Changes in Hong Kong stocks | China Xuyang Group (01907) rose more than 7% in early trading, institutions say coal chemicals are expected to bring significant upward elasticity to the company's performance

The Zhitong Finance App learned that China Xuyang Group (01907) rose more than 7% in early trading. As of press release, it had risen 6.52% to HK$1.96, with a turnover of HK$19.06 million.

According to the news, after the outbreak of the US-Iran conflict, the Strait of Hormuz was blocked/operated at low throughput for a long time, and Middle East crude oil, LPG, and LNG exports were all significantly disrupted, and rising oil and gas prices drove the cost advantage of coal chemicals once again highlighted. Donghai Securities pointed out that fluctuations in coal prices in China are relatively manageable under the policy of securing supply and price stability. The cost slope of coal-to-olefin raw materials is low. The cost advantages of coal-to-ethylene and coal-to-propylene have been clearly restored in an environment with high oil prices, and the profitability and strategic value of coal chemical routes are expected to increase.

According to public information, China's Xuyang Coal Chemical and Coking Deep Processing business layout is perfect, and as of 2025, the company has its own chemical production capacity of 4.6 million tons. Changjiang Securities pointed out that China's Xuyang Group's coal chemical profit elasticity contributed most clearly to the overall performance. Due to the large scale of coal chemical production capacity and the small profit base last year, it is estimated that the performance of the coal chemical industry in 2026 is expected to bring significant upward elasticity compared to the company's overall performance in 2025.