Key investment points:
In February 2022, CITIC basic chemical industry index rose by 8.52%, ranking fourth among 30 CITIC first-class industries. Among the sub industries, phosphorus fertilizer and phosphorus chemical industry, civil explosive products and inorganic salt industry ranked first. Among the main products, chemicals continued to pick up in February, and the rise and fall situation was stronger than that in the previous period. Among the rising varieties, liquid chlorine, liquefied natural gas, argon, lithium hydroxide and tetrachloroethylene led the increase. In terms of investment strategy in February, it is suggested to focus on coal chemical industry and chemical fertilizer.
Market review: in February 2021, CITIC basic chemical industry index rose by 8.52%, outperforming Shanghai Composite Index by 5.52 percentage points and Shanghai Shenzhen 300 index by 8.13 percentage points. The overall performance of the industry ranked 21st among 30 CITIC first-class industries. Over the past year, CITIC basic chemical index rose 31.32%, outperforming the Shanghai Composite Index by 32.66 percentage points and the Shanghai and Shenzhen 300 index by 45.47 percentage points, ranking fourth among the 30 CITIC primary industries.
Review of sub industries and individual stocks: in February 2022, among the 33 CITIC level III sub industries, 30 sub industries rose and 3 sub industries fell. Among them, phosphorus fertilizer and phosphorus chemical industry, civil explosive products and inorganic salts were the top gainers, up 38.23%, 27.12% and 21.93% respectively. Paint, modified plastics and tires were the second, down 1.64%, 1.23% and 0.69% respectively. In terms of individual stocks, among the 420 stocks in the basic chemical sector, 340 stocks rose and 77 fell. Among them, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) , Sichuan Yahua Industrial Group Co.Ltd(002497) , Yunnan Yuntianhua Co.Ltd(600096) , Xiangtan Electrochemical Scientific Co.Ltd(002125) and Hubei Forbon Technology Co.Ltd(300387) ranked among the top five in the list, with increases of 70.18%, 58.18%, 53.69%, 42.78% and 42.34% respectively Asia Cuanon Technology (Shanghai) Co.Ltd(603378) , Skshu Paint Co.Ltd(603737) , Xinxiang Richful Lube Additive Co.Ltd(300910) , Hailir Pesticides And Chemicals Group Co.Ltd(603639) and Pan Asian Microvent Tech (Jiangsu) Corporation(688386) led the decline, down 23.70%, 16.48%, 12.64%, 11.84% and 11.12% respectively.
Product price tracking: in February 2022, international oil prices rose sharply, of which WTI crude oil rose 8.59% to close at US $95.72/barrel, and Brent crude oil rose 10.72% to close at US $100.99/barrel. Among the 330 products tracked by Zhuo Chuang information, 216 varieties rose, and the rising varieties increased compared with the previous month. The top gainers were liquid chlorine, liquefied natural gas, argon, lithium hydroxide and tetrachloroethylene, with increases of 138.89%, 96.29%, 68.15%, 51.08% and 43.18% respectively. 91 varieties fell, and the proportion of falling varieties decreased slightly. The largest declines were ammonium sulfate, isobutyraldehyde, chloroacetic acid, tebuconazole and anthracite, down 15.77%, 16.30%, 16.57%, 17.39% and 17.72% respectively.
Industry investment suggestion: maintain the investment rating of “synchronous market” of the industry. In terms of investment strategy in February 2022, it is suggested to focus on the coal chemical industry, and chemical fertilizer sectors.
Risk tip: the price of raw materials has fallen sharply, industry competition has intensified, and downstream demand has declined
