"近两年，鹤壁市宝山经开区的千亿级新材料产业集群蓬勃兴起，美瑞聚氨酯、龙宇聚甲醛等龙头项目 实现突破，用'黑金裂变'的转型实践进一步推动了河南化工行业高质量发展。"河南省石油和化学工业 协会常务副会长苏东介绍说。 会上，河南大树实业有限公司年产11万吨丁苯胶乳、6万吨丁腈胶乳系列产品项目，鹤壁宝来化工科技 有限公司年产20万吨聚合氯化铝项目等4个重点项目，以及河南美瑞与宝来化工盐酸回收利用项目、河 南美瑞与海格化工签订盐酸回收利用项目等5个上下游产品供应项目进行了集中签约。 鹤壁市政府相关负责人介绍，近年来，鹤壁市依托丰富的甲醇、1,4-丁二醇等基础化工产能优势，重点 构建以"聚氨酯、聚甲醛、聚合可降解材料"为代表的"三聚"产业、日用化工产业、橡胶助剂产业等相关 产业链条，取得明显成效。 谈及聚氨酯发展现状，中国聚氨酯工业协会秘书长吕国会表示，当前，我国聚氨酯原料产能全球领先， 下游市场纵深拓展，核心技术达到国际先进水平，产业结构持续优化。但也面临发展难题，如创新能力 与产业规模不匹配，低端同质化竞争抑制行业盈利能力，绿色低碳转型任务艰巨，国际贸易壁垒高企， 产业链供应链韧性与安全面临考验。 "既要看到问题， ...

Core Insights - HuaiBei is positioning itself as a "demonstration city for green transformation" and a "national important new comprehensive energy base" focusing on the new energy materials and high-end fine chemicals industry [1] Industry Development - HuaiBei has identified the new energy materials and high-end fine chemicals industry as a core driver for transformation, leveraging strategic opportunities from the Yangtze River Delta integration and the rise of central regions [2] - The city has attracted over 50 leading enterprises, achieving an annual production capacity of 900,000 tons of methanol, 600,000 tons of ethanol, and over 2.6 million tons of various chemical products [2] Infrastructure and Support - The Linhuan Chemical Park is central to the industrial development, offering comprehensive support including talent policies, integrated facilities, optimized pricing mechanisms, and a high-standard wastewater treatment system [2] - The park has become a competitive chemical park during the 14th Five-Year Plan, with a safety risk level rated as D [2] Innovation and Technology - HuaiBei is focusing on integrating technological and industrial innovation, with a significant investment of 370 million yuan in a technology innovation accelerator that serves as a key link from "laboratory" to "production line" [4] - The park currently hosts 18 provincial innovation platforms, 18 national high-tech enterprises, and has accumulated 613 utility model patents and 200 invention patents [4] Policy Incentives - HuaiBei has introduced a series of targeted incentive measures for the manufacturing sector, including rewards for companies achieving certain revenue milestones and support for newly completed projects exceeding 500 million yuan in fixed assets [5] Future Development Plans - The industrial development blueprint for HuaiBei includes a focus on the methanol industry chain, with plans to expand into five key sub-sectors: new energy materials, functional additives, electronic chemicals, pharmaceutical intermediates, and new chemical materials [6] - The goal is to achieve a revenue of over 50 billion yuan by 2030, with significant market potential in silicon-carbon anodes for new energy batteries estimated at nearly 30 billion yuan [6] Strategic Recommendations - HuaiBei should accelerate energy structure optimization and process re-engineering, exploring coupling development paths with green electricity and green hydrogen, as well as the feasibility of coupling with biomass resources and bio-based chemicals [7]

Core Viewpoint - Dongfang Shenghong is a leading domestic energy and chemical enterprise with a comprehensive advantage in petrochemical and chemical new materials, particularly in the polyester filament sector [1] Group 1: Business Performance - In Q3 2025, Dongfang Shenghong reported revenue of 92.162 billion yuan, ranking 5th in the industry, significantly lower than China National Petroleum's 2,169.256 billion yuan and China Petroleum & Chemical's 2,113.441 billion yuan [2] - The main business composition includes other petrochemical and chemical new materials at 37.184 billion yuan (61.04%), refining products at 11.462 billion yuan (18.82%), and polyester filament at 10.77 billion yuan (17.68%) [2] - The net profit for the same period was 110 million yuan, ranking 6th in the industry, which is substantially lower than the industry leaders [2] Group 2: Financial Ratios - As of Q3 2025, the company's debt-to-asset ratio was 82.26%, a decrease from 83.92% year-on-year but still above the industry average of 62.74% [3] - The gross profit margin was 9.92%, an increase from 8.58% year-on-year, yet still below the industry average of 13.42% [3] Group 3: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 11.60% to 73,300, while the average number of circulating A-shares held per shareholder increased by 13.12% to 90,100 [5] - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which increased its holdings by 3.6156 million shares [5] Group 4: Executive Compensation - The chairman, Miao Hangen, received a salary of 2.086 million yuan in 2024, a slight decrease from 2.0986 million yuan in 2023 [4] Group 5: Future Outlook - The company is expected to achieve revenues of 124.2 billion, 131.652 billion, and 136.918 billion yuan from 2025 to 2027, with net profits of 796 million, 1.134 billion, and 1.532 billion yuan respectively [5] - Business highlights include the addition of 400,000 tons/year EVA capacity, expected completion of a 100,000-ton POE industrial facility by Q3 2025, and the establishment of an AI division [5][6]

