The research report from China International Capital Corporation points out that the import tariff on ethane has been reduced, and policies encourage the development of light hydrocarbon routes. Satellite Chemical (002648.SZ) currently has 2.5 million tons of ethylene capacity corresponding to approximately 3 million tons of imported ethane. Based on the average price of ethane in the USA in 2023 at 24 cents per gallon, a 1% reduction in the import tariff would save the company about 0.1 billion yuan annually on the cost side. Recently, Brent oil prices have been fluctuating around 70-75 dollars per barrel, and the price of ethane in the USA has risen to over 25 cents per gallon. However, our calculations show that the profit from domestic ethane cracking still has an advantage of over 2,000 yuan per ton compared to naphtha cracking. Bullish on the scarcity of the ethane cracking route, the company's cost advantages are expected to be maintained. It is believed that with the gradual commissioning of this ethane cracking facility and downstream high-end new materials products, the company's performance is likely to usher in a new round of high growth in 2026-2027, and the company's growth potential is currently outstanding.