Core Insights - The stock of Maohua Shihua (000637) closed at 4.99 yuan on October 28, 2025, with a 1.42% increase and a trading volume of 513,400 hands, resulting in a total transaction amount of 255 million yuan [1] Fund Flow Analysis - On October 28, 2025, the net inflow of main funds was 11.44 million yuan, accounting for 4.48% of the total transaction amount, while retail investors experienced a net outflow of 8.58 million yuan, representing 3.36% of the total transaction amount [1][2] - Over the past five days, the stock has seen fluctuations in fund flows, with notable net inflows and outflows from main and retail investors [2] Company Financial Performance - As of the third quarter of 2025, Maohua Shihua reported a main revenue of 2.304 billion yuan, a year-on-year decrease of 19.24%, and a net profit attributable to shareholders of -93.73 million yuan, which is an 18.15% increase year-on-year [3] - The company's gross profit margin stands at 2.51%, significantly lower than the industry average of 18.87%, indicating challenges in profitability [3] - The company has a debt ratio of 68.65%, with financial expenses amounting to 26.57 million yuan [3] Industry Comparison - Maohua Shihua's total market capitalization is 2.594 billion yuan, which is considerably lower than the industry average of 199.785 billion yuan [3] - The company's price-to-earnings ratio (P/E) is -20.76, while the industry average is 36.78, reflecting a negative earnings situation [3] - In terms of return on equity (ROE), Maohua Shihua has a rate of -15.58%, compared to the industry average of 0.7% [3]

Core Viewpoint - The chairman of Zige Investment, Wang Huan, indicated that under the influence of "anti-involution," certain cyclical commodities are experiencing a turning point in supply-demand dynamics, with coal and petrochemicals being prime examples [1] Group 1: Coal Industry - In the third quarter of this year, the national raw coal production decreased, and expectations for supply-side contraction are expected to strengthen further, leading to a significant increase in the prices of thermal coal and coking coal [1] Group 2: Petrochemical Industry - The turning point for the petrochemical industry is likely to occur around 2026. On one hand, the pressure for OPEC to increase production will largely materialize by 2025; on the other hand, both domestic and international situations are expected to show positive changes [1] - Nearly half of the domestic refining capacity is considered outdated, and the introduction of relevant aging assessment standards is expected to accelerate the exit of inefficient capacity. If the supply side contracts as anticipated, the profitability of the petrochemical industry may soon see an upward turning point [1]

Core Insights - Ningxia Runying Industrial and Trade Co., Ltd. has recently been established with a registered capital of 10 million RMB [1] - The company is involved in a wide range of business activities, including the sale of petroleum products, chemical products, lubricants, and various materials [1] Company Overview - The legal representative of the company is Feng Runjun [1] - The registered capital is 10 million RMB [1] Business Scope - The company operates in general projects such as: - Sales of petroleum products (excluding hazardous chemicals) [1] - Sales of chemical products (excluding licensed chemical products) [1] - Sales of lubricants and specialized chemical products (excluding hazardous chemicals) [1] - Sales of metal materials and non-ferrous metal alloys [1] - Wholesale of automotive parts and rubber products [1] - Sales of environmental protection equipment, construction materials, electronic products, and hardware [1] - Internet sales (excluding licensed products) [1] - Leasing of machinery and equipment [1] - Sales of textiles, plastics, and various technical services [1] Licensing and Regulatory Compliance - The company is authorized to engage in licensed projects such as: - Onshore oil and natural gas extraction [1] - Transportation of hazardous goods by road [1] - Transportation of goods by road (excluding hazardous goods) [1] - The company must obtain approval from relevant authorities to conduct licensed activities [1]

Core Insights - The global economic circularity rate is projected to be only 6.9% in 2024, continuing a downward trend [1] - The "2025 China Petrochemical Industry Circular Economy Blue Book" highlights significant challenges in global circular economy development, including inefficient recycling systems and a predominance of linear product design [4] - If current trends persist, global resource extraction is expected to increase by 60% by 2060, leading to systemic risks such as climate instability and biodiversity loss [4] Group 1: Global Circular Economy Challenges - Key challenges include low recycling efficiency, slow decoupling of economic growth from resource consumption, and the lack of substantial agreements on global plastic pollution [4] - The European Union and China are leading efforts in promoting circular economy, with projections for the global plastic recycling market to grow by 8.3% and the biobased materials market by 25.7% by 2025 [4] Group 2: China's Circular Economy Initiatives - China aims to establish a green, low-carbon circular economy system by 2035, supported by over 300 standards and policies targeting various waste sectors [5] - The development of circular economy in China is expected to reduce carbon dioxide emissions by over 3.5 billion tons in 2024, contributing more than 35% to carbon reduction by 2030 [6] Group 3: Challenges in the Petrochemical Sector - The petrochemical industry faces five major challenges in developing circular economy, including technological maturity, raw material supply issues, and insufficient market premium for green low-carbon value [6] - Recommendations for petrochemical companies include focusing on key technological breakthroughs, establishing stable raw material supply chains, and enhancing market competitiveness through environmental benefits [7]

