Key investment points:
Market review. As of January 21, 2022, the basic chemical industry of Shenwan fell by 4.32% this week, underperforming the CSI 300 index by 5.43 percentage points, ranking 29th among the 31 industries of Shenwan; Shenwan basic chemical industry has fallen by 7.57% so far this month, 4.31 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 25th among Shenwan 31 industries.
As for the seven sub sectors of Shenwan basic chemical industry, according to the performance of the recent week, the increase order is rubber (- 2.76%), chemical raw materials (- 2.90%), chemical products (- 4.16%), chemical fiber (- 4.31%), plastics (- 5.46%), agrochemical products (- 5.67%) and non-metallic materials (- 6.25%).
Among the stocks with the highest gains this week, Shandongsino-Agriunitedbiotechnologyco.Ltd(003042) , Shanxi Huhua Group Co.Ltd(003002) and Shenzhen King Explorer Science And Technology Corporation(002917) performed best, with gains of 31.80%, 28.07% and 23.67% respectively. Among the stocks with the highest decline this week, Zhejiang Yongtai Technology Co .Ltd(002326) , Baotou Tomorrow Technology Co.Ltd(600091) and North Chemical Industries Co.Ltd(002246) performed the worst, with declines of – 24.25%, – 22.48% and – 16.27% respectively.
Rise and fall of chemical products: among the chemical products mainly tracked, the products with the top five price increases this week are caustic soda (+ 17.81%), dimethyl carbonate (+ 10.31%), aniline (+ 6.67%), fuel oil (+ 6.52%), p-xylene (+ 5.80%). The products with the top five price decreases are dichloromethane (- 18.08%), hydrochloric acid (- 8.33%), ethylene oxide (- 5.48%) Dimethyl ether (- 4.87%), melamine (- 4.29%).
View of Basic Chemical Industry Week: geopolitical risk events in the Middle East broke out. The price of international crude oil futures rose this week and hit a seven-year high earlier this week. The central economic work conference at the end of 2021 made it clear that the new renewable energy and raw material energy consumption will not be included in the total energy consumption control, and conditions will be created to realize the transformation from “dual control” of energy consumption to “dual control” of total carbon emission and intensity as soon as possible. In this regard, the enterprises that were expected to expand under the restriction of energy consumption indicators are good. We can pay attention to the industry leading enterprises Wanhua Chemical Group Co.Ltd(600309) , Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) and Rongsheng Petro Chemical Co.Ltd(002493) . In addition, the downstream industries of pesticides, tires, modified plastics and sweeteners can continue to pay attention. Key target concerns:
Longtou white horse: Wanhua Chemical Group Co.Ltd(600309) (600309), Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) (600426), Rongsheng Petro Chemical Co.Ltd(002493) (002493)
Pesticide: Jiangsu Yangnong Chemical Co.Ltd(600486) (600486)
Tires: Shandong Linglong Tyre Co.Ltd(601966) (601966), Qingdao Sentury Tire Co.Ltd(002984) (002984), and Sailun Group Co.Ltd(601058) (601058)
Modified plastics: Kingfa Sci.& Tech.Co.Ltd(600143) (600143)
Sweetener: Anhui Jinhe Industrial Co.Ltd(002597) (002597)
Risk warning: downstream demand is less than expected; Product price and price difference fall; Intensified industry competition, etc.
