Rongsheng Petrochemical (002493)

Equity Research Report　|　Industry: Integrated Refining and Petrochemicals & Polyester Fibers　|　Report Date: September 14, 2026　|　As of the September 11, 2026 close; some data on the technical-indicator page are as of September 14, 2026, while shareholder data are as of June 30, 2026, resulting in differences in time windows and data lags.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Rongsheng Petrochemical reported “declining revenue but sharply rising profit” in 1H 2026: operating revenue was RMB 129.407 billion, down 12.93% year on year; net profit attributable to shareholders was RMB 5.111 billion, up 748.83%; non-recurring-item-adjusted net profit attributable to shareholders was RMB 5.344 billion, up 607.79%; and net cash generated from operating activities was RMB 21.254 billion, up 180.15%. The improvement in profitability was mainly driven by improved refining-product margins and aromatics-chain profitability, higher operating efficiency, product-mix adjustments, and improvements in crude-oil procurement and supply-chain management. However, the high growth rate in 1H had strong cyclical characteristics and should not be extrapolated directly to the full year.

The company’s core competitiveness comes from the 51%-owned Zhejiang Petroleum & Chemical Co., Ltd. (“ZPC”) mega-scale integrated refining and petrochemical platform, as well as vertical integration spanning crude oil—refining—aromatics/olefins—PTA/polyester—new chemical materials. ZPC has disclosed capacity of 40 million tonnes per year of refining, 8.8 million tonnes per year of PX, and 4.2 million tonnes per year of ethylene. Port access, large-scale facilities, and internal supply of intermediate feedstocks help reduce certain procurement and logistics costs. However, the company remains a price taker for crude oil and bulk chemicals, with profitability ultimately determined by margins on refined products, aromatics, olefins, PTA, polyester, and other products.

In 2025, the company’s operating revenue was RMB 308.622 billion, down 5.47% year on year; net profit attributable to shareholders was RMB 848 million, up 17.09%; gross margin was 12.22% and net margin was approximately 0.27%, indicating that profitability in its basic refining and polyester businesses remained depressed. In 1H 2026, petrochemical revenue was RMB 106.082 billion, accounting for 81.98% of total revenue and down 17.70% year on year, while polyester-fiber revenue was RMB 13.290 billion, up 19.45%. The company plans to advance the approximately RMB 19.6 billion ZPC refining-upgrade project and has signed a project development agreement with SABIC, although the latter’s potential equity investment has not yet been finalized.

At the September 11, 2026 close of RMB 13.60, the share price was below the main recent moving averages and the Bollinger mid-band. MACD was in negative territory, indicating a weak short-term technical structure; RSI of approximately 30.2 and the stochastic indicator of approximately 17.5 suggested that the stock was approaching a weak or oversold zone. Forward earnings expectations have improved significantly from 2025, but institutional forecast ranges are wide and valuation data vary by statistical methodology. Market pricing remains highly dependent on subsequent validation of refining margins, facility utilization, and the cyclical upturn.

2. Company Overview

2.1 Basic Information

2.2 Principal Businesses and Product Portfolio

• Refining products: 2025 revenue of RMB 106.318 billion, accounting for 34.45% of total revenue, with a gross margin of 22.92%
• Chemical products: 2025 revenue of RMB 117.198 billion, accounting for 37.98%, with a gross margin of 10.95%
• PTA: 2025 revenue of RMB 31.985 billion, accounting for 10.36%, with a gross margin of -1.40%
• Polyester-fiber film: 2025 revenue of RMB 23.395 billion, accounting for 7.58%, with a gross margin of 1.10%
• Trading and other: 2025 revenue of RMB 29.727 billion, accounting for 9.63%, with a gross margin of 2.31%
• Polyester chain: Through the Yisheng system, the company has positions in PTA, polyester bottle-grade chips, polyester filament yarn, and polyester film
• New chemical materials chain: The company has positions in engineering plastics, new-energy materials, high-end polyolefins, and specialty rubber
• By industry in 2025, petrochemical revenue was RMB 255.500 billion, accounting for 82.79%; polyester-fiber revenue was RMB 23.395 billion, accounting for 7.58%; and trading and other revenue was RMB 29.727 billion, accounting for 9.63%

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Rongsheng Petrochemical occupies a mega-scale integrated-platform position from the upper-middle to middle reaches of the petrochemical value chain, with vertical extension spanning “crude oil—refining—aromatics/olefins—PTA/polyester—engineering plastics, high-end polyolefins, new-energy materials, and specialty rubber.” The company is not an upstream oil-and-gas resource producer; its advantages mainly arise from refining scale, port access, facility integration, and internal supply of intermediate feedstocks.

