Report Industry Investment Rating - Not provided in the content Core Viewpoints - The overall view on urea is neutral. Supply-wise, summer maintenance has increased, keeping production at a relatively low level but still higher than historical averages. Export profits are high, yet there is no further news on export quotas. The compound fertilizer operating rate continues to rise, while industrial demand is lukewarm. In the short term, domestic drivers are not obvious, and there is still an expectation of export policy liberalization [4]. Summary by Related Catalogs Spot Price - Urea spot prices have slightly stabilized. The domestic supply-demand situation remains loose, with enterprise inventories turning from decreasing to increasing. Ammonium chloride prices have stabilized with a slight increase in new orders. The ammonium sulfate market is in a stalemate with no signs of improvement in transactions [8][11]. - Current export profits remain high, but there is no news of new export quota releases, so potential export demand cannot be freely released [32]. Operating Rate - Coal-based urea production still has good profits. Summer maintenance has started, and the operating rate is at a relatively low level but still at a high point in recent years. Some enterprises have carried out maintenance this period, and some are scheduled to stop production next week, with the overall operating rate changing little [40]. Inventory - This week, enterprise inventories have slightly increased as domestic demand enters the off - season and exports have made no new progress. Port inventories have decreased, with some large - granular urea at Yantai Port shipped out and some small - granular urea gathered at Lianyungang and Rizhao Ports [53]. Profit - Coal - to - urea still maintains high profits, while gas - to - urea profits are almost gone as urea prices fluctuate at a low level [66][80]. Export - Current exports are proceeding steadily, but there is no news of further liberalization. After the domestic price weakens, the potential export profit remains extremely high, and the downside space for urea may be limited [84]. Domestic Demand - This week, compound fertilizer prices are basically unchanged. The cost side shows a weak downward trend in urea prices, a slight increase in monoammonium phosphate prices, and narrow fluctuations in potash fertilizer prices. The demand for southern rice has decreased, and some enterprises in Hunan and Jiangxi are in the traditional maintenance period. The autumn fertilizer sales have improved. Compound fertilizer enterprises are receiving orders as needed, and the operating rate is increasing faster [96][99]. - Melamine prices have remained stable recently, with a dull trading atmosphere. The industry utilization rate remains high, and supply changes are limited. Demand is mainly for rigid needs, with insufficient support [110]. Raw Materials - Recently, coal demand remains high but has little change compared to the same period in previous years. The price rebound space is limited due to the increase in new - energy power generation squeezing thermal power demand and high power - plant inventories. The supply - demand situation of synthetic ammonia remains tight, with enterprises reducing production, smooth low - price order transactions, rapid inventory reduction, and price increases [145][154]. Futures - Recently, futures and spot prices have shown a weak and volatile trend, and the monthly spread has declined. The number of warehouse receipts is significantly higher than in the same period in history [179]. Balance Sheet - The report provides the total supply, production, import, total demand, demand breakdown by sector, export, surplus, and year - on - year changes in production, supply, and consumption of urea from September 2024 to December 2025 [183].

Summary of Chemical Industry Conference Call Industry Overview - The conference focused on the chemical industry, specifically urea and methanol production, discussing capacity changes, production costs, and market dynamics [1][2][3][4][5][6]. Key Points on Urea Industry - **Capacity Changes**: In 2024, new urea capacity is expected to reach approximately 6 million tons, with an additional 6 million tons projected for 2025-2026. However, actual annual capacity release may only be around 3 million tons due to various factors [1][2]. - **Production Costs and Profitability**: The profit margins for coal-based urea production are significantly higher, ranging from 600 to 800 RMB per ton, while natural gas-based urea is nearing a loss state. The production costs for natural gas urea are constrained by national price limits [3][4]. - **Production Concentration**: The concentration of urea production is low, with the top ten companies accounting for only 20%-30% of the market. Most production facilities are relatively new, with a significant portion built in the last decade [4][5]. - **Operating Rates**: The operating rate in the urea industry has remained historically high, with an increase expected between 2% and 6.4% for the year. The high profitability of coal-based urea and the rigid demand for natural gas urea contribute to this trend [1][5][6]. - **Export Dynamics**: Limited export policies were relaxed in May, allowing for some urea exports. The export profit exceeds 1,000 RMB per ton, particularly appealing during the domestic off-season [7][8][10]. Key Points on Methanol Industry - **Supply and Demand**: Recent declines in methanol production rates are attributed to delayed maintenance and the impact of anti-involution policies. However, most maintenance is expected to be short-term, with supply remaining high in the latter half of the year [13][14]. - **Market Conditions**: The methanol market is influenced by various factors, including the return of Iranian production and fluctuating coal prices. The domestic methanol import volume is projected to remain around 1.25 to 1.3 million tons in the second half of 2025 [15][16]. - **Production Costs**: Coal-based methanol remains the most cost-effective production method, with costs in Inner Mongolia around 1,350 to 1,400 RMB per ton, while natural gas-based methanol is the most expensive, reaching up to 2,600 RMB per ton [28]. Additional Insights - **Impact of Anti-Involution Policies**: The anti-involution policies have a neutral to bearish effect on methanol downstream products, with limited impact on existing production facilities. The policies are expected to lead to a gradual phase-out of older production methods [14][19][26]. - **Future Outlook**: The potential for increased urea exports and the gradual transition from older production methods to newer technologies may create opportunities for investment in the chemical sector [10][12][29]. This summary encapsulates the critical insights from the conference call, highlighting the current state and future expectations of the urea and methanol industries.

