Core Viewpoint - The stock of Zhuoyue New Energy has shown a significant increase of 49.20% year-to-date, despite a recent decline of 2.00% on September 22, 2023, indicating potential volatility in the market [1]. Company Overview - Zhuoyue New Energy Co., Ltd. is located in Longyan City, Fujian Province, and was established on November 1, 2001, with its listing date on November 21, 2019. The company specializes in producing biodiesel and its deep-processing products using waste oil as raw material [1]. - The main revenue sources for Zhuoyue New Energy include biodiesel (81.33%), mixed fatty acids (8.86%), natural fatty alcohols (6.27%), eco-friendly alkyd resins (1.53%), industrial glycerin (1.37%), bioester plasticizers (0.32%), and other supplementary products (0.31%) [1]. Financial Performance - For the first half of 2025, Zhuoyue New Energy reported a revenue of 1.312 billion yuan, a year-on-year decrease of 32.12%, while the net profit attributable to shareholders increased by 16.01% to 117 million yuan [2]. - The company has distributed a total of 601 million yuan in dividends since its A-share listing, with 278 million yuan distributed over the past three years [3]. Shareholder Information - As of June 30, 2025, the number of shareholders for Zhuoyue New Energy was 4,740, a decrease of 8.07% from the previous period, while the average circulating shares per person increased by 8.78% to 25,316 shares [2]. - Notable institutional holdings include Baoying New Emerging Industries Mixed A, which is the third-largest shareholder with 1.2642 million shares, and several new institutional investors have entered the top ten shareholders list [3].

Group 1 - The core viewpoint of the news is the performance and business profile of Zhuoyue New Energy, which saw a stock price increase of 5.16% to 49.77 CNY per share, with a total market capitalization of 5.972 billion CNY [1] - Zhuoyue New Energy, established on November 1, 2001, and listed on November 21, 2019, specializes in producing biodiesel and its deep-processed products using waste oil as raw material [1] - The company's main revenue sources include biodiesel (81.33%), mixed fatty acids (8.86%), natural fatty alcohols (6.27%), eco-friendly alkyd resins (1.53%), industrial glycerin (1.37%), bioester plasticizers (0.32%), and other supplementary products (0.31%) [1] Group 2 - From the perspective of fund holdings, Zhuoyue New Energy is a significant investment for the Rongtong New Trend Flexible Allocation Mixed Fund (002955), which held 12,700 shares, accounting for 2.19% of the fund's net value [2] - The Rongtong New Trend Flexible Allocation Mixed Fund has achieved a year-to-date return of 35.15% and a one-year return of 60.43%, ranking 2206 out of 8172 and 2295 out of 7980 respectively in its category [2] - The fund manager, He Tianxiang, has a tenure of 10 years and 333 days, with the fund's total asset size at 7.662 billion CNY [3]

Investment Rating - The investment rating for the company is "Accumulate" and maintained [8] Core Views - In H1 2025, the company achieved revenue of 1.312 billion yuan, a year-on-year decrease of 32.12%, while the net profit attributable to the parent company was 117 million yuan, a year-on-year increase of 16.01% [2][6] - The decline in revenue was primarily due to a decrease in biodiesel sales, while the production of natural fatty alcohol, which began trial production in April 2025, contributed 82.24 million yuan in revenue [2][6] - The company is actively responding to the EU's anti-dumping sanctions on biodiesel by accelerating its global layout and extending its industrial chain [2][12] Summary by Sections Financial Performance - In H1 2025, biodiesel revenue was 1.07 billion yuan, down 42.3% year-on-year, with sales volume at 125,000 tons, a decrease of 37.55% [12] - The average selling price of biodiesel was 8,533.6 yuan per ton, down 7.7% year-on-year [12] - The gross margin for H1 2025 was 10.17%, an increase of 3.83 percentage points, mainly due to the high gross margin from the fatty alcohol business [12] - The cash collection ratio was 95.71%, a slight decrease of 3.41 percentage points year-on-year [12] Strategic Initiatives - The company is addressing the EU's anti-dumping tax of 23.4% by adjusting market strategies, expanding into non-EU markets, and extending into downstream bio-based materials [12] - Future growth is expected from new production capacities in Singapore and domestic projects, which are anticipated to enhance profitability [12] Profit Forecast - The projected net profit attributable to the parent company for 2025-2027 is 247 million, 371 million, and 436 million yuan, representing year-on-year growth of 66%, 50%, and 17% respectively [12]

