricultural demand improves slightly, and export is good. Inventory is at a high level, and cost support exists [45] - **Strategy**: Hold short positions carefully. Try long positions lightly in the medium - long term. Focus on the UR range of [1615 - 1655] [47] Natural Gas - **Core Viewpoint**: Cautiously bullish. The demand side is expected to warm up as the temperature drops [5] - **Logic**: Geopolitical sanctions risks are released, the demand for heating increases as the temperature cools, and the supply is sufficient [5] - **Strategy**: Not mentioned [5]

Report Industry Investment Rating - Not provided in the content Core Viewpoints of the Report - It is expected that PX will fluctuate narrowly, PTA will fluctuate weakly, and PR will fluctuate weakly (PX view score: 0, PTA view score: -1, PR view score: -1) [2] Summary by Relevant Catalogs Price Information - **Crude Oil**: On October 30, 2025, the futures settlement price (continuous) of WTI crude oil was $60.57 per barrel, up 0.15% from the previous value; the futures settlement price (continuous) of Brent crude oil was $65.00 per barrel, up 0.12% [1] - **Upstream Products**: The spot price (mid - price) of naphtha: CFR Japan was $572.63 per ton on October 30, 2025, up 0.26%; the spot price (mid - price) of xylene (isomeric grade): FOB South Korea was $670.00 per ton, down 1.69%; the spot price of p - xylene PX: CFR China Main Port was $817.00 per ton, down 0.12% [1] - **PTA Futures and Spot**: The closing price of CZCE TA main contract was 4,570 yuan per ton on October 30, 2025, down 1.42%; the settlement price was 4,608 yuan per ton, down 0.04%. The CCFEI price index of PTA outer market on October 29, 2025, was $611.00 per ton, up 1.66% [1] - **PX Futures and Spot**: The closing price of CZCE PX main contract was 6,588 yuan per ton on October 30, 2025, down 0.96%; the settlement price was 6,632 yuan per ton, up 0.27%. The PXN spread was $244.38 per ton, down 1.01%; the PX - MX spread was $147.00 per ton, up 7.69% [1] - **PR Futures and Spot**: The closing price of CZCE PR main contract was 5,666 yuan per ton on October 30, 2025, down 1.05%; the settlement price was 5,708 yuan per ton, down 0.04%. The market price (mainstream price) of polyester bottle chips in the East China market was 5,720 yuan per ton, down 0.35% [1] - **Downstream Products**: The CCFEI price index of polyester bottle - grade chips on October 30, 2025, was 5,720 yuan per ton, down 0.35%. Other downstream CCFEI price indices remained unchanged [2] Operating Conditions - The operating rates of the PX in the polyester industry chain, PTA factories, polyester factories, and bottle - chip factories remained unchanged at 86.21%, 80.09%, 89.28%, and 73.31% respectively on October 30, 2025. The operating rate of Jiangsu and Zhejiang looms was 72.28%, up 0.22% [1] Production and Sales - On October 30, 2025, the sales rate of polyester filament was 42.67%, down 6.20%; the sales rate of polyester staple fiber was 42.82%, down 0.75%; the sales rate of polyester chips was 45.79%, up 8.73% [1] Device Information - The 2.7 - million - ton (designed capacity) PTA device of Dushan Energy No. 4 started trial operation on October 25, 2025. After the new device runs stably, the company will start the new one and shut down the old one [2] Important News and Logic - **PX**: Overnight, due to positive prospects of China - US meetings and EIA inventory reports, oil prices rebounded, but after the end of the China - US meetings, the cost support for PX weakened. Recently, some PX factories' reforming devices are under maintenance or will be under maintenance, but the PX supply remains stable. Overseas devices are also operating stably. The call for anti - involution in the industry has increased, but it has limited impact on PX supply and demand in the short term [2] - **PTA**: The industrial meeting has no unplanned impact on the operating rate. In the morning, the decline in oil prices weakened the cost support for PTA, but the market hoped for active production cuts on the supply side. In the afternoon, the expectation of production cuts on the supply side was not fulfilled, and the PTA spot price followed the futures price down [2] - **PR**: The mainstream negotiation price of polyester bottle chips in the Jiangsu and Zhejiang markets was 5,700 - 5,830 yuan per ton, down 5 yuan per ton from the previous trading day. The market atmosphere was weak, and the downstream purchasing willingness was low. The market is in a state of oversupply, and the demand side has limited support for prices [2]

该行将2025至27年盈利预测下调12%至14%，H股目标价由4.78港元降至4.21港元，A股目标价由6.46元 降至5.54元，重申"持有"评级。 中银国际发表研究报告指，中石化第三季净利润按季跌15%至83亿元，较该行预期低26%，主要因炼油 与销售业务利润低于预期。该行估算第四季盈利将按季跌22%，因预期油价下跌将对勘探开采、炼油， 甚至销售业务的利润产生负面影响。 ...

