1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints of the Report - Recently, influenced by the "anti - involution" rumor, the industrial sentiment of PTA has significantly improved, and some short - position funds have reduced their positions to avoid risks. The supply - side of PTA has many maintenance plans in November, and the downstream polyester demand has exceeded expectations after the weather turns cold. The supply - demand of PTA has improved marginally, and the price has rebounded from a low level. However, the expectation of PTA surplus remains unchanged, and the structural contradiction of PX - TA suppresses the repair space of PTA processing fees. The expected price of crude oil on the cost side is also bearish [1]. - In the short term, PX - PTA is expected to fluctuate strongly following the cost side. For operation, consider short - selling on rallies when the single - side 01 contract is above 4700. Regarding processing fees, it is recommended to expand the spread when the TA01 contract processing fee is below 250 [1]. 3. Summary by Relevant Catalogs 3.1 Core Contradictions and Strategy Recommendations 3.1.1 Core Contradictions - The "anti - involution" rumor has improved market sentiment, and the supply - demand of PTA has marginally improved. However, the surplus expectation and structural contradictions still exist [1]. 3.1.2 Trading - Type Strategy Recommendations - **Recent Strategy Review**: Two PTA processing - fee expansion strategies have achieved profit - taking. The first one entered the market on 2025/10/27 (cost 250) and exited on 2025/10/28 (290 exit, profit spread +40). The second one entered on 2025/9/22 (cost 278) and exited on 2025/9/30 (305 exit, profit spread +27) [9]. 3.1.3 Industrial Customer Operation Recommendations - **Polyester Price Range Forecast**: The price ranges of ethylene glycol, PX, PTA, and bottle chips are 3800 - 4300, 6000 - 6800, 4250 - 4750, and 5300 - 5900 respectively. Their current volatilities and historical percentile of volatilities in 3 years are also provided [10]. - **PTA Hedging Strategy**: For inventory management, when the finished - product inventory is high and worried about PTA price decline, it is recommended to short - sell PTA futures to lock in profits. For procurement management, when the procurement inventory is low, it is recommended to buy PTA futures to lock in procurement costs [10]. 3.1.4 Trend Judgement and Strategy Recommendations - **Trend Judgement**: Wide - range fluctuations. - **Price Range**: The TA2601 contract fluctuates in the range of 4400 - 4750. - **Strategy Recommendations**: Consider short - selling on rallies when the 01 contract is above 4700. For the TA01 contract processing fee, it is recommended to expand the spread when it is below 240 [11]. 3.2 This Week's Important Information and Next Week's Concerns 3.2.1 This Week's Important Information - **Positive Information**: The "anti - involution" policy is proposed, and trade frictions between China and the US have eased. Some PTA devices have reduced their loads [14][15]. - **Negative Information**: A new PTA device of Dushan Energy has been put into operation [16]. 3.2.2 Next Week's Important Event Concerns - Monitor the sustainability of polyester load and terminal orders, the implementation of PX and PTA device restart and maintenance plans, and the follow - up measures of the "anti - involution" symposium [17]. 3.3 Disk Interpretation 3.3.1 Price - Volume and Fund Interpretation - **Unilateral Trend**: This week, the PTA disk oscillated in the range of 4500 - 4700. After a downward oscillation, the price rebounded, the position increased, and the trend degree turned positive [18]. - **Fund Movement**: Recently, the net short - position of key PTA seats has decreased, while that of PX has increased. Some funds have transferred short - positions from PTA to PX to avoid risks [20]. - **Monthly Spread Structure**: The PTA monthly spread has strengthened slightly, showing a small C - structure, indicating that the inter - monthly contradiction is not obvious [22]. - **Basis Structure**: The PTA spot basis has mainly oscillated this week, and the market expectation remains poor. There is no obvious contradiction in the spot market, and the basis lacks driving force [32]. 