1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - The supply side has increased recently, raising supply pressure, but it is expected to reduce next week. The overall demand recovery is lower than expected and remains sluggish, with inventory continuously decreasing. Crude oil prices are rising, providing short - term cost support. The futures price of asphalt is expected to fluctuate narrowly in the short term, with the asphalt 2509 contract oscillating between 3558 - 3620 [8][10]. 3. Summary by Relevant Catalogs 3.1 Daily Views - **Supply**: In June 2025, the domestic total planned asphalt production was 2.398 million tons, a month - on - month increase of 3.5% and a year - on - year increase of 12.7%. This week, the sample capacity utilization rate of domestic petroleum asphalt was 33.1376%, a month - on - month increase of 0.359 percentage points. The sample enterprise output was 553,000 tons, a month - on - month increase of 1.10%, and the estimated device maintenance volume was 597,000 tons, a month - on - month decrease of 12.33%. Refineries have increased production recently, increasing supply pressure, but it may decrease next week [8]. - **Demand**: The heavy - traffic asphalt开工率 was 31.7%, a month - on - month increase of 0.01 percentage points; the construction asphalt开工率 was 18.2%, unchanged from the previous month; the modified asphalt开工率 was 14.0382%, a month - on - month decrease of 0.72 percentage points; the road - modified asphalt开工率 was 26%, a month - on - month increase of 2.00 percentage points; the waterproofing membrane开工率 was 33%, a month - on - month decrease of 6.00 percentage points. Overall, the current demand is lower than the historical average [8]. - **Cost**: The daily asphalt processing profit was - 452.13 yuan/ton, a month - on - month decrease of 14.00%. The weekly delayed coking profit of Shandong local refineries was 1,113.1829 yuan/ton, a month - on - month increase of 7.54%. The asphalt processing loss decreased, and the profit difference between asphalt and delayed coking increased. Crude oil prices are rising, and short - term support is expected to strengthen [9]. - **Inventory**: On July 8, the social inventory was 1.318 million tons, a month - on - month decrease of 2.08%; the factory inventory was 748,000 tons, a month - on - month increase of 4.03%; the port diluted asphalt inventory was 160,000 tons, a month - on - month decrease of 30.43%. Social inventory is continuously decreasing, factory inventory is continuously increasing, and port inventory is continuously decreasing [11]. - **Expected**: The futures price of asphalt is expected to fluctuate narrowly in the short term, with the asphalt 2509 contract oscillating between 3558 - 3620 [10]. 3.2 Asphalt Futures Market Analysis - **Base - spread**: On July 8, the Shandong spot price was 3,825 yuan/ton, and the 09 - contract base - spread was 236 yuan/ton, with the spot price higher than the futures price [11]. - **Spread Analysis**: Analyzed the price trends and spreads of asphalt, crude oil, and fuel oil, including the price trends of asphalt and Brent oil, WTI oil, as well as the cracking spreads of asphalt and different types of crude oil, and the price - ratio trends of asphalt, crude oil, and fuel oil [27][30][34]. 3.3 Asphalt Spot Market Analysis - Presented the price trends of asphalt in different regions, such as the price trend of Shandong heavy - traffic asphalt [37]. 3.4 Asphalt Fundamental Analysis - **Profit Analysis**: Analyzed the profit trends of asphalt and the profit - spread trends between coking and asphalt [40][43]. - **Supply - side Analysis**: Included aspects such as shipment volume, diluted asphalt port inventory, production volume, Ma Rui crude oil price and Venezuelan crude oil monthly production, local refinery asphalt production, and capacity utilization rate [46][51][61]. - **Inventory Analysis**: Analyzed the exchange warehouse receipts, social inventory, factory inventory, and factory inventory inventory - ratio [66][70][73]. - **Import - Export Analysis**: Analyzed the export and import trends of asphalt and the import price - spread trends of South Korean asphalt [76][79][81]. - **Demand - side Analysis**: Covered aspects such as petroleum coke production, apparent consumption, downstream demand (including highway construction, new local special bonds, infrastructure investment, and downstream machinery demand), asphalt开工率, and downstream开工情况 [82][85][92]. - **Supply - Demand Balance Sheet**: Provided the monthly supply - demand balance sheet of asphalt, including monthly production, import, export, and downstream demand [106].