Investment Rating - The report does not explicitly state an investment rating for the chemical industry Core Insights - In June 2025, the basic chemical index increased by 6.42%, ranking 10th among primary industries, driven by rising oil prices affecting certain chemical product prices [2][11] - Among the 600 chemical products monitored, the top ten products with the highest price increases included butanone (16.36%) and ammonium sulfate (14.39%) [3][24] - The report highlights that 407 companies in the basic chemical sector achieved positive returns, while 130 companies reported negative returns in June 2025 [20] Market Overview - Major market indices in June 2025 showed the following changes: Shanghai Composite Index increased by 2.90%, Shenzhen Component Index by 4.23%, and the ChiNext Index by 8.02% [11] - The basic chemical sector's performance was notably strong, with sub-industry growth rates such as plastics and products at 7.79% and other chemical products II at 7.36% [16] Product Price Movements - The report identifies significant price movements in various chemical products, with the top gainers being butanone and ammonium sulfate, while the largest declines were seen in vitamin E (-27.66%) and vitamin D3 (-26.32%) [24][28] - The report provides detailed price data for key products, indicating a general upward trend in prices for many chemicals due to rising raw material costs [26][27] Industry Profitability - From January to May 2025, the total profit of the chemical raw materials and products manufacturing industry decreased by 4.7%, with a total profit of 151.58 billion yuan [4][32] - The report notes a decline in factory prices by 4.1% year-on-year, reflecting broader economic challenges faced by the industry [4][32] Company Performance - The report lists the top ten basic chemical companies by monthly performance, with notable increases in stock prices for companies like Keheng Co. (122.00%) and Xingye Co. (97.50%) [21][22] - Conversely, companies such as Shanghai Jahwa and Yongguan New Materials experienced significant declines, with monthly drops of -11.32% and -11.68% respectively [23]

Core Viewpoint - Guangxi Senhe High-tech Co., Ltd. (Senhe High-tech) has officially launched its IPO process on the Beijing Stock Exchange, marking a significant milestone in the development of China's environmentally friendly mineral processing technology industry [1] Company Overview - Established in 2011, Senhe High-tech specializes in the research, production, and sales of environmentally friendly precious metal flotation agents, primarily used in the gold extraction process [2] - The company's core product, the "Jinchai" series of flotation agents, has broken the foreign technology monopoly in the gold mining sector, creating a complete ecological chain from R&D to industrial application [1][2] Market Context - The traditional cyanide method for gold extraction faces environmental and safety challenges, with over 80% of gold mining companies currently using cyanide [2] - Increasing global ecological and environmental requirements, along with government policies promoting "green mining," are challenging the dominance of traditional cyanide methods [2][6] Product Advantages - Senhe High-tech's "Jinchai® Environmental Gold Flotation Agent" has achieved industrial breakthroughs in cyanide substitution technology, with a leaching rate of up to 90% while being compatible with existing cyanide extraction equipment [3] - The product is recognized for its low toxicity, high recovery rate, stability, ease of operation, and cost-effectiveness, having won awards and been included in advanced technology directories [3][4] Industry Trends - The global precious metal flotation agent market is projected to grow from 57.596 billion yuan in 2023 to 61.150 billion yuan by 2028, with Senhe High-tech holding approximately 19.15% market share in China's environmentally friendly flotation agent segment [6] - The demand for environmentally friendly flotation agents is expected to rise as mining companies reduce the use of traditional toxic agents, leading to a supply-demand imbalance in the market [7] Financial Performance - Senhe High-tech's revenue has shown significant growth, with projected revenues of 302 million yuan, 346 million yuan, and 623 million yuan for 2022, 2023, and 2024 respectively, alongside net profits of 47.055 million yuan, 56.069 million yuan, and 150 million yuan [8] - The company plans to invest 5.55 billion yuan in a new project to expand its production capacity by 40,000 tons annually, with expected annual sales revenue of 381 million yuan and net profit of 75.33 million yuan post-project completion [8] Future Outlook - Senhe High-tech aims to continue its commitment to "green mining" and "environmental gold extraction," focusing on technological innovation and optimizing product performance to meet the growing market demand [9][10] - The company is positioned to leverage its technological advantages and market opportunities to enhance its competitiveness in the green mining sector [10]

