Core Insights - Shanghai Petrochemical is focusing on high-end and differentiated products to meet market demand, achieving a 93.5% increase in the effectiveness of high-value-added synthetic resin products compared to the previous year, with a 1.8% increase in sales volume [1] Group 1: Product Strategy - The company has formed multiple specialized technical service teams to collaborate with clients in key sectors such as pharmaceuticals and automotive, developing customized material solutions [1] - Shanghai Petrochemical is implementing a "one product, one strategy" pricing approach for different high-end products, effectively enhancing product value [1] Group 2: Market Position - Over 90% of the company's synthetic resin products are high-end polyolefin specialty materials, with a growing market share in strategic emerging fields such as new energy battery packaging and specialty films, establishing a competitive advantage [1]

1. Report Information - Report Name: Asphalt Daily Report [1] - Date: January 20, 2026 [2] 2. Industry Investment Rating - Not provided in the report 3. Core Viewpoints - After the bullish factors of asphalt raw materials are gradually digested, the supply - demand returns to an equilibrium level, and the price is expected to fluctuate. Attention should be paid to oil price performance [7]. 4. Summary by Directory 4.1 Market Review and Operation Suggestions - Futures Market: For BU2603, the opening price was 3,149 yuan/ton, the closing price was 3,142 yuan/ton, the highest was 3,156 yuan/ton, the lowest was 3,126 yuan/ton, the increase was 0.29%, and the trading volume was 124,800 lots. For BU2604, the opening price was 3,166 yuan/ton, the closing price was 3,151 yuan/ton, the highest was 3,166 yuan/ton, the lowest was 3,138 yuan/ton, the increase was 0.32%, and the trading volume was 12,300 lots [6]. - Spot Market: The asphalt spot price in North China rose slightly, while those in Shandong and East China declined. The prices in other regions remained basically stable. Snow and rain limited the release of rigid demand [6]. - Supply: Shengxing Petrochemical planned to switch to asphalt production on the 16th, but Qilu Petrochemical switched to residue production on the 15th. The asphalt plant operating rate is expected to remain basically flat next week [7]. - Demand: Cold air will strengthen in the next ten days, with obvious snow and rain in the Huanghuai and Jiangnan regions. Road construction projects in East and Central China may gradually enter the final or suspension stage. Winter - storage contracts in the north will continue to arrive. Overall demand is expected to have limited fluctuations, and speculative demand is expected to increase slightly [7]. 4.2 Industry News - Shandong Market: The mainstream transaction price of 70A - grade asphalt was 3,010 - 3,240 yuan/ton, a decrease of 5 yuan/ton from the previous working day. Cooling and snowfall in Shandong and surrounding areas restricted the release of rigid demand, leading to price cuts by some brand traders [8]. - South China Market: The mainstream transaction price of 70A - grade asphalt was 3,130 - 3,250 yuan/ton, remaining stable. Market demand was weak, with traders and downstream buyers purchasing on demand. Social inventory prices were also stable [8]. 4.3 Data Overview - The report includes data on asphalt daily operating rate, Shandong asphalt comprehensive profit, South China asphalt spot price, Shandong asphalt basis, asphalt cracking, asphalt social inventory, asphalt manufacturer inventory, and asphalt warehouse receipts. All data sources are Wind and the Research and Development Department of CCB Futures [11][15][18][23]

记者了解到，近年来我国多地通过发布零碳工厂建设指南、评价指标体系等文件，探索开展(近)零碳工 厂试点，已发布百余家(近)零碳工厂名单。有关行业协会、机构等制定实施30余项团体标准，指导行业 领域开展零碳工厂对标建设和评价等工作。在石化行业，中国石化润滑油公司在西南地区建成零碳工 厂，中国石油首个零碳工厂——吉林油田新立采油厂Ⅲ区块零碳先导示范区截至上月底生产零碳原油41 万多吨，塔里木油田轮南采油气管理区轮南油气运维中心荣获"零碳工厂"标准试点。但不容忽视的是， 在零碳工厂建设过程中依然面临着评价要求不统一、关键技术有待验证、碳排放统计核算基础薄弱等问 题，亟需加强方向指引和技术指导，激发企业节能降碳内生动力。 该负责人表示，下一步，工信部将会同相关部门加强统筹协调和政策保障，结合行业和地方实际，高质 量推进零碳工厂建设，为推动工业绿色低碳转型提供有力支撑。 对此，《指导意见》提出零碳工厂建设的6条路径，包括健全碳排放核算管理体系，实现科学算碳;加快 用能结构绿色低碳转型，实现源头减碳;大幅提升能源利用效率，实现过程脱碳;开展重点产品碳足迹分 析，带动全产业链协同降碳;提升数字化智能化水平，实现智能控碳;开展 ...