Core Viewpoint - Ukraine's intelligence agency reported a drone attack on a Russian oil refinery in the Krasnodar region, indicating ongoing military tensions and strategic targeting of energy infrastructure [1] Group 1: Attack Details - The drone strike targeted a technical workshop at the oil refinery, confirming the effectiveness of Ukraine's long-range drone capabilities [1] - Local media corroborated the reports of the refinery being attacked, highlighting the incident's significance in the context of the ongoing conflict [1] Group 2: Company and Industry Context - The attacked refinery is a major oil processing facility in southern Russia, involved in the reception, storage, and processing of hydrocarbons [1] - The refinery also plays a crucial role in the transportation of refined oil products via road and rail, emphasizing its importance in the regional energy supply chain [1]

Report Industry Investment Rating No relevant content provided. Core Views - Crude oil: The weak retaliatory action by Iran and the full ceasefire between Iran and Israel have significantly reduced the geopolitical risks in the Middle East, alleviating concerns about crude oil supply disruptions. However, the geopolitical risks in the Middle East cannot be completely ruled out. Crude oil has entered the seasonal travel peak season, and U.S. crude oil inventories have dropped to a low level. But the latest EIA report shows an unexpected increase in U.S. crude oil and gasoline inventories, and OPEC+ has agreed to increase oil production by 548,000 barrels per day in August. It is recommended to temporarily exit the previous short positions in crude oil [7][14]. - Bitumen: The bitumen开工率 has rebounded slightly, but the downstream demand is still affected by factors such as funds and weather. The geopolitical risks in the Middle East have cooled down, and OPEC+ plans to increase production in August, which puts pressure on the crude oil market sentiment. As it gradually enters the peak season, it is recommended to go long on the 09 - 12 spread of bitumen at low prices [8][81]. - PVC: The upstream calcium carbide price has been slightly reduced. The PVC开工率 has decreased slightly, and the downstream demand has not improved substantially. The inventory pressure is still large, and the real - estate market improvement still takes time. It is expected that PVC will fluctuate at a low level in the near future, and it is mainly recommended to go short at high prices [9][100]. - L&PP: The plastic and PP开工率 have declined to a moderately low level. The downstream demand is weak, and the inventory pressure is still large. The U.S. government's cancellation of ethane - related restrictions is beneficial to the recovery of Sino - U.S. trade. It is expected that polyolefins will fluctuate at a low level, and attention should be paid to the progress of the global trade war [10][126]. Summaries According to Related Catalogs Crude Oil - Supply: OPEC's crude oil production increased in April and May 2025, mainly driven by Saudi Arabia. U.S. crude oil production decreased slightly in the week ending June 27, 2025, and the strategic petroleum reserve inventory increased [20]. - Demand: According to the latest data from the U.S. Energy Agency, the four - week average supply of U.S. crude oil products increased, but was lower than the same period last year. Gasoline weekly demand decreased, while diesel weekly demand increased [36]. - Inventory: As of the week ending June 27, 2025, U.S. crude oil and gasoline inventories increased unexpectedly, while Cushing crude oil inventory decreased [45]. - Geopolitical Risks: The ceasefire between Iran and Israel has reduced geopolitical risks, but risks still exist, such as Iran's uranium - enrichment activities and the situation in the Israel - Hamas negotiations [49][52]. Bitumen - Supply: The bitumen开工率 rebounded slightly last week, and the expected production in July is expected to increase compared with the previous month and the same period last year [67][81]. - Demand: The downstream demand for bitumen is affected by factors such as funds and weather. The road - bitumen开工率 increased slightly, but is still at a relatively low level [74]. - Inventory: As of the week ending July 4, 2025, the bitumen refinery inventory - to - sales ratio increased slightly, but is still at the lowest level in recent years [78]. PVC - Supply: The PVC开工率 decreased slightly, and new production capacity is about to be put into operation. The upstream calcium carbide price has been slightly reduced [91][100]. - Demand: The downstream demand for PVC has not improved substantially, and the real - estate market improvement still takes time. The export of PVC to India is restricted by policies and the rainy season [9][100]. - Inventory: As of the week ending July 3, 2025, PVC social inventory increased slightly and is still at a relatively high level [97]. L&PP - Supply: The plastic and PP开工率 have declined. New production capacity has been put into operation, and recent maintenance devices have increased, alleviating some pressure [112][126]. - Demand: The downstream demand for polyolefins is weak. The PE and PP downstream开工率 are at relatively low levels, and the recovery is slow [118][126]. - Inventory: The petrochemical inventory is at a moderately low level, and the de - stocking speed is average [123][126].