Core Viewpoint - Blue Star Adisseo Co., Ltd. is seeking to raise funds through a specific stock issuance, with a total investment of 6.857 billion yuan for four projects and working capital, aiming for an internal rate of return between 13.57% and 25% [2][3]. Fundraising and Investment Projects - The total investment for the fundraising projects is 6.857 billion yuan, with a maximum of 3 billion yuan to be raised, allocated to four projects and 900 million yuan for working capital [2]. - The construction period for the four projects ranges from 15 to 26 months, with expected benefits from cost reductions and additional income from biogas [2]. Project Details - The first project is a solid methionine production project with an investment of approximately 493.23 million yuan, accounting for 100% of the total investment for this project [3][4]. - The second project involves a special feed additive with a total investment of 304.97 million yuan, with 60 million yuan sourced from the fundraising [11]. - The third project focuses on acrylic wastewater treatment and water reuse, with a total investment of 324.97 million yuan and 100 million yuan from the fundraising [15][19]. Cost Estimation and Reasonableness - The cost estimation for the solid methionine project is based on market prices and relevant cost estimation methods, ensuring its reasonableness [4][5]. - The unit construction cost for the solid methionine project is 3,593.25 yuan per square meter, which is within the range of similar projects in the region [7][12]. - The equipment costs for the projects are estimated based on supplier quotes and historical prices, ensuring that the pricing is reasonable [13][14]. Financial Justification - The financing scale is justified by the company's operational needs, cash flow, and projected funding gaps, with a future funding shortfall of approximately 5.566 billion yuan over the next three years [19].

Group 1 - The New Materials 50 ETF (159761) rose over 1.6%, indicating a potential recovery in photovoltaic glass prices [1] - The China Construction Industry Association announced a call for new products and materials in the construction supply chain, focusing on green building materials and new materials [1] - Tianfeng Securities highlighted a differentiated supply-demand pattern in the new materials industry, with stable demand but limited supply in areas like refrigerants and phosphates, while other sectors like MDI and agricultural chemicals show stable supply but growing demand [1] Group 2 - The chemical raw materials and chemical products manufacturing industry saw a year-on-year increase of 5.9% in May, indicating resilience in industry demand [1] - Certain products, such as methanol, experienced an 11% price increase due to geopolitical conflicts, while ammonium sulfate prices rose by 20% driven by international urea prices [1] - The current cycle may have reached a relative bottom, suggesting structural opportunities arising from changes in supply and demand [1]

Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2] Core Views - The report highlights that the escalation of the Israel-Palestine conflict has led to increased geopolitical uncertainties, resulting in price increases for oil and gas-related products. The market is expected to seek certainty, with low valuation and high dividend directions likely to benefit from the second quarter's performance certainty [5][6] Summary by Relevant Sections Industry Overview - The closing index level is 3385.44, with a weekly high of 3564.08 and a low of 2687.54 [2] Recent Market Performance - The basic chemical sector experienced a weekly increase of 3.76%, outperforming the CSI 300 index by 3.94 percentage points [6] - Year-to-date performance shows the basic chemical index down 2.02%, while the CSI 300 index is up 13.59%, indicating a 15.61 percentage point underperformance [19] Price Movements - Key products with price increases include Brent crude oil (up 13.68%), ammonium sulfate (up 12.31%), and PX (up 10.53%) [9][23] - Notable price decreases were observed in liquid chlorine (down 60.00%) and chick seedlings (down 36.33%) [10][26] Stock Performance - Significant stock price increases were noted for companies such as Ningxin New Materials (up 46.75%) and Tongyuan Petroleum (up 42.09%) [7][20] - Conversely, stocks like退市海越 experienced a significant drop of 38.85% [8][21] Investment Recommendations - The report suggests a focus on companies with strong earnings forecasts and maintains buy ratings for several key companies, including Wanhua Chemical and Yangnong Chemical [12][13]