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints - After the escalation and subsequent decline of the Iran situation, geopolitical risks have fluctuated more widely. The impact of the Venezuelan situation on oil prices has been gradually digested by the market, and the expectation of tight supply of asphalt raw materials has eased. However, the increase in raw material discounts has not been fully priced in, leading to high - level oscillations in asphalt. In terms of supply and demand, the off - season at the beginning of the year has arrived as expected, with both weekly supply and demand decreasing month - on - month. The industrial chain inventory remains at a low level, and the spot price is relatively firm. In the short term, the futures market is expected to oscillate at a high level [5]. - For trading strategies, the single - side trading of asphalt is expected to oscillate at a high level with increased geopolitical risk fluctuations. Attention should be paid to the positive spread arbitrage between BU4 - 6, and it is recommended to wait and see for options trading [6]. 3. Summary by Directory 3.1 Chapter 1: Comprehensive Analysis and Trading Strategies - **Comprehensive Analysis**: Geopolitical risks lead to increased cost fluctuations. The supply and demand of asphalt are in the off - season, with inventory at a low level and the spot price remaining firm. The futures market is expected to oscillate at a high level [5]. - **Trading Strategies**: Single - side trading: high - level oscillation with increased geopolitical risk fluctuations; Arbitrage: focus on BU4 - 6 positive spread arbitrage; Options: wait and see [6]. 3.2 Chapter 2: Core Logic Analysis - **Cost and Supply**: The cost is strengthening, and the supply is at a low level. The price of asphalt in some regions has increased, and the overall market price has continued to rise. The increase in crude oil prices and the reduction in supply in some areas have led to price increases in North China, Shandong, and other regions [11]. - **Price Movement**: The price of asphalt in the market has continued to rise. The prices in Northeast, North China, Shandong, the Yangtze River Delta, and Southwest (Sichuan and Chongqing) regions have increased by 5 - 40 yuan/ton, while prices in other regions have remained stable. The rise in crude oil and futures prices, as well as supply - demand factors in different regions, have supported the price increase [11]. - **Cost and Profit**: Geopolitical instability has increased cost fluctuations. The Brent main contract is expected to fluctuate between 61 - 64 US dollars. As of January 9, the theoretical processing profit of asphalt refineries was 55 yuan/ton, a decrease of 22 yuan/ton compared to the previous week. The basis of asphalt in different regions has changed to varying degrees [14]. - **Production**: The overall production of asphalt has increased slightly month - on - month. The production in the Northwest region has increased significantly, while that in the Northeast region has decreased slightly. The production in other regions has shown different degrees of change [16][17]. - **Inventory**: The refinery inventory has remained at a low level, with a slight increase in the overall inventory. The social inventory has increased steadily due to the storage of winter - reserve resources. Different regions have shown different inventory trends due to factors such as production, demand, and resource storage [19][20][22]. 3.3 Chapter 3: Weekly Data Tracking - **Price and Spread**: The closing price of the asphalt main contract, Brent crude oil, and the prices of asphalt in different regions have shown certain fluctuations. The basis and profit margins of asphalt refineries and refined oil refineries have also changed [25]. - **Supply and Demand Data**: The refinery operating rate has increased slightly, the refinery inventory rate has increased slightly, the social inventory rate has increased slightly, the refinery weekly output has increased, and the refinery shipment volume has also changed [25].

智通财经APP获悉，上海石化(00338)跌超5%，截至发稿，跌5.26%，报1.44港元，成交额1754.8万港 元。 消息面上，上海石油化工股份公布，预计集团截至2025年12月31日止归属于母公司股东的净亏损约为人 民币12.89亿元到人民币15.76亿元，与2024年同期相比将出现亏损；预计归属于母公司股东的扣除非经 常性损益的净亏损约为人民币12.80亿元到人民币15.64亿元，与2024年同期相比将出现亏损。 公告指，集团于2025年业绩预计出现亏损主要由于2025年国际原油价格总体震荡下行，产品市场需求未 有明显改善，集团主要炼化产品毛利空间缩减，叠加四季度集团生产装置大修影响，商品总量下降，上 述原因综合导致集团经营亏损。 ...

