Core Viewpoint - Zhongjin Securities report indicates that new Fengming achieved a net profit attributable to shareholders of 709 million yuan in the first half of the year, representing a year-on-year increase of 17.28% [1] Financial Performance - In Q2, the net profit attributable to shareholders was 403 million yuan, showing a year-on-year growth of 22.24% and a quarter-on-quarter increase of 31.44% [1] - The average selling price of major products decreased year-on-year, while PTA sales volume growth contributed to overall revenue increase [1] Production Capacity and Revenue - By mid-2025, the company's PTA production capacity is expected to reach 7.7 million tons [1] - In the first half of the year, PTA revenue was 4.652 billion yuan, compared to 1.18 billion yuan in the same period last year, with sales volume of 1.0879 million tons, up from 226,500 tons year-on-year [1] Strategic Initiatives - The company is actively exploring the industrialization path of bio-based materials [1] - In July 2025, the company announced plans to invest 100 million yuan in Hefei Lif Biotechnology Co., acquiring a 7.0175% stake post-investment [1] - Lif Biotechnology is one of the earliest teams globally to research furan-based materials, and its FDCA technology is expected to enable the company to explore high-end bio-based fibers and green packaging [1]

Group 1: Report Industry Investment Rating - Not provided Group 2: Core Viewpoints of the Report - Domestic PTA device is gradually returning, domestic PTA output is rising, and PTA basis is rapidly declining. OPEC+ will consider increasing oil production again at Sunday's meeting. The spread between PX and naphtha remains stable. With the recent improvement in production and sales and inventory reduction, especially the significant reduction of filament inventory, downstream profits have been significantly restored, and the operating load of polyester has rebounded to 91%. However, due to the decline in crude oil prices and the weakening of the basis, PTA shows weakness. [2] Group 3: Summary of Related Index Data Price and Variation - PTA spot price increased from 4600 to 4610, with a change of 10 [2] - MEG domestic price increased from 4378 to 4385, with a change of 7 [2] - PTA closing price increased from 4672 to 4688, with a change of 16 [2] - MEG closing price decreased from 4288 to 4272, with a change of -16 [2] - 1.4D direct-spun polyester staple fiber price increased from 6535 to 6540, with a change of 5 [2] - Polyester staple fiber basis remained unchanged at 102 [2] - 10 - 11 spread increased from 4 to 6, with a change of 2 [2] - Polyester staple fiber cash flow increased from 240 to 246, with a change of 6 [2] - 1.4D imitation large chemical fiber price remained unchanged at 5650 [2] - The spread between 1.4D direct-spun and imitation large chemical fiber increased from 885 to 890, with a change of 5 [2] - East China water bottle chip price increased from 5822 to 5874, with a change of 52 [2] - Hot-filled polyester bottle chip price increased from 5822 to 5874, with a change of 52 [2] - Carbonated polyester bottle chip price increased from 5922 to 5974, with a change of 52 [2] - Outer disk water bottle chip price remained unchanged at 765 [2] - Bottle chip spot processing fee increased from 422 to 463, with a change of 41.11 [2] - T32S pure polyester yarn price remained unchanged at 10300 [2] - T32S pure polyester yarn processing fee decreased from 3765 to 3760, with a change of -5 [2] - Polyester-cotton yarn 65/35 45S price remained unchanged at 16270 [2] - Cotton 328 price increased from 15005 to 15015, with a change of 10 [2] - Polyester-cotton yarn profit decreased from 1265 to 1258, with a change of -7.1 [2] - Primary three-dimensional hollow (with silicon) price remained unchanged at 7050 [2] - Hollow staple fiber 6 - 15D cash flow decreased from 450 to 439, with a change of -10.89 [2] - Primary low-melting staple fiber price remained unchanged at 7430 [2] Load and Production and Sales Rate - Direct-spun staple fiber load (weekly) increased from 90.60% to 91.10%, with a change of 0.01 [3] - Polyester staple fiber production and sales rate increased from 51.00% to 64.00%, with a change of 13.00% [3] - Polyester yarn start-up rate (weekly) increased from 62.00% to 62.80%, with a change of 0.01 [3] - Regenerated cotton-type load index (weekly) increased from 49.00% to 49.50%, with a change of 0.01 [3]

