1. Report Industry Investment Rating No information provided in the documents. 2. Core Views of the Report - PTA: The start - up of PTA devices has rebounded slightly, polyester load has increased, inventory has continued to decline, basis has weakened month - on - month, and spot processing fees have declined. PX domestic start - up is stable, overseas devices are restarted, PXN has weakened month - on - month. Although TA inventory continues to decline, its structure and efficiency are still weakening. Considering the lack of unexpected performance in polyester and subsequent new production, there is an expectation of inventory accumulation in the far - month. However, the processing fee has reached a very low level, and PX supply is gradually recovering. One can pay attention to the opportunity of expanding the processing fee at low prices [1]. - MEG: Recently, domestic oil - based production has increased the load, coal - based start - up has slightly declined, the overall load has decreased, overseas maintenance has increased. At the beginning of the week, port inventory continued to decline, and the arrival of goods within the week has rebounded. Downstream inventory levels have decreased, and the basis has strengthened month - on - month. There is an expectation of inventory accumulation in the far - month due to the return of maintenance and the commissioning of new devices. The pattern is not bad, and the profit level is also considerable. It is expected to fluctuate in a relatively wide range. One should pay attention to the restart progress of Satellite and Xinrun [8]. - Polyester Staple Fiber: Recently, the start - up of Xin凤鸣, Times Hollow, and Zhongtai has increased, and the start - up rate has reached 93.9%. Sales have weakened month - on - month, and inventory has remained stable month - on - month. On the demand side, the start - up of the polyester yarn end has slightly increased, raw material inventory has rebounded, and finished product inventory has continued to accumulate, with weak efficiency. In the future, the start - up rate of the polyester yarn end may slow down after the accumulation of finished product inventory. It is expected that the start - up will remain high under the good spot efficiency of staple fiber, and the processing fee is expected to fluctuate [8]. - Natural Rubber: The national explicit inventory remains stable at an absolute level, and the price of Thai cup rubber remains stable. The strategy is to wait and see [8]. 3. Summaries According to Related Catalogs PTA - **Device Changes**: Dushan Energy's 2.5 million - ton device and Hengli Huizhou's 2.5 million - ton device have been restarted [1]. - **Market Data**: From September 5th to 11th, 2025, the price of PTA internal - market spot fluctuated, the PX processing difference changed slightly, and the polyester production and sales rate also had certain fluctuations [1]. MEG - **Device Changes**: Shaanxi Weihua's 300,000 - ton device, Inner Mongolia Jianyuan's 260,000 - ton device, and Xinjiang Tianying's 150,000 - ton device have been under maintenance [8]. - **Market Data**: From September 5th to 11th, 2025, the prices of MEG in various markets such as the East China market, far - month market, and coal - based market have changed to different degrees, and the profit and load have also shown corresponding changes [8]. Polyester Staple Fiber - **Device Changes**: Recently, Xin凤鸣, Times Hollow, and Zhongtai have increased their loads, and the start - up rate has reached 93.9% [8]. - **Market Data**: From September 5th to 11th, 2025, the prices of various types of staple fibers and related products such as pure polyester yarn and polyester - cotton yarn have changed to different degrees, and the load and profit have also shown corresponding changes [8]. Natural Rubber - **Market Data**: From September 5th to 11th, 2025, the prices of various types of natural rubber such as Shanghai full - latex, Shanghai 3L, and Thai cup rubber have changed to different degrees, and the price difference and processing profit have also shown corresponding changes [8]. Other Chemical Products - **Ethylene, Pure Benzene, Styrene, etc.**: From September 5th to 11th, 2025, the prices of ethylene (CFR Northeast Asia), pure benzene (CFR China), styrene (East China), etc. have changed to different degrees, and the production profits of related products such as ABS, EPS, and PS have also shown corresponding changes [8].