荣盛石化（002493）公告，截至本公告披露日，控股股东荣盛控股通过深交所交易系统以集中竞价方式 累计增持公司股份7369.59万股，占目前公司总股本的0.73%，增持金额约为6.17亿元。本次增持计划尚 未实施完毕，荣盛控股将继续按照增持计划增持公司股份。 ...

Group 1 - The company emphasizes the importance of addressing frontline employees' urgent needs through direct engagement and practical solutions [1][2] - A significant initiative involved cleaning and improving the environment around oil product storage areas, enhancing operational efficiency [1] - The company has successfully completed 105 practical improvements for employees, including resolving long-standing issues with restroom facilities and work environments [1] Group 2 - The company is focusing on mental health support for employees by providing psychological training to help manage stress and improve emotional well-being [2] - A new standardized restroom facility has been constructed for transportation staff, significantly reducing their time away from work and improving operational continuity [2] - The company plans to continue investing in employee work environment improvements, including restroom expansions and upgrades to changing rooms and rest areas [3]

Investment Rating - The industry investment rating is "Positive" as the industry index is expected to outperform the benchmark [123]. Core Insights - The report indicates that the cost influence on product prices is weak, leading to a narrowing of refining product price spreads [1]. - Domestic key refining project price spread is 2637.62 CNY/ton, with a week-on-week change of -23.83 CNY/ton (-0.90%), while the foreign key refining project price spread is 1631.26 CNY/ton, with a week-on-week change of +370.34 CNY/ton (+29.37%) [2]. - Brent crude oil weekly average price is 68.02 USD/barrel, with a week-on-week change of -1.78% [2]. Refining Sector Summary - In the refining sector, international oil prices experienced slight increases due to positive demand expectations, but were pressured by OPEC+ production increase plans [1][13]. - As of July 4, 2025, Brent and WTI crude oil prices were 68.30 and 66.50 USD/barrel, respectively, reflecting increases of 0.53 and 0.98 USD/barrel compared to June 27, 2025 [1][13]. - Domestic refined oil prices have decreased, with diesel, gasoline, and aviation kerosene averaging 7267.29, 8276.14, and 6222.57 CNY/ton, respectively [13]. Chemical Sector Summary - The report notes that the rise in crude oil prices has a weak guiding influence on product prices, leading to an overall decline in chemical product spreads [1]. - Polyethylene prices have decreased due to cautious purchasing behavior from downstream manufacturers, while polypropylene prices have shown some support due to supply-side contractions [53]. - The average price of MMA has decreased slightly, while the price spread has improved [67]. Polyester Sector Summary - The polyester sector has seen a slight decline in price levels, with upstream PX supply slightly decreasing due to planned maintenance [81]. - The average price of PTA is reported at 4960.71 CNY/ton, with an average profit margin of -161.86 CNY/ton [90]. - The report highlights that the demand for polyester products is weakening, leading to a decrease in prices and profitability [88][102]. Performance of Major Refining Companies - The stock price changes for six major refining companies as of July 4, 2025, include Rongsheng Petrochemical (+2.91%), Hengli Petrochemical (-0.35%), and others [1][110]. - Over the past month, stock performance shows mixed results, with Rongsheng Petrochemical down by 0.12% and Hengli Petrochemical down by 2.41% [110][111].

