1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - Mid - term: The report believes that it is highly likely for asphalt valuation to decline in the second half of the year. The current operation rate of independent refineries is at a low level, with limited room for further decline. The return of major refinery production capacity and the seasonal off - peak valuation period will restrict the upward space of asphalt valuation (asphalt/crude oil), and the weak shock of crude oil at the cost end will also limit the upward space of asphalt's single - side price [16]. - Short - term: The weakness of asphalt has been gradually realized, and the supply - demand contradiction is relatively small in the short term. It is recommended to wait and see [17]. 3. Summary by Directory 3.1 Monthly Evaluation and Strategy Recommendation - **Market Review**: The report presents the recent trend chart of the asphalt main contract, and analyzes the influence of supply - demand and cost factors on the price [13][14]. - **Mid - term Impact Factor Assessment**: - **Supply**: Import is expected to remain low. Major refineries are expected to resume a certain operating rate, which will restrict the upward movement of asphalt valuation. However, for the valuation to decline, local refineries need to significantly recover, and they are expected to remain relatively sluggish in the short - to - medium term [16]. - **Demand**: The demand - side operation rate has improved slightly compared with previous years, but the overall asphalt shipment volume is lower than expected. The infrastructure peak season has passed, and the overall demand is expected to be flat [16]. - **Cost**: The upward space of oil prices in the second half of the year is limited. With the gradual increase in production by OPEC, the wide - range shock center of oil prices is expected to move down slightly. Shale oil will play a bottom - supporting role, and it is difficult to have a continuous trend market [16]. - **Short - term Factor Assessment**: - **Supply**: The operating rate of heavy - traffic asphalt has started to decline, and imports are expected to remain low due to geopolitical factors in peripheral heavy - oil countries [17]. - **Demand**: The operation rates of all demand - side segments remain weak, and the weakness of waterproofing membranes exceeds expectations [17]. - **Inventory**: The overall inventory shows a phenomenon of weak destocking, and social inventory fails to meet the destocking expectation. The domestic total inventory accumulates more than expected [17]. - **Cost**: The crude oil cost is expected to stop falling and stabilize, as the current oil price has entered the break - even price of some shale oil production areas in the United States. The oil price is suppressed by political expectations but supported by fundamentals [17]. 3.2 Spot and Futures Market - **Spot Price**: The report shows the price trends of heavy - traffic asphalt in Shandong, Northeast, North China, and East China regions [20][23][24][26]. - **Basis Trend**: It presents the basis trends of asphalt in Shandong and East China regions [31]. - **Term Structure**: It shows the term structure of asphalt and the price differences between different contracts [34][35]. 3.3 Supply Side - **Capacity Utilization and Profit**: It shows the capacity utilization rate of heavy - traffic asphalt and the production profit of asphalt in Shandong [41]. - **Import**: It presents the import volume, import profit, and cumulative import volume from different countries of asphalt, as well as the import volume of diluted asphalt [48][50][55]. - **Valuation Ratio**: It shows the valuation ratios of fuel oil/asphalt and asphalt/Brent [59]. - **Refinery Profit**: It shows the refining profits of major refineries and Shandong local refineries, as well as the operation rate and production profit of petroleum coke [61][64][65]. 3.4 Inventory - **Domestic Inventory**: It shows the inventory trends of domestic factories, social inventory, total domestic inventory, and diluted asphalt port inventory [69]. - **Warehouse Receipts**: It shows the quantity of asphalt warehouse receipts and the virtual - to - real ratio of the asphalt main contract [73]. 3.5 Demand Side - **Enterprise Shipment Volume**: It shows the asphalt shipment volumes of Chinese, Shandong, East China, and North China sample enterprises [81]. - **Downstream Operation Rate**: It shows the operation rates of rubber shoe materials, road - modified asphalt, and waterproofing membranes [90]. - **Highway Investment**: It shows the cumulative value of highway construction investment in China's transportation fixed - asset investment, the monthly year - on - year and monthly value of public fiscal expenditure on transportation [97]. - **Road - related Machinery**: It shows the monthly sales volumes of road rollers and excavators, the monthly operating hours of excavators, and the cumulative value of highway construction investment in China's transportation fixed - asset investment [108]. - **Related Consumption**: It shows the completion amount of fixed - asset investment and the cumulative issuance amount of special local government bonds [114]. 3.6 Related Indicators - **Position, Trading Volume, and Price Volatility**: It shows the trading volume, position, and 20 - day historical volatility of asphalt futures [120]. 3.7 Industrial Chain Structure Diagram - **Crude Oil Industrial Chain**: It briefly describes the exploration and extraction links of the crude oil industrial chain [129]. - **Asphalt Industrial Chain**: It classifies asphalt from the perspectives of production process and usage, and points out its main applications [133].

