Changes in Hong Kong stocks | China Heart Link Fertilizer (01866) rose by more than 5% in the morning, oil prices rose, and the cost advantage of coal chemicals highlighted

The Zhitong Finance App learned that China Heart Link Chemical Fertilizer (01866) rose by more than 5% in the morning. As of press release, it had risen 5.04% to HK$8.55, with a turnover of HK$219.62 million.

According to the news, disturbances in the Strait of Hormuz are driving up international oil prices, LNG, and LPG prices. The costs of oil and gas routes such as naphtha cracking, ethane cracking, and PDH are rising, and the prices of ethylene and propylene in East Asia have risen accordingly. 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.

CICC released a research report saying that China's Xinlianxin chemical fertilizer industry's advanced coal water slurry technology is building a moat below the industry's cost advantage of about 10%; with the completion of production expansion at the Henan, Xinjiang Zhundong, and Jiangxi bases, urea production capacity will increase 59% to 8.05 million tons in 2027, and currently urea profit is low in the cycle and there is limited room for price decline, so capacity expansion is expected to drive the company's performance growth.