Industry perspective
(1) many factors affect the changes in the prosperity of the sub industry next year. Under the expected increase of cultivated land area, the maintenance of grain prices at a high level, China’s orderly supply and the rise of prices in the fourth quarter, the overall profitability of the pesticide industry is expected to improve next year. It is mainly recommended that Jiangsu Yangnong Chemical Co.Ltd(600486) , Shandong Weifang Rainbow Chemical Co.Ltd(301035) , Anhui Guangxin Agrochemical Co.Ltd(603599) , Limin Group Co.Ltd(002734) ; The prosperity of the tire industry has bottomed out, and the new energy field has brought development opportunities. It is suggested to pay attention to Sailun Group Co.Ltd(601058) , Qingdao Sentury Tire Co.Ltd(002984) . The boom of viscose industry is expected to reverse, and Tangshan Sanyou Chemical Industries Co.Ltd(600409) is recommended. (2) The demand economy is relatively weak, and the fields of semiconductor materials, military materials and other new materials are independent and controllable in the medium and long term; Focus on the chemical synthesis platform company Valiant Co.Ltd(002643) and China’s private gas leading enterprise Suzhou Jinhong Gas Co.Ltd(688106) . (3) The downstream demand is stable, and great attention is paid to the subdivided fields such as photovoltaic, wind power, new energy and sugar substitutes; Focus on recommending Shenzhen Capchem Technology.Ltd(300037) as the leader of new energy functional materials and Anhui Jinhe Industrial Co.Ltd(002597) as the leader of global sweeteners. (4) The vertical and horizontal expansion of the leading enterprises has highlighted the advantages of integration, and the profit center is expected to rise; Key recommendations are Wanhua Chemical Group Co.Ltd(600309) , Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) , Zhejiang Nhu Company Ltd(002001) .
Risk tips
Risk of sharp fluctuations in crude oil prices; Covid-19 epidemic leads to less demand than expected risk; Safety and environmental protection risks