Group 1 - The stock of Delisted Haiyue (600387) increased by 1.08% today, with a turnover rate of 5.97% and a transaction amount of 22.86 million yuan, showing a fluctuation of 5.43% [2] - The stock was listed on the Shanghai Stock Exchange's daily trading information due to delisting arrangements, with a net buying amount of 7.07 million yuan from brokerage seats [2] - The top five brokerage seats accounted for a total transaction of 20.45 million yuan, with a buying amount of 13.76 million yuan and a selling amount of 6.69 million yuan, resulting in a net buying of 7.07 million yuan [2] Group 2 - The largest buying brokerage was Guosen Securities Co., Ltd. Shaoxing Branch, with a buying amount of 5.73 million yuan, while the largest selling brokerage was Huachuang Securities Co., Ltd. Shanghai Jingzhou Road Securities Brokerage, with a selling amount of 3.27 million yuan [2] - Over the past six months, the stock has been listed on the daily trading information 20 times, with an average price drop of 1.05% the next day and an average drop of 2.39% over the following five days [2] - The stock saw a net inflow of 2.98 million yuan in main funds today, with a significant single net inflow of 4.46 million yuan and a large single fund outflow of 1.48 million yuan, totaling a net inflow of 9.69 million yuan over the past five days [2] Group 3 - The company's Q1 report released on April 30 showed a total revenue of 524 million yuan, representing a year-on-year growth of 12.75%, while the net profit was -14.08 million yuan [2]

Investment Rating - The report does not explicitly provide an investment rating for the oil processing industry Core Insights - The report indicates a more relaxed fundamental outlook for the oil market, with adjustments in supply and demand forecasts from IEA, EIA, and OPEC for 2025 and 2026 [1][2][3] Supply Overview - IEA, EIA, and OPEC predict global oil supply for 2025 to be 10,488.00, 10,434.42, and 10,410.62 million barrels per day respectively, showing increases from 2024 of +182.72, +154.73, and +175.68 million barrels per day [2][32] - For 2026, the supply predictions are 10,603.04, 10,513.81, and 10,505.26 million barrels per day, reflecting increases from 2025 of +115.04, +79.39, and +94.64 million barrels per day [2][32] - The average change in global oil supply for Q2 2025 is forecasted to be +70.56 million barrels per day, a significant increase from previous predictions [2][27] Demand Overview - Global oil demand predictions for 2025 are 10,376.27, 10,352.80, and 10,513.49 million barrels per day from IEA, EIA, and OPEC respectively, with year-on-year increases of +72.41, +78.67, and +129.49 million barrels per day [2][4] - For 2026, the demand forecasts are 10,450.19, 10,458.75, and 10,641.54 million barrels per day, indicating increases from 2025 of +73.92, +105.95, and +128.05 million barrels per day [2][4] Price Trends - As of July 2, 2025, Brent crude, WTI, Russian ESPO, and Urals crude prices are $69.11, $67.45, $62.59, and $65.49 per barrel respectively, with recent monthly changes of +6.93%, +7.89%, +3.54%, and 0.00% [9][10] - Year-to-date price changes show Brent crude at -8.98%, WTI at -7.77%, Russian ESPO at -13.01%, and Urals at -4.41% [9][10] Inventory Insights - IEA, EIA, and OPEC predict global oil inventory changes for 2025 to be +111.73, +81.62, and -102.87 million barrels per day respectively, with an average change of +30.16 million barrels per day [3][27] - For 2026, the inventory changes are forecasted at +152.85, +55.06, and -136.28 million barrels per day, averaging +23.88 million barrels per day [1][27] Related Companies - The report highlights several related companies including China National Offshore Oil Corporation (CNOOC), China Petroleum & Chemical Corporation (Sinopec), and China National Petroleum Corporation (CNPC) among others [4]

Group 1: Company Performance and Strategy - In 2024, the company's performance faced pressure, but Q1 2025 showed significant improvement in profit, both year-on-year and quarter-on-quarter [2] - The company is actively adjusting its product structure, focusing on special oils and new chemical materials, enhancing product quality and value [2] - The introduction of transformer oil aims to expand its application to energy storage battery cooling and large computing center immersion cooling [2] Group 2: Cost Management and Efficiency - The company is accelerating global sourcing and improving procurement efficiency through an information system [2] - It has optimized its processing trade model to explore international markets, becoming the only private refinery operating bonded high-sulfur fuel oil [3] - The company is implementing cost reduction strategies across three dimensions: people, goods, and venues, to stabilize operations [3] Group 3: Product Performance - Overall product performance is balanced, with fuel oil series having a significant market share and export ratio [3] - The company is closely monitoring raw material prices and utilizing hedging strategies to mitigate profit impacts from market fluctuations [3] Group 4: Competitive Advantages - The company benefits from its location in a key chemical park, providing low logistics costs and proximity to major markets [4] - It has established a strong R&D foundation, including partnerships with leading institutions and a provincial engineering technology center [4] - The company has made significant investments in safety and environmental standards, achieving national-level green factory recognition [4] Group 5: Future Developments - The change in controlling shareholder to a state-owned platform is expected to enhance capital strength and reduce debt ratios [4] - The company has been recognized for its digital transformation, with multiple awards for its smart manufacturing initiatives [4] - The establishment of Wuxi Extreme Liquid Cooling Technology Co., Ltd. aims to capitalize on the growing demand for computing power cooling solutions [5]