Group 1: Report Industry Investment Rating - Not provided in the content Group 2: Core Viewpoints of the Report - The supply reduction supports the price resilience of PTA, and its driving force depends on the terminal volume. The polyester industry chain presents a demand - driven repair, with PX - PTA prices likely to enter a bottom - oscillation stage. The inventory pressure of polyester staple fiber and some filament varieties still needs continuous terminal volume to digest, while POY has more price elasticity due to healthy inventory [2][7] Group 3: Summary by Relevant Catalogs 1. Daily Market Summary PTA & PX - On September 10, the PX main contract closed at 6,770.0 yuan/ton, up 0.65% from the previous trading day, with a basis of - 149.0 yuan/ton. The PTA main contract closed at 4,698.0 yuan/ton, up 0.43% from the previous trading day, with a basis of - 88.0 yuan/ton. The Brent crude oil main contract closed at 66.53 dollars/barrel, and WTI at 62.77 dollars/barrel. The total transaction volume of the Light Textile City was 702.0 million meters, with a 15 - day average transaction of 662.8 million meters [2] - On the supply side, there is a short - term tightening expectation for PX supply. The PX plant operating rate has decreased slightly, and the PTA load has dropped, which may force PX manufacturers to adjust the operating rate. For PTA, some large - scale plants have entered maintenance, and the overall industry load has dropped below 75%, which may support the PTA price [3] - On the demand side, the polyester demand still has resilience, but the risk of marginal weakening increases. The current polyester operating rate remains at a high level of 89%, but attention should be paid to the continuous accumulation of terminal grey fabric inventory and the fading of the pre - effect of European and American autumn and winter orders, which may suppress the subsequent replenishment momentum [4] - On the inventory side, the de - stocking intensity of PTA factories is a key variable. Although the absolute value of social inventory is still at the median level in the past three years, the available inventory days have decreased from 4.5 days to 3.8 days (a month - on - month decrease of 15.6%), indicating a marginal relief of inventory pressure. If the downstream stocking demand is released later, the PTA price center may move up [5] Polyester - On September 10, the short - fiber main contract closed at 6,364.0 yuan/ton, up 0.19% from the previous trading day. The spot price in the East China market was 6,465.0 yuan/ton, up 5.0 yuan/ton from the previous trading day, with a basis of 101.0 yuan/ton [6] - The current supply - demand pattern of the polyester industry chain is differentiated but generally stable. On the supply side, the prices of PX and PTA futures have declined, indicating loose supply or weakened cost support. On the demand side, the MA15 data of the China Light Textile City's trading volume has increased by 17% from September 1 to September 10, indicating a recovery in terminal weaving demand. On the inventory side, the inventory of polyester staple fiber is 6.97 days, far exceeding the five - year average of 4.96 days. Among filament varieties, the inventories of FDY (26.4 days) and DTY (29.7 days) are also higher than the historical averages, while the POY inventory of 17.4 days is lower than the historical center [6] 2. Industrial Chain Price Monitoring - PX futures: The main contract price was 6,770 yuan/ton on September 10, up 0.65% from the previous day. The main contract trading volume increased by 4.12% [8] - PTA futures: The main contract price was 4,698 yuan/ton on September 10, up 0.43% from the previous day. The main contract trading volume increased by 32.76% [8] - Short - fiber futures: The main contract price was 6,364 yuan/ton on September 10, up 0.19% from the previous day. The main contract trading volume decreased by 13.13% [8] - Other prices: The prices of Brent crude oil, WTI, CFR Japan naphtha, ethylene glycol, polyester chips, polyester bottle chips, polyester POY, polyester DTY, and polyester FDY remained unchanged on September 10 compared with the previous day [8] - Processing spreads: The processing spread of PTA decreased by 3.43 yuan/ton (3.57%) on September 10 compared with the previous day, while other processing spreads remained unchanged [9] - Light Textile City trading volume: The total trading volume on September 10 was 702 million meters, up 10.38% from the previous day. The trading volume of long - fiber fabrics was 558 million meters, and that of short - fiber fabrics was 145 million meters [9] - Industrial chain load rates: The load rates of PTA factories, polyester factories, and Jiangsu and Zhejiang looms remained unchanged on September 10 compared with the previous day [9] - Inventory days: The inventory days of polyester staple fiber, POY, FDY, and DTY increased on September 10 compared with previous data [9] 3. Industrial Dynamics and Interpretations Macro Dynamics - On September 9, the U.S. Senate panel will