Core Viewpoint - The company emphasizes its commitment to aligning with the national "14th Five-Year Plan" and seizing market opportunities in frontier areas such as deep sea and deep earth exploration [1] Group 1 - The company is focusing on strategic layout in cutting-edge fields like deep sea and deep earth [1] - The company leverages its technological and manufacturing advantages in the polymer sector to strengthen its existing market position [1] - The company aims to establish a more significant market presence in national strategic frontier areas through dual-driven approaches of technological innovation and market expansion [1]

Core Insights - In June 2025, Shanghai's petroleum coke production reached 124,000 tons, marking a year-on-year increase of 2.8%, with a growth rate 1.7 percentage points higher than the same period last year [1] - For the first half of 2025, the production of petroleum coke in Shanghai was 576,000 tons, reflecting a significant year-on-year decline of 24.8%, with a growth rate 41.6 percentage points lower than the previous year [1] Production Statistics - June 2025 petroleum coke production: 124,000 tons, accounting for 4.9% of the national production of 2,549,000 tons [1] - January to June 2025 petroleum coke production: 576,000 tons, representing 3.7% of the national production of 15,674,000 tons [1] Year-on-Year Comparison - June 2025 growth rate of 2.8% is 5.2 percentage points higher than the national average [1] - The first half of 2025's decline of 24.8% is 20.3 percentage points lower than the national average [1]

Group 1: Report Industry Investment Rating - High-sulfur fuel oil: Neutral, short-term wait-and-see [3] - Low-sulfur fuel oil: Neutral, short-term wait-and-see [3] - Cross-variety: None [3] - Cross-period: None [3] - Spot-futures: None [3] - Options: None [3] Group 2: Core View of the Report - The fuel oil market is running strongly, but there are still macro uncertainties. The sanctions on Russia have led to concerns about supply decline, driving up oil prices and the energy sector. The fuel oil market shows a pattern where high-sulfur is stronger than low-sulfur [1][2] - The impact of sanctions on high-sulfur fuel oil is more significant, but the decline in Russian supply is difficult to quantify. If the actual impact on supply is not high, the upward drive for high-sulfur fuel oil is limited. Low-sulfur fuel oil has weak fundamentals and abundant spot supplies, but the restart of Dangote's RFCC device is expected to relieve local supply pressure [2] Group 3: Summary by Related Catalogs Market Analysis - The main contract of SHFE fuel oil futures closed up 1.28% at 2,842 yuan/ton, and the main contract of INE low-sulfur fuel oil futures closed up 1.21% at 3,267 yuan/ton [2] - Sanctions on Russia have led to concerns about supply decline, driving up oil prices and the energy sector. The fuel oil market is running strongly, but caution is needed due to important macro events [2] - The fuel oil market shows a pattern where high-sulfur is stronger than low-sulfur. The impact of sanctions on high-sulfur fuel oil is more significant, but the decline in Russian supply is difficult to quantify. The demand for fuel oil in the Middle East is expected to decline, and Saudi exports may increase after refinery maintenance. If the actual impact on supply is not high, the upward drive for high-sulfur fuel oil is limited [2] - Low-sulfur fuel oil has weak fundamentals, weak downstream marine fuel demand, and abundant spot supplies. The restart of Dangote's RFCC device is expected to relieve local supply pressure [2] Strategy - High-sulfur: Neutral, short-term wait-and-see [3] - Low-sulfur: Neutral, short-term wait-and-see [3] - Cross-variety: None [3] - Cross-period: None [3] - Spot-futures: None [3] - Options: None [3]