Core Viewpoint - The company reported a decline in revenue and a mixed performance in net profit for the first half of 2025, indicating challenges in the current market environment due to falling oil prices and a downturn in the aromatics sector [4][5]. Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 60.9 billion yuan, a year-on-year decrease of 16.4% [4]. - The net profit attributable to shareholders was 386 million yuan, reflecting a year-on-year increase of 21.2% [4]. - For Q2 2025, the company reported operating revenue of 30.6 billion yuan, down 15.2% year-on-year but up 0.98% quarter-on-quarter [4]. - The net profit for Q2 was 4.5 million yuan, showing a significant year-on-year decline of 37.1% and a quarter-on-quarter drop of 86.8% [4]. Group 2: Market Conditions - The average Brent crude oil price in Q2 2025 was $66.76 per barrel, down 22% year-on-year and 11% quarter-on-quarter [5]. - The naphtha cracking margin was -50 yuan per ton, with a year-on-year increase of 19 yuan per ton and a quarter-on-quarter increase of 20 yuan per ton [5]. - The refining margin was 1,111 yuan per ton, up 420 yuan per ton year-on-year and 158 yuan per ton quarter-on-quarter [5]. - The PX margin was -389 yuan per ton, down 821 yuan per ton year-on-year but up 175 yuan per ton quarter-on-quarter [5]. - The PTA margin was 420 yuan per ton, reflecting a year-on-year increase of 35 yuan per ton and a quarter-on-quarter increase of 94 yuan per ton [5]. - The DTY margin was 2,222 yuan per ton, down 65 yuan per ton year-on-year and 88 yuan per ton quarter-on-quarter [5]. Group 3: Strategic Developments - The company is implementing a "1+N" development strategy to strengthen its integrated chemical raw material supply platform and enhance downstream industry chain construction [6][7]. - In the first half of 2025, the company added 400,000 tons of EVA production capacity, bringing total capacity to 900,000 tons per year [7]. - The company maintains a leading position in products such as EVA, acrylonitrile, and MMA, while also achieving a breakthrough in the technology of nitrile latex products [7]. - The company is expanding its product matrix in the new energy and new materials sector, focusing on high-end product development and innovation [7]. Group 4: Industry Outlook - The "anti-involution" policies initiated in 2024 are expected to improve market conditions by curbing excessive competition in the petrochemical industry [8]. - The emphasis on high value-added transformation marks a new phase in policy direction, which may lead to a reversal in the industry's downturn [8].

Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company reported a revenue of 609 billion yuan for the first half of 2025, a year-on-year decrease of 16.4%, while the net profit attributable to shareholders was 3.86 billion yuan, an increase of 21.2% [4][5]. - The decline in performance in Q2 2025 is attributed to falling oil prices and a downturn in aromatics market conditions, with Brent crude oil averaging 66.76 USD per barrel, down 22% year-on-year [5][6]. - The company is actively consolidating its "1+N" industrial layout, focusing on high-end product development and expanding its new energy materials product matrix [6][7]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 306 billion yuan, down 15.2% year-on-year, and a net profit of 0.45 billion yuan, down 37.1% year-on-year [4][5]. - The company’s revenue and profit forecasts for 2025-2027 have been adjusted downward due to the impact of falling oil prices and market conditions [8][9]. Industry Outlook - The report highlights a potential reversal in the refining industry's downturn due to ongoing "anti-involution" policies aimed at regulating competition and promoting high-value transformation in the petrochemical sector [7]. - The company is expected to benefit from these policies as they may help mitigate low-price competition in the industry [7]. Profitability and Valuation - The company’s projected net profits for 2025, 2026, and 2027 are 9.65 billion yuan, 14.04 billion yuan, and 20.62 billion yuan, respectively, with corresponding EPS of 0.15, 0.21, and 0.31 yuan [8][9]. - The report indicates a stable growth trajectory for the company’s new materials projects, suggesting significant growth potential [8].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of 12.208 billion yuan for the first half of 2025, a year-on-year decrease of 4.09% [2][6] - The net profit attributable to the parent company was 0.023 billion yuan, down 83.34% year-on-year, while the net profit after deducting non-recurring gains and losses was 0.022 billion yuan, down 82.14% year-on-year [2][6] - In Q2 2025, the company achieved a revenue of 6.590 billion yuan, a year-on-year decrease of 9.10% but a quarter-on-quarter increase of 17.29% [2][6] - The net profit for Q2 2025 was 0.018 billion yuan, down 83.38% year-on-year but up 228.72% quarter-on-quarter [2][6] Summary by Sections Company Overview - The company focuses on deep processing of C4 raw materials, forming four product lines including butene, isobutylene, butane, and isobutane, with major products like methyl ethyl ketone, maleic anhydride, MMA, and nitrile latex [6] - The company is the largest producer of methyl ethyl ketone in the world, holding a market share of approximately 70% in China [6] Industry Analysis - The C4 industry is experiencing a phase of capacity expansion, with the domestic butanone industry entering a growth period from 2020 to 2024 [6] - The company has a competitive advantage due to its location in Shandong, which has abundant refining resources [6] Financial Performance - The company expects net profits attributable to the parent company to be 0.32 billion yuan, 0.76 billion yuan, and 1.21 billion yuan for 2025, 2026, and 2027 respectively [6] - The projected price-to-earnings ratios for these years are 45.4 times, 19.1 times, and 12.0 times based on the closing price on August 22, 2025 [6] Market Conditions - The company is expected to benefit from a decrease in raw material prices, which will alleviate cost pressures and improve operating conditions [6] - Despite global trade tensions impacting end-demand, the alleviation of cost pressures is anticipated to lead to significant improvements in operational performance [6]

Report Summary 1. Report Industry Investment Rating No information provided regarding the industry investment rating. 2. Core Viewpoints - The company is in a favorable position in 2025 Q1, with a 38.19% increase in net profit due to low - oscillating crude oil prices supporting costs and the recovery of downstream chemical product demand [31]. - The company aims to build and promote an AI development strategy on the basis of the "1 + N" strategy, striving to become a world - class energy and chemical enterprise in the AI era [27]. - The company expects future crude oil prices to continue to fluctuate at current levels, which is beneficial for raw material cost support and potentially improving profitability [31]. 3. Summary by Directory 3.1. Research Basic Situation - The research object is Orient Shenghong, belonging to the chemical fiber industry. The reception time was May 20, 2025, and the company's reception staff included the deputy chairman, independent directors, and other executives [16]. 3.2. Detailed Research Institutions - The research institutions included investors who participated in the company's 2024 annual online performance briefing online [19]. 3.3. Research Institution Proportion No information provided. 3.4. Main Content Materials - **Company Achievements in 2024** - The company expanded its industrial layout. The devices for products such as PETG, nitrile latex, and EC/DMC were successfully started up at one time. The POSM and polyol devices of the chemical new material project were fully put into production. The photovoltaic - grade EVA increased by 200,000 tons in production capacity, reaching 500,000 tons/year [24]. - The company had significant innovation achievements, including building the world's first "from carbon dioxide to polyester fiber" industrial chain, winning multiple awards, and having some subsidiaries recognized as champions in the manufacturing industry [25][26]. - The company practiced green and low - carbon development, signing a clean power supply cooperation agreement and launching green product brands [27]. - **Q&A Session** - **EVA and POE Products**: As of the end of 2024, the company's EVA production capacity was 500,000 tons/year, ranking high in the industry in terms of scale and market share. The 100,000 - ton/year POE industrial device is under construction as planned. The company will use its strategic cooperation with downstream photovoltaic film leading enterprises to strengthen market promotion and customer expansion [28]. - **"1 + N" Strategy**: The company has formed a vertically integrated industrial chain layout. The "1 + N" pattern will enable the full linkage of refining, new energy and new materials, and polyester chemical fiber businesses in the future [30][31]. - **Profit and Market Outlook**: The company expects future crude oil prices to fluctuate, which is beneficial for cost support. It will optimize product structure, adjust pricing, and manage inventory according to market conditions [31][32]. - **Recycled Polyester Fiber**: The company's recycled polyester fiber production capacity is about 600,000 tons/year, and its downstream customers cover more than 30 well - known brands [32]. - **Tariff Impact**: In 2024, the company's overseas revenue was 6.753 billion yuan, accounting for about 5% of total revenue. The import and export volume to the US was almost zero, so future US tariff increases would have no direct impact [33]. - **Crude Oil Procurement**: The company's crude oil mainly comes from the Middle East. It formulates procurement plans based on price fluctuations and production plans and conducts appropriate crude oil futures hedging [33]. - **Capital Expenditure**: In 2024, capital expenditure was mainly for the construction of projects such as EVA, POE, POSM, and polyether polyol. The peak of capital expenditure has passed, and it is expected to decline gradually in the future [33]. - **R & D Investment**: In 2024, the company's R & D investment was 6.35 billion yuan, a year - on - year increase of 11.2%. It has multiple innovation platforms and has achieved many technological innovation results [33][34][35].