vote on the nomination of the Federal Reserve governor in Milan on Wednesday, and a full - scale vote will be held after approval. The New York Fed survey shows that the public expects the unemployment rate and unemployment risk to rise and expects the Fed to cut interest rates next week. Saudi Arabia has lowered the crude oil price for the Asian market. China's imports and exports in August increased by 3.5% year - on - year to 3.87 trillion yuan [10] Supply - Demand - Demand - On September 10, the total trading volume of the Light Textile City was 702.0 million meters, a month - on - month increase of 10.38%. The trading volume of long - fiber fabrics was 558.0 million meters, and that of short - fiber fabrics was 145.0 million meters [11] 4. Industrial Chain Data Charts - The report provides multiple data charts, including PX and PTA main futures and basis, PX and PTA spot prices, PX capacity utilization, PTA futures month - spreads, short - fiber futures month - spreads, industrial chain load rates, polyester staple fiber and filament production and sales, China Light Textile City trading volume moving average, and polyester product inventory days [12][14][16][18][20][21][24][25][27][29][30][31] 5. Appendix: Big Model Inference Process - Analyze the future price trends of PTA and PX from three dimensions: supply, demand, and inventory. On the supply side, the price increases of PX and PTA main contracts may indicate supply tightness, and the impact of crude oil price trends on PX cost needs to be considered. On the demand side, the trading volume data of the Light Textile City is crucial. High trading volume may indicate increased demand for PTA. On the inventory side, although the PTA factory inventory data is missing, the basis and price trends can be used to infer the inventory level. Finally, comprehensively analyze the three aspects to predict the future price trends of PTA and PX [38][39][40]

Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core Viewpoints - OPEC+ plans to increase production, leading to a significant drop in crude oil prices. Domestic PTA plants are gradually resuming operations, resulting in a rise in PTA production and a rapid decline in PTA basis. The spread between PX and naphtha remains stable. With the recent improvement in sales and inventory reduction, especially the significant reduction in 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 has shown weak performance [2] Group 3: Summary of Related Catalogs Price Changes - PTA spot price increased from 4605 to 4625, a change of 20.00; PTA closing price rose from 4678 to 4698, a change of 20.00 [2] - MEG domestic price decreased from 4454 to 4439, a change of -15.00; MEG closing price dropped from 4322 to 4319, a change of -3.00 [2] - 1.4D direct-spun polyester staple fiber price increased from 6535 to 6540, a change of 5.00; short fiber basis decreased from 82 to 65, a change of -17.00 [2] - 10 - 11 spread decreased from 17 to 14, a change of -3.00; polyester staple fiber cash flow increased from 240 to 246, a change of 6.00 [2] - 1.4D imitation large chemical fiber price remained unchanged at 5700; the price difference between 1.4D direct-spun and imitation large chemical fiber increased from 835 to 840, a change of 5.00 [2] - East China water bottle chip price decreased from 5868 to 5856, a change of -9.00; hot-filled polyester bottle chip price dropped from 5887 to 5859, a change of -28.00 [2] - Carbonated polyester bottle chip price decreased from 5987 to 6966, a change of -28.00; foreign water bottle chip price increased from 765 to 766, a change of 1.00 [2] - Bottle chip spot processing fee decreased from 439 to 418, a change of -21.08; T32S pure polyester yarn price remained unchanged at 10300 [2] - T32S pure polyester yarn processing fee decreased from 3765 to 3760, a change of -5.00; polyester-cotton yarn 65/35 45S price remained unchanged at 16300 [2] - Cotton 328 price decreased from 14980 to 14955, a change of -25.00; polyester-cotton yarn profit increased from 1305 to 1311, a change of 6.13 [2] - Virgin three-dimensional hollow (with silicon) price remained unchanged at 7110; hollow staple fiber 6 - 15D cash flow decreased from 481 to 469, a change of -12.08 [2] - Virgin low-melting staple fiber price remained unchanged at 7450 [2] Load and Production and Sales - Direct-spun staple fiber load (weekly) increased from 90.60% to 91.10%, a change of 0.01 [3] - Polyester staple fiber production and sales increased from 45.00% to 54.00%, a change of 9.00% [3] - Polyester yarn startup rate (weekly) increased from 62.00% to 62.80%, a change of 0.01 [3] - Recycled cotton-type load index (weekly) increased from 49.00% to 49.50%, a change of 0.01 [3]