Investment Rating - The industry rating is "Outperform the Market" [7][56] Core Insights - The "Building Materials Industry Stabilization Work Plan (2025-2026)" was jointly released by six departments, aiming for green building materials revenue to exceed 300 billion yuan by 2026, prohibiting new cement and glass production capacity, and promoting the application of green building materials through government procurement [2][10] - The real estate market is expected to stabilize due to various supportive policies, including interest rate cuts and tax reductions, which are anticipated to enhance home buying willingness and ability [2][5] - The construction materials sector is likely to benefit from supply-side reforms and a potential turning point in the production capacity cycle, with expectations of improved demand in the real estate market [2][5] Summary by Sections Investment Highlights - The report emphasizes the importance of government policies in stabilizing the real estate market, including the promotion of "good materials supporting good houses" and local housing support policies [2][10] - The report notes that from January to August, 21,700 old residential communities were newly started or renovated, accounting for 87% of the annual plan [2][10] - The report highlights that the PPI has been in negative growth for 33 consecutive months, indicating a need for supply-side reforms, which could benefit the building materials sector [2][10] Recent High-Frequency Data - As of September 26, 2025, the average market price of bulk P.O 42.5 cement was 348.3 yuan/ton, showing a month-on-month increase of 1.0% but a year-on-year decrease of 8.0% [3][11] - The average ex-factory price of glass (5.00mm) was 1,235.7 yuan/ton, with a week-on-week increase of 5.7% and a year-on-year increase of 8.3% [3][16] Sector Review - The Shanghai Composite Index rose by 0.21%, while the Shenzhen Composite Index fell by 0.08%. The building materials index decreased by 2.11% [4][47] - Among sub-sectors, glass manufacturing saw a slight increase of 0.42%, while cement manufacturing experienced a decline of 2.77% [4][47] Investment Recommendations - The report suggests focusing on three main lines for investment: high-quality companies benefiting from stock renovation, undervalued stocks with long-term alpha attributes, and leading cyclical building materials companies showing signs of bottoming out [5][50]

Group 1 - Company announced that the total guarantee amount provided to subsidiaries will not exceed RMB 9.5 billion, accounting for 353.69% of the latest audited net assets [1] - The total external guarantee amount will not exceed RMB 350 million, accounting for 13.03% of the latest audited net assets [1] - As of September 27, 2025, the external guarantee balance is approximately RMB 2.946 billion, which is 109.68% of the latest audited net assets [1] Group 2 - In 2024, the revenue composition of the company is as follows: fine chemicals 85.26%, waterproof membranes 10.9%, building decoration 2.15%, and other businesses 1.7% [1] - The company's market capitalization is RMB 35.3 billion [2]

