ROTTERDAM, Netherlands & PHILADELPHIA--(BUSINESS WIRE)-- #braskem--Braskem (B3: BRKM3, BRKM5, and BRKM6; NYSE: BAK; LATIBEX: XBRK), a global market leader and pioneer producer of biopolymers, proudly announces the release of updated Life Cycle Assessment (LCA) studies for its I'm greenâ"¢ bio-based product line, including HDPE, EVA, and PE WAX. These studies reaffirm Braskem's commitment to transparency, environmental responsibility, and innovation in the pursuit of a more sustainable future. Conducted in a ...

Summary of the Conference Call on the Petrochemical Industry Industry Overview - The petrochemical industry in China is facing challenges such as refining capacity nearing its limit and an oversupply of ethylene, necessitating adjustments in supply through anti-involution policies for high-quality development [1][2][4] - The overall profitability of the chemical industry is weak, with only a few resource-advantaged products performing well [1][5] Key Points and Arguments - **Regulatory Changes**: The Ministry of Industry and Information Technology (MIIT) will implement policies to stabilize growth in response to industry demand changes, particularly focusing on refining and ethylene sectors [2][4] - **Capacity Control**: New refining projects will require equivalent replacements, and approvals for small coal-to-methanol projects will become more stringent [1][4][7] - **Old Facility Elimination**: Small, outdated refining and ethylene facilities, especially those over 20 years old, will face elimination, with approximately 60 million tons of capacity targeted for adjustment [1][12][15] - **Investment Trends**: Investment in propane dehydrogenation units is decreasing due to poor profitability, while ethylene capacity is regulated to maintain reasonable industry profitability [5][6] Market Dynamics - **Global Market Opportunities**: As European and Korean petrochemical industries face supply tightness and shutdowns, China is positioned to fill market gaps through modern, large-scale production facilities [2][14][17] - **Export Potential**: China can leverage its cost advantages to export to Europe and Southeast Asia, especially as global ethylene markets are expected to rebalance with increasing demand [2][22] Challenges and Future Outlook - **Approval Challenges**: New projects must incorporate advanced materials technology to gain approval, complicating the project initiation process for many companies [8][9] - **Environmental Standards**: The government is emphasizing energy efficiency and environmental standards, which will impact the approval of new projects and the operation of existing facilities [10][13] - **Employment Impact**: The consolidation of small, inefficient facilities may lead to job losses, but the government plans to mitigate this through retraining and support measures [26][28] Strategic Directions - **Industry Consolidation**: The government aims to increase industry concentration by encouraging the integration of smaller firms into larger, more efficient operations [29][33] - **Focus on High-Quality Development**: The anti-involution policy seeks to reduce ineffective competition and promote larger, more capable enterprises to enhance international competitiveness [33][36] Conclusion - The petrochemical industry in China is undergoing significant structural changes driven by regulatory reforms, market dynamics, and a focus on sustainability. The future will likely see a consolidation of capacity, increased export opportunities, and a shift towards high-quality, environmentally friendly production practices.