Core Insights - The conference highlighted the urgent need for the petrochemical industry to embrace "new growth" through innovation, green transformation, and digital empowerment in response to current economic challenges [2][3][4] Group 1: Industry Development - The petrochemical industry aims to achieve high-quality development by focusing on intelligent, green, and integrated approaches, as emphasized by industry leaders [2] - The consensus among participants is that new growth should be driven by innovation, characterized by green and low-carbon transitions, and supported by digital technologies [2][3] Group 2: Technological Innovations - Significant technological breakthroughs were showcased, such as the development of the MegaMax catalyst for CO2-to-methanol conversion, demonstrating the industry's commitment to innovation [3] - A notable collaboration between China National Petroleum Corporation and BASF on carbon footprint accounting methods was recognized as a substantial achievement in carbon management [4] Group 3: Sustainable Practices - Companies like Covestro reported a 75% reduction in carbon emissions per product through innovative processes and high renewable energy usage [5] - Ningbo's zero-carbon park initiatives achieved a 99.7% comprehensive utilization rate of solid waste, showcasing effective circular economy practices [5] Group 4: Challenges and Opportunities - The industry faces challenges in plastic circular economy related to raw material-market alignment, policy coherence, and economic viability, necessitating collaborative efforts [7] - Discussions on financial tools to support the petrochemical industry's low-carbon transition highlighted the importance of unified standards and incentive mechanisms [7] Group 5: Talent Development - The need for talent cultivation was emphasized as crucial for achieving new growth, with calls for enhanced exchanges between China and Saudi Arabia [7] - The urgency for companies to establish clear technical pathways for carbon reduction was noted, indicating a gap in current strategies [7]

Report Industry Investment Rating - The rating for unilateral investment is neutral, suggesting short - term observation [2] Report's Core View - The asphalt fundamentals remain weak, and the market shows a weak oscillating trend. The weakening of rigid demand in northern provinces seasonally suppresses market sentiment, and there is insufficient upward drive in the market [1] Summary Based on Relevant Catalogs Market Analysis - On October 30, the closing price of the main asphalt futures contract BU2601 in the afternoon session was 3254 yuan/ton, down 13 yuan/ton or 0.4% from the previous settlement price. The open interest was 196,796 lots, up 770 lots from the previous day, and the trading volume was 160,811 lots, down 12,955 lots from the previous day [1] - The spot settlement prices of heavy - traffic asphalt from Zhuochuang Information are as follows: Northeast 3406 - 4750 yuan/ton; Shandong 3200 - 3620 yuan/ton; South China 3370 - 3580 yuan/ton; East China 3410 - 3500 yuan/ton. The spot price of asphalt in North China decreased, while that in South China increased slightly, and prices in other regions remained relatively stable [1] - After the successful conclusion of China - US trade negotiations, macro risks have weakened. However, due to the weakening fundamentals of crude oil prices, the cost - driving effect on asphalt is limited [1] Strategy - Unilateral: Neutral, with short - term observation as the main strategy - Cross - period: None - Cross - variety: None - Futures - spot: None - Options: None [2]