Market Overview - The Hong Kong stock market opened slightly lower on January 20, with the Hang Seng Index down 0.07% at 26,544.9 points, the Tech Index down 0.22% at 5,737.11 points, the National Enterprises Index down 0.16% at 9,119.42 points, and the Red Chip Index down 0.21% at 4,133.76 points [1] - Major tech stocks experienced declines, with Alibaba down 0.37%, Tencent down 1.48%, JD.com down 0.09%, Xiaomi down 1.26%, Meituan down 0.2%, Kuaishou down 0.26%, and Bilibili down 0.91% [1] - Oil stocks opened lower, with Shanghai Petrochemical falling over 4%, while real estate stocks continued to decline, with Country Garden down over 4% [1] - Gold stocks saw a general increase, with Zijin Mining rising over 1%, and AI application stocks showed some recovery, with MINIMAX-WP and Zhiyu rising over 3% [1] - New consumption concept stocks collectively rose, with Pop Mart increasing over 5%, and Hu Shang Ayi and China Duty Free rising by 2% and 2.8% respectively [1] Company News - China Taiping (00966.HK) expects a net profit increase of approximately 215% to 225% in 2025, compared to 8.432 billion HKD in the previous year [2] - TCL Electronics (01070.HK) anticipates an adjusted net profit of approximately 2.33 billion to 2.57 billion HKD in 2025, representing a growth of about 45% to 60% [2] - Jihong Co. (02603.HK) projects a net profit of approximately 273 million to 291 million HKD in 2025, with a year-on-year growth of 50% to 60% due to the recovery of the packaging business and significant growth in cross-border e-commerce [2] - Guolian Minsheng (01456.HK) expects a net profit of 2.008 billion RMB in 2025, a year-on-year increase of around 406% [2] - China Railway (00390.HK) reported a new contract amount of 1,165.98 billion RMB in Q4 2025, with a cumulative new contract amount of 2,750.9 billion RMB, reflecting a year-on-year growth of 1.3% [2] Additional Company Developments - Shenzhen Holdings (00604.HK) anticipates a total contract sales amount of approximately 13.311 billion RMB in 2025, a decrease of 21.55% year-on-year [3] - SF Holding (06936.HK) reported a total revenue of 27.339 billion RMB in December from its express logistics, supply chain, and international businesses, marking a year-on-year growth of 3.41% [4] - China Ruyi (00136.HK) plans to invest approximately 14.2 million USD in AIsphere to explore innovative applications of AI technology in film, streaming, and gaming content production and operations [4] - Baide International (02668.HK) has signed a memorandum of understanding with potential sellers regarding the possible acquisition of part or all of a target company's equity [5] - Yanda Pharmaceutical (00512.HK) has had its new drug application for the innovative radiolabeled drug TLX591-CDx accepted by the Chinese drug regulatory authority [7] Institutional Insights - Huatai Securities indicates that the core factors driving the market rebound in Q1 have not fundamentally changed, suggesting continued opportunities for investment in Hong Kong stocks [8] - CICC notes that gold prices may stabilize more than silver, with short-term adjustments potentially providing investment opportunities [9] - Huayuan Securities highlights that geopolitical changes are reshaping global oil trade flows, which may support freight rates in the short term [9] - Zhongtai Securities anticipates that the late Spring Festival may lead to differentiated travel patterns, boosting market demand, particularly in the aviation sector [9]

Investment Rating - The report maintains a "Buy" rating for several companies in the chemical industry, including Sinopec, Jiangshan Co., and others [10]. Core Insights - Domestic gasoline and natural gas prices have seen significant increases, while products like hydrochloric acid and liquid chlorine have experienced substantial declines. The report suggests focusing on import substitution, pure domestic demand, and high-dividend opportunities [6][19]. - The international oil prices are expected to stabilize around $65 per barrel in 2026, influenced by geopolitical uncertainties. Companies with high dividend characteristics, such as Sinopec, are expected to benefit from declining raw material costs [6][19]. - The chemical industry is currently in a weak state, with mixed performance across sub-sectors. However, certain sectors like lubricants are performing better than expected, indicating potential investment opportunities [22]. Summary by Sections Chemical Industry Investment Recommendations - The report highlights significant price increases for domestic gasoline (11.38%) and natural gas (8.68%), while products like liquid chlorine (-18.02%) and hydrochloric acid (-13.79%) have seen notable declines [19][20]. - It emphasizes the importance of focusing on sectors that may enter a recovery phase, such as glyphosate, and suggests specific companies for investment [22]. Market Performance - The report notes that the chemical industry is currently facing a weak overall performance, with varying results across different sub-sectors due to past capacity expansions and weak demand [22]. - It recommends monitoring companies with strong competitive positions and growth potential, particularly in the lubricant additives and coal-to-olefins sectors [22]. Price Trends - The report provides insights into the price trends of various chemical products, indicating a mixed performance with some products rebounding while others continue to decline [20][22]. - It also discusses the impact of geopolitical factors on oil prices, which in turn affect the chemical industry [23][24]. Key Companies and Earnings Forecast - The report lists several companies with strong earnings forecasts, including Sinopec, Jiangshan Co., and others, all rated as "Buy" [10][11].