3.4 Valuation and Profit Analysis 3.4.1 Cost Tracking - Track the prices of Brent crude oil, Japanese CFR naphtha, and South Korean xylene [36]. 3.4.2 Upstream Profit Tracking of the Industrial Chain - Analyze the cracking spreads of international and domestic gasoline and diesel, naphtha reforming, aromatic hydrocarbon blending, and PX - TA links [37][41][57]. 3.4.3 Downstream Profit Tracking of the Industrial Chain - Analyze the seasonal trends of polyester comprehensive profit, POY, FDY, DTY, short - fiber processing profits, and bottle - chip processing fees [59][61][62]. 3.5 Supply - Demand and Inventory Deduction 3.5.1 Supply - Demand Balance Sheet Deduction - Provide the supply - demand balance sheets of PX and PTA from January 2024 to December 2025, including production, import, consumption, and inventory data [70]. 3.5.2 Supply - Side and Deduction - **PX**: The supply of PX is expected to remain high in the fourth quarter. If the PTA maintenance plans are implemented as scheduled, PX is expected to accumulate about 200,000 tons of inventory in November. Currently, the PX processing fees are in a good state [71]. - **PTA**: A new PTA device has been put into operation, and some devices have reduced their loads. The social inventory has continued to accumulate. The PTA processing fee has been repaired but remains at a low level [72]. 3.5.3 Demand - Side and Deduction - The polyester load has increased to 91.7%. The terminal weaving orders have improved significantly after the weather turns cold, and the long - fiber inventory has continued to decline. The polyester processing fee is in a healthy state. The bottle - chip processing fee has been continuously repaired, and its load is a determining factor for the future polyester load [85].

Core Viewpoint - The company maintains a "buy" rating due to the positive outlook for the long filament market and the anticipated reversal in PTA profitability [1] Group 1: Financial Performance - In the first three quarters of 2025, the company achieved revenue of 67.397 billion yuan, a year-on-year decrease of 11.38%, while the net profit attributable to shareholders was 1.549 billion yuan, an increase of 53.83% [1] - For Q3 2025, the net profit attributable to shareholders was 0.452 billion yuan, which includes investment income from joint ventures and associates of 0.325 billion yuan and asset disposal gains of 0.279 billion yuan, reflecting a year-on-year increase of 872.09% but a quarter-on-quarter decrease of 6.88% [1] - The company has adjusted its profit forecasts for 2025, projecting net profits of 2.041 billion yuan (down 5.00%), 3.648 billion yuan, and 4.274 billion yuan for 2025-2027, with corresponding EPS of 0.85 (down 0.21), 1.52, and 1.78 yuan [1] Group 2: Sales and Pricing - In Q3 2025, the company's polyester filament sales totaled 3.19 million tons, a year-on-year decrease of 10.9% and a quarter-on-quarter decrease of 7.5% [2] - The sales breakdown for Q3 2025 included POY at 2.36 million tons (73.9%), FDY at 0.53 million tons (16.5%), and DTY at 0.30 million tons (9.5%) [2] - The average price spread for POY in Q3 2025 was 1,171 yuan/ton, a decrease of 9 yuan/ton compared to Q2 [2] Group 3: Industry Outlook - The domestic polyester filament industry is expected to see a slowdown in new capacity growth, with steady demand leading to an increase in profitability [3] - The PTA industry is anticipated to have limited new capacity in the future, and the high concentration of the industry will provide leading companies with pricing power [3] - As of late October 2025, PTA price spreads have dropped to below 100 yuan, resulting in deep losses across the industry, but production companies are expected to have pricing power [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing pressure in the filament industry, but it is expected to benefit from the recovery of PTA prices due to anti-involution measures [1][7] - In the first three quarters of 2025, the company reported a revenue decline of 11.38% year-on-year, but