Key investment points:
In March 2022, CITIC basic chemical industry index fell by 9.16%, ranking 17th among 30 CITIC primary industries. Among the sub industries, polyester, soda ash, food and feed additives ranked first. Among the main products, chemicals fell slightly in March, and the rise and fall situation was weaker than that in the previous period. Among the rising varieties, ammonium sulfate, sulfuric acid, sulfur, glacial acetic acid and dicyclopentadiene led the increase. In terms of investment strategy in April, it is suggested to continue to pay attention to the coal chemical industry and chemical fertilizer sector.
Market review: in March 2022, CITIC basic chemical industry index fell by 9.16%, outperforming the Shanghai Composite Index by 3.09 percentage points and the Shanghai and Shenzhen 300 index by 1.32 percentage points. The overall performance of the industry ranked 17th among the 30 CITIC first-class industries. Over the past year, CITIC basic chemical index rose 26.04%, outperforming the Shanghai Composite Index by 31.55 percentage points and the Shanghai and Shenzhen 300 index by 42.40 percentage points, ranking fourth among the 30 CITIC primary industries.
Review of sub industries and individual stocks: in March 2022, among the 33 CITIC tertiary sub industries, one sub industry rose and 32 sub industries fell, among which polyester, soda ash and food and feed additives were the top performers, up 5.75%, down 0.55% and 1.11% respectively, while membrane materials, carbon fiber and rubber products were the bottom performers, down 18.27%, 16.80% and 15.21% respectively. In terms of individual stocks, among the 423 stocks in the basic chemical sector, 87 stocks rose and 334 fell. Among them, Yunnan Energy Investment Co.Ltd(002053) , Lushan Xincai, Jiangsu Boiln Plastics Co.Ltd(301003) , Zhejiang Zhongxin Fluoride Materials Co.Ltd(002915) and Gpro Titanium Industry Co.Ltd(000545) ranked among the top five, with increases of 46.79%, 46.39%, 40.56%, 39.55% and 32.48% respectively; Jusailong, Jiangsu Shuangxing Color Plastic New Materials Co.Ltd(002585) , Aofu Environmental Technology Co.Ltd(688021) , Saiwu technology and St Mingke led the decline, falling 38.05%, 33.75%, 31.21%, 30.62% and 29.67% respectively.
Product price tracking: in March 2022, the international oil price rose sharply, among which WTI crude oil rose 4.76% to close at US $100.28/barrel, and Brent crude oil rose 6.85% to close at US $107.91/barrel. Among the 330 products tracked by Zhuo Chuang information, 202 varieties increased, and the rising varieties decreased slightly compared with the previous month. The top gainers were ammonium sulfate, sulfuric acid, sulfur, glacial acetic acid and dicyclopentadiene, with increases of 59.86%, 56.47%, 40.39%, 40.14% and 29.48% respectively. 106 varieties fell, and the proportion of falling varieties increased slightly. The largest declines were liquid chlorine, glufosinate, organosilicon intermediate, argon and flake alkali, down 46.51%, 32.69%, 27.03%, 17.39% and 16.09% respectively.
Industry investment suggestion: maintain the investment rating of “synchronous market” of the industry. In terms of investment strategy in April 2022, it is suggested to continue to pay attention to the coal chemical industry and chemical fertilizer sector.
Risk tip: the price of raw materials has fallen sharply, industry competition has intensified, and downstream demand has declined