Commodity Price Information - Crude oil price on September 16, 2025, was $604.88 per ton, up 0.60% from the previous day [1] - Northeast Asia ethylene price on September 16, 2025, was $851 per ton, unchanged from the previous day [1] - East China ethylene oxide ex - factory price on September 16, 2025, was $6300 per ton, unchanged from the previous day [1] - Inner Mongolia brown coal price on September 16, 2025, was $290 per ton, unchanged from the previous day [1] - Main contract settlement price on September 16, 2025, was $4298 per ton, up 0.49% from the previous day [1] - Near - month contract closing price on September 16, 2025, was $4338 per ton, up 0.81% from the previous day [1] - Inner - market ethylene glycol price on September 16, 2025, was $4380 per ton, unchanged from the previous day [1] - Near - far month price difference on September 16, 2025, was - $21 per ton [1] - Ethylene glycol comprehensive price difference on September 16, 2025, was - $14 per ton [1] Operating Rate and Load Rate - Oil - based ethylene glycol operating rate on September 16, 2025, was 65% [1] - Coal - based ethylene glycol operating rate on September 16, 2025, was 8.14% [1] - PTA factory load rate on September 16, 2025, was 88.88% [1] - Jiangsu and Zhejiang PTA textile machine industry load rate on September 16, 2025, was 65.54% [1] Other Information - Outer - market oil - based ethylene glycol price on September 16, 2025, was $126.89 per ton, a decrease of $5.64 from the previous day [1] - Outer - market ethylene price on September 16, 2025, was $141.11 per ton, unchanged from the previous day [1] - After - tax gross profit of coal - based synthesis gas method on September 16, 2025, was $1511.08 per ton, a decrease of $13.8 from the previous day [1] - Polyester price index on September 16, 2025, was $8550 per ton, unchanged from the previous day [1] - Polyester staple fiber price index on September 16, 2025, was $640 per ton, up 0.8% from the previous day [1] - Bottle - grade chip price index on September 16, 2025, was $5850 per ton, up 0.34% from the previous day [1]

Report Summary 1. Report Industry Investment Rating No information provided in the given content. 2. Report's Core Views - **PTA**: Near - end TA maintenance is over, and the start - up rate has increased. Polyester load has slightly risen, inventory is stable, the basis is weak, and spot processing fees are at a low level. PX domestic start - up has increased, and overseas plants have restarted. In the future, TA de - stocking will slow down, and long - term inventory accumulation is expected. However, processing fees are extremely low and have lasted for a long time. With the gradual return of PX supply, attention should be paid to the opportunity to expand processing fees under potential additional maintenance [1]. - **MEG**: Near - end domestic oil - based EG is stable, coal - based start - up has slightly increased, and overall load has recovered. Overseas, there are both maintenance and restarts. Port inventory has slightly accumulated. Downstream stocking levels have increased, the basis has weakened, and the benefit ratio has shrunk. New EG devices are put into operation earlier than expected, and valuations are significantly compressed. In the future, ports may start to gradually accumulate inventory, but the current inventory is not high, and valuations may be slowly compressed. Attention should be paid to the cost support of coal - based production [6]. - **Polyester Staple Fiber**: Near - end plants such as Sanfangxiang and Yizheng have increased their loads, and the start - up rate has reached 94.4%. Production and sales have improved, and inventory has slightly decreased. On the demand side, the start - up rate of the polyester yarn end is stable, raw material stocking has decreased, and finished product inventory has decreased. In the future, the rate of increasing the load at the polyester yarn end may slow down. The start - up rate of staple fiber is expected to remain high due to good spot benefits, and inventory pressure is limited. Processing fees are expected to fluctuate [6]. - **Natural Rubber**: National explicit inventory is stable, and the price of Thai cup lump rubber is stable. Rainfall has affected rubber tapping [6]. 3. Summary by Related Catalogs PTA - **Market Data**: From September 10 - 16, 2025, data on POY, PX CFR, PTA internal spot, etc. are presented, including prices, spreads, and load rates. For example, on September 10, PX CFR was 67.5, and PTA internal spot was 603 [1]. - **Device Changes**: Near - end TA maintenance is over, and the start - up rate has increased [1]. MEG - **Market Data**: From September 10 - 16, 2025, data on MEG internal and external prices, cash flow, load, and inventory are provided. For example, on September 10, MEG internal price was 4439, and the load was 74.9 [6]. - **Device Changes**: Near - end domestic oil - based EG is stable, coal - based start - up has slightly increased, and overall load has recovered. Overseas, there are both maintenance and restarts [6]. Polyester Staple Fiber - **Market Data**: From September 1 - 16, 2025, data on spot prices, spreads, and load rates are given. For example, on September 1, the spot price of 1.4D cotton - type staple fiber was 6540 [6]. - **Device Changes**: Near - end plants such as Sanfangxiang and Yizheng have increased their loads, and the start - up rate has reached 94.4% [6]. Natural Rubber - **Market Data**: From September 1 - 16, 2025, data on prices of Thai glue, cup lump rubber, and various rubber products are presented. For example, on September 1, the price of Thai glue was 1855 [6]. - **Main Contradictions**: National explicit inventory is stable, and the price of Thai cup lump rubber is stable. Rainfall has affected rubber tapping [6]. Other Chemical Products - **Ethylene, Pure Benzene, etc.**: From September 10 - 16, 2025, data on prices and production profits of ethylene, pure benzene, styrene, and related products are provided. For example, on September 10, the price of ethylene (CFR Northeast Asia) was 840, and the production profit of non - integrated styrene was - 338 [10].