• Key upstream materials actually procured include imported crude oil, naphtha, light hydrocarbons, mixed xylenes, and bulk chemical feedstocks such as PX and MEG used in the PTA-related chain.
• In 2025, raw-material costs accounted for RMB 195.575 billion, or 89.40%, of petrochemical operating costs; depreciation costs were RMB 12.921 billion, or 5.91%; and energy costs were RMB 7.395 billion, or 3.38%.
• By product, raw-material costs accounted for 88.67% of operating costs for refining products, 88.73% for chemical products, and 93.47% for PTA in 2025, indicating an overall raw-material-cost-driven business.
• Procurement from the top five suppliers totaled RMB 166.054 billion in 2025, accounting for 57.29% of total annual procurement; procurement from the largest supplier was RMB 100.791 billion, accounting for 34.77% of total procurement; purchases from related parties accounted for 37.93% of total annual procurement. The suppliers were listed anonymously, and specific counterparties cannot be verified solely from the annual report.
• The company has a large procurement scale, access to Zhoushan’s deep-water ports, and crude-oil supply cooperation with Saudi Aramco. Its crude-oil supply stability and procurement conditions are superior to those of ordinary independent refineries; however, it cannot control international crude-oil benchmark prices and remains, overall, a price taker for relevant commodities.
• In 2023, Saudi Aramco acquired a 10% stake in Rongsheng Petrochemical through a subsidiary and established long-term crude-oil supply cooperation with ZPC. Saudi Aramco’s public materials indicate that it will supply ZPC with 480,000 barrels per day of crude oil under a long-term sales agreement.
• Through internal integration of intermediate feedstocks such as PX and ethylene with PTA, polyester, and new materials, the company reduces certain intermediate procurement and transportation steps. However, higher crude-oil prices do not necessarily increase profit; the outcome depends on whether prices of refined products, aromatics, olefins, and downstream chemicals can be passed through in tandem.
• Downstream customers cover refined products and fuels, plastics and packaging, household appliances, automobiles, construction, textiles and apparel, home textiles, beverage and food packaging, engineering plastics, new-energy materials, and high-end polyolefins.
• Refining, PX, PTA, and polyolefins have strong commodity characteristics. Downstream customers focus more on market prices, stable quality, logistics efficiency, and supply reliability. Brand premiums and long-term pricing power are limited for ordinary basic chemicals.
• The company’s bargaining power with downstream customers mainly derives from scale, stable supply, a broad product portfolio, and port-logistics advantages. Product prices and processing fees remain substantially affected by industry supply and demand and commodity benchmark prices.
• Sales to the top five customers totaled RMB 106.719 billion in 2025, accounting for 34.59% of total annual sales; sales to related parties among the top five customers accounted for 3.30% of total annual sales.
• The above customer-concentration data are for 2025. The annual report listed customers anonymously as “Customer 1–Customer 5” and did not disclose their names. The data are mainly sourced from the company’s 2025 annual report; the specific customer structure and transaction relationships cannot be cross-verified and should be confirmed against the latest annual report.
• Downstream businesses such as polyester bottle-grade chips, polyester filament yarn, film, and high-end materials have certain product-upgrade and customer-certification attributes. However, basic refining, PTA, ordinary polyester, and general-purpose polyolefins still face homogeneous competition.
• As of December 31, 2025, accounts receivable were RMB 3.169 billion, approximately 1.03% of 2025 revenue; prepayments were RMB 2.141 billion, approximately 0.69% of revenue; inventories were RMB 33.576 billion, approximately 10.88% of revenue; accounts payable were RMB 58.959 billion, approximately 19.11% of revenue; and contract liabilities were RMB 4.083 billion, approximately 1.32% of revenue. Accounts receivable declined from RMB 6.822 billion at the end of 2024, while accounts payable remained broadly stable at approximately RMB 59.0 billion, indicating relatively low receivables usage and substantial financing from suppliers through payables. At the end of 2025, the balance owed by the top five accounts-receivable customers represented 68.22% of total accounts receivable, up from 49.37% at the end of 2024, indicating greater concentration in the remaining receivables.
• Supplier concentration among the top five was 57.29% in 2025, versus customer concentration of 34.59%. Supplier concentration was significantly higher. Both suppliers and customers were listed anonymously, and supplier concentration includes related-party purchases; it therefore cannot simply be interpreted as complete dependence on a single external supplier. Attention should nonetheless be paid to the fairness of related-party procurement pricing, concentration of supply sources, and the credit risk of individual major customers.