Report Industry Investment Ratings - Crude Oil: Bearish [1] - LPG: Cautiously Bearish [1] - L: Bearish Consolidation [1] - PP: Bearish Consolidation [1] - PVC: Bearish Continuation [1] - PX: Cautiously Bullish [1] - PTA: Cautiously Bullish [2] - Ethylene Glycol: Cautiously Bearish [2] - Methanol: Cautiously Bearish [2] - Urea: Cautiously Bearish [2] - Asphalt: Cautiously Bearish [3] - Glass: Bearish Consolidation [3] - Soda Ash: Bearish Consolidation [3] Core Views - Crude oil prices are trending downward due to supply surplus despite a slight geopolitical boost. LPG follows the cost - side oil price rebound but has a bearish outlook. L and PP are in bearish consolidation with potential long - entry opportunities. PVC remains bearish with high inventory pressure. PX and PTA are cautiously bullish considering supply - demand and macro factors. Ethylene glycol, methanol, and urea are cautiously bearish due to supply - demand imbalances. Asphalt is bearish due to high valuation and weak cost. Glass and soda ash are in bearish consolidation with different supply - demand situations [1][2][3]. Summary by Variety Crude Oil - **Market Performance**: Overnight international oil prices rebounded, with WTI up 0.73%, Brent up 1.66%, and SC up 0.56% [4]. - **Basic Logic**: Geopolitical events slightly boosted oil prices, but OPEC+ plans to increase production in October, and the US consumption peak season is over, leading to inventory accumulation and reduced demand support. Prices may drop to around $60 in the long - term [5]. - **Fundamentals**: OPEC+ will increase production by 137,000 barrels per day in October. US commercial crude and product inventories rose, and SPR inventory increased. China's crude imports in August were 49.492 million tons, with a 2.5% year - on - year increase in the cumulative imports from January to August [6]. - **Strategy**: Hold short positions. Focus on the range of [475 - 495] for SC [7]. LPG - **Market Performance**: On September 10, the PG main contract closed at 4,437 yuan/ton, up 0.54% [10]. - **Basic Logic**: It rebounds following the oil price, but the upstream oil has a bearish outlook due to over - supply. The supply and demand situation shows a slight change in supply and relatively stable demand [11]. - **Strategy**: Hold short positions. Focus on the range of [4400 - 4500] for PG [12]. L - **Market Performance**: The L2601 contract closed at 7,229 yuan/ton [16]. - **Basic Logic**: North China's spot price is stable, and the basis strengthens slightly. Supply pressure will ease due to increased device maintenance, and demand is supported by the peak season of shed films [17]. - **Strategy**: Look for long - entry opportunities on pullbacks. Focus on the range of [7200 - 7300] for L [17]. PP - **Market Performance**: The PP2601 contract closed at 6,949 yuan/ton [21]. - **Basic Logic**: Spot prices stop falling and stabilize, and the basis strengthens. Supply may decrease due to planned device maintenance, while demand is entering the peak season, and cost is supported [21]. - **Strategy**: Look for long - entry opportunities on pullbacks. Focus on the range of [6900 - 7000] for PP [21]. PVC - **Market Performance**: The V2601 contract closed at 4,847 yuan/ton [25]. - **Basic Logic**: Warehouse receipts are accelerating registration, and the market is in a bearish situation with high inventory and weak demand. Export may be affected by policies [26]. - **Strategy**: Be cautious about short - selling. Focus on the range of [4750 - 4900] for V [26]. PX - **Market Performance**: On September 5, the PX spot price was 6,781 yuan/ton [29]. - **Basic Logic**: Supply - side devices are slightly increasing production, while demand is weak but expected to improve. The supply - demand tight balance is expected to ease, and macro factors are complex [29]. - **Strategy**: Close short positions and look for low - entry long opportunities. Focus on the range of [6740 - 6820] for PX511 [30]. PTA - **Market Performance**: On September 5, PTA in East China was 4,585 yuan/ton [32]. - **Basic Logic**: Supply is affected by device maintenance and new capacity, and demand shows signs of recovery. The supply - demand tight balance in September is expected to ease in the fourth quarter. TA processing fees are low [33]. - **Strategy**: Close short positions, look for low - entry long opportunities for TA, and opportunities to expand PTA processing fees. Focus on the range of [4670 - 4720] for TA01 [34]. Ethylene Glycol - **Market Performance**: On September 5, the spot price of ethylene glycol in East China was 4,488 yuan/ton [36]. - **Basic Logic**: Domestic devices are slightly increasing production, and overseas devices change little. Demand is improving, but cost support is weakening. Inventory is relatively low [37]. - **Strategy**: Hold short positions and look for high - entry short opportunities. Focus on the range of [4285 - 4330] for EG01 [38]. Methanol - **Market Performance**: On September 5, the spot price of methanol in East China was 2,310 yuan/ton [39]. - **Basic Logic**: Supply pressure increases due to the recovery of domestic and overseas devices. Demand is weak, and inventory is accumulating. Cost support is weakening [40]. - **Strategy**: Do not short actively. Look for low - entry long opportunities for the 01 contract. Focus on the range of [2380 - 2410] for MA01 [41].