Core Viewpoint - Huaxi Co., Ltd. is progressing its chemical fiber expansion project according to the established plan, with all indicators meeting expected targets [2] Company Summary - The company has confirmed that its chemical fiber expansion project is on track and progressing as planned [2] - All performance indicators related to the project have reached the anticipated goals [2]

Core Viewpoint - OPEC+ maintains its production increase stance in October, leading to heightened risks of oversupply in the market, with demand entering a turning point as the traditional fuel consumption season ends [1] Industry Summary - The domestic PTA market has seen a slight decline since September, with major suppliers like Hengli Huizhou and Xin Fengming restarting maintenance units, improving the previously tight supply situation [1] - Current industry operating rates are approximately 77%, with expectations of new installations coming online in October, which will continue to increase domestic supply [1] - Downstream yarn orders have shown a slight recovery compared to last month, although the order volume remains below expectations, positively impacting market sentiment and leading to a moderate increase in polyester staple fiber procurement [1] Market Dynamics - During the "Golden September" period, sales of warm fabric categories have been decent, with the home textile industry contributing to demand growth [1] - Some fabric manufacturers are experiencing a phase of increased demand for autumn and winter fabric samples, with market orders primarily consisting of scattered and small orders [1] - Analysts suggest that with increased PTA supply on the cost side, weak fundamentals in international crude oil, and a lack of expected demand during the peak season, the rise in polyester staple fiber prices is unlikely to continue in the short term, with main contracts expected to fluctuate between 8300 and 8700 [1]

Group 1: Core View - Domestic PTA installations are gradually resuming, leading to an increase in domestic PTA production and a rapid decline in PTA basis. OPEC+ will consider increasing oil production again at Sunday's meeting. The spread between PX and naphtha remains stable. With recent improvements in sales and inventory reduction, especially significant inventory reduction in filaments, downstream profits have been significantly restored, and the operating load of polyester has rebounded to 91%. However, due to the decline in crude oil prices and the weakening of the basis, PTA has shown weak performance [2] Group 2: Market Data Summary PTA and MEG - PTA spot price increased from 4575 to 4600, with a change of 25.00; MEG domestic price decreased from 4386 to 4378, with a change of -8.00. PTA closing price rose from 4648 to 4672, a change of 24.00; MEG closing price increased from 4272 to 4288, a change of 16.00 [2] Short Fiber - 1.4D direct-spun polyester staple fiber rose from 6520 to 6535, with a change of 15.00; short fiber basis increased from 90 to 102, a change of 12.00; 10 - 11 spread decreased from 6 to 4, a change of -2.00; polyester staple fiber cash flow increased from 240 to 246, a change of 6.00; 1.4D imitation large chemical fiber decreased from 5700 to 5650, a change of -50.00; the spread between 1.4D direct-spun and imitation large chemical fiber increased from 820 to 885, a change of 65.00 [2] Bottle Chip - Polyester bottle chip prices in the Jiangsu and Zhejiang markets were in the range of 5820 - 5880 yuan/ton, with the average price rising by 15 yuan/ton compared to the previous working day. The spot processing fee of bottle chips decreased from 469 to 422, a change of -46.70 [2] Others - T32S pure polyester yarn price remained unchanged at 10300; T32S pure polyester yarn processing fee decreased from 3780 to 3765, a change of -15.00; cotton 328 price increased from 14950 to 15005, a change of 55.00; polyester-cotton yarn profit decreased from 1296 to 1265, a change of -30.73; the price of virgin three-dimensional hollow (with silicon) decreased from 7095 to 7050, a change of -45.00; the cash flow of hollow staple fiber 6 - 15D decreased from 514 to 450, a change of -63.69; the price of virgin low-melting staple fiber remained unchanged at 7430 [2] Load and Production and Sales - The weekly load of direct-spun staple fiber increased from 90.60% to 91.10%, a change of 0.01; the production and sales of polyester staple fiber decreased from 64.00% to 51.00%, a change of -13.00%; the weekly start-up rate of polyester yarn increased from 62.00% to 62.80%, a change of 0.01; the weekly load index of recycled cotton-type fiber increased from 49.00% to 49.50%, a change of 0.01 [3]

