1. Report Industry Investment Rating No information provided in the documents. 2. Core Viewpoints of the Report - The current core contradictions affecting the propylene trend include the possible repeated mention of "anti - involution" with no actual progress, weak coal prices, supply - demand changes in the spot market, the impact of downstream PP on PL, and the rebound of external propane prices leading to continuous losses in PDH profits [2]. - There are both positive and negative factors in the propylene market. Positive factors include device overhauls in the industrial end driving up spot prices, while negative factors are the lack of significant negative feedback in PDH despite losses and the weak downstream demand [3][5]. 3. Summary by Relevant Catalogs 3.1 Propylene Price Forecast and Hedging Strategies - The monthly price range forecast for propylene is 5700 - 6200 yuan/ton, with a current 20 - day rolling volatility of 0.1232 and a historical 3 - year volatility percentage of 0.5581 [1]. - For inventory management, when product inventory is high and there are concerns about price drops, it is recommended to short - allocate propylene futures at high prices (PL2603, sell, 50%, entry range 6100 - 6200) and sell call options (PL2601C6000, sell, 25%, entry range 60 - 80) [1]. - For procurement management, when the regular inventory for procurement is low, it is recommended to buy propylene futures at low prices (PL2603, buy, 25%, entry range 5700 - 5800) and sell put options (PL2601P5700, sell, 25%, entry range 50 - 70) [1]. 3.2 Core Contradictions - "Anti - involution" may be repeatedly mentioned, but there is no actual progress, and coal prices are relatively weak recently [2]. - Spot prices are easily affected by individual device fluctuations. This week, supply decreased and demand increased, narrowing the supply - demand gap and raising the overall spot price. In Shandong, after device overhauls and some downstream restarts, the spot price rebounded slightly from the low level [2]. - The main downstream product PP has sufficient supply. Recently, the compression of the PP - PL price has led to new lows in the PP end, suppressing the space for PL and causing a divergence between PL's futures and spot prices [2]. - The external propane price has rebounded, with the calculated cost at around 6200 - 6300 yuan/ton, and the calculated PDH profit is continuously in the red. Currently, there is no more feedback on overhauls [2]. 3.3 Positive and Negative Factors - Positive factors: Device overhauls in the industrial end, such as those of Binhua, Haiwei, and Xintai, have led to a rebound in the spot price from the low level [3]. - Negative factors: Although PDH is in a loss state, there is still no significant negative feedback in the short term, and the supply end remains high; the PP downstream is weak, showing the characteristic of "not prosperous in the peak season", with high supply pressure and continuous new lows in the market, and most other downstream products are also in a loss state, with low acceptance of high - priced propylene [3][5]. 3.4 Industrial Data Summary - Upstream raw material prices: Brent crude oil closed at 61.9 dollars/barrel on November 25, 2025, down 0.83 dollars from the previous day and 2.46 dollars from the previous week. Other upstream prices such as WTI, MOPJ, etc., also showed different degrees of changes [6]. - Mid - stream propylene prices: On November 25, 2025, the propylene price in East China was 5945 yuan/ton, unchanged from the previous day but up 30 yuan from the previous week; the price in Shandong was 6020 yuan/ton, up 95 yuan from the previous day and 130 yuan from the previous week [6]. - Downstream prices: On November 25, 2025, the price of polypropylene powder was 6160 yuan/ton, unchanged from the previous day but down 40 yuan from the previous week; the price of polypropylene pellets was 6400 yuan/ton, also unchanged from the previous day but down 40 yuan from the previous week [6]. - Profits: The main refinery profit was 854.72 yuan/ton, and the MTO monomer profit was - 240.83 yuan/ton. Different production methods and products had different profit situations [6]. - Price spreads: Various price spreads such as PL01 - 02, PP01 - PL01, etc., also showed different degrees of changes [6].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - The core contradictions affecting the propylene trend include sufficient supply but weak demand in the main downstream PP and other weak downstream sectors, lacking upward momentum. Meanwhile, the cost of PDH has rapidly increased due to the rebound of propylene in the external market, providing short - term support, but the November CP price is expected to decline compared to October [3]. - There are both positive and negative factors. The positive factors are the rebound of external propylene prices providing cost support, good Sino - US talks, and government measures to address "involution - style" competition. The negative factors are the overall loose supply of propylene and the weak downstream PP market [7]. 