Hong Kong Stock Concept Tracking|Sinopec launches special action to raise market capitalization, CICC expects the chemical industry cycle to reach an inflection point (with concept stocks)

On December 16, Sinopec Group's first listed company investor joint exchange event was held in Beijing.

At the event, a special action to increase the market value of listed Sinopec companies was launched.

Cai Yong, a member of the party group of China Petroleum & Chemical Corporation and chief accountant, said that the purpose of the special action was to enhance investment value and enhance shareholder returns. It mainly includes three aspects:

First, we will continue to improve the effectiveness of governance, strengthen the management of listed companies, continue to improve the normalized management system for listed companies, focus on strategic development and positioning planning, capital operation and market value management, capital market talent team building, and promote the implementation of long-term management mechanisms for listed Sinopec companies;

Second, we will continue to improve the return system, share development results, strive to improve the quality of information disclosure, continue to strengthen investor relationship management, continue to adhere to a stable and predictable cash dividend policy, carry out repurchases and increase holdings in an orderly manner, and steadily enhance returns for all shareholders;

Third, we will continue to optimize capital layout, release sector value, continue to carry out capital operations such as mergers, acquisitions and restructuring, equity financing, etc., optimize the structure of listed companies while adjusting the industrial layout and helping the industrial chain extend to high-end and refinement, and strive to continue to increase the overall market value of listed companies during the “15th Five-Year Plan” period.

Executives from nine listed companies under the Sinopec Group, including Sinopec, Petrochemical Service, Sinopec Refining and Chemical Engineering, Shanghai Petrochemical, Petrochemical Machinery, Sinopec Guande, Taishan Petroleum, Yueyang Xingchang, and Sichuan Meifeng, participated in the launch. Representatives from state-owned securities regulators, central enterprises, industry partners, and securities finance fund institutions attended the event.

According to the 2026 outlook, CICC announced that the downward cycle of the petrochemical industry has continued for about 3 and a half years. As industry capital expenditure continues to decline and backward overseas production capacity rapidly withdraws, the research report believes that the industry's production capacity will enter a stage of low growth. At the same time, the anti-domestic market, which focuses on industry self-discipline, has also accelerated the recovery of profits for related products. As supply-side favorable factors continue to accumulate and demand in fields such as new energy sources rapidly grows, CICC expects the chemical industry cycle to reach an inflection point.

Hong Kong stocks in the chemical-related industry chain:

Sinopec (00386), Petrochemical Service (01033), Sinopec Refining and Chemical Engineering (02386), Shanghai Petrochemical (00338), Sinopec Guande (00934), China Sanjiang Chemical (02198), Wuhan Organic (02881), etc.