Industry allocation opportunities under the impact of global supply chain

Since 2022, global commodity prices have continued the rebound trend in 2021. Especially after the escalation of the situation in Russia and Ukraine in February, the prices of energy, metals, Shenzhen Agricultural Products Group Co.Ltd(000061) and other commodities have accelerated. On the one hand, this has pushed up short-term inflation expectations, on the other hand, it has also aroused higher concerns about the vulnerability of the supply chain. In the medium and long term, this will accelerate the reconstruction of the global supply chain pattern and permanently push up the long-term central level of global commodity prices. Under this trend, the importance of maintaining the autonomy and security of the supply chain will be further highlighted. We expect that under the supply chain security strategy outside China, the industry allocation opportunities in the next 3-5 years will mainly appear in the upstream industries benefiting from the high operation of bulk commodity prices, industries whose production capacity is difficult to repair quickly in the short term, and coal chemical industries.