Company Overview - Sanke Tree Co., Ltd. is located in Putian City, Fujian Province, and was established on July 17, 2003. The company went public on June 3, 2016. Its main business includes the research, production, and sales of architectural coatings (wall coatings), wood coatings, waterproof materials, flooring materials, insulation materials, integrated boards, and base materials [1]. Financial Performance - As of June 30, 2025, Sanke Tree achieved operating revenue of 5.816 billion yuan, representing a year-on-year growth of 0.97%. The net profit attributable to shareholders was 436 million yuan, showing a significant year-on-year increase of 107.53% [2]. - The company has distributed a total of 733 million yuan in dividends since its A-share listing, with 253 million yuan distributed over the past three years [3]. Stock Performance - As of September 29, the stock price of Sanke Tree increased by 2.01%, reaching 47.27 yuan per share, with a total market capitalization of 34.877 billion yuan. The stock has risen by 56.52% year-to-date [1]. - The stock has seen a 2.65% increase over the last five trading days, a 1.38% decrease over the last 20 days, and a 22.91% increase over the last 60 days [1]. Shareholder Structure - As of June 30, 2025, the number of shareholders increased by 15.34% to 14,200, with an average of 52,109 circulating shares per person, up by 21.38% [2]. - Notable shareholders include Hong Kong Central Clearing Limited, which holds 13.3691 million shares, and several funds such as Invesco Great Wall and Southern CSI 500 ETF, which have recently entered the top ten circulating shareholders [3]. Business Segmentation - The main revenue sources for Sanke Tree are as follows: engineering wall paint (30.87%), base and auxiliary materials (29.79%), home decoration wall paint (27.07%), waterproof membranes (7.91%), and others (2.32%) [1].

Group 1 - The core viewpoint of the news is the issuance of the "Building Materials Industry Stabilization and Growth Work Plan (2025-2026)" by six departments, aimed at promoting stable operation and structural optimization in the building materials industry, with a focus on technological innovation and green building materials [1] - The company, Oriental Yuhong, is responding to new industry opportunities through a dual strategy of channel transformation and overseas expansion [1] Group 2 - In the first half of 2025, Oriental Yuhong achieved operating revenue of 13.57 billion yuan and a net profit attributable to shareholders of 560 million yuan, with a significant quarter-on-quarter improvement in the second quarter, where net profit reached 370 million yuan, a 93.4% increase [3] - The company has successfully transformed from a direct sales model focused on large real estate clients to a channel model primarily based on retail and engineering channels, with these channels contributing 11.406 billion yuan, accounting for 84.1% of total revenue, an increase of 4.3 percentage points year-on-year [3] - The company’s period expense ratio improved to 17.06%, a decrease of 1.54 percentage points year-on-year, indicating effective cost control, while net cash inflow from operating activities improved by 932 million yuan compared to the same period last year [3] Group 3 - Oriental Yuhong is accelerating its internationalization strategy, with overseas business revenue growing by 42.16% year-on-year to 576 million yuan in the first half of 2025 [4] - The company has established a global integrated service system covering research, production, supply, sales, and service, with ongoing developments in production bases in Houston, Saudi Arabia, Malaysia, and Canada [4] - Recent progress includes the successful trial production of the Malaysian production and logistics base and the commencement of construction for the Canadian and Middle Eastern production bases [4] Group 4 - The company is also expanding its overseas market presence through acquisitions, such as the purchase of Hong Kong Wanchang Wujin, Kangbao Company, and Chile's Construmart S.A., which helps in quickly acquiring local channel resources [6] - The green building materials industry is expected to receive significant policy support, with a target of exceeding 300 billion yuan in revenue by 2026, providing growth opportunities for Oriental Yuhong's green building products [6] - The policy encourages digital transformation in the building materials industry, aligning with Oriental Yuhong's ongoing efforts to enhance operational efficiency through digital initiatives [6]

Group 1 - The core viewpoint of the news is that Kairun Co., Ltd. has shown significant stock price performance and financial metrics, indicating potential investment interest [1][2][3] - As of September 24, Kairun's stock price increased by 2.05% to 11.96 CNY per share, with a total market capitalization of 4.522 billion CNY [1] - Year-to-date, Kairun's stock price has risen by 61.19%, with a 2.31% increase in the last five trading days and a 10.84% increase over the last 20 days [2] Group 2 - Kairun's main business involves the research, production, and sales of new building waterproof materials, with revenue composition as follows: waterproof membranes 49.05%, engineering construction 21.39%, waterproof coatings 14.96%, and detection and repair equipment for display panels 10.27% [2] - As of June 30, Kairun had 10,000 shareholders, a decrease of 2.07% from the previous period, with an average of 33,392 circulating shares per shareholder, an increase of 2.12% [3] - For the first half of 2025, Kairun reported operating revenue of 1.148 billion CNY, a year-on-year decrease of 5.92%, while net profit attributable to shareholders increased by 232.48% to 25.8124 million CNY [3] Group 3 - Kairun has distributed a total of 416 million CNY in dividends since its A-share listing, with cumulative distributions of 48.268 million CNY over the past three years [4]

