This week’s Chemical Market Overview
This week, the market was under further pressure, especially for small and medium-sized targets, of which Shenwan chemical fell 4.32%, underperforming the Shanghai and Shenzhen 300 index by 5.43%. In terms of subject matter, the performance of some subject matter is strong; The targets of some new energy chemical materials and covid-19 vaccine intermediates are under pressure. In terms of investment, in the short term, due to factors such as race track congestion, position adjustment and position reduction, the sector may continue to be under pressure. However, we believe that the cost performance of some high-quality targets is gradually highlighting, and it is suggested to choose the appropriate configuration. In the direction, we are still optimistic about small and medium cap growth stocks, especially the subject of new materials.
Portfolio recommendation
\u3000\u3000 Jiangsu Flag Chemical Industry Co.Ltd(300575) 、 Luoyang Jalon Micro-Nano New Materials Co.Ltd(688357) 、 Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) 、 Anhui Jinhe Industrial Co.Ltd(002597) 、 Sichuan Em Technology Co.Ltd(601208)
Major events of this week
The world’s largest temperature resistant nylon PA6T 10000 ton production line officially started in Qingdao Sanli beno. On the morning of January 20, the ribbon cutting ceremony for the start-up of the world’s largest temperature resistant nylon PA6T 10000 ton production line was grandly held in the Weifang plant of Qingdao Sanli benuo new materials Co., Ltd., the invested project of silver saddle. This production line is the synthesis production line with the largest single set capacity of PPA materials in the world at present. The multi reactor continuous polymerization process is adopted, with short reaction process, safe and environmental protection. The copolymerization components can be adjusted in the synthesis process, which can effectively regulate the molecular structure and properties of PPA resin, The company’s 10000 ton temperature resistant nylon production line will meet the needs of different application fields. The production line will effectively alleviate the rapidly growing demand for high temperature resistant nylon materials in China’s high-end electronic field, and make the development of China’s PPA materials to a new level. It is a landmark event for China to achieve a world leading position in the field of new material segmentation.
The first unit of the third generation domestic aromatics technology was completed in Jiujiang Petrochemical. Sinochem news on January 20, the key project of national industrial layout and the first industrial application device of China Petroleum & Chemical Corporation(600028) third generation aromatics technology – Jiujiang Petrochemical 890000 T / a aromatics high standard was completed by CCCC. The successful application of this technology indicates that China is not only one of the three countries in the world that master this technology, but also that the technology has reached the international leading level, which will lay a foundation for local industrial clusters to drive more than 100 billion yuan. The project adopts the third generation aromatics technology with China Petroleum & Chemical Corporation(600028) independent intellectual property rights, which has the advantages of low investment cost, high catalyst application efficiency and low energy consumption. This technology is the first to develop and apply a complete set of single tower adsorption and separation technology, which changes the past double tower adsorption into single tower adsorption. The utilization rate of adsorbent is increased by 10%, the investment cost is reduced by nearly 20%, and the operation is more stable. In addition, through the integrated and optimized utilization of energy such as the whole process optimization, integrated heat combination and low-temperature heat efficient utilization of aromatics combined unit, the energy consumption of the unit is less than 220kg standard oil / ton Px, which reduces the energy consumption by 30% compared with similar aromatics units, reaching the international leading level.
Investment advice
After the recent roadshow, the market generally feedback that there is a lack of main line. We think there are three points that need special attention: first, the sinking of logic. Under the background of full expectation of mainstream tracks, the market may turn more stones in non mainstream tracks, especially those specializing in new materials; Second, the sinking of valuation, especially the hot subject of high valuation, has the possibility of reconstruction of valuation system; Third, the sinking of the crowded track. Recently, the target of the popular track has been adjusted greatly, which may be related to the chip structure and track congestion. The adjustment is more due to the factors at the transaction level. In the direction, we are still optimistic about small and medium cap growth stocks, especially the subject of new materials; In addition, after recent adjustments, the cost performance of some high-quality targets has become more prominent. It is recommended to choose machine configuration.
Risk tips
The epidemic affects the demand outside China, the crude oil price fluctuates violently, and the change of trade policy affects the industrial layout.
