Performance of the sector this week: this week (December 27-december 31, the same below), the market composite index shook and closed up. The Shanghai Composite Index closed at 3639.78, up 0.60% this week, the Shenzhen Component Index rose 1.00% this week, and the chemical sector (Shenwan) rose 3.18%. Performance of individual chemical stocks this week: the chemical sector rose broadly this week, with a stronger performance than the big market. The top gainers are Shaanxi Meibang Pharmaceutical Group Co.Ltd(605033) , Aba Chemicals Corporation(300261) , North Chemical Industries Co.Ltd(002246) , Yueyang Xingchang Petro-Chemical Co.Ltd(000819) , Xilong Scientific Co.Ltd(002584) , Zangger mining, Anhui Huaheng Biotechnology Co.Ltd(688639) , Haohua Chemical Science & Technology Corp.Ltd(600378) , Guangxi Hechi Chemical Co.Ltd(000953) , Zhejiang Dayang Biotech Group Co.Ltd(003017) . This week, the pesticide sector rose broadly, Shaanxi Meibang Pharmaceutical Group Co.Ltd(605033) rose by 52.89%, leading the chemical sector. At present, the company has a bactericide production capacity of 3375.98 tons / year and a pesticide production capacity of 2470.03 tons / year. The target Aba Chemicals Corporation(300261) of pharmaceutical intermediates rose by 43.95% this week. The company now produces 20 tons of pharmaceutical intermediates carbonic anhydride per month. The trading of the company’s shares has been suspended since the opening of the market on December 29, 2021, and was awarded the attention letter by the CSRC on the evening of December 30.
Crude oil market dynamics this week: the market remained optimistic about the prospect of crude oil, superimposed on the overall improvement of EIA inventory data, and the crude oil price fluctuated and rose. Ice oil distribution closed at US $77.78/barrel (mom 2.15%); WTI crude oil closed at US $75.21/barrel (2.90% MoM). Tracking of key chemicals: among the chemicals we are concerned about this week, phenol (+ 5.04%), solid caustic soda (+ 4.24%), pure benzene (+ 4.06%), acetone (+ 2.94%), cracking C5 (+ 2.38%). The cost side of phenol supported significantly this week, and the price of phenol continued to rise. This week, the inventory of caustic soda manufacturers was low, the transportation of goods source was blocked, the pick-up mood of downstream caustic soda industry increased, and the price focus of caustic soda rose. This week, pure benzene was strongly affected by the external market, superimposed on the short market of downstream styrene, and the price of pure benzene rose strongly. This week, the operating rate of acetone plant was low, the supply side remained tight, and the price of acetone increased slightly. This week, the supply of cracking C5 was tight, the downstream demand was good, and the price of cracking C5 continued to rise.
Review the development of synthetic biology in 2021 from three dimensions: (1) carbon neutralization drives the paradigm shift of social production: reducing carbon emissions has become a global consensus, and synthetic biology is also taking action. The Chinese team has made a breakthrough in synthetic starch and light driven the development of carbon dioxide sequestration technology of E. coli to realize the synthesis of carbon monoxide to protein. (2) Financing and IPO: in 2021, there were more than 150 cases in the global synthetic biology field. The financing amount is expected to be the sum of financing in all years since the start of synbiobeta statistics in 2009. (3) Big country development and competition: synthetic biology has become the focus. Biden asked how the United States will ensure its leading position in science and technology in the future, and mentioned the future competition in the fields of synthetic biology between China and the United States. In China, research centers and industrial clusters have been formed in Shenzhen, Tianjin, Shanghai and other places.
Main lines of Chemical Investment: (1) periodic growth stocks are expected to improve marginally: since the turning point of Q2 chemical boom in 2020, the prices of some chemicals have risen to historical highs. With the imbalance of supply and demand and the superposition of economic downward pressure, traditional chemical cyclical stocks made a sharp correction. During the correction process, we believe that we should focus on the industry leaders with continuous production expansion capacity in the 14th five year plan, supplement the price with quantity, especially the high-quality companies that embrace change and look for the second growth curve, which are expected to cross the cycle in the medium and long term. Key recommendations: Wanhua Chemical Group Co.Ltd(600309) , Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) , satellite chemistry, China National Chemical Engineering Co.Ltd(601117) , Ningxia Baofeng Energy Group Co.Ltd(600989) , lithium iron phosphate industrial chain and soda ash industrial chain. (2) Focus on high-end manufacturing and supporting materials for high-tech industries, including biosynthesis, electronic materials, degradability, tail gas treatment, carbon fiber, etc. Key recommendations: Haohua Chemical Science & Technology Corp.Ltd(600378) , Valiant Co.Ltd(002643) . (3) For the pesticide industry chain entering the business cycle, the key recommendations are: Jiangsu Yangnong Chemical Co.Ltd(600486) , Anhui Guangxin Agrochemical Co.Ltd(603599) .
Risk warning: crude oil supply fluctuates sharply; The situation of trade war worsened; Risk of significant exchange rate fluctuations.