Group 1 - The company's revenue for H1 2025 was 1.312 billion yuan, a year-on-year decrease of 32.12%, while the net profit attributable to shareholders was 117 million yuan, an increase of 16.01% [1] - In Q2 2025, the company reported revenue of 603 million yuan, down 43.34% year-on-year and 14.96% quarter-on-quarter, with a net profit of 56.05 million yuan, a decrease of 22.3% year-on-year and 8.58% quarter-on-quarter [1] - The company's high-margin natural fatty alcohol project contributed to a gross margin increase of 3.83 percentage points year-on-year despite a decline in biodiesel sales [1] Group 2 - The price of biodiesel in China as of August 29, 2025, was 1,175 USD/ton, reflecting a 22% increase compared to the same period in 2024, indicating a steady growth trend in biodiesel prices [2] - The price of medium-chain fatty alcohol reached 24,600 yuan/ton as of August 29, 2025, up 42% year-on-year, driven by stable palm oil production and increasing demand in the downstream personal care sector [2] - The company benefits from cost advantages by using waste oils from palm oil processing to produce fatty alcohol, positioning it well to capitalize on rising fatty alcohol prices [2] Group 3 - The company is advancing its overseas base construction, with a 100,000 tons/year HVO/SAF production line in China entering the pipeline installation phase [3] - In Singapore, the company plans to build a 200,000 tons/year biodiesel capacity, starting with an initial phase of 100,000 tons/year [3] - The company has completed land exploration and is designing construction plans for a 300,000 tons/year biodiesel project in Thailand, with future plans for biodiesel projects in Saudi Arabia [3]

Core Viewpoint - The company,卓越新能, reported a decrease in revenue but an increase in net profit for the first half of 2025, indicating effective cost management and strategic market positioning [2]. Group 1: Financial Performance - The company achieved a sales volume of 150,700 tons of biodiesel and bio-based materials, with a revenue of 1.312 billion yuan, a year-on-year decrease of 32.12% [2]. - The net profit attributable to shareholders was 117 million yuan, reflecting a year-on-year increase of 16.01% [2]. Group 2: Biodiesel Sector - The company optimized product structure and controlled raw material costs, which helped mitigate market risks and prioritize profitability [3]. - The company is expanding its market presence in Europe and Southeast Asia, establishing deep partnerships with overseas clients [3]. - Ongoing projects include a 100,000-ton hydrocarbon-based biodiesel production line, which is in the pipeline installation phase, and a biodiesel production line in Thailand that has completed land leasing and is in the design phase [3]. Group 3: Bio-based Materials Sector - A 50,000-ton natural fatty alcohol production facility commenced operations in April, meeting high standards for surfactant raw materials [4]. - The company utilizes advanced technology to produce natural fatty alcohol, enhancing the application of biodiesel in bio-based chemicals and achieving domestic substitution [4]. - The company plans to expand production capacity based on operational performance and market demand [4]. - The company announced a fundraising plan to raise 300 million yuan for a new 100,000-ton hydrocarbon-based biodiesel project, with a total investment of 380 million yuan [4].

Core Viewpoint - The launch of the direct shipping route between Batam Island, Indonesia, and Yangpu Port, China, signifies an expansion of maritime connectivity between China and Southeast Asia, enhancing regional trade and logistics efficiency [1][2]. Group 1: Shipping Route and Economic Impact - The new direct shipping route will shorten travel time and reduce logistics costs, benefiting trade between China and Indonesia as well as the broader region [1][2]. - Batam Island's strategic location at the intersection of Indonesia, Singapore, and Malaysia positions it as a key area for regional cooperation and industrial development [1]. - The port's container throughput reached approximately 670,000 TEUs last year, indicating its growing capacity and importance in international trade [1]. Group 2: Local Business Opportunities - The new route provides significant cost savings and efficiency improvements for local businesses, such as the ecological green oil company, which sees enhanced competitiveness in the Chinese market [2]. - The shipping route will reduce the transportation time for coconut products from Indonesia to Hainan from about 20 days to 6 days, decreasing loss rates and improving product quality [2]. - The route will facilitate regular connections between Batam, Yangpu, and Kota Kinabalu, Malaysia, and link to mainline vessels heading to North and South America, creating a fast passage for Indonesian goods to the Americas [2]. Group 3: Regional Economic Integration - The launch of the shipping route is expected to foster deeper economic integration and cooperation between China and Indonesia, with China being Indonesia's largest trading partner and a major source of investment [2][3]. - The route is anticipated to create more opportunities for regional economic collaboration and prosperity as it develops [3].

Core Viewpoint - The opening of a direct shipping route between Indonesia's Batam Island and China's Yangpu Port enhances trade connectivity and logistics efficiency between China and Indonesia, benefiting regional economic cooperation [1][2]. Group 1: Shipping Route and Logistics - The new direct shipping route reduces travel time and logistics costs, facilitating trade between China and Indonesia, and promoting regional economic integration [1][2]. - The Batam Island port has upgraded its facilities to meet international standards, enhancing its capacity for handling container shipments [1][2]. Group 2: Economic Impact on Local Industries - Local companies, such as the ecological green oil company, are expected to benefit from reduced costs and improved efficiency due to the new shipping route, enhancing their competitiveness in the Chinese market [2]. - The direct shipping route significantly shortens the transportation time for coconut products from Indonesia to Hainan, reducing spoilage and improving product quality, which directly benefits local businesses [2]. Group 3: Broader Economic Cooperation - The new shipping route is seen as a bridge for trade between China and Indonesia, and it is expected to strengthen connections between ASEAN countries and China, creating a win-win situation [2]. - China has become Indonesia's largest trading partner and a major source of investment, with ongoing cooperation in sectors like renewable energy, manufacturing, and digital economy [2].