Summary of BoHui Co., Ltd. Conference Call Company Overview - BoHui Co., Ltd. is located in Ningbo Zhenhai, with its production base in the Ningbo Chemical Park, a national first-class chemical park. The company specializes in deep processing of fuel oil and specialty oils, including transformer oil, lubricating base oil, heat transfer oil, and furnace fuel oil. The company operates in various sectors such as rubber processing, asphalt processing, and photovoltaic new materials. It is listed on the Shenzhen Stock Exchange [2][3]. Key Points and Arguments Profit Improvement in Q1 2025 - The profit improvement in Q1 2025 is attributed to several factors: - Shift in business model from domestic sales to international trade, leveraging the export advantages of the Zhoushan Free Trade Zone [2][3]. - Product structure optimization, including the development of transformer oil and positioning for the cooling needs of computing servers [2][3]. - Technical upgrades to enhance raw material stability and product added value, leading to improved capacity utilization [2][4]. - Internal management cost optimization, including reduced management costs and streamlined processes [2][4]. Product Performance - High-sulfur fuel oil and fuel oils numbered 5-7 performed well, with an increasing export ratio. White oil and base oil remained stable, while asphalt production may be paused due to poor initial demonstration performance, with flexibility to adjust production based on market demand [2][5]. Raw Material Price Volatility Management - BoHui Co., Ltd. manages raw material price volatility through inventory adjustments and hedging strategies. If import prices are too high, the company may reduce purchase volumes. A dedicated team is established for futures trading to mitigate price risks during the procurement to sales cycle [2][6][7]. Competitive Advantages - The company has several competitive advantages: - Advanced technology using the Dutch jump process, leading to high technical content and a shorter establishment time for the second plant [2][8]. - Significant investment in safety and environmental protection, reducing regulatory risks [2][8]. - International presence with branches in Singapore and a trading company in Beijing, enhancing procurement and market intelligence [2][8]. - Strong product R&D and quality control capabilities, ensuring stable product performance [2][8]. - A cash-on-delivery sales model that accelerates cash flow [2][9]. Impact of State-Owned Shareholder Change - The change of the controlling shareholder to a state-owned platform is expected to enhance the company's stability, increase funding availability, deepen business channels, improve employee welfare, and adjust strategic layouts for quality and scale enhancement [2][9][10]. Digital Transformation - BoHui Co., Ltd. has made significant investments in digitalization, achieving recognition as a future factory in Zhejiang Province and a national-level intelligent manufacturing demonstration factory. However, due to poor performance in 2025, future digital investment plans remain uncertain [2][18]. Market and Tax Policy Impacts - The change in the consumption tax policy for refined oil from amount-based to production-based has impacted the company's overall capacity [2][13]. The company plans to adjust production structures in response to the underperformance of asphalt products and aims to enhance the yield of high-value white oil products through technical upgrades [2][14][15]. Future Plans - Currently, BoHui Co., Ltd. does not have plans to expand into overseas markets but aims to establish more international cooperation for raw material procurement, focusing on direct sourcing from suppliers in the Middle East and Singapore [2][20][21]. Other Important Information - The BoYue New Materials project was closed due to funding constraints and potential policy adjustments, with the government refunding the land costs [2][11]. The company is focusing on stabilizing existing business segments before expanding [2][11]. This summary encapsulates the key insights from the conference call, highlighting the company's strategic adjustments, product performance, competitive advantages, and future outlook.