The company operates from the upper-middle to middle reaches of the petrochemical value chain and is a middle-stream processing platform centered on large-scale refining and internal intermediate-feedstock integration, rather than a high-margin business possessing oil-and-gas resources or traditional brand premiums. Current profit is mainly driven by margins on refining, aromatics, olefins, PTA, and polyester. Future improvement depends on margin recovery, higher facility operating efficiency, control of crude-oil procurement and logistics costs, and the commissioning, customer certification, and product-mix upgrades of new-material projects such as EVA, POE, engineering plastics, and high-end polyolefins.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Results

The latest financial report is Rongsheng Petrochemical’s 1H 2026 report, covering January 1, 2026 to June 30, 2026, and disclosed on August 25, 2026. Non-recurring-item-adjusted net profit attributable to shareholders in 1H 2026 was RMB 5.344 billion, up 607.79% year on year; basic EPS was RMB 0.53, up 783.33%; weighted average ROE was 11.13%, up 9.76 percentage points from the prior-year period; and net cash generated from operating activities was RMB 21.254 billion, up 180.15% year on year.

The first half of 2026 was characterized by declining revenue but sharply rising profit. Growth in net profit attributable to shareholders and non-recurring-item-adjusted net profit attributable to shareholders was significantly higher than revenue growth. Revenue remained primarily petrochemical-related: petrochemical revenue was RMB 106.082 billion, accounting for 81.98% of total revenue and down 17.70% year on year; polyester-fiber revenue was RMB 13.290 billion, accounting for 10.27%, and up 19.45% year on year. The improvement in profitability was mainly related to refining margins, recovery in aromatics-chain profitability, price changes in by-products such as sulfur, product-mix adjustments, and cost controls. However, it was strongly cyclical and should not be extrapolated directly from the 1H profit growth rate to the full year.

3.2 Earnings Forecasts

As of September 11, 2026, the Tonghuashun earnings-forecast page showed that 23 institutions had issued forecasts for 2026 results in the preceding six months, while 22 institutions had issued forecasts for 2028. The multi-institution aggregation mainly presents net profit attributable to shareholders and EPS and does not fully disclose a unified revenue consensus average. Revenue and the corresponding net profit attributable to shareholders and EPS estimates from a single institution were compiled by Stockstar from one broker report and should not be regarded as a multi-institution consensus. Orient Securities forecast net profit attributable to shareholders of RMB 11.051 billion, RMB 12.517 billion, and RMB 14.574 billion for 2026–2028, respectively, with EPS of RMB 1.11, RMB 1.25, and RMB 1.46, respectively, on September 6, 2026. China International Capital Corporation forecast 2026 net profit attributable to shareholders of RMB 8.560 billion. These are institutional forecasts, not company guidance or formal commitments.

3.3 Valuation and Institutional Ratings

Based on the September 11, 2026 closing price of RMB 13.60, total market capitalization was approximately RMB 135.856 billion, forward P/E was approximately 25.36x, adjusted P/E was approximately 24.74x, and P/B was approximately 1.30x. The current valuation above uses the CFi.cn methodology, with some indicators based on financial data as of June 30, 2026. A research note also indicates that the Tonghuashun page showed a forward P/E of approximately 17.11x, reflecting differences in statistical methodology. Based on the institutional average EPS forecasts, forward P/E for 2026–2028 is approximately 15.6x, 13.6x, and 12.0x, respectively; based on Orient Securities’ forecasts, it is approximately 12.3x, 10.9x, and 9.3x. The institutional target-price range over the past six months was RMB 15.30–16.80, with an average of approximately RMB 16.01. Based on the average target price, potential upside from RMB 13.60 is approximately 17.7%; based on Orient Securities’ RMB 16.59 target price, approximately 22.0%; and based on CICC’s RMB 16.80 target price, approximately 23.5%. The company’s earnings and valuation are sensitive to oil prices, refining margins, PTA/PX margins, product prices, and facility operations. The sharp profit growth in 1H 2026 was cyclical, and actual full-year profit could deviate materially from institutional forecasts.