Core Viewpoint - North New Building Materials has experienced a decline in stock price and financial performance, indicating potential challenges in the construction materials sector [1][2]. Group 1: Stock Performance - As of September 22, North New Building Materials' stock price fell by 2.02% to 24.28 CNY per share, with a trading volume of 248 million CNY and a turnover rate of 0.62%, resulting in a total market capitalization of 41.285 billion CNY [1]. - The stock has decreased by 17.54% year-to-date, with a 3.96% drop over the last five trading days, a 10.14% decline over the last 20 days, and an 8.31% decrease over the last 60 days [1]. Group 2: Financial Performance - For the first half of 2025, North New Building Materials reported a revenue of 13.558 billion CNY, a year-on-year decrease of 0.29%, and a net profit attributable to shareholders of 1.930 billion CNY, down 12.85% year-on-year [2]. - Cumulatively, the company has distributed 9.562 billion CNY in dividends since its A-share listing, with 3.979 billion CNY distributed over the last three years [3]. Group 3: Shareholder and Institutional Holdings - As of September 10, the number of shareholders increased to 70,000, up by 4.48%, while the average circulating shares per person decreased by 3.21% to 23,356 shares [2]. - As of June 30, 2025, the second-largest circulating shareholder is Hong Kong Central Clearing Limited, holding 177 million shares, a decrease of 17.259 million shares from the previous period [3].

Group 1 - The company, Zhuzhou Feilu High-tech Materials Technology Co., Ltd., has completed the industrial and commercial change procedures, indicating significant corporate restructuring [1] - The new legal representative is Zhang Jianjia, who is 31 years old and has a strong educational background with dual degrees from Australia and the UK, along with relevant financial certifications [4] - The registered capital has increased from approximately 189.5 million to 218.9 million, representing a growth of over 15%, marking the second capital increase in less than two years [6] Group 2 - The recent capital increase is likely linked to a planned private placement, aimed at enhancing the company's capabilities in new material research and production line expansion [8] - The company has expanded its business scope to include semiconductor device manufacturing and sales, as well as electronic specialty materials, indicating a strategic shift towards high-tech sectors [9] - The addition of human resource services suggests a focus on strengthening the workforce to support business expansion, reflecting a move towards diversification in technology [9]

