Core Viewpoint - Dongying City is advancing its carbon footprint management from a nascent stage to a systematic framework, focusing on achieving dual carbon goals through innovative collaborative efforts [3]. Group 1: Carbon Footprint Management - Carbon footprint management is essential for implementing the dual carbon goals, with Dongying City targeting core needs starting in 2023 [3]. - The city is establishing the "Yellow River Delta Smart Carbon Valley" platform, which serves as a digital hub for carbon management, covering the entire process from carbon resource development to carbon trading [3]. - The platform has already provided over 120 professional services to enterprises and attracted 21 companies in the new energy and dual carbon industry chain, facilitating carbon asset transactions exceeding 70 million yuan [3]. Group 2: Infrastructure and Standards - Dongying City is accelerating the construction of the provincial carbon measurement center, with laboratory construction, database setup, and talent recruitment already underway [3]. - The city has led and participated in the release of three group standards and is involved in drafting six national and industry standards to strengthen the foundation for carbon footprint accounting [3]. Group 3: Pilot Projects and Collaborations - To ensure the success of pilot projects, Dongying City has established a task force led by a deputy mayor, collaborating with multiple departments such as development and reform, industry and information technology, ecological environment, and market regulation [4]. - The city has partnered with the China Quality Certification Center to select three companies, including Sailun Tire, as pilot projects for green certification, aiming to facilitate the international market entry of Dongying's green tires [4].

Core Viewpoint - The upgrade and transformation of the environmentally friendly rubber plasticizer series at Jinan Refining has led to significant improvements in product yield and production capacity, addressing the high production costs of green rubber and tires in China due to foreign market dominance [1] Group 1: Production and Performance - In August, the upgraded environmentally friendly rubber plasticizer series at Jinan Refining achieved full-load operation, with product yield increasing by 3.56 percentage points year-on-year [1] - The production volume has doubled compared to the period before the upgrade, with the first batch of products already launched into the market and sold to downstream companies such as Qilu Petrochemical Rubber Plant [1] Group 2: Market Impact and Innovation - The environmentally friendly rubber plasticizer is a key raw material for producing green styrene-butadiene rubber and green tires, significantly improving the flexibility and plasticity of tire rubber [1] - Jinan Refining's self-developed A1820 environmentally friendly rubber plasticizer meets international advanced performance standards and is the only domestically produced substitute product, making it highly favored by enterprises [1]