4. Recent News and Announcements

4.1 1H 2026 Results Increased Sharply and Fell Within the Preannouncement Range

On July 15, 2026, the company disclosed its preliminary earnings estimate for 1H 2026, forecasting net profit attributable to shareholders of the listed company of RMB 5.000–5.200 billion for January 1 to June 30, 2026, up 730.45%–763.67% year on year; non-recurring-item-adjusted net profit of RMB 5.200–5.400 billion, up 588.78%–615.27%; and basic EPS of RMB 0.52–0.54 per share. The semiannual report disclosed on August 25, 2026 showed operating revenue of RMB 129.407 billion, down 12.93% year on year; net profit attributable to shareholders of RMB 5.111 billion, up 748.83%; adjusted net profit of RMB 5.344 billion, up 607.79%; net cash generated from operating activities of RMB 21.254 billion, up 180.15%; and basic EPS of RMB 0.53. The company stated that profit growth was mainly attributable to a recovery in petrochemical-industry conditions, improved processing margins for major products, higher operating efficiency of integrated refining and petrochemical facilities, and improvements in crude-oil procurement and supply-chain management.

4.2 2026 Employee Stock Ownership Plan Completed Non-Trading Transfer

On July 10, 2026, the company disclosed that the non-trading transfer under the 2026 employee stock ownership plan had been completed. A total of 1,404 employees participated, with total subscribed funds of RMB 1.7 billion and 1.7 billion units subscribed. On July 7, 2026, the company transferred 153,015,301 shares from its repurchase-specific securities account to the securities account of the employee stock ownership plan through a non-trading transfer, at RMB 11.11 per share. The shares represented approximately 1.53% of total share capital. The plan has a 36-month duration and a 12-month lock-up period. This transaction used existing repurchased shares for the employee stock ownership plan and was not a newly initiated cash repurchase in July 2026; it therefore did not create incremental market buying demand in the short term.

4.3 Previous Controlling-Shareholder Purchase Plan Completed; No New Shareholding-Change Announcement Identified

The company’s 1H 2026 report showed that the three purchase plans implemented by controlling shareholder Zhejiang Rongsheng Holding Group Co., Ltd. between January 22, 2024 and September 30, 2025 had all been completed. The cumulative purchases totaled 289,064,301 Rongsheng Petrochemical shares, representing approximately 2.89% of current total share capital, with cumulative consideration of approximately RMB 2.705 billion. As of June 30, 2026, Rongsheng Holding held 5,499,301,781 shares, or 55.05% of total share capital; Aramco Overseas Company B.V. held 1,012,552,501 shares, or 10.14%. Neither holding changed during the reporting period. As of September 14, 2026, no newly disclosed purchase plan, disposal plan, or disposal-result announcement by Rongsheng Holding, Saudi Aramco, or the company’s major shareholders had been identified.

4.4 Zhejiang Securities Regulatory Bureau Ordered Rectification and Shenzhen Stock Exchange Issued a Regulatory Letter; Company Elected Employee Director

On August 14, 2026, the company disclosed that it had received an administrative regulatory-measure decision from the Zhejiang Securities Regulatory Bureau. The regulator determined that former employee director Yu Fengdi had no employment relationship with the company and therefore did not satisfy the qualifications for an employee director, resulting in the absence of an employee representative among board members. The Zhejiang Securities Regulatory Bureau ordered the company to rectify the matter and record the measure in the securities and futures market integrity files. The company was required to submit a written rectification report within 30 days of receiving the decision. On August 13, 2026, the Shenzhen Stock Exchange issued a regulatory letter to the company concerning the same issues involving employee-director qualifications and corporate-governance compliance. On August 22, 2026, the company disclosed that an employee representative congress had been convened on August 21 and had elected Liu Minghui as employee director of the seventh board, with a term lasting until the end of the seventh board’s term. On August 25, the company adjusted the membership of the board’s Nomination Committee and Remuneration and Evaluation Committee, adding Liu Minghui to the relevant special committees. As of September 14, 2026, the full regulatory rectification report had not been located in public information, and completion of the rectification remains subject to confirmation in subsequent announcements.

4.5 Project Development Agreement Signed with SABIC; Potential Equity Investment Not Yet Completed

On July 17, 2026, the company disclosed an announcement concerning its signing of a project development agreement with Saudi Basic Industries Corporation (SABIC), involving a related-party transaction. The project is the Rongsheng New Materials (Zhoushan) Jintang New Materials Project. The parties are evaluating a potential future equity investment under which SABIC would hold no less than 30% and no more than 50% of Rongsheng New Materials. The investment ratio, transaction price, and transaction structure have not been finalized and remain subject to due diligence, government approval and filing, SABIC’s final investment decision, and the execution of formal equity transaction documents. During the project-development phase, SABIC will share expenses according to its potential future ownership ratio, with total project-development cost sharing capped at US$200 million. Relevant costs already paid will be included in the equity transfer price after SABIC determines whether to invest. The transaction constitutes a related-party transaction but not a material asset restructuring and will not change the scope of the company’s consolidated financial statements. It should not currently be viewed as a completed acquisition or equity sale.