3. Summary by Relevant Catalogs 3.1 Propylene Price Forecast and Hedging Strategies - **Price Forecast**: The monthly price range of propylene is predicted to be between 6000 - 6400 yuan/ton, with a current 20 - day rolling volatility of 0.1262 and a 3 - year historical percentage of 0.6969 [2]. - **Hedging Strategies**: - **Inventory Management**: For enterprises with high finished - product inventory worried about price drops, they can short propylene futures (PL2601) at a 50% hedging ratio when the price is between 6300 - 6400 yuan/ton. They can also sell call options (PL2601C6400) at a 25% hedging ratio when the price is between 60 - 80 to reduce costs [2]. - **Procurement Management**: For enterprises with low regular inventory and aiming to purchase based on orders, they can long propylene futures (PL2601) at a 25% hedging ratio when the price is 5800 yuan/ton. They can also sell put options (PL2601P5900) at a 25% hedging ratio when the price is between 60 - 80 to reduce procurement costs [2]. 3.2 Industry Data Summary - **Upstream Raw Material Prices**: On October 29, 2025, Brent crude was at 64.3 dollars/barrel, WTI at 60.36 dollars/barrel. There were various price changes in other upstream raw materials such as MOPJ, NAP, and propane [9]. - **Mid - stream Propylene Prices**: The price of FOB South Korea was 730 dollars/ton, CFR China was 745 dollars/ton. Domestic propylene prices in different regions also had different degrees of change, with the cheapest delivery product at 5985 yuan/ton [9]. - **Downstream Prices**: The prices of products like polypropylene powder, polypropylene granules, and other downstream products also had certain fluctuations. For example, polypropylene powder was 6470 yuan/ton on October 29, 2025 [9]. - **Profits**: Profits in the mid - upstream and downstream sectors showed different trends. For example, the main refinery profit was 512.62 yuan/ton, and the MTO monomer profit was - 225.00 yuan/ton [9]. - **Price Spreads**: There were various price spreads, such as the spread between MOPJ and propylene, PP powder and propylene, etc. For example, the MOPJ - propylene spread was 1937.21 yuan/ton on October 29, 2025 [9].

1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - The core contradictions affecting the current trend of propylene include sufficient supply but insufficient demand in the main downstream PP, small price differences between PP powder, granules, and propylene, and weak overall downstream, lacking upward drivers. Additionally, the PDH cost has collapsed, with the CP October contract price dropping unexpectedly [3]. - There are some positive factors, such as a slight reduction in supply in the Shandong market due to the shutdown of Yulong cracking, the maintenance of Lihuayi PDH, and the shutdown of Jingbo K - cot. There are also some buyers after the decline in spot prices, and the increase in recent maintenance at the PP end has temporarily relieved the supply - side pressure [3]. - Negative factors include the possibility of repeated submissions of the "anti - involution" affecting expectations, and the spot price being easily affected by individual device fluctuations. In the past two weeks, the supply - demand gap has slightly decreased due to the maintenance of some devices. Also, after the decline in propane, the PDH profit has expanded, but propylene and PP cannot bear the high profit, and the PP downstream remains weak [4][5]. 3. Summary by Related Catalogs 3.1 Propylene Price Forecast and Hedging Strategy - **Price Forecast**: The monthly price range forecast for propylene is 5800 - 6200 yuan/ton. The current 20 - day rolling volatility is 0.1067, and the historical percentage of the current volatility in the past 3 years is 0.6333 [2]. - **Hedging Strategy** - **Inventory Management**: For enterprises with high finished - product inventory worried about price drops, they can short - allocate propylene futures at high prices (50% hedging ratio, recommended entry range 6300 - 6400 yuan/ton for PL2601) to lock in profits. They can also sell call options (25% hedging ratio, recommended entry range 140 - 150 for PL2601C6200) to collect premiums and reduce costs [2]. - **Procurement Management**: For enterprises with low regular procurement inventory and aiming to purchase according to orders, they can buy propylene futures at low prices (25% hedging ratio, recommended entry price 5800 yuan/ton for PL2601) to lock in procurement costs. They can also sell put options (25% hedging ratio, recommended entry range 50 - 70 for PL2601P5800) to collect premiums and reduce procurement costs [2]. 3.2 Industrial Data Summary - **Upstream Raw Material Prices**: On October 21, 2025, Brent was at $61.36/barrel (+$0.56 day - on - day, -$0.92 week - on - week), WTI was at $57.58/barrel (+$0.65 day - on - day, -$0.6 week - on - week), and other upstream prices also showed various changes [7]. - **Mid - stream Prices**: The price of propylene in the East China region on October 21, 2025, was 6075 yuan/ton (unchanged day - on - day, - 140 yuan/ton week - on - week), and prices in other regions also had corresponding fluctuations [7]. - **Downstream Prices**: The price of polypropylene granules on October 21, 2025, was 6550 yuan/ton (unchanged day - on - day, - 50 yuan/ton week - on - week), and prices of other downstream products also changed [7]. - **Profits**: Profits in the mid - upstream, such as the profit of propylene PDH - FEI, were 307.34 yuan/ton (-65.37 yuan/ton day - on - day, -95.26 yuan/ton week - on - week), and profits in different sectors showed different trends [7]. - **Price Spreads**: The spread between PP granules and propylene on October 21, 2025, was 440 yuan/ton (-30 yuan/ton day - on - day, +170 yuan/ton week - on - week), and other price spreads also had corresponding changes [7].

