Core Viewpoint - The successful commissioning of the world's largest 2 million tons/year diesel adsorption separation unit marks a significant advancement in the integrated transformation and upgrading of the petrochemical industry in Southwest China, providing a scalable and efficient solution for the global refining industry's transition from "oil-heavy" to "chemical-heavy" production [1][2]. Group 1: Project Overview - The diesel adsorption separation unit is part of a major national petrochemical project with a total investment of 30.5 billion yuan, covering over 4,400 acres [5]. - The project commenced construction in July 2023 and is expected to be fully completed by July 14, 2025, with initial operations starting on October 18, 2023 [5]. Group 2: Technological Innovation - The unit utilizes a proprietary "diesel adsorption separation" technology developed by Kunlun Engineering and CNOOC Tianjin Chemical Research Design Institute, which allows for precise molecular-level control to separate diesel into high-quality olefin and aromatic raw materials [2]. - The process enhances raw material utilization efficiency by over 15% compared to traditional methods, while also reducing energy consumption and carbon emissions [2]. Group 3: Industry Impact - The project is expected to facilitate the transformation of Guangxi's petrochemical industry from a "fuel-type" refinery to a "chemical products and organic materials-type" enterprise, filling gaps in high-end chemical new materials in the region [5]. - It aims to support the establishment of a trillion-yuan green chemical new materials industry cluster in Guangxi, enhancing China's position in the global refining industry and contributing to national energy security and high-quality development of the chemical industry [5].

Group 1 - The core viewpoint of the report is that Donghai Securities has given a "buy" rating for Rongsheng Petrochemical (002493.SZ) based on several favorable factors [1] - Decrease in raw material costs is beneficial for the refining and polyester sectors, while the decline in the price spread of aromatic products is negatively impacting the chemical sector's profits [1] - Continuous capital investment and orderly project construction are highlighted as positive indicators for the company's future performance [1] - The refining industry landscape is expected to improve under the "anti-involution" context, with leading companies likely to benefit first [1]

Group 1 - The core viewpoint of the report is that Pacific Securities has given a "buy" rating for Hengli Petrochemical (600346.SH) with a latest price of 17.53 yuan [1] - The rating rationale includes the impact of volatile oil prices and maintenance affecting short-term performance, with profitability expected to be under pressure in Q2 2025 [1] - The report expresses optimism about the refining sector's continued recovery against the backdrop of an "anti-involution" trend in the industry [1] Group 2 - The report highlights potential risks such as fluctuations in raw material prices, product price volatility, slower project progress, declining demand, and intensified industry competition [1]

Summary of Conference Call Records Industry Overview - The conference call discusses the **refining and petrochemical industry** in China and globally, focusing on capacity reduction and structural optimization due to domestic policies and international market dynamics [1][3][4]. Key Points and Arguments 1. **Domestic Policies**: China is implementing anti-involution policies aimed at controlling total capacity and optimizing structure, encouraging a shift from oil to chemical production [1][3][6]. 2. **Global Capacity Reduction**: The global petrochemical industry is undergoing significant capacity reductions, particularly in Japan, South Korea, and Europe, to address cyclical downturns and environmental pressures [1][5][12]. 3. **Upcoming Standards**: By August 30, local governments are expected to complete inspections of enterprises and facilities, leading to the release of elimination standards by the Ministry of Industry and Information Technology [1][7]. 4. **Capacity Elimination Criteria**: Refining facilities with capacities below 2 million tons and ethylene facilities below 500,000 tons, particularly those over 20 years old, are likely to be targeted for elimination [1][7][8]. 5. **Impact on Industry Players**: The elimination of small-scale facilities will benefit integrated large state-owned enterprises and coastal private refining companies, promoting energy conservation and carbon reduction technologies [1][10][19]. 6. **Profitability Concerns**: The refining industry is currently experiencing its lowest profitability in nearly two decades, influenced by domestic policies and international market conditions [2][3]. 7. **Market Dynamics**: The European petrochemical sector faces rising costs, weak demand, and competition from Chinese firms, leading to a gradual exit from the market, with the U.S., Middle East, and China expected to fill the void [4][12][14]. 8. **Future Measures**: The government plans to implement strict project approvals, accelerate the elimination of old facilities, and promote high-end material research and industry self-regulation [6][9]. 9. **Integration and Upgrading**: New refining projects must exceed 10 million tons in capacity, while older facilities will need technological upgrades to meet energy efficiency and carbon reduction goals [8][10][21]. 10. **Global Supply Chain Effects**: The closure of facilities in Europe and Asia will create supply-demand mismatches, potentially increasing prices for ethylene and related products [17][18]. Additional Important Content - **Investment Opportunities**: The shift towards larger, integrated facilities presents opportunities for companies involved in energy conservation technologies and digital manufacturing processes [10][19]. - **Market Competition**: As European firms exit, Chinese companies are positioned to enhance their international competitiveness, particularly in fine chemicals and high-end polymers [14][18]. - **Long-term Trends**: The refining and petrochemical sectors will need to adapt to global market conditions, with a focus on integrating operations and enhancing efficiency to remain competitive [25][26][27]. This summary encapsulates the critical insights from the conference call, highlighting the current state and future outlook of the refining and petrochemical industry amidst evolving market dynamics and regulatory frameworks.