a net profit increase of 53.83% year-on-year, attributed to lower raw material costs and increased investment income [7] - The company has a nominal PTA capacity of 10.2 million tons and is expected to benefit from the gradual improvement in the PTA industry as leading companies collaborate to reduce production [7] Financial Summary - **Revenue Forecast**: The company's main revenue is projected to grow from 61,993.35 million in 2022 to 101,306.83 million in 2024, followed by a decline to 95,756.72 million in 2025, and then a recovery to 110,795.26 million by 2027 [4] - **Net Profit**: The net profit is expected to increase significantly from 130.21 million in 2022 to 2,361.26 million in 2025, reaching 4,408.73 million by 2027 [4] - **Gross Margin**: The gross margin is forecasted to improve from 3.23% in 2022 to 8.94% by 2027 [4] - **Earnings Per Share (EPS)**: EPS is projected to rise from 0.05 in 2022 to 1.83 by 2027 [4] - **Price-to-Earnings Ratio (PE)**: The PE ratio is expected to decrease from 266.32 in 2022 to 7.87 by 2027 [4] Market Position and Strategy - The company is positioned as a leading integrated player in the filament industry, with a focus on expanding into western regions and international markets, which is expected to enhance its long-term growth potential [7] - The average operating rate in the polyester filament industry is around 90%, but weak downstream demand has led to price fluctuations [7] - The PTA industry is expected to see a recovery due to improved cost support and a favorable external trade environment, which may lead to a warmer market for filament products [7]

Group 1: Financial Performance - In the first three quarters of 2025, the company achieved operating revenue of 92.162 billion RMB, a year-on-year decrease of 14.90% [1] - Net profit attributable to shareholders increased to 1.26 billion RMB, a year-on-year increase of 108.91% [1] - Operating cash flow reached 11.788 billion RMB, a year-on-year growth of 251.46% [1] - As of the end of Q3, total assets amounted to 212.803 billion RMB, with net assets attributable to shareholders at 34.331 billion RMB [1] Group 2: Operational Highlights - The company maintained stable operations across its industrial sectors, focusing on "high-end, digital, and green" development strategies [2] - The petrochemical sector's integrated refining and chemical project operated smoothly, with over 70% of products being chemical products [3] - In the new energy and materials sector, EVA production capacity reached 900,000 tons/year, solidifying the company's leading position [4] - The company has successfully launched a 100,000 tons/year POE facility, catering to various customer needs [4] Group 3: Future Development Plans - The company aims to fully embrace artificial intelligence to enhance operational efficiency and competitiveness [7] - Continued focus on the "1+N" industrial strategy to drive innovation and high-end product development [8] - Emphasis on risk management to ensure coordinated development of industry and capital, with a healthy cash flow of 11.788 billion RMB [9] - Confidence in future growth is reflected in the controlling shareholder's plan to increase shareholding by 500 million to 1 billion RMB [10] Group 4: Q&A Insights - The decline in revenue is attributed to lower crude oil prices, while profit margins improved due to operational efficiency measures [11] - The company is strategically positioned to benefit from industry adjustments and policy changes [12] - Current capital expenditures are expected to decrease, with no new large-scale projects planned [12] - The procurement strategy for crude oil remains flexible, adapting to market conditions [12]