Report Industry Investment Rating - The rating for L and PP is neutral [4] Core Viewpoints - The polyolefin market continues its weak consolidation due to slow demand follow - up. For PE, supply exceeds expectations, demand improvement is slow, and cost support is insufficient, so its trend is suppressed by supply. For PP, supply pressure is large, demand recovery is slow, and low profit limits its downside [2][3] Summary by Directory 1. Polyolefin Basis Structure - The L main - contract closing price is 7105 yuan/ton (- 25), PP main - contract closing price is 6842 yuan/ton (- 31), LL North China spot price is 7070 yuan/ton (- 40), LL East China spot price is 7110 yuan/ton (- 60), PP East China spot price is 6730 yuan/ton (+ 0), LL North China basis is - 35 yuan/ton (- 15), LL East China basis is 5 yuan/ton (- 35), and PP East China basis is - 112 yuan/ton (+ 31) [1] 2. Production Profit and Operating Rate - PE operating rate is 80.4% (+ 2.3%), PP operating rate is 74.9% (- 1.9%). PE oil - based production profit is 316.5 yuan/ton (+ 9.5), PP oil - based production profit is - 363.5 yuan/ton (+ 9.5), PDH - based PP production profit is - 267.8 yuan/ton (- 8.2) [1] 3. Polyolefin Non - Standard Price Difference - Information not summarized from the given text 4. Polyolefin Import and Export Profits - LL import profit is - 91.3 yuan/ton (+ 1.5), PP import profit is - 531.3 yuan/ton (+ 1.5), PP export profit is 35.2 US dollars/ton (- 0.2) [1] 5. Polyolefin Downstream Operating Rate and Downstream Profits - PE downstream agricultural film operating rate is 26.8% (+ 2.6%), PE downstream packaging film operating rate is 51.8% (+ 0.5%), PP downstream plastic weaving operating rate is 43.6% (+ 0.5%), PP downstream BOPP film operating rate is 61.4% (- 0.1%) [1] 6. Polyolefin Inventory - Information not summarized from the given text Strategies - Unilateral: Neutral for L and PP - Inter - period: Reverse spread for L01 - L05 and PP01 - PP05 - Inter - variety: None [4]

Report Industry Investment Rating - Not provided in the content Core Views Plastic - Supply - demand contradiction eases, with strong bottom support. The "Golden September and Silver October" traditional consumption season is coming, downstream demand shows signs of recovery, and supply pressure eases, but there is still inventory pressure. It is expected that the LL main contract will fluctuate in the range of 7200 - 7500, and short - selling opportunities should be watched [8]. PP - There is significant trend pressure, and it will fluctuate weakly in the short term. Although the supply side maintains high pressure, the downward space of the market is limited. It is expected that the PP main contract will fluctuate weakly, and the range of 6950 - 7300 should be watched [9]. Summary by Directory Plastic Market Changes - On August 29, the closing price of the plastic main contract was 7287 yuan/ton, a month - on - month decrease of 63 yuan/ton or - 0.86%. The average price of LDPE was 9650 yuan/ton, a month - on - month increase of 1.40%; the average price of HDPE was 7982.50 yuan/ton, a month - on - month increase of 0.09%; the average price of LLDPE (7042) in South China was 7591.18 yuan/ton, a month - on - month increase of 1.09%. The LLDPE South China basis was 304.18 yuan/ton, a month - on - month increase of 90.81%; the 5 - 9 month spread was - 68 yuan/ton (- 5), with the basis widening and the month spread narrowing [8][11]. Fundamental Changes - **Cost and Profit**: WTI crude oil was at 64.01 US dollars/barrel, a decrease of 5.35 US dollars/barrel from the previous month; Brent crude oil was at 67.46 US dollars/barrel, a decrease of 4.32 US dollars/barrel from the previous month. The price of anthracite at the Yangtze River port was 1080 yuan/ton (+30). The profit of oil - based PE was - 305 yuan/ton, an increase of 168 yuan/ton from the previous month; the profit of coal - based PE was 936 yuan/ton, a decrease of 206 yuan/ton from the previous month [8]. - **Supply**: The production start - up rate of polyethylene was 78.68%, a decrease of 0.29 percentage points from the previous month. The weekly output of polyethylene was 61.78 tons, a month - on - month increase of 0.44%. The maintenance of petrochemical enterprise equipment remained at a high level, and the maintenance loss this week was 13.20 tons, an increase of 0.92 tons from the previous week [8][32]. - **Demand**: The overall domestic agricultural film start - up rate was 17.46%, an increase of 4.83% from the previous month; the PE packaging film start - up rate was 49.56%, an increase of 1.49% from the previous month; the PE pipe start - up rate was 30.17%, an increase of 1.34% from the previous month [8][39]. - **Inventory**: The social inventory of plastic enterprises was 56.20 tons, an increase of 0.36 tons or 0.64% from the end of last month [8]. Main Operating Logic - The traditional consumption season is coming, downstream demand recovers, and supply pressure eases. However, due to the large amount of production capacity to be put into operation in the second half of the year, there is still resistance to upward breakthrough. The short - term supply - demand contradiction eases, which strongly supports the market [8]. Key Points of Attention - Downstream demand, Fed rate cuts, Sino - US talks, Middle East situation, and crude oil price fluctuations [8]. PP Market Changes - On August 29, the closing price of the polypropylene main contract was 6974 yuan/ton, a decrease of 144 yuan/ton from the previous month [9][53]. Fundamental Changes - **Cost and Profit**: WTI crude oil was at 64.01 US dollars/barrel, a decrease of 5.35 US dollars/barrel from the previous month; Brent crude oil was at 67.46 US dollars/barrel, a decrease of 4.32 US dollars/barrel from the previous month. The price of anthracite at the Yangtze River port was 1080 yuan/ton (+30). The profit of oil - based PP was - 327.71 yuan/ton, an increase of 40.90 yuan/ton from the previous month; the profit of coal - based PP was 364.08 yuan/ton, a decrease of 212.60 yuan/ton from the previous month [9][70]. - **Supply**: The start - up rate of Chinese PP petrochemical enterprises was 80.00%, an increase of 3.06 percentage points from the previous month. The weekly output of PP pellets was 80.88 tons, a week - on - week increase of 2.86%; the weekly output of PP powder was 7.39 tons, a week - on - week increase of 3.29% [9][77]. - **Demand**: The average downstream start - up rate was 49.74% (+1.37). The start - up rate of plastic weaving was 42.30% (-1.20), the start - up rate of BOPP was 60.40% (+0.40%), the start - up rate of injection molding was 57.44% (+1.64%), and the start - up rate of pipes was 36.37% (+0.20%) [9][83]. - **Inventory**: The domestic PP inventory was 53.85 tons (-5.91%); the inventory of two major oil companies decreased by 12.93% month - on - month; the inventory of traders decreased by 1.81% month - on - month; the port inventory increased by 2.73% month - on - month [9][92]. Main Operating Logic - The weekly output of PP has increased again, and the supply side remains loose. Although downstream demand is still weak, there is an expectation of an increase in start - up due to the consumption season and low prices. The downward space of the market is limited [9]. Key Points of Attention - Downstream demand, Fed rate cuts, Sino - US talks, Middle East situation, and crude oil price fluctuations [9].