Core Viewpoint - The implementation of a "flat management" model at Daqing Petrochemical has led to improved operational efficiency and problem-solving capabilities in the electrolysis chlorine production unit [1][2] Group 1: Management and Operational Changes - Daqing Petrochemical has adopted a "flat management" model, shifting the focus from control to empowerment, which facilitates quicker technical decision-making directly at the production level [1] - The establishment of a technical communication group allows for rapid professional consultations, enhancing the response to production challenges [1] Group 2: Technical Problem-Solving - A sudden shutdown of the electrolysis chlorine unit prompted immediate action from the production technology team, highlighting the importance of quick response to maintain the production of sodium hypochlorite, a key disinfectant [1][2] - The technician, Wang Gang, effectively diagnosed the issue by consulting with frontline employees and analyzing operational data, leading to the identification of a blockage in the proportioning pump as the cause of the malfunction [2] Group 3: Knowledge Sharing and Training - After resolving the technical issue, Wang Gang shared his troubleshooting experiences and developed a practical maintenance guide for frontline employees, promoting knowledge transfer within the team [2] - The public engineering department has actively engaged in skill training and problem-solving initiatives, conducting over 20 training sessions and addressing five major challenges this year, which enhances the overall operational efficiency [2]

Core Insights - Daqing Petrochemical has achieved significant operational improvements and historical performance records in the first three quarters of 2023, focusing on high-quality development through optimized production, technological innovation, and efficiency enhancement [2][3][4] Group 1: Production and Operational Performance - The company has maintained stable production operations, with a notable continuous operation of the polyethylene unit reaching 704 days, surpassing the previous record of 469 days [2] - Overall equipment stability rate improved to 99.976%, a year-on-year increase of 0.096%, supporting sustained high-efficiency production [2] - From January to September, crude oil processing and synthetic ammonia production exceeded annual plan targets by 12,370 tons and 1,830 tons respectively, ensuring full-load refining and stable supply of fertilizers [2] Group 2: Technological Innovation - Daqing Petrochemical invested 261 million yuan in R&D, a year-on-year increase of 2.45%, focusing on technological breakthroughs and new product development [3] - The company has made significant advancements in equipment optimization and smart upgrades, resulting in a 14.7% increase in predictive maintenance coverage [3] Group 3: Efficiency Enhancement - A total of 516 efficiency enhancement projects were implemented, generating an additional 289 million yuan in benefits, exceeding the interim target [4] - The company has optimized its industrial chain layout, focusing on high-value products and reducing non-production costs through various measures, including energy savings of 11.44 million kWh and steam savings of 440,000 tons [4]

Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 2.78 CNY for A shares and 1.36 HKD for H shares [6]. Core Views - The company experienced a significant recovery in Q3 2025, with a notable increase in gross margins for its main products, despite a decline in sales volume [2][4]. - The company is accelerating its carbon fiber project layout, which is expected to enhance its integrated industrial chain advantages and support the growth of the new materials sector [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported revenue of 589 billion CNY, a year-on-year decrease of 10.8%, and a net profit attributable to shareholders of -4.32 billion CNY, down 4.67 billion CNY year-on-year [1]. - In Q3 2025 alone, the company achieved revenue of 194 billion CNY, a year-on-year decline of 13.8% and a quarter-on-quarter decline of 3.2%, but net profit attributable to shareholders was 0.31 billion CNY, an increase of 0.24 billion CNY year-on-year and a quarter-on-quarter increase of 4 billion CNY [1][2]. Product Sales and Pricing - The sales volumes for gasoline, diesel, and aviation kerosene in the first three quarters of 2025 were 2.47 million tons, 1.79 million tons, and 1.03 million tons, respectively, with average selling prices of 7990 CNY/ton, 6445 CNY/ton, and 4851 CNY/ton, reflecting year-on-year decreases of 8%, 7%, and 12% [2]. - The average crude oil processing cost was 3921 CNY/ton, down 10% year-on-year [2]. Carbon Fiber Project - The company has initiated a project to build a 30,000-ton large tow carbon fiber production facility in Ordos, Inner Mongolia, leveraging its proprietary technology and local green electricity resources [3]. - The project aims to establish 10 production lines by 2027, providing key materials for the wind power, energy storage, and low-altitude industries, thereby supporting the upgrade of China's new materials industry [3]. Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been adjusted downward, with expected net profits of -3.42 billion CNY, 4.31 billion CNY, and 6.61 billion CNY, respectively [4]. - The report anticipates that the company's profitability will improve as downstream demand gradually recovers and oil prices stabilize [4].