Group 1: Collaboration and Product Development - The collaboration with Junsheng Electronics focuses on the development of key components for humanoid robots and the supply of high-performance new materials [1][2] - The company is currently producing fabric materials for robot heads, meeting various performance requirements such as tensile strength, temperature resistance, and aesthetics [2] Group 2: Future Applications of Data Gloves - Data gloves are expected to be used in three main scenarios: remote operation of industrial robots, skill learning for robots, and virtual assembly testing in VR environments [3] Group 3: Market Outlook for Tendon Solutions - The company has received small batch orders from leading domestic and international robot manufacturers for tendon products, which are applicable in various humanoid robot parts [4] - Future focus will be on key products like tendons, smart gloves, and PA66 coating materials, aiming for lightweight, functional, and scalable developments [4] Group 4: Nylon Project and Industry Trends - The nylon fiber market is expected to grow due to the increasing popularity of outdoor and sports apparel, with a focus on sustainable and high-end products [5] - The company aims to integrate technology innovation with sustainable development to enhance the value chain in the nylon industry [5] Group 5: AI Integration in Fashion Design - The company is incorporating AI design systems into its high-end fashion business to meet customized client needs and enhance product differentiation [6] Group 6: Growth Points in Nylon Business - Future growth in the nylon sector will focus on differentiated functional fibers and applications in new consumer markets and humanoid robot coverings [7] Group 7: Financial Performance - In the first three quarters of 2025, the revenue from ultra-high fibers increased by 11.56% year-on-year, with a gross profit increase of 175.24% and a net profit growth of 212% [8] - The company’s foreign trade revenue for ultra-high fibers surged by 256.16% compared to the same period in 2024 [9] Group 8: Employee Stock Ownership Plan - The employee stock ownership plan will not significantly alter the company's equity structure, with a maximum of 10% of the total share capital held by all employees [10] Group 9: Cash Flow and Investment - The decrease in operating cash flow is attributed to increased cash outflows for the 80,000-ton nylon filament project [11] Group 10: Dual-Drive Strategy - The company is implementing a dual-drive strategy of "traditional wool spinning + new materials" to enhance its product matrix and accelerate the development of new materials [12] Group 11: Core Advantages of Nylon Project - The 80,000-ton high-performance differentiated nylon filament project has a total investment of approximately 1.5 billion yuan, focusing on advanced production systems and market positioning [11] Group 12: New Application Areas for Ultra-High Business - The ultra-high business is expanding into new markets such as fishing lines, civilian textiles, and robot tendons, with a focus on high-performance product development [12] Group 13: Performance Standards for Tendon Materials - The lifespan of tendon materials is targeted to reach 100,000 cycles for household use and 1,000,000 cycles for industrial applications, with plans for further development [13]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has shown resilience in its financial performance despite a weak supply-demand environment in the short term, with a focus on long-term growth potential in the polyester filament industry [4][6] - The company reported a revenue of 51.542 billion yuan for the first three quarters of 2025, a year-on-year increase of 4.77%, and a net profit attributable to shareholders of 0.869 billion yuan, up 16.53% year-on-year [1][2] Financial Performance Summary - For Q3 2025, the company achieved a revenue of 18.051 billion yuan, a year-on-year increase of 0.71%, but a quarter-on-quarter decrease of 4.66% [2] - The net profit for Q3 2025 was 0.160 billion yuan, reflecting a year-on-year increase of 13.30% but a significant quarter-on-quarter decline of 60.36% [2] - The company’s average selling prices for its main products (POY, FDY, DTY, and short fibers) decreased year-on-year, but the decline was less than the drop in raw material costs [4] Industry Outlook - The supply-demand dynamics in the polyester filament market are expected to improve gradually, with the company positioned as a leading player benefiting from enhanced cost control and market share [4][6] - The average Brent crude oil price for the first three quarters of 2025 was 70 USD/barrel, down 15% year-on-year, which has contributed to a decrease in raw material costs for the company [4] Earnings Forecast - The company’s projected net profits for 2025, 2026, and 2027 are 1.169 billion yuan, 1.369 billion yuan, and 1.582 billion yuan, respectively, with corresponding growth rates of 6.3%, 17.1%, and 15.5% [6] - The estimated EPS (diluted) for the same years is expected to be 0.77 yuan, 0.90 yuan, and 1.04 yuan, with P/E ratios of 21.28, 18.17, and 15.73, respectively [6]