Group 1: Report Information - Report Name: Asphalt Daily Report [1] - Date: October 31, 2025 [2] Group 2: Investment Rating - No investment rating information provided Group 3: Core View - Oil prices are adjusting again, asphalt supply and demand are weak, and prices may fall again [7] Group 4: Market Review and Operation Suggestions - Futures Market: BU2601 opened at 3276 yuan/ton, closed at 3254 yuan/ton, with a high of 3281 yuan/ton, a low of 3247 yuan/ton, a decline of 0.40%, and a trading volume of 16.08 million lots; BU2512 opened at 3291 yuan/ton, closed at 3295 yuan/ton, with a high of 3295 yuan/ton, a low of 3260 yuan/ton, a decline of 0.4%, and a trading volume of 2.1 million lots [6] - Spot Market: In North China, asphalt spot prices fell; in South China, they rose slightly; in other regions, they were relatively stable. Crude oil and asphalt futures prices fluctuated downward, negatively affecting the spot market sentiment [6] - Supply: Some refineries have production reduction or suspension plans, but others are increasing production, and the overall operating load rate is expected to remain flat [6] - Demand: Demand is seasonally weakening. In the Northeast and Northwest, road projects are ending, and rigid demand is shrinking rapidly; in North China and Shandong, only key projects support demand, while small and medium - sized projects have low demand; in the South, construction is stable but demand is weak due to slow resource consumption. Lack of funds restricts project progress, and actual demand is weaker than expected [6] Group 5: Industry News - Shandong Market: The mainstream transaction price of 70A grade asphalt is 3200 - 3620 yuan/ton, remaining stable. Rigid demand is seasonally declining, market sentiment is cautious and bearish, and some high - end quotes are falling [8] - South China Market: The mainstream transaction price of 70A grade asphalt is 3370 - 3580 yuan/ton, up 5 yuan/ton. Sinopec's production plan reduction boosts the market, but terminal demand growth is insufficient, and the market is cautious [8] Group 6: Data Overview - Data on asphalt cracking, social inventory, daily operating rate, Shandong comprehensive profit, factory inventory, and warehouse receipts are presented, with data sources from Wind and the Research and Development Department of CCB Futures [13][16][24]

Group 1 - The report highlights the significant advantages of Solid State Transformers (SST) over traditional transformers, indicating a shift in power distribution architecture towards SST technology to meet the increasing power demands of servers [2] - For China Petroleum & Chemical Corporation (Sinopec), the report notes a slight improvement in net profit for Q3 2025, with total revenue of 2,113.4 billion yuan, down 10.7% year-on-year, and a net profit of 30 billion yuan, down 32.2% year-on-year [3] - China Oilfield Services Limited (COSL) reported a 3.5% year-on-year increase in total revenue for Q3 2025, amounting to 34.85 billion yuan, with a net profit increase of 31.3% year-on-year to 3.21 billion yuan [4] Group 2 - Source Pet's Q3 2025 revenue reached 490 million yuan, up 26.6% year-on-year, with a net profit of 56.05 million yuan, up 22.3% year-on-year, indicating strong performance in both domestic and international sales [5] - Huali Group reported a slight decline in revenue of 0.3% year-on-year for Q3 2025, with a net profit decrease of 20.7% year-on-year, highlighting challenges in the footwear segment [6] - Agricultural Bank of China achieved a revenue of 550.9 billion yuan in Q3 2025, with a net profit of 220.9 billion yuan, reflecting a 3% year-on-year growth [10] Group 3 - The report indicates that the macroeconomic environment is affecting various sectors, with a focus on the ongoing US-China trade tensions impacting negotiations in multiple industries [8] - The bond market is experiencing a contraction in scale, with active bond funds adopting defensive strategies to mitigate risks amid a weakening market [9] - The report emphasizes the resilience of the banking sector, with several banks reporting stable growth in revenue and net profit, alongside strong risk mitigation capabilities [11][12][13]

Core Insights - The Guangxi Petrochemical Ethylene Project marks the successful transition of China National Petroleum Corporation (CNPC) from refining to integrated refining and chemical production, establishing the largest million-ton ethylene project in Southwest China [1][2] - The project has a total investment of over 30 billion RMB and features the world's largest diesel adsorption separation unit, improving raw material utilization efficiency by over 15% compared to traditional processes [1] - The project includes the first set of proprietary technologies for producing 80,000 tons/year of SBS and 120,000 tons/year of functionalized styrene-butadiene rubber, along with other key facilities [1] Investment and Production Impact - The Guangxi Petrochemical Ethylene Project consists of a core ethylene unit with a capacity of 1.2 million tons/year, along with 14 chemical units and 2 refining units [2] - Upon production, the project is expected to reduce oil products by 3.49 million tons and increase chemical products by 3.06 million tons annually, addressing domestic supply gaps in high-end polyolefins, functionalized rubber, and advanced membrane materials [2] - The project achieves 100% green electricity for its new power consumption, with energy consumption indicators for refining and ethylene units exceeding national benchmark standards, contributing to China's dual carbon goals [2]