4.6 ZPC Plans to Invest Approximately RMB 19.6 Billion in an Integrated Refining Upgrade Project

On July 17, 2026, the company disclosed that its controlling subsidiary, Zhejiang Petroleum & Chemical Co., Ltd., plans to invest in an integrated refining and petrochemical upgrade project, with estimated total investment of approximately RMB 19.6 billion and an estimated construction period of approximately 2 years. Funding will come from internal funds and bank borrowings. The project includes new continuous reforming, reforming hydrogen concentration, hydrogen-rich concentration, C1/C2 separation, and C10 separation units, as well as capacity expansions and technical upgrades to certain existing units. According to estimates in the feasibility study, once completed the project is expected to generate annual net profit of approximately RMB 1.410 billion, with an after-tax financial internal rate of return of 11.08% and an after-tax payback period of 8.93 years, including a 2-year construction period. The project still requires certain preliminary approvals. The types and scales of units may be adjusted according to market conditions, and actual investment, construction progress, and profitability remain uncertain.

4.7 Shareholder Count Declined but Does Not Indicate Recent Continuous Buying or Selling

As of June 30, 2026, the company had 71,963 ordinary shareholders, a decrease of 4,455 from March 31, 2026, or approximately 5.83%. This reflects changes in shareholder structure at the end of the reporting period and does not indicate that shareholder purchases or sales were still occurring in September 2026.

4.8 No New Major Operating Announcements Identified as of September 14, 2026

As of September 14, 2026, no newly added September announcement concerning earnings guidance, share repurchases, purchases or disposals by major shareholders, or completed major acquisitions had been identified. The “2026 Semi-annual Report” disclosed on September 11, 2026 was the English version of the Chinese semiannual report and did not represent a new operating event.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Rongsheng Petrochemical closed at RMB 13.60, below the 5-day, 10-day, and 20-day moving averages calculated from public closing prices and below the Bollinger mid-band of approximately RMB 13.95, indicating a weak short-term technical structure. After rebounding to RMB 15.14 on September 8–9, the stock fell consecutively on September 10–11, while trading value remained relatively high, indicating significant selling pressure and capital divergence above RMB 15. RSI of approximately 30.214 and a stochastic indicator of approximately 17.487 suggested that the stock was approaching oversold conditions and could experience a technical rebound. However, MACD of approximately -0.310 remained negative, insufficient to confirm a trend reversal. Some technical indicators are as of September 14, 2026 and may not be synchronized with the September 11 closing data.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk Warning: The following is a subjective scenario analysis based on the September 11, 2026 closing data, historical prices, and technical indicators. It does not constitute investment advice or a single-point price forecast.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high weight, approximately six-tenths; this weight is a subjective heuristic based on the current technical pattern and capital flows, not a statistical probability): Price range of approximately RMB 13.20–14.50. Trigger conditions include support around RMB 13.20–13.50, a decline in trading value to approximately RMB 500–700 million, and no further two consecutive days of volume-backed declines. The stock may encounter resistance around RMB 14.30–14.50 and trade within a range
• Weak downside move (medium weight; a subjective scenario based on current technical and capital conditions, not a statistical probability): Price range of approximately RMB 12.60–13.30. Trigger conditions include a break below support around RMB 13.20, daily trading value remaining above RMB 800–900 million, and a close near the day’s low. The market could further test the Bollinger lower band at approximately RMB 12.66 and the RMB 12.38–12.60 period-support area
• Strong rebound (low weight but cannot be ruled out; a subjective scenario rather than a statistical probability): Price range of approximately RMB 14.50–15.30. Trigger conditions include a move back above RMB 14.30–14.50, sustained trading value above approximately RMB 900 million–1.0 billion, and simultaneous strength in petrochemical, refining, or chemical sectors. Only if the stock further breaks through RMB 15.10–15.30 and maintains volume above that range could the short-term weak structure begin to improve

③ Capital and Liquidity Background

From September 4–11, 2026, the most recently verifiable turnover rate was approximately 0.39%–0.66%, with trading value of approximately RMB 534 million–906 million. For a large-cap petrochemical stock with market capitalization of approximately RMB 135.9 billion, turnover was generally low and the tradable float relatively stable, although short-term price elasticity may be affected by sector capital flows and large-order transactions. Based on its own recent data, RMB 500–600 million represents a relatively low-to-normal trading range, while RMB 700–900 million represents clear volume expansion. As of June 30, 2026, the top ten tradable shareholders held approximately 77.25% of the tradable float, while institutions collectively held approximately 78.05%, indicating high concentration. However, “other institutions” represented approximately 71.92% of institutional holdings, while funds, insurers, and private funds accounted for relatively small proportions; the structure cannot simply be interpreted as being dominated by public funds. The shareholder-structure data are quarterly and lag by more than two months, so the actual tradable-share structure may have changed and should be verified against subsequent periodic reports or updated shareholder data.