Group 1 - The company held a performance briefing on September 16, 2025, to discuss its operating results and financial indicators for the first half of 2025 [1] - Daqing Huake primarily engages in the production and sales of petrochemical products, including C9 and C5 series resins and polypropylene powder, with applications in various industrial sectors [1] - In the first half of 2025, the company achieved operating revenue of 959 million yuan, a year-on-year decrease of 0.85%, and a net profit of 9.064 million yuan, a year-on-year increase of 12.99% [1] Group 2 - The company utilizes by-products from ethylene cracking, such as C5 and propylene, for downstream processing, focusing on enhancing and extending its industrial chain [2] - In 2024, the company invested in a 10,800-ton/year butadiene extraction facility, which has been put into operation, and in 2025, it expanded its isoprene hydrogenation facility to 35,000 tons/year [2] - The company aims to strengthen its core competitiveness by collaborating with research institutions and industry leaders, promoting a new model of "industry-university-research-application" cooperation [2] Group 3 - The company previously announced the unsuccessful public listing of its pharmaceutical division's machinery assets, initially priced at 11.8351 million yuan, which was later reduced to 10.6516 million yuan without finding a buyer [3] - The company will continue to seek potential buyers for the assets of its pharmaceutical division following two unsuccessful attempts at public transfer [3]

Core Viewpoint - Daqing Huake's performance in the first half of 2025 shows a slight decline in revenue but an increase in net profit, indicating resilience in a challenging market environment [1][2]. Group 1: Financial Performance - In the first half of 2025, Daqing Huake achieved operating revenue of 959 million yuan, a year-on-year decrease of 0.85% [1]. - The company reported a net profit of 9.064 million yuan, reflecting a year-on-year increase of 12.99% [1]. - The non-recurring net profit was 7.9774 million yuan, which represents a year-on-year decrease of 8.5% [1]. Group 2: Business Operations and Strategy - Daqing Huake primarily engages in the production and sales of petrochemical products, including C5 and C9 series resins and polypropylene powder, with applications in various industrial sectors [1][2]. - The company has invested in expanding its production capabilities, including a 10,800-ton/year butadiene extraction facility and a capacity expansion project for isoprene hydrogenation, now at 35,000 tons/year [2]. - Daqing Huake aims to enhance its C5/C9/propylene industrial chains, focusing on functional, specialized, and high-end applications, while fostering collaborations with research institutions and industry leaders [2]. Group 3: Asset Management - Daqing Huake attempted to sell machinery assets from its pharmaceutical division, initially listed at an assessed value of 11.8351 million yuan, but failed to attract buyers [3]. - The company reduced the asking price to 10.6516 million yuan in a second attempt, which also did not yield any interested parties, leading to the termination of the sale process [3].

Group 1 - The core viewpoint of the news is that Daqing Huake's stock performance shows a significant increase in its price-to-earnings (PE) ratio, indicating a potential overvaluation compared to its industry peers [1] - As of April 30, Daqing Huake's closing price was 16.9 yuan, with a PE ratio of 120.06, which is the lowest in 19 days, and a total market capitalization of 2.191 billion yuan [1] - The average PE ratio for the chemical products industry is 45.71, with a median of 37.06, positioning Daqing Huake at 152nd in the industry ranking [1] Group 2 - Daqing Huake's main business includes the production and sales of petrochemical products, import and export operations, and warehousing services, with key products being C9 and C5 series petroleum resins, refined acetonitrile, polypropylene powder, and modified polyolefin plastics [1] - The company holds 13 national patents, including 8 invention patents, all of which have been industrialized, with its core technologies for major products being proprietary and in mass production [1] - In the first quarter of 2025, Daqing Huake reported revenue of 502 million yuan, a year-on-year increase of 3.97%, and a net profit of 7.1271 million yuan, reflecting a significant year-on-year increase of 93.95%, with a gross profit margin of 6.52% [1]