This week's Xinjiang index was 98.84, +0.56% month-on-month; Xinjiang coal chemical investment index was 97.01, -0.38% month-on-month; The Xinjiang state-owned enterprise reform index was 101.26, +1.17% month-on-month. Top three gainers this week: Leon Technologies (300603. SZ) rose 30.40%, and Dezhan Health (000813. SZ) rose 11.75%, and Beixin Luqiao (002307. SZ) rose 11.33%. Top three losers this week: Zhongji Health (000972. SZ) fell 9.07%, and Daqo Energy (688303. SH) fell 6.30%, and Xuefeng Technology (603227. SH) fell by 4.05%. Analysis of the reasons for the rise and fall of key companies this week: At present, investors' enthusiasm for AI-related fields is high, and Leon Technology, as a leading enterprise in computing power leasing and AI computing power, has become the focus of market attention; Zhongji Health rose strongly after the resumption of trading last week, and its stock price fell back this week.

Bid winning information update and summary: Donghua Engineering Technology Co., Ltd. won the bid for the general contracting of Fujian Haichen Chemical's 400,000-ton adiponitrile project; The bidding for the coal-based new material project of Hami Xinneng Coal Chemical Co., Ltd. was completed, and China Tianchen Engineering Co., Ltd. won the bid for the overall design, basic engineering design and technical services of air separation and purification devices, with a bid amount of 5.7 million yuan; Donghua Technology signed the general contracting contract for circulating water field, water supply pressurization and fire pumping station of Shenhua Baotou Coal-to-Olefin Upgrading Demonstration Project, and held a kick-off meeting.

On February 8, the Hotan region held a ceremony for the centralized commencement and resumption of major projects in the first quarter of 2025 and the groundbreaking ceremony of the new grid-side energy storage project of 1 million kilowatts in Hotan in Langru Township, Hotan County. In 2025, Hotan plans to plan 729 fixed asset investment projects with a total investment of 193.1 billion yuan, of which 429 projects are planned to resume work in the first quarter, with a total investment of 127.3 billion yuan, covering new energy, green mining and other fields. The highlight of the groundbreaking ceremony is the 1 million kW grid-side new energy storage project in Hotan area in 2025, which will be invested and constructed by Xinjiang Energy (Group) Co., Ltd. and Anhui Energy Group Co., Ltd. respectively for 500,000 kW/2 million kWh grid-side energy storage projects, all of which adopt grid-building technology.

Energy security + cost advantage, Xinjiang coal chemical industry is expected to open a golden age. From the perspective of national strategy, Xinjiang has benefited from two major shifts: from the coastal economy to the Belt and Road Initiative, Xinjiang has changed from a geopolitical rear to a frontier gateway, occupying a geographical advantage. The balance of energy security and dual carbon environmental protection has begun to tilt to the left, the king of coal chemical industry has returned, and Xinjiang has relied on resource advantages and cost energy security. From the perspective of Xinjiang itself, promoting stability through development has become the main line of Xinjiang. Historically, Xinjiang's background has been balanced between development and stability, and Xinjiang is currently in a period of important strategic opportunities for high-quality development. The development of Xinjiang's coal chemical industry is similar to that of shale gas in the United States, that is, it requires the state to invest in underlying technologies and infrastructure over a long period of time, and ultimately overcome its dependence on foreign energy sources. In recent years, with the expansion of the Xinjiang Coal Export Railway, the establishment of the National Pipeline Network Group and the completion of the West-East Gas Pipeline, the laying of the Xinjiang Electric Power Transmission Ultra-High Pressure Pipe Gallery, and the subsequent landing of liquid pipelines, Xinjiang coal, coal-to-gas, coal-to-liquid, and even coal-to-methanol are about to begin to flow to the whole country, which is China's version of the "Energy Independence Plan", and the long-term outlook is not only expected to reduce China's energy import dependence, but also systematically reduce China's energy and manufacturing costs. Recently, we have observed that the approval and commencement of relevant projects in Xinjiang have accelerated, which is expected to be a catalyst to promote the pace of investment in Xinjiang's coal chemical industry-related targets.

The reform of state-owned enterprises in Xinjiang is accelerating. Promoting stability through development has become the background color of Xinjiang, and Xinjiang's state-owned enterprises are not only the beneficiaries of Xinjiang's great development, but also the beneficiaries of business restructuring and management optimization. In the future, Xinjiang state-owned assets and the Xinjiang Corps will carry out business integration along the layout of Xinjiang's ten major industries, and securitization platform will also take place, and there is great room for asset integration and management optimization. The recent change of the actual controller of Western Regions Tourism, the acquisition of Baodi Mining, and the backdoor of Zhongji Health mean that the reform of state-owned enterprises in Xinjiang has accelerated. It is necessary to focus on local state-owned enterprises in Xinjiang that are backed by Xinjiang's superior resources.

It is recommended to pay attention to the two main lines of coal chemical investment and state-owned enterprise reform: 1) project investment in Xinjiang, including energy and chemical companies with coal mines and conversion in Xinjiang: Baofeng Energy, TBEA, Guanghui Energy, Hubei Yihua, etc.; 2) Water sellers who provide services for coal chemical projects, including Xuefeng Technology, Guangdong Hongda, YIPLI, and companies that provide coal transportation services along with coal mining; 3) Shovel stocks that provide services for coal chemical construction, including coal chemical design, general contracting, construction, and equipment: Donghua Technology, China Chemical, Aerospace Engineering, Zhongtai Co., Ltd., Fortune, etc.; 4) Local state-owned enterprises/XPCC enterprises in Xinjiang are expected to usher in opportunities for deepening reform and development: Zhongji Health, Li New Energy, Qingsong Jianhua, Tianfu Energy, Baodi Mining, Xinjiang Tianye, etc.

Risk warning: the policy implementation is less than expected; The construction progress of the project is not as expected; uncertainty in the progress of mergers and acquisitions; There is an error in the project data statistics.