Investment Rating - The report gives a "Recommended" rating for the company, with a target price of 45.60 CNY as of August 12 [1]. Core Views - The company, Zhuoyue New Energy, is a leading domestic producer of ester-based biodiesel, with a focus on expanding production capacity and enhancing overseas sales channels. The growth is driven by the increasing output of fatty alcohols and the establishment of new projects [7][8]. Company Overview - Zhuoyue New Energy was established in 2001 and listed on the Shanghai Stock Exchange in 2019. It is the first company in China to industrialize the production of biodiesel from waste oils and has maintained the largest production and sales scale in the domestic biodiesel market. The company has been exporting products since 2009, with significant sales to South Korea and Taiwan, and has achieved ISCC certification for direct sales to the EU [7][12]. - The company has a total production capacity of 500,000 tons of biodiesel and 140,000 tons of bio-based materials as of 2024. New projects include a 50,000-ton natural fatty alcohol project expected to start production in April 2025 and a 100,000-ton hydrocarbon biodiesel project set to begin construction in Q3 2023, with a planned production start in December 2025 [7][22]. Industry Perspective - The report highlights that the demand for biodiesel in the EU is expected to increase due to the RED III policy, which mandates a higher share of renewable energy in total energy consumption. In China, the biodiesel consumption is currently low, but there is significant market potential if the B5 policy is implemented nationwide [8][26]. - The company is adapting to changes in the export landscape, with a shift towards Southeast Asian markets and a focus on establishing self-operated sales networks in key trade ports [8][26]. Financial Forecast and Investment Suggestions - The revenue projections for Zhuoyue New Energy are 44.61 billion CNY, 54.69 billion CNY, and 68.55 billion CNY for 2025, 2026, and 2027, respectively. The corresponding net profits are expected to be 3.57 billion CNY, 4.69 billion CNY, and 5.81 billion CNY [6][8]. - The report emphasizes the company's robust financial health, with a low debt ratio of 21.51% and a net asset value of 23.79 CNY per share [1].

Core Viewpoint - The report details the usage of previously raised funds by Longyan Zhuoyue New Energy Co., Ltd., highlighting the total amount raised, the allocation of funds, and the current status of various projects funded by these resources [1]. Fundraising Overview - The company raised a total of RMB 1,200,896,220.75 after deducting expenses related to the issuance of shares [1]. - The funds were primarily allocated to projects including the production of biodiesel and the establishment of a technical research center [1]. Fund Usage Status - As of March 31, 2025, the company has utilized RMB 96,786,250.00 of the raised funds for various projects [8]. - The company has also engaged in cash management for temporarily idle funds, with a maximum limit of RMB 9.8 billion approved for investment in safe and liquid financial products [2][3][4][5][6][7]. Project Implementation and Changes - The company has completed the biodiesel production line with an annual capacity of 100,000 tons, which reached full production in June 2021 [9]. - The project for producing 50,000 tons of natural fatty alcohol is still under development and has not yet reached the intended operational status [9]. Financial Performance and Impact - The biodiesel projects have faced challenges due to EU anti-dumping investigations, affecting profitability [9]. - The company has adjusted its sales strategy in response to market conditions, focusing on international marine fuel markets and domestic bio-based materials [9]. Cash Management and Idle Funds - As of March 31, 2025, the company has RMB 31,200,000.00 in temporarily idle funds under cash management agreements [7]. - The company has consistently sought approval for using idle funds for cash management, ensuring that such actions do not impact the implementation of investment projects [2][3][4][5][6][7].

Group 1 - The company, Longyan Zhuoyue New Energy Co., Ltd., plans to issue shares to specific investors to raise funds for expanding its production capacity of biofuels, particularly hydrocarbon-based biodiesel (HVO) and sustainable aviation fuel (SAF) [14][18][28] - The issuance price is set at 41.72 RMB per share, which is not lower than 80% of the average trading price over the previous 20 trading days [21][24] - The total number of shares to be issued is approximately 7,190,795, which does not exceed 30% of the company's total share capital prior to the issuance [21][24] Group 2 - The company aims to utilize the raised funds to enhance its production capabilities, particularly in the processing of waste oils, which are abundant and pose environmental risks if not properly managed [18][29] - The project aligns with national policies promoting renewable energy and aims to reduce reliance on fossil fuels while addressing environmental concerns [14][30][33] - The company has established itself as a leading player in the biodiesel market, with a strong focus on technology and innovation in the utilization of waste oils for biodiesel production [18][33] Group 3 - The issuance is expected to improve the company's liquidity and optimize its shareholding structure, ensuring long-term governance and sustainability [20][26] - The company has a solid technical foundation and market presence, having been involved in biodiesel production for over 20 years, which enhances its competitive edge in the industry [18][33] - The global demand for biodiesel is projected to grow significantly, driven by regulatory support and environmental initiatives, particularly in Europe and the aviation sector [16][17][18]