If the share price moves back above RMB 14.30–14.50, daily trading value reaches approximately RMB 900 million or more for several consecutive days, and the close is no longer near the day’s low, this could be viewed as confirmation that short-term capital support has improved. If rising volume is still accompanied by weak closes, it would be closer to a signal of capital divergence or position reduction.

④ Items to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether the RMB 13.20–13.50 support zone stabilizes on declining volume; if it breaks, monitor the RMB 12.60–13.00 range. This is an observation framework, not a trading instruction.
• Observe whether RMB 14.30–14.70 can be regained and held. This range represents the main resistance formed by short-term moving averages and the high-volume trading area. This is an observation framework, not a trading instruction.
• Observe whether RMB 15.10–15.30 is broken with effective volume expansion; otherwise, the rebound may remain a weak recovery. This is an observation framework, not a trading instruction.
• Observe whether trading value can exceed approximately RMB 900 million for several consecutive days while the price strengthens at the same time, to avoid mistaking a simple volume-backed decline for capital inflows. This is an observation framework, not a trading instruction.

The above scenarios are based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices will also be affected by news, capital flows, broader market conditions, and other factors. Technical indicators are inherently lagging and limited, and the scenarios do not guarantee future performance or constitute buying or selling advice. Investors should make independent judgments based on the latest market information and bear investment risks themselves.

6. Industry Structure and Competitor Analysis

6.1 Industry Conditions

China’s private-sector integrated refining industry has shifted from competition based on the scale of individual units to comprehensive competition involving unit costs at mega-scale refining facilities, crude-oil procurement and terminal-storage capabilities, internal coordination among aromatics, olefins, PTA, and polyester, product upgrades, and the ability to mass-produce new materials. Basic refining, PTA, ordinary polyester, and general-purpose polyolefins face a degree of homogeneous competition. High-performance resins, POE, EVA, engineering plastics, functional films, and specialty rubber place greater emphasis on technology, certification, customer introduction, and product stability.

6.2 Competitive Landscape

• The first category comprises companies with large integrated refining and petrochemical platforms, competing across refining, PX, ethylene, polyolefins, PTA, and various chemical products.
• The second category comprises polyester and fiber leaders whose refining capabilities are weaker than Rongsheng Petrochemical’s but that compete directly in downstream areas such as PTA, polyester filament yarn, bottle-grade chips, and film.
• Key areas of industry competition include unit costs at mega-scale refining facilities, crude-oil procurement and terminal-storage capacity, coordination among aromatics, olefins, PTA, and polyester, industrial-park and utility support, and utilization rates and cost controls during periods of excess capacity.
• Potential margins for high-end materials are generally higher than for traditional bulk products, but the businesses face risks related to project construction, process scaling, customer validation, and profitability at mass-production scale.
• Some of Rongsheng Petrochemical’s capacity consists of designed, under-construction, or planned capacity disclosed in the annual report and should not all be equated with effective capacity that has been fully commissioned and achieved stable commercial operation.

6.3 Major Competitors

Rongsheng Petrochemical’s core differentiation lies in the mega-scale integrated platform formed by ZPC’s 40 million tonnes/year of refining capacity, 8.8 million tonnes/year of PX capacity, and 4.2 million tonnes/year of ethylene capacity, together with 21.5 million tonnes/year of PTA capacity within the company system. The company obtains cost and synergy advantages through ports, scale, and internal integration. Compared with private-sector integrated refining companies such as Hengli Petrochemical and Eastern Shenghong, Rongsheng Petrochemical has more prominent overall refining, PX, and ethylene scale. Compared with Hengyi Petrochemical, Tongkun, and Xinfengming, it has more complete upstream refining resources and intermediate-feedstock integration, although its polyester, fiber, and new-material businesses remain constrained by product margins, industry supply and demand, and customer certification.