Core Insights - The company's Q3 net profit attributable to shareholders increased by 13.3% year-on-year but decreased by 60.4% quarter-on-quarter, with revenue at 18.05 billion yuan, reflecting a 0.7% year-on-year growth and a 4.7% quarter-on-quarter decline [1] Group 1: Financial Performance - Q3 revenue was 18.05 billion yuan, showing a year-on-year increase of 0.7% but a quarter-on-quarter decrease of 4.7% [1] - The net profit attributable to shareholders was 160 million yuan, representing a year-on-year increase of 13.3% but a significant quarter-on-quarter decline of 60.4% [1] - Gross margin and net margin were reported at 5.0% and 0.9%, respectively, with a period expense ratio of 4.3% [1] Group 2: Production and Sales - The production of polyester filament yarn (POY), fully drawn yarn (FDY), and drawn textured yarn (DTY) was 1.42 million tons, 390,000 tons, and 260,000 tons, respectively, with year-on-year increases of 11%, 4%, and 23% [2] - Sales volumes for POY, FDY, and DTY were 1.34 million tons, 420,000 tons, and 260,000 tons, showing year-on-year changes of -10%, +8%, and +27% [2] - The average selling prices for POY, FDY, and DTY were 6,094 yuan/ton, 6,331 yuan/ton, and 7,840 yuan/ton, reflecting year-on-year declines of 12%, 19%, and 10% [2] Group 3: Industry Context - The PTA production capacity was 7.7 million tons, with a significant year-on-year increase in production by 456% to 590,000 tons [3] - The average selling price of PTA was 4,195 yuan/ton, down 20% year-on-year [3] - The polyester filament yarn industry in Jiangsu and Zhejiang regions had an operating rate of 92%, with downstream weaving machines operating at 59% [2][3]

Core Viewpoint - The company reported a decline in revenue for the first three quarters of 2025, but a significant increase in net profit, indicating a strong recovery in profitability despite lower sales volumes and prices [1][3]. Financial Performance - For Q3 2025, the company achieved revenue of 232.39 billion yuan, a year-on-year decrease of 16.51%, while net profit reached 4.52 billion yuan, marking a substantial turnaround from losses [1]. - In the first three quarters of 2025, total revenue was 673.97 billion yuan, down 11.38% year-on-year, with a net profit of 15.49 billion yuan, up 53.83% [1]. - The average selling price of polyester filament was 6,320 yuan/ton, down 10.4% year-on-year, while PTA revenue was 51.2 billion yuan, a slight increase of 0.3% [1]. Cost and Margin Analysis - The company’s comprehensive gross margin improved to 5.81%, an increase of 0.67 percentage points year-on-year, driven by lower raw material costs [1]. - In Q3 2025, the gross margin decreased to 4.0%, down 2.0 percentage points from the previous quarter, due to rising costs of key raw materials [2]. Industry Position and Strategy - The company maintains its position as the largest polyester filament producer globally, with a complete supply chain from raw materials to finished products [3]. - The company has invested in upstream resources, including a 20% stake in Zhejiang Petrochemical, and is developing coal gas projects to enhance its production capabilities [3]. - The company plans to achieve full integration of its supply chain by 2026-2027, which includes coal, oil, and gas resources [3]. Future Outlook - The company is projected to achieve net profits of 19.6 billion, 25.3 billion, and 30.9 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.81, 1.05, and 1.29 yuan [3]. - The current stock price corresponds to PE ratios of 18, 14, and 11 for the next three years, maintaining an "overweight" investment rating [3].