Group 1 - The emphasis on deep integration of "two new" initiatives is crucial for addressing new growth challenges [2] - The focus on strengthening and optimizing the manufacturing and real economy sectors is highlighted, with a push for advanced manufacturing clusters [2] - The importance of collaboration between enterprises, universities, and research institutions to drive innovation and application transformation is stressed [2] Group 2 - The promotion of consumption transformation and upgrading is a key area of concern, with a focus on responsible management in the media and content sectors [3] - The need for leveraging landmark venues for impactful events and integrating culture, sports, and tourism to meet diverse consumer demands is emphasized [3] - The commitment to cultural heritage protection and the enhancement of research and dissemination of cultural relics is reinforced [3]

Core Viewpoint - Tongkun Co., Ltd. reported a decrease in revenue for the first half of 2025, with a total revenue of 44.158 billion yuan, down 8.41% year-on-year, while net profit attributable to shareholders increased by 2.93% to 1.097 billion yuan [1] Group 1: Financial Performance - In Q2 2025, the company achieved revenue of 24.738 billion yuan, a year-on-year decrease of 8.73%, but a quarter-on-quarter increase of 27.38% [1] - The net profit for Q2 2025 was 486 million yuan, showing a slight year-on-year increase of 0.04% but a quarter-on-quarter decrease of 20.54% [1] Group 2: Product Performance - The main revenue contributors were polyester filament and purified terephthalic acid (PTA), with revenues of 37.932 billion yuan and 3.521 billion yuan, respectively, accounting for 86% and 8% of total revenue [1] - Production and sales volumes for key products were as follows: POY (4.8696 million tons produced, 4.3796 million tons sold), FDY (1.0877 million tons produced, 1.0295 million tons sold), DTY (585.6 thousand tons produced, 543.5 thousand tons sold), and PTA (767.5 thousand tons produced, 825.1 thousand tons sold) [1] - Price changes for key products were: POY at 6,160.30 yuan/ton (-9.99% YoY), FDY at 6,464.69 yuan/ton (-15.90% YoY), DTY at 7,688.11 yuan/ton (-9.07% YoY), and PTA at 4,267.54 yuan/ton (-19.11% YoY) [1] Group 3: Company Background and Industry Position - Tongkun Co., Ltd. is the largest polyester filament producer globally, with a comprehensive product range including various types of polyester filament [2] - The company has a strong market position, ranking 34th among China's top 500 private enterprises and 25th among China's top 500 private manufacturing enterprises in 2025 [2] Group 4: Production Capacity and Supply Chain - As of mid-2025, the company has a total of 13 million tons of polymerization capacity and 13.5 million tons of filament capacity, leading the industry in filament capacity and output [3] - The company has established multiple production bases across China, ensuring a robust supply chain, with PTA production capacity of 10.2 million tons, achieving self-sufficiency in raw materials [3] Group 5: Profitability Forecast - The company is expected to maintain a compound annual growth rate (CAGR) of 40.53% in net profit attributable to shareholders over the next three years, with a target price of 18.00 yuan based on a 20x PE ratio for 2025 [3]

Core Viewpoint - The company reported a revenue of 33.49 billion yuan for H1 2025, reflecting a year-on-year increase of 7.1%, and a net profit attributable to shareholders of 710 million yuan, up 17.3% year-on-year [1] Group 1: Financial Performance - In Q2 2025, the company achieved a revenue of 18.93 billion yuan, representing a year-on-year growth of 12.6% and a quarter-on-quarter increase of 30.1% [1] - The net profit for Q2 2025 was 400 million yuan, showing a year-on-year increase of 22.2% and a quarter-on-quarter rise of 31.4% [1] - The company’s overall gross margin and net margin for H1 2025 were 6.4% and 2.1%, respectively, with year-on-year changes of +0.4 percentage points and +0.2 percentage points [2] Group 2: Production and Capacity - The company increased its production capacity by launching two polyester filament production