Shen Wan Hongyuan released a research report saying that the 26Q2 geographical conflict gradually eased, crude oil risk premiums subsided, cost fluctuations led to phased downstream storage removal, and a high decline in chemical prices. Benefiting from improvements in inventory earnings and supply and demand, the profits of the chemical sector increased significantly from month to month. The 26Q2 chemical sector achieved revenue of 655.1 billion yuan, achieving net profit of 58.5 billion yuan, and the gross margin of the industry was +2.9 and +1.8pct, respectively. Currently, the average balance ratio of the chemical industry is 50.1%, 26Q2 fixed assets+projects under construction were +4.2% and +1.2%, respectively. Among them, projects under construction were -10.7% and -1.0%. The year-on-year decline for six consecutive quarters, and the capital expenditure growth rate slowed significantly, maintaining the industry's “optimistic” rating.

Shen Wan Hongyuan released a research report saying that the 26Q2 geographical conflict gradually eased, crude oil risk premiums subsided, cost fluctuations led to phased downstream storage removal, and a high decline in chemical prices. Benefiting from improvements in inventory earnings and supply and demand, the profits of the chemical sector increased significantly from month to month. The 26Q2 chemical sector achieved revenue of 655.1 billion yuan, achieving net profit of 58.5 billion yuan, and the gross margin of the industry was +2.9 and +1.8pct, respectively. Currently, the average balance ratio of the chemical industry is 50.1%, 26Q2 fixed assets+projects under construction were +4.2% and +1.2%, respectively. Among them, projects under construction were -10.7% and -1.0%. The year-on-year decline for six consecutive quarters, and the capital expenditure growth rate slowed significantly, maintaining the industry's “optimistic” rating.