Summary of Conference Call on Chemicals Industry Industry Overview - The focus of the conference call is on the chemicals industry, particularly in relation to the proposed anti-involution policies in China aimed at addressing chronic oversupply in the petrochemical sector [1][3][8]. Key Points 1. **China's Anti-Involution Policies**: - The proposed policies are viewed as a good intention to tackle the oversupply issue in the petrochemical sector, but there are concerns regarding the execution and effectiveness of these measures [3][8]. - Analysts suggest that prohibiting new capacities is the most effective way to address the structural oversupply [3]. 2. **Market Reactions**: - Saudi petrochemical share prices have increased by 13-23% following news of the anti-involution policies, although chemical prices in China and Northeast Asia have not shown similar recovery [4][8]. - The market remains cautious, with many investors adopting a "wait and see" approach until tangible changes occur [15]. 3. **Current Supply-Demand Dynamics**: - The fundamentals of the petrochemical market remain weak, characterized by a significant supply overhang and lack of demand recovery [4][10]. - Spot prices for key chemicals such as HDPE, LDPE, and PP have remained flat compared to July, with only MEG expected to see a modest price increase of 3% [4]. 4. **Capacity Management**: - The potential closure of older capacities in China could theoretically reduce global PE/PP capacities by 3.6-5.1%, but the impact on industry utilization rates is expected to be minimal and diminish over time as new capacities come online [10]. - Local governments in China are required to submit assessments of aging petrochemical facilities, but complexities in execution may hinder effective capacity management [11]. 5. **Investor Sentiment**: - There is a mixed sentiment among investors; while some view the news as a positive step, the majority remain skeptical due to the persistent overcapacity issues [15][16]. - Corporates are cautious about over-extrapolating the potential impact of the anti-involution policies and are not incorporating these changes into their internal forecasts [8][15]. 6. **International Developments**: - Similar capacity reduction plans have been announced in Korea, where the government aims to cut 2.7-3.7 million tons of NCC capacity, representing 29% of total domestic capacity [16]. - However, new capacity additions may offset the impact of these closures, raising questions about the effectiveness of such measures [16]. Additional Insights - Companies such as Borouge, Orlen, SABIC, and Sipchem have expressed cautious optimism regarding the potential for market improvement due to capacity closures, but they also highlight the ongoing challenges posed by oversupply [17]. - The overall sentiment in the petrochemical market remains cautious, with many stakeholders awaiting concrete actions and results from the proposed policies before making significant investment decisions [15][17].