Group 1: Company Overview and Strategy - Jiangsu Dongfang Shenghong Co., Ltd. operates in the petrochemical industry, focusing on sustainable development and innovation [2][3] - The company emphasizes a value philosophy of "safety, integrity, innovation, and transcendence" to achieve stable and sustainable growth [2] - In 2024, the company expanded its production capacity, including a new 200,000 tons/year of photovoltaic-grade EVA, bringing total capacity to 500,000 tons/year [3] Group 2: Innovation and Technology - The company established the world's first industrial chain from CO2 to polyester fiber, winning the "International Textile Federation Sustainable and Innovation Award" [3][4] - R&D investment reached 6.35 billion yuan in 2024, a year-on-year increase of 11.2%, with 3,797 R&D personnel [14] - The PDH smart factory project was recognized as the "Most Influential Engineering Project in China's Automation Field in 2023" [15] Group 3: Financial Performance - In Q1 2025, the company's net profit increased by 38.19%, supported by low crude oil prices and recovering demand for downstream chemical products [7] - The company's overseas revenue in 2024 was 6.753 billion yuan, accounting for approximately 5% of total revenue [11] Group 4: Market Position and Competitive Advantage - The company holds a leading position in the EVA market with a production capacity of 500,000 tons/year, benefiting from economies of scale [6] - The company has developed a comprehensive product line, including recycled polyester fiber with a capacity of 600,000 tons/year, serving over 30 well-known brands [9] Group 5: Future Outlook and Challenges - The company plans to implement an AI development strategy to enhance vertical integration across its supply chain and focus on new energy and materials [4] - Challenges include navigating a complex external environment and ensuring collaboration among various business segments to maximize the "1+N" strategy [7][8]

Group 1: Project Progress and Financial Status - The isononyl alcohol project is currently progressing, with the raw material pretreatment unit completed and some civil construction and equipment foundation finished [2] - The company reported a net cash flow from operating activities of CNY 1.352 billion for 2024, with accounts receivable turnover at 18 times and inventory turnover at 16 times [3] - The company's debt ratio stands at 53%, indicating sufficient funds and smooth financing [3] Group 2: Production and R&D Developments - The company is planning to extend its downstream industrial chain for propylene oxide, with the current technical transformation nearing completion [3] - The company has 16 key projects aimed at resolving operational bottlenecks, improving efficiency and product quality, and reducing production costs [3] - The company’s R&D expenses have increased in line with rising revenue, from CNY 8.638 billion in 2020 to CNY 16.705 billion in 2024 [4] Group 3: Production Capacity and Utilization - Currently, all production units are operating at full capacity except for the propylene oxide, nitrile latex, and MMA units [4] - The propylene oxide unit was completed and put into operation in June 2023, but its overall performance has not met expectations due to market factors [4] Group 4: Strategic Planning and Future Outlook - The company is implementing a strategic plan to solidify its position as a regional leader in the basic chemical industry, focusing on a "one base, two wings" industrial system [3] - The second base's planning is progressing steadily, with updates to be provided through official announcements [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a first-quarter revenue of 5.618 billion yuan in 2025, representing a year-on-year increase of 2.53% but a quarter-on-quarter decrease of 18.18%. The net profit attributable to the parent company was 0.05 billion yuan, down 83.18% year-on-year but turning profitable quarter-on-quarter. The non-recurring net profit attributable to the parent company was 0.06 billion yuan, down 80.38% year-on-year but also turning profitable quarter-on-quarter [2][6]. Summary by Sections Company Overview - The company is a leader in the C4 industrial chain, focusing on deep processing of raw material carbon four, with four product lines including butene, isobutylene, butane, and isobutane. It has a strong market position with a 70% share in the domestic market for its main product, methyl ethyl ketone [12]. Industry Analysis - The butadiene chain is maintaining a good level of prosperity, with the industry capacity utilization rate around 70% due to supply constraints. The company uses the largest butene oxidation method in the country to produce butadiene, which aligns with its existing industrial chain [12]. Financial Performance - The company expects significant improvement in operating conditions due to a decrease in raw material prices starting from the second quarter of 2025. The projected net profits for 2025, 2026, and 2027 are 0.32 billion yuan, 0.76 billion yuan, and 1.21 billion yuan, respectively, with corresponding price-to-earnings ratios of 39.4, 16.6, and 10.4 [12][19].