Core Insights - Teijin's subsidiary in Thailand plans to increase polyester filament production capacity to 620 tons per year to meet the rising demand for recycled polyester filaments driven by resource recycling initiatives and the EU's proposed End-of-Life Vehicles (ELV) regulation [1] Group 1: Production Capacity Expansion - Teijin Polyester (Thailand) Co., Ltd. aims to enhance its production capacity to address the significant growth in demand for recycled polyester filaments [1] - The expansion is influenced by the EU's 2023 ELV regulation proposal, which strengthens recycling efforts and aims to reduce waste [1] Group 2: Market Demand - The demand for polyester filaments with enhanced features such as high strength and flame resistance is continuously increasing due to the new regulations [1] - Teijin's subsidiary, Teijin Frontier, is currently producing yarns that meet these specific demands [1] Group 3: Production Challenges - The production capacity enhancement faces bottlenecks as the front-end processing equipment is tasked with producing both recycled polyester filaments for industrial fibers and functional polyester filaments for other industrial materials [1] - The high-strength recycled polyester filaments and functional polyester filaments produced at the Thai facility are intended for sale in Japan and international markets [1]

Investment Rating - Industry Rating: Neutral (maintained rating) [6] Core Viewpoints - The Ministry of Industry and Information Technology (MIIT) is advancing a series of green factory expansion plans during the 14th Five-Year Plan period, aiming to establish the world's largest and most complete new energy industry chain [1][13] - The basic chemical sector has shown a week-on-week increase of 2.45%, outperforming the CSI 300 index by 1.07 percentage points, ranking 10th among all sectors [4][15] - Key sub-industries with significant week-on-week growth include spandex (+13.32%), potassium fertilizer (+7.27%), and membrane materials (+5.72%) [19][15] Summary by Sections Key News Tracking - MIIT emphasizes the promotion of green manufacturing systems and the establishment of zero-carbon factories and parks [1][13] - The basic chemical sector's performance is highlighted, with a notable increase in various chemical product prices [2][4] Product Price Tracking - Key chemical products such as viscose staple fiber and epoxy chloropropane have seen price increases of 3.1% and 6% respectively [2][3] - The top five chemical products with the highest price increases include carbon dioxide (+16%), natural gas (+14.8%), and epoxy chloropropane (+6%) [2][29] Sector Performance - The basic chemical sector's PB ratio is 2.43, while the overall A-share market's PB is 1.69 [25] - The PE ratio for the basic chemical sector stands at 28.54, compared to 17.39 for the overall A-share market [25] Key Sub-Industry Insights - Focus on sub-industries that are at the bottom of the cycle, with stable demand and global supply dominance, such as MDI and amino acids [5] - Recommendations for companies in the organic silicon and spandex sectors, indicating potential recovery opportunities [5][6]

Investment Rating - The report maintains a "Recommendation" rating for Taihe New Materials (002254) [1] Core Views - The company reported a revenue of 1.903 billion yuan for H1 2025, a decrease of 2.48% year-on-year, with a net profit attributable to shareholders of 26 million yuan, down 77.58% year-on-year [1] - The advanced textile products segment, particularly spandex, continues to face challenges with a revenue of 718 million yuan in H1 2025, down 12.59% year-on-year [7] - The aramid coating industrialization project has commenced trial production, with expectations for gradual market penetration and capacity release in the future [7] Financial Summary - Total revenue projections for 2024A, 2025E, 2026E, and 2027E are 3.929 billion, 4.465 billion, 5.831 billion, and 7.568 billion yuan respectively, with year-on-year growth rates of 0.1%, 13.6%, 30.6%, and 29.8% [3] - Net profit attributable to shareholders is projected to be 90 million, 72 million, 180 million, and 338 million yuan for the same years, with year-on-year growth rates of -73.1%, -19.7%, 150.3%, and 88.2% [3] - The target price for the stock is set at 12.6 yuan, with the current price at 10.19 yuan [3] Industry Insights - The aramid industry is experiencing intensified competition, leading to a slight decline in gross margins due to increased production capacity and weak demand in traditional industrial sectors [7] - The spandex market is facing a supply-demand imbalance, with domestic production capacity reaching 1.43 million tons in H1 2025, an increase of 76,000 tons from the end of 2024, while demand growth remains limited [7] - The company's SAFEBM® battery aramid coating separator project has made significant progress, with small batch orders from clients and ongoing efforts to accelerate industrialization [7]