Investment Rating - The investment rating for the company is "Buy" and it is maintained [8]. Core Views - The company reported a revenue of 23.46 billion yuan for the first half of 2025, representing a year-on-year growth of 20.93% - The net profit attributable to shareholders reached 2.744 billion yuan, up 33.44% year-on-year, while the net profit excluding non-recurring items was 2.896 billion yuan, reflecting a 29.61% increase [2][6]. - In Q2 2025, the revenue was 11.131 billion yuan, showing a year-on-year increase of 5.05% but a quarter-on-quarter decline of 9.72% [2][6]. Financial Performance Summary - The company achieved a total revenue of 45.648 billion yuan in 2024, with projections of 50.359 billion yuan in 2025, 60.967 billion yuan in 2026, and 74.925 billion yuan in 2027 [15]. - The net profit attributable to shareholders is expected to be 6.072 billion yuan in 2025, 6.009 billion yuan in 2026, and 9.504 billion yuan in 2027, with corresponding PE ratios of 11.2X, 9.7X, and 7.1X [12][15]. - The company has invested in a new project with a total investment of approximately 26.6 billion yuan, which includes a 2.5 million tons per year α-olefin light hydrocarbon supporting raw material facility [12].

Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the industry index by more than 15% in the next six months [4][19]. Core Views - The company is expected to achieve steady revenue and profit growth, driven by the construction of new projects, particularly the 100,000-ton ethanolamine facility and the 800,000-ton multi-carbon alcohol project, which are anticipated to contribute incremental revenue [2][10]. - The α-olefin comprehensive utilization project is progressing well and is expected to open up a second growth curve for the company, with significant contributions to profits anticipated upon completion [9][10]. Financial Performance Summary - For 2023, the company reported revenue of 41,487 million yuan, with a year-on-year growth rate of 12.0%. The net profit attributable to the parent company was 4,789 million yuan, reflecting a substantial year-on-year increase of 54.7% [1]. - The projected revenue for 2025 is 53,795 million yuan, with a growth rate of 17.8%, while the net profit is expected to be 6,370 million yuan, showing a growth rate of 4.9% [10]. - The company's return on equity (ROE) is projected to be 18.2% in 2025, with earnings per share (EPS) expected to reach 1.89 yuan [1][10]. Segment Performance Summary - In the first half of 2025, the functional chemicals segment generated revenue of 12,217 million yuan, with a year-on-year growth of 32.12%. The polymer new materials segment reported revenue of 5,245 million yuan, down 4.43% year-on-year [2]. - The average prices for key products in the C3 industry chain saw a year-on-year increase, while C2 products faced slight pressure on prices [2]. Cash Flow and Financial Ratios - The net cash flow from operating activities in the first half of 2025 was 5,052 million yuan, a significant increase of 138.88% year-on-year [3]. - The company's cash and cash equivalents at the end of the period amounted to 8,846 million yuan, up 109.81% year-on-year [3]. - The report indicates a decrease in accounts receivable by 21.15% and an increase in accounts receivable turnover from 24.80 times to 30.14 times year-on-year [8].