7. Risk Factors

• Risk of volatility in refining and chemical-product margins: The sharp increase in 1H 2026 profit was mainly related to refining-product margins, aromatics-chain profitability, and product-mix improvements. If margins narrow again, profit could decline substantially. PTA had a gross margin of -1.40% in 2025, while chemical products had a gross margin of 10.95%, indicating that certain businesses are highly sensitive to cyclical conditions.
• Risk from crude oil and bulk raw-material prices: Raw-material costs accounted for 89.40% of petrochemical operating costs in 2025. Raw-material costs accounted for 88.67%, 88.73%, and 93.47% of operating costs for refining, chemical, and PTA products, respectively. The company cannot control international crude-oil benchmarks, and the ability to pass higher crude-oil prices through to refined products and chemicals remains uncertain.
• Risk related to capacity construction and project returns: ZPC plans to invest approximately RMB 19.6 billion in an integrated refining upgrade project, funded by internal resources and bank borrowings. The project still requires certain preliminary approvals, and unit scale and investment may be adjusted. Expected net profit and internal rate of return may deviate from feasibility-study estimates.
• Commercialization risk for new-material projects: The company is developing EVA, POE, engineering plastics, and high-end polyolefins, but these businesses require process scaling, stable mass production, customer certification, and product introduction. SABIC’s potential equity investment has not completed due diligence, approvals, or a final investment decision, so project financing or cooperation benefits cannot be confirmed.
• Supplier and related-party procurement concentration risk: Procurement from the top five suppliers accounted for 57.29% of total annual procurement in 2025, with the largest supplier accounting for 34.77% and related-party purchases accounting for 37.93%. Supplier concentration is high and counterparties are disclosed anonymously. Attention should be paid to supply sources, the fairness of related-party procurement pricing, and changes in individual supply channels.
• Customer and accounts-receivable concentration risk: Sales to the top five customers accounted for 34.59% of total annual sales in 2025. At the end of 2025, balances owed by the top five accounts-receivable customers accounted for 68.22% of total accounts receivable, up from the end of 2024. Changes in the credit condition or purchasing scale of individual major customers could affect collections and the quality of accounts receivable.
• Financial leverage and cash-flow volatility risk: The company has a large operating scale and high capital expenditures, and the upgrade project is expected to use bank borrowings. Profitability is subject to cyclical fluctuations, with a net margin of approximately 0.27% in 2025. Weaker product margins or increased project investment could pressure cash flow, finance expenses, and returns on capital.
• Corporate-governance and regulatory-rectification risk: The Zhejiang Securities Regulatory Bureau ordered the company to rectify an issue concerning employee-director qualifications, and the Shenzhen Stock Exchange also issued a regulatory letter. Although the company has elected a new employee director, as of September 14, 2026, the full regulatory rectification report had not been identified. Completion of rectification and subsequent governance compliance remain areas to monitor.
• Market and valuation volatility risk: The share price was RMB 13.60 as of September 11, 2026, below several moving averages, while MACD was negative. Different data sources also reported forward P/E figures of approximately 25.36x and 17.11x, among other methodologies, and institutional earnings forecasts have wide ranges. If subsequent results fall below expectations or the market reassesses cyclical earnings, the share price could experience substantial volatility.

8. Conclusion and Outlook

Rongsheng Petrochemical’s medium-term growth thesis mainly rests on the scale and synergy advantages of its mega-scale integrated refining platform, recovery in refining and aromatics-chain margins, expansion of its polyester-fiber business, and the product-upgrade potential of new-material projects such as EVA, POE, engineering plastics, and high-end polyolefins. The 1H 2026 results have demonstrated earnings elasticity, but the combination of declining revenue and sharply rising profit also shows that the current improvement depends more on margin and cost changes than on simple expansion in revenue scale.

Whether earnings can continue to improve will depend on margins in refining, aromatics, olefins, and polyester; crude-oil procurement and logistics costs; facility operating efficiency; and changes in downstream demand. The approximately RMB 19.6 billion refining upgrade project is expected to have a construction period of approximately 2 years, and its returns still require validation through approval, construction, and commissioning. SABIC’s potential ownership ratio, transaction price, and structure for Rongsheng New Materials remain undetermined, and the arrangement should not be treated as realized equity-cooperation proceeds.

The company remains a capital-intensive middle-stream processor with a high raw-material-cost ratio and pronounced cyclical volatility. Its low net margin in 2025 and negative PTA gross margin indicate limited earnings buffer. Going forward, investors should focus on whether earnings recovery translates into sustained cash flow and stable returns, whether upgrade and new-material projects are implemented as planned and achieve customer certification, and on subsequent disclosures regarding governance rectification, related-party transactions, and concentrated procurement.