Core Insights - The report by Yihe Consulting provides an in-depth analysis of the ammonium sulfate market, focusing on global and Chinese markets, and aims to meet diverse client needs through detailed market insights [2][4]. Market Participants - The ammonium sulfate market includes a wide range of participants, from major fertilizer producers to local SMEs, with industry giants leveraging advanced production technologies and extensive sales networks to maintain market share [6]. - The report details the financial status, production capacity, and market positioning of key players, offering a comprehensive view of the competitive landscape [6]. Industry Structure - The ammonium sulfate supply chain is complex, involving upstream production of ammonia and sulfuric acid, and downstream applications in agriculture and industry [6]. - Price fluctuations in ammonia directly impact production costs of ammonium sulfate, while seasonal demand spikes in agriculture influence market dynamics [6]. Market Trends and Data - Historical data and future forecasts indicate stable growth in the ammonium sulfate market, driven by increasing global demand for sustainable agriculture and efficient fertilizers [7]. - The report compares growth potential across different regions and analyzes the impact of national policies on market development, aiding companies in identifying optimal market entry strategies [7]. Constraints and Challenges - The report identifies several constraints affecting market growth, including rising costs, stringent environmental regulations, and intensifying market competition [7]. - Fluctuations in raw material prices and the need for technological innovation are highlighted as critical factors for companies to manage production costs effectively [7]. Geopolitical Factors - Geopolitical issues significantly influence the ammonium sulfate market, affecting raw material supply chains and introducing potential tariffs and trade barriers [8]. - The report emphasizes the need for companies to monitor international political developments to adapt their market strategies accordingly [8]. Regional Analysis - The report provides a detailed analysis of the ammonium sulfate market across major regions, including North America, Europe, Asia-Pacific, and Latin America, with Asia-Pacific showing the fastest growth due to agricultural modernization and sustained fertilizer demand [8]. - Regional consumption characteristics, industry policies, and geographical differences are explored to help stakeholders understand market potential and challenges [8]. China Market Insights - The report specifically analyzes China's policy environment, including government support for the fertilizer industry and environmental regulations, which significantly impact market behavior [9]. - As the largest consumer of ammonium sulfate globally, changes in China's policies will directly affect the global supply-demand landscape [9].

Core Viewpoint - Guangxi Senhe High-tech Co., Ltd. (Senhe High-tech) has received approval for its IPO on the Beijing Stock Exchange, with Guotou Securities as the sponsor and Zhonghui Accounting Firm as the auditor [3] Company Overview - Senhe High-tech was established in April 2011 with a registered capital of 85.392 million yuan, focusing on the research, production, and sales of environmentally friendly precious metal flotation agents and by-products such as ammonium sulfate [3] - The legal representative of the company is Que Shandong [3] Financial Performance - Revenue and net profit figures for Senhe High-tech from 2022 to 2024 are as follows: - 2022: Revenue of 302 million yuan, Net profit of 47.06 million yuan, Gross margin of 30.45% - 2023: Revenue of 346 million yuan, Net profit of 56.07 million yuan, Gross margin of 31.15% - 2024: Revenue of 623 million yuan, Net profit of 150 million yuan, Gross margin of 36.8% - The company is projected to experience significant growth in 2024, with revenue and net profit increasing by 80.07% and 167.15%, respectively [3][4] Shareholding Structure - Before the IPO, Que Shandong and Liu Xin each directly held 28.083% of the company's shares, making them the actual controllers of the company [4] - A joint action agreement has been signed between Que Shandong and Liu Xin, requiring them to fully consult and communicate before making major decisions [4] - As of September 4, 2024, Liu Yihua, a relative of Que Shandong, holds 120,000 shares, bringing the total shares controlled by Que Shandong, Liu Xin, and their joint action relationship to 48.0812 million shares, which is 56.3064% of the total share capital [5] Management Background - Que Shandong, born in June 1961, has extensive experience in the mining and trade sectors, having held various managerial positions since 1994 [7] - Liu Xin, born in October 1968, has a background in metal materials and has served in several managerial roles, including as general manager at Senhe High-tech since April 2015 [8]

Company Overview - Guangxi Senhe High-tech Co., Ltd. (Senhe High-tech) has been accepted for IPO on the Beijing Stock Exchange, with Guotou Securities as the sponsor and Zhonghui Accounting Firm as the auditor [2] - Established in April 2011, Senhe High-tech specializes in the R&D, production, and sales of environmentally friendly precious metal flotation agents, including ammonium sulfate as a by-product [2] Industry Insights - The global precious metal flotation agent market was valued at 57.596 billion yuan in 2023 and is projected to reach 61.150 billion yuan by 2028, with the market share of environmentally friendly flotation agents expected to grow from 8.02% in 2023 to 14.45% by 2028 [3] - The precious metal production process involves three main stages: upstream suppliers of explosives, chemical agents, and mining equipment; midstream producers of gold and silver responsible for exploration, mining, and beneficiation; and the flotation process, which is crucial for improving output efficiency [2] - The increasing environmental regulations in major gold-producing countries, including China, are driving the shift towards "green mining" and environmentally friendly production methods [2] Market Demand - In 2023, global recycled gold production reached 1,237 tons, a 9% increase year-on-year, with China's recycled gold amounting to 551.13 tons, reflecting a 26.61% growth [4] - The rising production of recycled gold is expected to create new demand for precious metal flotation agents, as they are essential raw materials in the recycling process [4] - The market demand for environmentally friendly precious metal flotation agents is anticipated to reach hundreds of billions, driven by stricter environmental regulations [4]