Group 1 - The Federal Open Market Committee (FOMC) meeting in October resulted in a 25 basis point rate cut, lowering the federal funds target rate to a range of 3.75%-4.00% [2][27] - The meeting statement maintained a dovish tone, indicating a slowdown in employment growth and rising risks to employment, while inflation remains slightly elevated [2][27] - The expectation is for another rate cut in December and potentially three more cuts next year, with non-farm payrolls showing weak performance recently [2][29] Group 2 - As of Q3 2025, the active pharmaceutical fund size reached 237.3 billion yuan, an increase of 45.7 billion yuan from Q2 2025, while passive pharmaceutical funds also saw a rise to 186.3 billion yuan [4] - The top three sectors for active pharmaceutical funds were innovative drugs (40%), traditional pharmaceuticals (34%), and CDMO (16%), with significant increases in holdings for companies like Innovent Biologics and Hengrui Medicine [4] - The pharmaceutical sector's heavy holdings in all funds decreased by 0.4 percentage points to 9.8%, indicating potential for increased allocation [4] Group 3 - Water Sheep Co., Ltd. reported a revenue of 3.409 billion yuan for the first three quarters of 2025, a year-on-year increase of 11.96%, with a net profit of 136 million yuan, up 44.01% [6] - The company is successfully transitioning to a high-end brand matrix and has increased R&D investment, applying for 18 patents in the first half of the year [6][8] - Future revenue projections for Water Sheep are set at 4.86 billion yuan for 2025, with net profits expected to be 200 million yuan [8] Group 4 - Beitaini's revenue for the first three quarters of 2025 was 3.464 billion yuan, a decrease of 13.78%, but Q3 saw a revenue of 1.092 billion yuan, a decline of 9.95% [9] - The company is focusing on core products and reducing promotional expenses while enhancing R&D efforts in collaboration with research institutes in Japan and France [9] - Revenue forecasts for Beitaini are adjusted to 5.679 billion yuan for 2025, with net profits expected to be 465 million yuan [9] Group 5 - Jin Hui Wine achieved a revenue of 546 million yuan in Q3 2025, a decline of 4.89%, with a net profit of 25 million yuan, down 33.02% [11] - The company is focusing on improving operational quality in its home province while adjusting its distribution strategy in other regions [11] - Future net profit projections for Jin Hui Wine are set at 379 million yuan for 2025, maintaining a "buy" rating [11] Group 6 - CIMC Anrui Co., Ltd. has seen rapid revenue growth, from 12.29 billion yuan in 2020 to an expected 24.76 billion yuan in 2024, with a CAGR of 19% [17] - The company is a leader in the clean energy equipment sector, benefiting from the energy transition and expanding into hydrogen and green methanol [17] - Profit forecasts for CIMC Anrui are set at 1.253 billion yuan for 2025, with an EPS of 0.62 yuan [17]

Group 1: PTA Industry Overview - Domestic PTA spot prices have been declining since mid-August, leading to continued pressure on PTA production companies. The processing fee for PTA has dropped to a historical low of around 100 yuan/ton, with unit losses reaching 330 yuan/ton [1] - Despite the poor operating conditions for PTA, the operating load of PTA facilities has only decreased slightly, standing at 75.07% as of October 27, which is a decline of 3.55 percentage points since mid-August and 7.68 percentage points year-on-year [1] - The weekly production of PTA has fallen to approximately 1.4 million tons, slightly below market demand levels, indicating a gradual easing of supply-demand tensions [1] Group 2: Polyester Industry Performance - The polyester industry is currently in a demand peak season, with operating loads remaining high at 89.64% as of October 27, an increase of 1.05 percentage points year-on-year [2] - Profitability is observed in the production of POY and DTY polyester products, while losses in other polyester products are manageable [2] - There are plans for production cuts in some facilities, and the launch of new capacities has been delayed, indicating a potential weakening in polyester demand expectations [2] Group 3: Apparel Export Trends - China's apparel export value reaches hundreds of billions of dollars, with external demand being a significant component of the domestic apparel industry [3] - In September, the export value of clothing and accessories was $12.453 billion, a year-on-year decline of 7.97%. Cumulatively, from January to September, the export value was $115.227 billion, a decrease of $3.248 billion or 2.74% year-on-year [3] - Approximately 6% of total apparel exports are directed to the U.S. As U.S.-China trade tensions ease, market confidence is expected to improve, benefiting the apparel and chemical fiber industries [3]