Core Viewpoint - The report from Xinda Securities highlights that Rongsheng Petrochemical, as a leading private refining enterprise, is expected to benefit from the optimization of the industry landscape due to policy changes and market dynamics [1] Industry Summary - According to the National Development and Reform Commission (NDRC) policy, by 2025, the domestic crude oil processing capacity will be controlled within 1 billion tons, indicating that the expansion of refining capacity is nearing its end [1] - The NDRC reiterated in May 2025 the acceleration of phasing out outdated refining capacities, which, combined with the "anti-involution" policy direction and stricter tax reforms, increases the survival pressure on local refineries, leading to a potential acceleration in the elimination of outdated capacities [1] - It is anticipated that from 2025 to 2026, the growth rate of domestic refining capacity will significantly slow down, resulting in an improved supply-demand balance in the industry as new capacity is limited and outdated capacity is cleared [1] Company Summary - Rongsheng Petrochemical is positioned to leverage its scale, cost advantages, and integrated industrial chain to enhance its performance in a competitive environment characterized by the elimination of outdated capacities [1] - The company is expected to exhibit performance elasticity in the context of stock competition, benefiting from the overall industry dynamics [1]

□ 范玉波 今年是"绿水青山就是金山银山"理念(以下简称"两山"理念)提出20年。历经20年实践检验，这一理念不 断深入人心，成为习近平生态文明思想的原创性、标识性概念，指引我国生态文明建设取得举世瞩目的 巨大成就。 山东作为东部沿海大省，在服务全国发展大局中地位举足轻重，经济社会发展已进入加快绿色化、低碳 化的高质量发展阶段，必须始终牢固树立和践行"两山"理念，持续深化绿色低碳高质量发展实践，为全 国生态文明建设贡献山东力量。 在加强生态保护修复上深入实践，筑牢黄淮海流域生态屏障。健全以国家公园为主体的自然保护地体 系，为东部沿海地区生态保护与修复提供了实践样本。立足半岛丘陵、黄河三角洲、滨海湿地等独特生 态地貌，构建起"国家公园—自然保护区—自然公园"三级保护架构，形成覆盖森林、海洋、湿地等多元 生态系统的保护网络。推动黄河口陆海统筹型国家公园和长岛海洋型国家公园建设，在优化治理架构、 创新管理体制，在陆海统筹、系统治理、科技赋能、法治协同、共建共享等领域为全国自然保护地体系 完善贡献山东智慧。 "两山"理念的丰富内涵 "两山"理念是习近平生态文明思想的核心理念，揭示了生态环境保护与经济发展的辩证统一关系 ...

Investment Rating - The report maintains a "Buy" rating for Hengli Petrochemical (600346) [1] Core Views - The company's performance in the first half of 2025 met expectations, with a revenue of 103.88 billion yuan, down 7.69% year-on-year, and a net profit attributable to shareholders of 3.05 billion yuan, down 24.08% year-on-year [6] - The company has initiated a mid-term dividend, distributing 0.08 yuan per share, totaling 563 million yuan, reflecting a dividend payout ratio of 18.46% [6] - Future profitability forecasts for 2025-2027 are set at 8 billion, 10 billion, and 12 billion yuan respectively, with corresponding price-to-earnings ratios of 15X, 12X, and 10X [6] Financial Data and Profit Forecast - Total revenue projections for 2025 are 243.79 billion yuan, with a year-on-year growth rate of 3.1% [5] - The expected net profit for 2025 is 8.02 billion yuan, representing a year-on-year increase of 13.8% [5] - The gross profit margin for 2025 is projected at 10.9%, with a return on equity (ROE) of 11.5% [5] Market Data - As of August 22, 2025, the closing price is 17.10 yuan, with a market capitalization of 120.369 billion yuan [1] - The stock has a price-to-book ratio of 1.8 and a dividend yield of 2.63% based on the most recent dividend [1]