lines, raising total annual capacity to 8.45 million tons, a 650,000-ton increase from the end of 2024 [2] - The PTA production capacity reached 7.7 million tons following the trial production of the third PTA unit at Dongshan Energy [2] - Sales volumes for various products in H1 2025 included 2.416 million tons of POY, 717,000 tons of FDY, 440,000 tons of DTY, 637,000 tons of polyester staple fiber, and 1.088 million tons of PTA, with significant year-on-year growth in PTA sales by 380.3% [2] Group 3: Market Outlook - The upcoming peak season in September and October is expected to improve market conditions, with increased operating rates in Jiangsu and Zhejiang regions [3] - The industry is experiencing a reduction in inventory levels, with POY, FDY, and DTY inventories decreasing by 10.2 days, 11.9 days, and 4.9 days, respectively [3] - The concentration in the polyester filament industry is increasing, with the CR6 rising from approximately 85% in 2023 to 87% in 2024, indicating a more favorable supply-demand balance [3] Group 4: Future Projections - The company is expected to add approximately 2 million tons of new annual capacity in 2025, with a projected net profit attributable to shareholders of 1.64 billion yuan, 2.29 billion yuan, and 2.70 billion yuan for the years 2025 to 2027, respectively [4] - The expansion pace in the polyester filament industry is slowing, with a projected 2.3% year-on-year decline in total capacity for 2024 [4]

Group 1: Financial Performance - In H1 2025, the company achieved revenue of 44.16 billion yuan, a year-on-year decrease of 8.4%, and a net profit attributable to shareholders of 1.1 billion yuan, an increase of 2.9% year-on-year [1] - In Q2 2025, the company reported revenue of 24.74 billion yuan, a year-on-year decrease of 8.7% but a quarter-on-quarter increase of 27.4% [1] - The company's net profit attributable to shareholders in Q2 2025 was 490 million yuan, remaining stable year-on-year but down 20.5% quarter-on-quarter [1] Group 2: Production and Sales - The company has a production capacity of 13.5 million tons per year for polyester filament and 10.2 million tons per year for PTA, leading the industry in scale [2] - In H1 2025, the company sold 5.953 million tons of polyester filament, a year-on-year increase of 1.3%, and PTA sales reached 825,000 tons, a year-on-year increase of 14.3% [2] - The gross margin for polyester filament in H1 2025 was 7.3%, an increase of 0.75 percentage points year-on-year, while PTA's gross margin was 0.6%, a decrease of 1.15 percentage points year-on-year [2] Group 3: Strategic Developments - The company made a strategic breakthrough by acquiring high-quality coal mine resources in the Turpan region, with reserves of 500 million tons and an initial mining scale of 5 million tons per year [2] - This acquisition allows the company to cover the entire category from oil-based and gas-based to coal-based resources, marking a significant step in its strategic layout [2] Group 4: Market Outlook - The upcoming peak season in September and October, combined with industry "anti-involution," is expected to lead to marginal improvements in market conditions [3] - As of August 22, 2025, the operating rates for weaving and texturing in Jiangsu and Zhejiang regions have increased, indicating a recovery in demand [3] - The supply side is seeing increased concentration in the polyester filament industry, with the CR6 rising from approximately 85% in 2023 to 87% in 2024, which is expected to optimize the supply-demand balance [3][4] Group 5: Industry Trends - The expansion of production capacity in the polyester filament industry is slowing down, with a projected year-on-year decrease of 2.3% in total capacity for 2024 [4] - The expected new annual production capacity for 2025 is about 2 million tons, with a low growth rate anticipated for the following years [4] - The company is positioned to benefit from the rising market conditions in the polyester filament sector, with projected net profits of 2.74 billion, 3.44 billion, and 4.21 billion yuan for 2025-2027 respectively [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 44.16 billion yuan for