Report Summary 1. Report Industry Investment Rating The report does not mention the industry investment rating. 2. Core Views - The supply pressure remains high, and the demand recovery is weak. The overall demand is lower than the historical average, and the economic recession expectations in Europe and the United States are strengthening. The supply pressure is expected to decrease in the short - term as refineries reduce production. - The cost of crude oil is relatively high, providing some support. The asphalt processing loss is decreasing, and the profit difference between asphalt and delayed coking is increasing. - The basis shows that the spot price is higher than the futures price. The social and factory inventories are decreasing, while the port inventory is increasing. - The MA20 of the futures price is downward, and the 11 - contract futures price closes below the MA20. The main positions are net short, and the short positions are decreasing. - It is expected that the asphalt futures price will fluctuate narrowly in the short - term, with the asphalt 2511 contract fluctuating in the range of 3423 - 3467 [8][9][10]. 3. Summary by Directory 3.1 Daily Views - **Supply**: In August 2025, the domestic asphalt total planned production was 2.413 million tons, a month - on - month decrease of 5.1% and a year - on - year increase of 17.1%. This week, the sample capacity utilization rate was 30.501%, a month - on - month decrease of 0.90 percentage points. The sample enterprise output was 509,000 tons, a month - on - month decrease of 2.86%. The refineries reduced production this week, and it is expected to reduce supply pressure next week [8]. - **Demand**: The current demand for various types of asphalt is lower than the historical average. The heavy - traffic asphalt, building asphalt, modified asphalt, road - modified asphalt, and waterproofing membrane opening rates are all at relatively low levels [8]. - **Cost**: The daily asphalt processing profit is - 513.38 yuan/ton, a month - on - month decrease of 3.00%. The weekly Shandong local refinery delayed coking profit is 792.0771 yuan/ton, a month - on - month increase of 6.94%. The strengthening of crude oil is expected to support the price in the short - term [9]. - **Basis**: On September 17, the Shandong spot price was 3520 yuan/ton, and the 11 - contract basis was 75 yuan/ton, with the spot price higher than the futures price [10]. - **Inventory**: The social inventory is 1.225 million tons, a month - on - month decrease of 3.54%. The factory inventory is 642,000 tons, a month - on - month decrease of 4.74%. The port diluted asphalt inventory is 320,000 tons, a month - on - month increase of 68.42% [10]. - **Disk**: The MA20 is downward, and the 11 - contract futures price closes below the MA20 [10]. - **Main Positions**: The main positions are net short, and the short positions are decreasing [10]. - **Expectation**: The refineries' recent production reduction will reduce supply pressure. The overall demand recovery is less than expected. The inventory is continuously decreasing, and the cost support is strengthening. It is expected that the futures price will fluctuate narrowly in the short - term [10]. 3.2 Asphalt Futures Market Analysis - **Price and Spread**: The report presents the price trends of different asphalt contracts, including the price changes, basis trends, and spreads between different contracts. It also shows the price trends of asphalt, crude oil, and fuel oil, as well as their price ratios [17][19][22][25][28][32]. - **Historical Data**: The historical data of asphalt prices, basis, spreads, and other indicators from 2020 - 2025 are presented through various charts, which helps to analyze the market trends and patterns [20][23][26][29][34]. 3.3 Asphalt Fundamental Analysis - **Profit**: The asphalt profit and the profit spread between asphalt and coking are analyzed through charts, showing their historical trends [38][41]. - **Supply**: - **Output**: The weekly and monthly output trends of asphalt are presented, including the output of small - sample enterprises and the overall monthly output [44][49]. - **Inventory**: The inventory data of different types, such as social inventory, factory inventory, and port diluted asphalt inventory, are analyzed, showing their changes over time [10][64][68]. - **Raw Materials**: The price of Ma Rui crude oil and the monthly production of Venezuelan crude oil are presented, which are important raw materials for asphalt production [54]. - **Capacity Utilization and Maintenance**: The asphalt capacity utilization rate and the estimated maintenance loss are analyzed, showing the changes in production capacity and maintenance conditions [59][61]. - **Demand**: - **Downstream Demand**: The downstream demand is analyzed from multiple aspects, including the production of petroleum coke, the apparent consumption of asphalt, the investment in highway construction, the sales of asphalt - related machinery, and the opening rates of different types of asphalt [80][83][86][90][95]. - **Opening Rates**: The opening rates of different types of asphalt, such as heavy - traffic asphalt, building asphalt, and modified asphalt, are presented, showing the demand situation in different application scenarios [95][98][101]. - **Supply - Demand Balance**: A monthly asphalt supply - demand balance table is provided, including the monthly production, import, export, and inventory data from January 2024 to September 2025 [106].

Core Viewpoint - The company, Beixin Building Materials, has indicated that investors should refer to the full semi-annual report for 2025 to find detailed information regarding the revenue and net profit of its waterproof building materials segment [1] Group 1 - The company will provide specific data on waterproof building materials in the "Segment Information" section of the 2025 semi-annual report [1] - Investors are advised to check the "Revenue and Cost Breakdown" section of the 2025 semi-annual report for details on waterproof membrane-related data [1]