Key investment points:
Plate market this week:
The Shanghai and Shenzhen composite index fell by 25.4% and the Shanghai and Shenzhen composite index fell by 25.4% this week.
Rise and fall of various sub sectors of chemical industry: this week, the top five sub sectors of chemical industry were soda ash (6.15%), food and feed additives (- 0.38%), cotton fiber (- 2.14%), synthetic resin (- 2.31%) and chlor alkali (- 2.45%); The top five sub industries in the chemical sector were titanium dioxide (- 14.4%), potassium fertilizer (- 9.08%), rubber additives (- 8.47%), polyester (- 7.57%) and other chemicals III (- 7.26%).
Main trends of the industry this week:
Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) : on April 16, Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) issued the announcement on the signing of green new energy materials investment agreement by Jingzhou company, which plans to invest about 5 billion yuan to build a green new energy materials project, including 100000 t / a NMP unit, 200000 t / a BDO unit, 30000 t / a PBTA and supporting facilities, 100000 t acetic anhydride and supporting facilities.
Energy: on April 10, the State Council issued the opinions on accelerating the construction of a national unified market. The opinions pointed out that on the premise of effectively ensuring the safe supply of energy, we should orderly promote the construction of the national energy market in combination with the goal of achieving carbon peak and carbon neutralization. On the basis of overall planning and optimized layout, improve the oil and gas futures product system, standardize the construction of oil and gas trading center, and optimize the layout of key infrastructure such as trading venues and delivery warehouses. Promote the interconnection of oil and gas pipeline networks and facilities and open them to all kinds of market subjects fairly. We will steadily promote the market-oriented reform of natural gas and accelerate the establishment of a unified natural gas energy measurement and pricing system. Improve the multi-level unified power market system, study and promote the timely establishment of the national power trading center. Give further play to the role of the national coal trading center and promote the improvement of the national unified coal trading market.
Investment suggestions:
The supply and demand of phosphate fertilizer is tight, the cost supports the price upward, and the high price of phosphate fertilizer at home and abroad continues to be poor. China’s prosperity is expected to remain upward. Focus on: Yunnan Yuntianhua Co.Ltd(600096) , Guizhou Chanhen Chemical Corporation(002895) , Hubei Xingfa Chemicals Group Co.Ltd(600141) . In the peak season of spring ploughing, the demand for glyphosate is restored, the upstream phosphating industry is high, and the cost supports the price of glyphosate to return to the upward channel. Lier Chemical Co.Ltd(002258) is the leader in China, with the cost and scale leading in the world, and the performance is expected to continue to grow. Focus on: Lier Chemical Co.Ltd(002258) Sobute New Materials Co.Ltd(603916) continued to promote capacity expansion. The British base took the lead in putting into operation, the construction of Jiangmen base was started, and the national strategic layout was gradually improved. The company continued to promote functional materials, create the second growth curve, and continue to consolidate its leading position in the industry, focusing on: Sobute New Materials Co.Ltd(603916) . Under the background of steady growth, China’s soda ash demand is strong, the soda ash inventory of downstream glass plants is low, and the growth of photovoltaic glass is strong. China’s leader in natural alkali process Inner Mongoliayuan Xing Energy Company Limited(000683) , plans to hold Yingen mining, and the long-term growth of production capacity is guaranteed, which is expected to reshape the supply and demand pattern. Focus on Inner Mongoliayuan Xing Energy Company Limited(000683) Hershey, the Shandong Head Co.Ltd(002810) subsidiary, continues to release the production capacity of plant capsules, and its scale advantage is constantly strengthened. It is expected to win the first brand in Asia. At the same time, with the technical advantages of mitega, it will accelerate the commercialization of food grade cellulose ether in the field of artificial meat, which is expected to become the second growth point of the company. The key focus is: Shandong Head Co.Ltd(002810) . After years of competition and expansion, the cost advantage of China’s chemical industry has created a profit moat, and the global market share has been increasing. At present, the valuation is still low, focusing on: Wanhua Chemical Group Co.Ltd(600309) , Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) , Jiangsu Yangnong Chemical Co.Ltd(600486) , Huafon Chemical Co.Ltd(002064) . Century old tires, trillion market, covid-19 epidemic accelerated the reshaping of the industry pattern, China’s leading tires continued to explore the market in multiple directions, and the market share continued to increase, which is expected to maintain high-speed growth. Focus on: Shandong Linglong Tyre Co.Ltd(601966) , Sailun Group Co.Ltd(601058) , Qingdao Sentury Tire Co.Ltd(002984) . In the context of “double carbon”, China continues to improve the national coal trading market and promote the development of new coal chemical industry at the cost side. China’s leading coal to olefin enterprise Ningxia Baofeng Energy Group Co.Ltd(600989) , relying on the cost advantage to ensure profitability, focuses on: Ningxia Baofeng Energy Group Co.Ltd(600989) .
Risk warning: macroeconomic downturn; Large fluctuations in oil prices; Downstream demand was lower than expected.