Investment Rating - The report assigns a "Buy" rating for the company with a target price of 13.17 CNY per share, based on a current price of 7.96 CNY [6]. Core Viewpoints - The company is expanding its footprint in the chemical industry by acquiring a 60% stake in the fluorochemical company San Aifu, which is among the top 20 in the global fluorochemical industry [4]. - The company has a diversified business model with five core segments: energy chemicals, green tires, advanced materials, fine chemicals, and chemical services, which collectively form a dual-driven development model of "manufacturing + services" [16][22]. - The company is expected to see significant profit growth, with projected net profits of 1.4 billion CNY in 2025, 1.9 billion CNY in 2026, and 2.3 billion CNY in 2027 [4]. Company Overview - The company, Shanghai Huayi Group Co., Ltd., is a large state-controlled listed company primarily engaged in energy chemicals, green tires, advanced materials, fine chemicals, and chemical services [16][22]. - The company was established in 1957 and has undergone several transformations, including its listing in 2016 [17][18]. - The major shareholder is Shanghai Huayi (Group) Company, holding a 37.65% stake [20]. Financial Performance - The company reported a revenue of 45.1 billion CNY in 2024, with a year-on-year growth of 9.1%, marking a new high since 2018 [36]. - The projected revenues for 2025 and 2026 are 49.95 billion CNY and 52.79 billion CNY, respectively [5]. - The company maintains a stable debt-to-asset ratio, which has remained between 52% and 58% from 2018 to 2024 [52]. Business Segments - The five core business segments generated revenues of 13.23 billion CNY (advanced materials), 10.94 billion CNY (green tires), 6.91 billion CNY (energy chemicals), 6.43 billion CNY (fine chemicals), and 6.64 billion CNY (chemical services) in 2024 [39][40]. - The advanced materials and green tires segments are significant contributors to the company's profitability, with gross margins of 10.7% and 29.4%, respectively [41]. Acquisition Impact - The acquisition of San Aifu is expected to enhance the company's revenue and profit contributions significantly, with forecasts indicating a substantial increase in net profits post-acquisition [4][5].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][8]. Core Insights - The company, Huayi Group, operates under five core diversified business segments and plans to acquire a 60% stake in San Aifu, enhancing its growth potential in the fine fluorochemical sector [5][6][8]. - In 2024, Huayi Group achieved a revenue of 44.6 billion yuan, reflecting a year-on-year growth of 9.3%, and a net profit of 910 million yuan, up by 5.8% [5]. - The acquisition of San Aifu, a top 20 global fluorochemical company, is expected to strengthen Huayi's position in the fine fluorochemical market and expand its new materials product matrix [6][8]. Financial Performance - The company reported a total market capitalization of approximately 16.09 billion yuan and a circulating market capitalization of about 14.13 billion yuan as of June 18, 2025 [4]. - The projected revenues for 2025, 2026, and 2027 are estimated at 45.83 billion yuan, 47.16 billion yuan, and 48.41 billion yuan, respectively, with corresponding net profits of 938 million yuan, 1.14 billion yuan, and 1.23 billion yuan [8][10]. - The company has a cash dividend plan for 2024, proposing a distribution of 0.18 yuan per share, resulting in a cash dividend ratio of 41.96% [7]. Business Strategy - Huayi Group focuses on a dual-core business model of "manufacturing + services" and aims to integrate its upstream and downstream supply chains [5]. - The company is committed to enhancing its core business in chemicals while aligning with national strategies and regional development initiatives [7].

Core Viewpoint - The company, General Shares, is seizing unprecedented development opportunities in the tire industry by embracing smart manufacturing, green innovation, and globalization to enhance its core competitiveness and stimulate growth potential [1][3]. Group 1: New Manufacturing - General Shares is leading the Industry 4.0 transformation by integrating smart manufacturing into tire production, establishing a new high ground in intelligent manufacturing [4]. - The company has achieved "dark factory" operations in its domestic semi-steel plant, reducing labor costs by 50%, increasing production efficiency by 40%, and lowering operational costs by 20% [6]. - In collaboration with China Mobile, General Shares launched the industry's first "5G Carbon Cloud Intelligent Factory," achieving full-process automation and significantly improving production efficiency and product quality [6]. Group 2: New Momentum - In alignment with the "dual carbon" goals, General Shares is integrating green low-carbon concepts into its development strategy, focusing on the research and implementation of green low-carbon technologies [7]. - The innovative use of natural materials, such as Eucommia rubber in electric vehicle tires, enhances durability, safety, and comfort while supporting the green development trend in the automotive industry [9]. - The company is also introducing low rolling resistance, high wear-resistant, and low noise green tire products to meet growing market demands and drive continuous performance growth [9]. Group 3: New Business Formats - General Shares is actively pursuing a "going out" strategy to build a global production and sales network, creating a new pattern of "domestic and international dual circulation" [10]. - The company has established production bases in China, Thailand, and Cambodia, effectively reducing production costs and enhancing market competitiveness [11]. - Upcoming projects in Thailand and Cambodia are expected to generate an additional revenue of 5.2 billion yuan and a net profit of 780 million yuan annually, providing strong momentum for future growth [11]. Group 4: Future Outlook - General Shares is positioned at the forefront of a new technological revolution and industrial transformation, advancing smart manufacturing, product innovation, and global market expansion [12]. - The company aims to continue its commitment to technological innovation and quality excellence, accelerating green low-carbon upgrades and expanding its international market presence [12].