Core Viewpoint - The report from Xinda Securities indicates that Rongsheng Petrochemical experienced a significant decline in net profit for the first half of the year, with a year-on-year decrease of 29.82% to 602 million yuan, and a drastic drop of 95.52% year-on-year in Q2, amounting to 14 million yuan, alongside a 97.67% quarter-on-quarter decline [1] Group 1: Company Performance - Rongsheng Petrochemical's net profit for the first half of the year was 602 million yuan, reflecting a year-on-year decline of 29.82% [1] - In Q2, the company reported a net profit of 14 million yuan, which represents a year-on-year decrease of 95.52% and a quarter-on-quarter decline of 97.67% [1] Group 2: Industry Outlook - The aromatic hydrocarbon segment has been a drag on the company's performance, indicating that the company is under significant pressure in the current market environment [1] - The report suggests that the company, as a leading private refining entity in China, may continue to benefit from the optimization of the competitive landscape characterized by limited new capacity and the elimination of excess capacity [1] - The outlook remains positive for the company's performance elasticity in the era of stock competition in the refining industry, coupled with a continuous strengthening of shareholder returns [1]

Investment Rating - The report maintains a "Buy" recommendation for the petrochemical sector, particularly focusing on private large-scale refining companies [3][15]. Core Insights - The report highlights a transformative period in refining, suggesting a focus on private large-scale refining companies due to structural adjustments in the industry [15]. - The "anti-involution" trend is seen as a potential turning point for the chemical industry, with expectations of improved profitability and competitive dynamics in the coming quarters [16][17]. - The report emphasizes the importance of PPI turning positive, which could lead to increased market allocation towards cyclical midstream sectors, benefiting the chemical industry [17]. Industry Overview - The basic chemical industry comprises 493 listed companies with a total market capitalization of 51,121.17 billion and a circulating market value of 45,298.84 billion [3]. - The industry index for the chemical sector is reported at 71.55, reflecting a slight decrease of 0.06% week-on-week and a year-on-year decline of 22.79% [14]. - The report notes that the current operating rate in the chemical industry is around 66.53%, indicating a stable production environment [14]. Price Trends - Key price movements include an 8.0% increase in lithium carbonate and a 7.7% increase in acrylic short fibers, driven by strong demand and supply constraints [6][15]. - The report indicates that the export prices for diammonium phosphate and monoammonium phosphate have risen significantly, with year-to-date increases of 24.4% and 18.1%, respectively [18]. Recommendations - The report suggests focusing on companies with low valuations and potential for upward movement, including leading chemical firms like Wanhua Chemical and Hualu Hengsheng, as well as companies benefiting from export quotas [17][18]. - Specific companies to watch include Hengli Petrochemical, Rongsheng Petrochemical, and Yihua Chemical, which are positioned to benefit from the ongoing structural changes in the industry [15][18].

Group 1 - International oil prices are experiencing a downward trend due to easing geopolitical tensions and increased production by OPEC+, leading to a supply surplus [1] - The market predicts that the overall oil price will continue to decline in the second half of the year, benefiting major refining companies like Rongsheng Petrochemical, Hengli Petrochemical, and Dongfang Shenghong [1][4] - OPEC+ plans to increase oil production by 547,000 barrels per day starting in September, marking a significant policy shift towards increasing supply [1] Group 2 - Historical data indicates that as oil prices decline, the cost structure of the chemical sector improves, allowing for greater profit elasticity for private refining companies [2] - Rongsheng Petrochemical's Zhejiang Petrochemical is projected to achieve theoretical net profits of 5.3 billion, 10.7 billion, and 13.8 billion yuan at oil prices of $80, $70, and $60 respectively [2] - The Chinese government is implementing a "de-involution" policy aimed at optimizing market competition and eliminating outdated production capacity in key industries, including petrochemicals [2][3] Group 3 - The emphasis on "de-involution" is expected to lead to structural reforms in the petrochemical industry, enhancing overall industry value and profitability [3] - As part of the "de-involution" initiative, Rongsheng Petrochemical has collaborated with other leading companies to reduce production capacity and stabilize product prices [3] - The company is leveraging its integrated refining capabilities to enhance its competitive position and expand into high-value products, with an annual production capacity of nearly 60 million tons [3] Group 4 - Companies like Rongsheng Petrochemical, Hengli Petrochemical, and Dongfang Shenghong are expected to benefit from the declining cost structure and "de-involution" policies, enhancing their long-term investment value [4]