Economic Policy and Market Outlook - Recent economic policies, including structural interest rate cuts, are expected to support economic growth, potentially leading to a "good start" in the first quarter of 2026, although final performance will depend on forthcoming data [5] - The financial market policies have moderated previously overheated sectors, indicating that the market may not sustain its rapid upward trend and could transition into a more volatile phase [5] Fund Market Trends - The Hong Kong stock market saw an overall increase, while domestic equity markets experienced fluctuations; TMT-themed funds performed well, whereas defense and military-themed funds faced net value declines [5] - There was a notable reduction in passive fund holdings across various broad-based ETFs, with over 130 billion yuan flowing out of large-cap ETFs, while TMT and cyclical theme ETFs attracted over 60 billion yuan in net inflows [5] Economic Data Insights - The economic landscape in 2025 is characterized by a "high before low" trend, with supply outpacing demand and external demand exceeding internal demand [6] - In December 2025, industrial production growth rates increased year-on-year and month-on-month, while fixed asset investment saw a widening decline, and retail sales growth continued to decrease [6] Oil and Geopolitical Factors - Heightened geopolitical tensions in Iran have increased the geopolitical risk premium on oil, contributing to rising oil prices; as of January 16, 2026, Brent and WTI crude oil prices were reported at $64.20 and $59.22 per barrel, reflecting increases of 1.9% and 0.7% respectively [7] - The ongoing international instability is likely to provide a favorable foundation for oil price trends in the long term [7] Infrastructure Investment - The State Grid has announced a planned fixed asset investment of 4 trillion yuan during the 14th Five-Year Plan period, marking a 40% increase compared to the previous plan, focusing on power grid and energy storage sectors [8] - Key projects for 2026 will concentrate on ultra-high voltage and pumped storage, indicating potential opportunities in power infrastructure orders and renewable energy consumption [8] Power Consumption and Digitalization - In 2025, the total electricity consumption in society increased by 5.0% year-on-year [9] - The State Grid's investment in new power systems is expected to enhance capacity pricing, with projected capacity prices for 2026 estimated at 6.3 cents per kilowatt-hour, a 4-cent increase from the previous year [9] Pharmaceutical Sector Innovations - The pharmaceutical and biotechnology sectors are experiencing a surge driven by innovation, including overseas expansion, AI applications, and new technologies, alongside policy support and seasonal market dynamics [9] - Key focus areas include innovative drugs, CXO services, AI healthcare, brain-computer interfaces, and small nucleic acid drugs, with ongoing attention required on post-JPM conference collaborations and clinical data outcomes [9]

Group 1 - The geopolitical tensions in Iran have led to significant fluctuations in oil prices, with Brent and WTI crude oil futures rising by 1.9% and 0.7% respectively as of January 16, 2026 [2] - OPEC+ has increased production by 2.21 million barrels per day in 2025, but plans to slow down production increases in 2026 to balance oil prices [3] - The International Energy Agency (IEA) has revised its forecast for global oil demand growth in 2026 to 860,000 barrels per day, driven primarily by the chemical sector [4] Group 2 - The "Big Three" Chinese oil companies have demonstrated resilience during the recent oil price fluctuations, with performance exceeding historical levels due to increased production and effective cost control [5] - The ongoing capital expenditure by the "Big Three" is expected to support their long-term growth and adaptation to changing market conditions [5]

Group 1 - The core point of the article highlights that southbound funds increased their holdings in Shanghai Petrochemical Company by 1.56 million shares on January 19, while experiencing a net reduction of 23.63 million shares over the past five trading days [1] - Over the last 20 trading days, southbound funds have reduced their holdings in the company for 17 days, resulting in a total net reduction of 45.74 million shares [1] - As of now, southbound funds hold 1.019 billion shares of Shanghai Petrochemical Company, accounting for 31.69% of the company's total issued ordinary shares [1] Group 2 - Shanghai Petrochemical Company, a subsidiary of Sinopec, primarily engages in the petrochemical business through three segments: refining products, chemical products, and petrochemical product trading [1] - The refining products segment includes facilities for producing qualified refined gasoline, kerosene, diesel, heavy oil, and liquefied petroleum gas [1] - The chemical products segment mainly produces paraxylene, benzene, ethylene oxide, polyethylene resin, polypropylene resin, acrylic fiber, and carbon fiber [1] - The petrochemical product trading segment focuses on the import and export trade of petrochemical products [1] - The company also engages in leasing, providing services, and various other commercial activities, operating in both domestic and international markets [1]