Investment Rating - The report maintains a "Strong Buy" rating for Satellite Chemical, expecting it to outperform the benchmark index by over 20% in the next six months [2][18]. Core Views - Satellite Chemical reported a revenue of 23.46 billion yuan for the first half of 2025, a year-on-year increase of 20.93%, and a net profit attributable to shareholders of 2.744 billion yuan, up 33.44% year-on-year [2]. - The company is expected to benefit from a decline in ethane prices, which may help restore profitability in Q3 2025 [2][8]. - The company is expanding its industrial chain and enhancing its facilities, with significant investments in high-value products [2][8]. Financial Performance Summary - For Q2 2025, the company achieved a revenue of 11.131 billion yuan, with a year-on-year increase of 5.05% but a quarter-on-quarter decrease of 9.72% [2]. - The gross profit margin for Q2 2025 decreased by 2.35 percentage points to 19.33%, and the net profit margin fell by 2.16 percentage points to 10.55% [8]. - The report forecasts revenue growth rates of 10.0%, 10.5%, 9.6%, and 23.0% for the years 2024 to 2027, respectively [4]. Price Target and Valuation - The target price for Satellite Chemical is set at 23.04 yuan, based on a relative valuation method using a 12x PE ratio for 2025 [4][8]. - The current market price is 18.63 yuan, indicating potential upside [4]. Industry Outlook - The report highlights that the ethane supply is returning to normal, which may lead to a more favorable cost structure for the company [8]. - The company is also expected to benefit from the completion of its alpha-olefins project, which has a total investment of 26.6 billion yuan [8].

Core Viewpoint - Tongyi Co., Ltd. (300538) has a diverse range of composite material products, which are applicable in various high-tech industries due to their excellent properties [1] Group 1: Product Range - The company produces high-end engineering plastic plates and rods, including PEEK, PEI, PPS, PA6, PA66, ABS, PC, POM, HDPE, and PP [1] - These products are characterized by their wear resistance, vibration resistance, corrosion resistance, and anti-static properties [1] Group 2: Application Scenarios - The composite materials can be widely applied in several sectors such as drones, new energy vehicles, semiconductors, military equipment, intelligent automation devices, photovoltaics, high-speed rail, medical devices, and bridge infrastructure [1]

Investment Rating - The report maintains a "Buy" rating for several companies including Xin Yang Feng, Sen Qi Lin, Rui Feng New Material, Sinopec, Ju Hua Co., Yang Nong Chemical, China National Offshore Oil Corporation, Sai Lun Tire, and Zhenhua Co. [12] Core Viewpoints - The report highlights significant price increases in products such as phosphoric acid pentoxide (85% up by 9.11%), urea (up by 5.75%), and battery-grade lithium carbonate (up by 4.40%), while also noting declines in products like synthetic ammonia (down by 7.41%) and dichloromethane (down by 5.96%) [6][9][21] - The report suggests focusing on investment opportunities in areas such as import substitution, domestic demand, and high dividend stocks, particularly in light of the recent decline in international oil prices due to geopolitical tensions and tariff concerns [8][10][22] - The chemical industry is currently experiencing a mixed performance, with some sectors like lubricants showing strong results, while others remain weak due to overcapacity and subdued demand [9][10][24] Summary by Sections Chemical Industry Investment Suggestions - The report indicates that the chemical industry is facing challenges but also presents opportunities, particularly in the glyphosate sector, which is showing signs of recovery [10][24] - It recommends focusing on companies with strong competitive positions and growth potential, such as Rui Feng New Material and Bao Feng Energy [10][24] - The report emphasizes the importance of domestic demand in the chemical fertilizer sector, highlighting companies like Hualu Hengsheng and Xin Yang Feng as key players [10][24] Market Performance - The report notes that the basic chemical sector has outperformed the broader market, with a 12-month return of 33.9% compared to 23.2% for the CSI 300 index [4][5] - It provides a detailed analysis of price movements for various chemical products, indicating a general trend of price increases for certain key products while others are experiencing declines [6][9][21] Price Trends - The report details specific price changes for various chemical products, with phosphoric acid pentoxide and urea seeing significant increases, while synthetic ammonia and dichloromethane have seen notable declines [6][9][21] - It highlights the impact of international oil prices on the chemical market, with Brent crude oil prices dropping to $66.59 per barrel, affecting overall market sentiment [8][22][25]