Hengyi Petrochemical Co Ltd

Hengyi Petrochemical released its 2026 interim report, with net profit attributable to the parent company reaching 5.902 billion yuan, a surge of 2500.73% compared to the same period last year. The company's total operating revenue was 67.309 billion yuan, up 20.28% year-on-year. Net cash outflow from operating activities was 488 million yuan, an increase of 306 million yuan from the net outflow in the same period last year. The asset-liability ratio fell to 67.57%, down 4.50 percentage points year-on-year. Gross margin rose to 15.31%, marking four consecutive quarters of increase, and ROE reached 19.35%, up 18.43 percentage points year-on-year.

Construction Machinery (600984) plans to acquire 100% equity in Pucheng Clean Energy Chemical Co., Ltd. through a combination of share issuance and cash payment, along with raising supporting funds, constituting a major asset restructuring. Trading in the company's A-shares will be suspended from August 11, 2026, for an expected period of no more than 10 trading days. Jiangbolong disclosed its semi-annual report, with operating revenue reaching 24.088 billion yuan in the first half of 2026, up 136.26% year-on-year, and net profit attributable to shareholders of the listed company at 10.577 billion yuan, up 71,528.66% year-on-year. Gan & Lee Pharmaceuticals signed a licensing agreement with Menarini for the bofanglutide project. Menarini will pay a non-refundable upfront payment of 62 million euros, with milestone payments totaling up to 664 million euros, plus a sales royalty at a maximum double-digit percentage rate. In addition, several companies disclosed semi-annual results: Fangyuan turned a profit year-on-year, Wanyi Technology's net profit rose 2,863.13% year-on-year, and Hengyi Petrochemical's net profit rose 2,500.73% year-on-year, with a planned dividend of 9 yuan per 10 shares. Jiangbolong, Zhaochi, and Beijing Junzheng, among others, announced share buyback plans. Kunlun Wanwei plans to issue H-shares and list on the main board of the Hong Kong Stock Exchange.

As of now, 94 chemical companies listed on the Shenzhen Stock Exchange have released their 2026 half-year performance forecasts. Over 60% of these companies are profitable and expect earnings growth, with 46 companies projecting year-on-year growth of more than 50% and 10 companies turning losses into profits. Companies such as Hengyi Petrochemical, Dongfang Shenghong, and Chengzhi Shareholding have seen net profit increases exceeding tenfold. Hengyi Petrochemical expects a first-half net profit attributable to the parent company of 5.5 billion to 6 billion yuan, a year-on-year increase of 2,326.31% to 2,546.88%, mainly driven by full production and sales at its Brunei refinery, strong production and sales of its Guangxi caprolactam project, and a recovery in the domestic PTA and polyester industries. Dongfang Shenghong expects a net profit attributable to the parent company of 4.2 billion to 5 billion yuan, a year-on-year increase of 987.39% to 1,194.51%, benefiting from a recovery in the petrochemical industry and the advantages of its integrated full-industry chain. Chengzhi Shareholding expects a net profit attributable to the parent company of 260 million to 320 million yuan, a year-on-year increase of 1,259.43% to 1,573.15%, with its clean energy business and new chemical materials segment working in synergy. Rongsheng Petrochemical expects a net profit attributable to the parent company of 5 billion to 5.2 billion yuan, a year-on-year increase of 730.45% to 763.67%, leveraging the scale benefits of its mega refining and chemical integration facilities. Yanhu Stock expects a net profit attributable to the parent company of 6 billion to 6.3 billion yuan, a year-on-year increase of 131.38% to 142.95%, with both its potash fertilizer and lithium salt main businesses seeing volume and price increases.

Among the 94 Shenzhen-listed chemical companies that have disclosed first-half earnings previews, more than 60 percent are profitable and reported earnings growth. Of these, 46 companies saw earnings rise by over 50 percent year-on-year, and 10 turned losses into profits. Hengyi Petrochemical expects attributable net profit of 5.5 billion to 6 billion yuan, a year-on-year increase of 2,326.31 percent to 2,546.88 percent. Eastern Shenghong expects attributable net profit of 4.2 billion to 5 billion yuan, up 987.39 percent to 1,194.51 percent. Chengzhi Shareholding expects attributable net profit of 260 million to 320 million yuan, a surge of 1,259.43 percent to 1,573.15 percent. Rongsheng Petrochemical expects attributable net profit of 5 billion to 5.2 billion yuan, up 730.45 percent to 763.67 percent, and has implemented a 1.7 billion yuan employee stock ownership plan. Qinghai Salt Lake Industry expects attributable net profit of 6 billion to 6.3 billion yuan, an increase of 131.38 percent to 142.95 percent. In the first half, its potassium chloride output reached 1.6817 million tonnes and sales volume hit 2.2473 million tonnes, while lithium carbonate output was 49,400 tonnes and sales volume stood at 39,100 tonnes. Overall, in the first half of 2026, the Shenzhen-listed chemical sector, driven by optimized supply-demand structures, recovering product prices, and the release of integrated advantages by industry leaders, has shown a strong trend of broad-based recovery with leading companies spearheading the rally.

Chemical Industry ETF Penghua rose 0.53% to 0.76 yuan. Institutions note that the chemical sector now offers high investment payoff, with key market concerns partly disproven, including a sharp rise in oil prices, US interest rate hikes curbing consumption, and weaker-than-expected domestic demand. Industry inventories are at a bottom range, per-tonne profits for most products have fallen to historical lows, and the medium- to long-term supply-demand outlook is improving. The CSI Subdivision Chemical Industry Thematic Index rose 0.25%, with constituents Hengyi Petrochemical up 6.28% and Hebang Biotech up 5.29%. Chemical Industry ETF Penghua closely tracks this index, with its top ten holdings accounting for 43.96% of the total.