the first half of 2025, a year-on-year decrease of 8.4%, while the net profit attributable to shareholders was 1.1 billion yuan, an increase of 2.9% year-on-year [2][6]. - In Q2 2025, the company achieved a revenue of 24.74 billion yuan, down 8.7% year-on-year but up 27.4% quarter-on-quarter, with a net profit of 490 million yuan, which was stable year-on-year but down 20.5% quarter-on-quarter [2][6]. - The company has successfully entered the coal sector, acquiring high-quality coal resources in the Turpan region, which marks a strategic shift from oil and gas to coal [10]. Summary by Sections Financial Performance - In H1 2025, the company sold 5.953 million tons of polyester filament, a year-on-year increase of 1.3%, and 825,000 tons of PTA, an increase of 14.3% year-on-year [10]. - The gross margin for polyester filament was 7.3%, up 0.75 percentage points year-on-year, while the PTA gross margin was 0.6%, down 1.15 percentage points year-on-year [10]. Market Dynamics - The upcoming peak season in September and October is expected to improve market conditions, with increased operating rates in downstream sectors [10]. - The industry is experiencing a slowdown in capacity expansion, with a projected decrease in total capacity by 2.3% in 2024, leading to improved supply-demand dynamics [10]. Strategic Developments - The company has diversified its operations by entering the coal sector, which is expected to smooth out the cyclical nature of its business [10]. - The company is positioned to benefit from the recovery in the polyester filament market, with projected net profits of 2.74 billion yuan, 3.44 billion yuan, and 4.21 billion yuan for 2025, 2026, and 2027 respectively [10].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a revenue of 33.49 billion yuan for the first half of 2025, representing a year-on-year increase of 7.1%. The net profit attributable to shareholders was 710 million yuan, up 17.3% year-on-year, and the net profit after deducting non-recurring gains and losses was 660 million yuan, an increase of 22.5% year-on-year. In Q2 alone, the revenue reached 18.93 billion yuan, a year-on-year increase of 12.6% and a quarter-on-quarter increase of 30.1%. The net profit for Q2 was 400 million yuan, up 22.2% year-on-year and 31.4% quarter-on-quarter, with the net profit after deducting non-recurring gains and losses also at 400 million yuan, reflecting a year-on-year increase of 29.4% and a quarter-on-quarter increase of 53.6% [5][6][10] Summary by Sections Company Performance - The company has increased its production capacity, with the total annual capacity of polyester filament rising by 650,000 tons to 8.45 million tons by the end of 2025. The PTA total annual capacity has reached 7.7 million tons. In H1 2025, the sales volumes for various products were 2.416 million tons for POY, 717,000 tons for FDY, 440,000 tons for DTY, 637,000 tons for polyester staple fiber, and 1.088 million tons for PTA, with year-on-year changes of +3.8%, +2.4%, +21.6%, +2.3%, and +380.3% respectively [10] Market Outlook - The upcoming peak season in September and October, combined with industry self-discipline, is expected to lead to marginal improvements in market conditions. As of August 22, 2025, the operating rates for weaving and texturing in Jiangsu and Zhejiang have increased significantly, indicating a recovery in demand. The inventory levels for POY, FDY, and DTY have decreased, suggesting a positive trend as the peak season approaches [10] Industry Dynamics - The expansion of production capacity in the polyester filament industry is slowing down, with a projected year-on-year decrease of 2.3% in total capacity for 2024. The industry concentration is expected to continue increasing, which will improve the supply-demand balance in the medium to long term. The anticipated new annual capacity for 2025 is about 2 million tons, with a low growth rate expected for 2026 [10] Financial Projections - The company is expected to benefit from the rising demand for polyester filament, with projected net profits for 2025, 2026, and 2027 being 1.64 billion yuan, 2.29 billion yuan, and 2.70 billion yuan respectively [10]