Guosheng Securities: The profitabilit of China Chemical continues to improve, maintaining a "buy" rating.

Guosheng Securities research report pointed out that the fourth quarter performance of China Chemical exceeded expectations, with accelerated growth in net profit/adjusted net profit, continuous improvement in profitability, and a year-on-year decrease in operating cash flow. The chemical industry's order momentum is good, and the coal chemical industry's prosperity is opening up room for incremental growth. The company's new contract amount in 2025 was 403.7 billion yuan, an increase of 10% compared to the previous year; the new contract amount in the fourth quarter was 119.1 billion yuan, a year-on-year increase of 44%. In January 2026, the company's new contract orders reached 36.9 billion yuan, a year-on-year increase of 19%, achieving a good start for the year. With the backdrop of energy self-sufficiency and control, the coal chemical industry is on the rise, and planned projects are expected to accelerate implementation. The company, as a leading EPC player in the coal chemical industry, has sufficient potential business resources. Influenced by factors such as global geopolitical conflicts, improvements in supply and demand patterns, and anti-industry entanglement, chemical prices are expected to continue to rise. It is expected that the company's net profit attributable to shareholders in 2026-2028 will be 7.3/8.1/9.1 billion yuan respectively, with increases of 14%/11%/11%. The current stock price corresponds to P/E ratios of 7/7/6 times, and the "buy" rating is maintained.