1. Strong oil prices push up the price of chemicals and continue to be optimistic about the leading white horse: during the Spring Festival, OPEC said that with the rebound of economic activities and the rise of travel, the recovery of global oil demand this year may be faster than the increase of supply. In addition, EIA inventory fell more than expected. As of the week of February 4, commercial crude oil inventory decreased to 410.4 million barrels, the lowest level since October 2018. The superimposed geopolitical tensions boosted crude oil. For the above reasons, international oil prices continued to remain strong. As of February 11, Brent crude oil was quoted at US $91.41/barrel. Driven by costs, major petrochemical products have risen rapidly. We believe that under the background of strong oil price, there is a clear expectation of increasing the profitability of Baima, the leader of large chemical industry. Light hydrocarbon chemical and coal chemical enterprises are also expected to enjoy the thickening of profit space. White horse, the leading chemical industry, has high growth certainty and strong competitiveness, which has fully proved their competitiveness in history. Affected by the dual control of energy consumption and the difficulty of project approval, the growth rate of capital expenditure of leading white horse has been maintained at 2-3% in recent two years. The capacity of high-quality new projects of many leading chemical enterprises has not been released soon. We believe that “the energy consumption of raw materials is not included in the total energy consumption control”, and the recalculation of the project’s carbon emission will reduce the approval threshold for the new capacity of the leading Baima high-quality project in the future, and the growth will be reflected again.
Specific prospects: Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) , Ningxia Baofeng Energy Group Co.Ltd(600989) and other coal chemical leaders, Wanhua Chemical Group Co.Ltd(600309) , Rongsheng Petro Chemical Co.Ltd(002493) , Hengli Petrochemical Co.Ltd(600346) , Jiangsu Eastern Shenghong Co.Ltd(000301) , satellite chemistry and other petrochemical leading enterprises. (unless otherwise specified, this week refers to the week from February 7, 2022 to February 13, 2022)
2. Continue to be optimistic about the core materials of the new energy industry chain: there has been an overall correction in the new energy industry chain recently, but the prices of R142b PVDF, iron phosphate, lithium iron phosphate and other products we focus on tracking are still strong. Continue to be firmly optimistic about the upstream materials with tight supply and demand in the industry in 2022 and the performance is expected to continue to grow under the large amount of new capacity: lithium battery binder Diaphragm coating materials PVDF (Dongyue Group, Lecron Industrial Development Group Co.Ltd(300343) , Zhejiang Juhua Co.Ltd(600160) , Guangdonghectechnologyholdingco.Ltd(600673) ), iron phosphate and lithium iron phosphate ( Guizhou Chanhen Chemical Corporation(002895) , Yunnan Yuntianhua Co.Ltd(600096) , Hubei Xingfa Chemicals Group Co.Ltd(600141) , Hubei Yihua Chemical Industry Co.Ltd(000422) ), lithium battery electrolyte materials ( Zhejiang Yongtai Technology Co .Ltd(002326) , Great Chinasoft Technology Co.Ltd(002453) , Liao Ning Oxiranchem Inc(300082) , Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) , satellite Chemistry), upstream materials of photovoltaic industry chain ( Jiangsu Eastern Shenghong Co.Ltd(000301) , Levima Advanced Materials Corporation(003022) , Sichuan Hebang Biotechnology Co.Ltd(603077) , Zhejiang Hailide New Material Co.Ltd(002206) ) Upstream materials of wind power industry chain (Jilin Carbon Valley, Jilin Chemical Fibre Co.Ltd(000420) , Weihai Guangwei Composites Co.Ltd(300699) , Kangda New Materials( Group) Co.Ltd(002669) , Yangzhou Chenhua New Material Co.Ltd(300610) , Wuxi Acryl Technology Co.Ltd(603722) , Zhejiang Huangma Technology Co.Ltd(603181) ).
3. Focus on business continuity and profit recovery sub industries: pesticides ( Jiangsu Yangnong Chemical Co.Ltd(600486) , Shandong Weifang Rainbow Chemical Co.Ltd(301035) , Hailir Pesticides And Chemicals Group Co.Ltd(603639) , Limin Group Co.Ltd(002734) ), vitamins ( Zhejiang Nhu Company Ltd(002001) , Zhejiang Medicine Co.Ltd(600216) , Brother Enterprises Holding Co.Ltd(002562) , Zhejiang Garden Bio-Chemical High-Tech Co.Ltd(300401) ), glyphosate ( Hubei Xingfa Chemicals Group Co.Ltd(600141) ), caffeine ( Cspc Innovation Pharmaceutical Co.Ltd(300765) , Shandong Xinhua Pharmaceutical Company Limited(000756) ).
\u3000\u30004. Dongheda), non saccharification trend ( Anhui Jinhe Industrial Co.Ltd(002597) ), national sixth industrial chain ( Actblue Co.Ltd(300816) , Luoyang Jalon Micro-Nano New Materials Co.Ltd(688357) , Xinxiang Richful Lube Additive Co.Ltd(300910) ), degradable and renewable plastics ( Shandong Ruifeng Chemical Co.Ltd(300243) , Beijing Sanlian Hope Shin-Gosentechnical Service Co.Ltd(300384) , Kingfa Sci.& Tech.Co.Ltd(600143) , Red Avenue New Materials Group Co.Ltd(603650) ). Semiconductors, display materials and military semiconductors: semiconductor packaging materials ( Great Chinasoft Technology Co.Ltd(002453) ), photoresists (Nanjing Everbright, Red Avenue New Materials Group Co.Ltd(603650) , Jingrui), semiconductor precursors ( Jiangsu Yoke Technology Co.Ltd(002409) ), special gases ( Haohua Chemical Science & Technology Corp.Ltd(600378) , Guangdong Huate Gas Co.Ltd(688268) , Jiangsu Yoke Technology Co.Ltd(002409) ), wet electronic chemicals ( Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) , Jingrui, Phichem Corporation(300398) ), CMP polishing materials ( Hubei Dinglong Co.Ltd(300054) ). Military industry: special chemicals ( Haohua Chemical Science & Technology Corp.Ltd(600378) ), aramid fiber ( Yantai Tayho Advanced Materials Co.Ltd(002254) ), carbon fiber ( Weihai Guangwei Composites Co.Ltd(300699) ). New display fields: optical film ( Sichuan Em Technology Co.Ltd(601208) ), organic light-emitting materials ( Valiant Co.Ltd(002643) , Great Chinasoft Technology Co.Ltd(002453) ), PI materials ( Rayitek Hi-Tech Film Company Ltd.Shenzhen(688323) ).
Risk warning: the macroeconomic growth rate is lower than expected; The product price fluctuates greatly; International oil prices fell sharply; The construction progress of new projects is less than expected; Repeated outbreaks, etc.
