Core Viewpoint - The company focuses on energy and chemical logistics, primarily storing petrochemical products, and aims to become a benchmark enterprise for sustainable development in the industry [1] Group 1: Business Focus - The company specializes in the storage of petrochemical products, including refined oil, alcohols (including methanol), and other liquid chemicals [1] - Key storage facilities include Taicang Yanghong, Nantong Yanghong, Changzhou Hongchuan, and the affiliated company Changjiang Petrochemical, all designated methanol delivery warehouses by Zhengzhou Commodity Exchange [1] Group 2: Strategic Direction - The company has not yet initiated green methanol storage operations but is committed to extending its business into new energy and green chemicals [1] - The long-term strategic development direction is to become a sustainable industry benchmark [1] Group 3: Environmental Initiatives - All storage facilities are constructed and operated in accordance with national environmental standards, employing measures to reduce VOC emissions [1] - The company has implemented a green upgrade with oil and gas recovery systems and is advancing clean energy transformation through distributed photovoltaic projects [1] - Existing hardware facilities meet the storage requirements for green methanol [1]

Investment Rating - The report maintains an "Outperform" rating for the company [2][5][13] Core Views - The company experienced a decline in profitability in 1Q25, with a focus on awaiting demand recovery [1][4] - The petrochemical logistics sector is facing downward pressure due to reduced demand, impacting the company's performance [4][5] - Long-term structural characteristics of the petrochemical industry in China suggest sustained demand for cross-regional transportation and storage [4] Financial Performance Summary - In 2024, the company reported revenue of Rmb1,450 million, a decrease of 6.27% year-on-year, and a net profit of Rmb158 million, down 46.57% year-on-year [3][12] - For 1Q25, revenue was Rmb323 million, down 14.98% year-on-year, with a net profit of Rmb21 million, down 65.10% year-on-year [3][12] - The company's gross margin in 1Q25 was 43.94%, a decline of 8.76 percentage points year-on-year, and the net margin was 6.49%, down 9.32 percentage points year-on-year [4] Earnings Forecast and Valuation - The forecast for net profit is Rmb188 million for FY25, Rmb247 million for FY26, and Rmb294 million for FY27, with corresponding EPS of Rmb0.41, Rmb0.54, and Rmb0.64 respectively [5][13] - The target price is set at Rmb10.27 based on a 25x FY25E P/E ratio [5][13]