Group 1 - The Shanghai Composite Index opened lower but rose later, with the CSI 300 Chemical Index reported at 2022.67 points [1] - The CSI 300 Chemical Index has decreased by 11.64% over the past month, 9.12% over the past three months, and 8.64% year-to-date [1] - The CSI 300 Index is categorized into 11 primary industries, 35 secondary industries, over 90 tertiary industries, and more than 200 quaternary industries [1] Group 2 - The top ten weights in the CSI 300 Chemical Index are: Wanhua Chemical (23.47%), Salt Lake Industry (14.14%), Baofeng Energy (7.62%), Juhua Co. (7.3%), Hengli Petrochemical (7.28%), Hualu Hengsheng (6.99%), Longbai Group (6.23%), Zangge Mining (6.19%), Satellite Chemical (6.02%), and Rongsheng Petrochemical (5.53%) [1] - The market share of the CSI 300 Chemical Index is 57.05% from the Shanghai Stock Exchange and 42.95% from the Shenzhen Stock Exchange [1] Group 3 - In terms of industry composition, other chemical raw materials account for 38.28%, polyurethane for 23.47%, potassium fertilizer for 20.33%, fluorochemical for 7.30%, titanium dioxide for 6.23%, and organic silicon for 4.39% [2] - The index samples are adjusted every six months, with adjustments implemented on the next trading day after the second Friday of June and December [2] - Weight factors are generally fixed until the next scheduled adjustment, with temporary adjustments made when the CSI 300 Index samples are modified [2]

Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 28.91 CNY [1][6]. Core Views - The company's revenue for 2024 is projected to be 456.48 billion CNY, representing a year-on-year increase of 10.03%. The net profit attributable to shareholders is expected to reach 60.72 billion CNY, up 26.77% year-on-year [6][7]. - The C2 industry chain is experiencing improved profitability, driven by a stabilization in the global natural gas supply-demand balance and a decrease in ethane prices, which are expected to support the company's growth trajectory [6][7]. - The company has successfully launched a new 100,000 tons/year ethanolamine facility and achieved a successful first run of an 800,000 tons/year multi-carbon alcohol project, enhancing its product portfolio and cost efficiency [6][7]. Financial Summary - The company achieved a gross margin of 23.57% and a net margin of 13.28% in 2024, both showing improvements of 3.73 and 1.75 percentage points year-on-year, respectively [6][7]. - The projected net profit for 2025-2027 is adjusted to 70.96 billion CNY, 96.73 billion CNY, and 111.12 billion CNY, respectively, with corresponding EPS of 2.11 CNY, 2.87 CNY, and 3.30 CNY [6][7]. - The company’s PE ratios for 2025-2027 are projected to be 10x, 8x, and 7x, respectively, indicating a favorable valuation compared to historical averages [6][7].