Data Sources

• Rongsheng Petrochemical (002493)_Company Announcements_Rongsheng Petrochemical: 2024 Annual Report_Sina Finance_Sina.com
• https://static.cninfo.com.cn/finalpage/2026-04-28/1225215329.PDF
• Rongsheng Petrochemical (RPC) | Saudi Aramco
• Rongsheng Petrochemical (002493)_Company Announcements_Rongsheng Petrochemical: 2025 Annual Report_Sina Finance_Sina.com
• Rongsheng Petrochemical (002493) Operating Analysis_F10_Tonghuashun Financial Services
• Rongsheng Petrochemical Achieved Revenue of RMB 177 Billion Last Year; New-Materials Transformation Gradually Accelerating_Securities Times
• Rongsheng Petrochemical Co., Ltd. 2022 Annual Report Full Text “Top 100 Chinese Listed Companies by Comprehensive Health Index in 2021”
• Rongsheng Petrochemical (002493)_Company Announcements_Rongsheng Petrochemical: 2023 Annual Report_Sina Finance_Sina.com
• Hengli Petrochemical Co., Ltd. 2025 Annual Report
• Jiangsu Eastern Shenghong Co., Ltd. 2025 Annual Report Full Text
• Company Announcements_Hengyi Petrochemical: 2025 Annual Report_Sina Finance_Sina.com
• Tongkun Co., Ltd. (601233)_Company Announcements_Tongkun: 2025 Annual Report_Sina Finance_Sina.com
• Xinfengming (603225) 2025 Annual Report Review: Economies of Scale Strengthen; Company Expected to Benefit as Anti-Involution Measures Advance in the Filament-Yarn Industry_Company Research_Sina Finance
• Rongsheng Petrochemical (002493)_Company Announcements_Rongsheng Petrochemical: 1H 2026 Report_Sina Finance_Sina.com
• Rongsheng Petrochemical (002493) Investment Rating, Latest Rating_Stockstar
• Rongsheng Petrochemical (002493) Earnings Forecast_F10_Tonghuashun Financial Services
• Rongsheng Petrochemical (002493) Investment Rating, Latest Rating_Stockstar
• Rongsheng Petrochemical (002493) Earnings Forecast_F10_Tonghuashun Financial Services
• Institutional Ratings | Two Institutions Updated Rongsheng Petrochemical Rating
• Rongsheng Petrochemical (002493) Stock Information—Data Platform
• Rongsheng Petrochemical Co., Ltd. RONGSHENG PETROCHEMICAL CO., LTD. 20
• Rongsheng Petrochemical (002493) Company Announcements_Sina Finance_Sina.com
• Stock Code: 002493　　Security Name: Rongsheng Petrochemical　　Announcement No.: 2011-035
• https://static.cninfo.com.cn/finalpage/2026-08-25/1225495698.PDF
• Rongsheng Petrochemical (002493)_Company Announcements_Rongsheng Petrochemical: Announcement on Completion of Non-Trading Transfer under the 2026 Employee Stock Ownership Plan_Sina Finance_Sina.com
• Rongsheng Petrochemical (002493)_Company Announcements_Rongsheng Petrochemical: 1H 2026 Report_Sina Finance_Sina.com
• Rongsheng Petrochemical (002493)_Company Announcements_Rongsheng Petrochemical: 2026Semi-annual Report_Sina Finance_Sina.com
• Decision on Ordering Rongsheng Petrochemical Co., Ltd. to Rectify_Zhejiang Regulatory Bureau
• Regulatory Letter Concerning Rongsheng Petrochemical Co., Ltd. | China Investor Protection Website
• Rongsheng Petrochemical (002493)_Company Announcements_Rongsheng Petrochemical: Announcement on the Election of an Employee Director_Sina Finance_Sina.com
• Rongsheng Petrochemical (002493)_Company Announcements_Rongsheng Petrochemical: Resolution of the Eighth Meeting of the Seventh Board of Directors_Sina Finance_Sina.com
• Stock Code: 002493　　Security Name: Rongsheng Petrochemical　　Announcement No.: 2010-016
• Stock Code: 002493　　Security Name: Rongsheng Petrochemical　　Announcement No.: 2011-035

This report was automatically retrieved, compiled, and generated by AI based on publicly available information. Information is current as of the September 11, 2026 close; some data on the technical-indicator page are as of September 14, 2026, while shareholder data are as of June 30, 2026, resulting in differences in time windows and data lags. There may be differences in timeliness. Specific data should be verified against the company’s formal announcements and authoritative data terminals. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.