Key investment points:
In December 2021, CITIC basic chemical industry index fell by 1.89%, ranking 27th among 30 CITIC primary industries. Among the sub industries, potash fertilizer, coating and polyamide fiber industry ranked first. Among the main products, the rise and fall of chemicals in December was stronger than that in the previous period, but it still showed a callback trend on the whole. Among the rising varieties, lithium chloride, chloroform, lithium carbonate, dichloromethane and tetrachloroethylene led the increase. In terms of investment strategy in January, it is suggested to pay attention to the modified plastics and polyester filaments downstream of the industrial chain.
Market review: in December 2021, CITIC basic chemical industry index fell by 1.89%, 4.02 percentage points lower than Shanghai Composite Index and 4.13 percentage points lower than Shanghai and Shenzhen 300 index. The overall performance of the industry ranked 27th among 30 CITIC first-class industries. In 2021, CITIC basic chemical index rose 48.05%, outperforming the Shanghai Composite Index by 43.25 percentage points, outperforming the Shanghai and Shenzhen 300 index by 53.25 percentage points, ranking second among 30 CITIC first-class industries.
Review of sub industries and individual stocks: in December 2021, among the 33 CITIC level III sub industries, 14 sub industries rose and 19 sub industries fell. Among them, potassium fertilizer, coating and painting and nylon industries ranked first, rising by 28.62%, 8.80% and 5.81% respectively. Phosphorus fertilizer and phosphorus chemical industry, lithium electric chemicals and silicone ranked second, falling by 11.25%, 10.96% and 10.84% respectively. In terms of individual stocks, among 418 stocks in the basic chemical sector, 196 stocks rose and 220 fell. Among them, Aba Chemicals Corporation(300261) , international GM, Shaanxi Meibang Pharmaceutical Group Co.Ltd(605033) , Changjiang materials and Zangger mining ranked among the top five, with increases of 150.13%, 80.80%, 69.48%, 61.04% and 49.09% respectively; Shandong Fengyuan Chemical Co.Ltd(002805) , Fengguang shares, Henan Qingshuiyuan Technology Co.Ltd(300437) , Shenzhen Xfh Technology Co.Ltd(300890) , Zhejiang Benli Technology Co.Ltd(301065) led the decline, down 33.58%, 31.62%, 30.45%, 26.56% and 26.24% respectively.
Product price tracking: in December 2021, international oil prices rose sharply, of which WTI crude oil rose 13.65% to USD 75.21/barrel, and Brent crude oil rose 10.22% to USD 77.78/barrel. Among the 330 products tracked by Zhuo Chuang information, 80 varieties increased, and the rising varieties increased slightly compared with the previous month. The top gainers were lithium chloride, chloroform, lithium carbonate, dichloromethane and tetrachloroethylene, with an increase of 68.4%, 41.94%, 39.21%, 38.04% and 32.21% respectively. 226 varieties decreased, and the proportion of declining varieties decreased slightly. The largest declines were liquid chlorine, trichloroethylene, r132, liquefied natural gas and melamine, down 56.63%, 52.76%, 42.17%, 32.7% and 31.4% respectively.
Industry investment suggestion: maintain the investment rating of “synchronous market” of the industry. In terms of investment strategy in January 2022, it is suggested to focus on modified plastics and polyester filament.
Risk tip: the price of raw materials has fallen sharply, industry competition has intensified, and downstream demand has declined
