Group 1 - The chemical sector experienced a sudden surge, with stocks like Hangjin Technology hitting the limit up, and Hongda shares rising over 6% [1] - The chemical ETF (516020) saw an increase of 1.15% in its market price, reflecting the overall positive trend in the chemical sector [1] - The "anti-involution" trend is benefiting the chemical sector, attracting significant capital inflow, with the chemical ETF recording a net subscription of nearly 140 million yuan over the past five trading days [1][3] Group 2 - As of August 21, the social security fund held 129 stocks with a total market value of 33.2 billion yuan, with the chemical sector leading at 6 billion yuan [3] - The chemical industry is expected to see a phase of improvement as the "anti-involution" measures reduce overcapacity and chaotic competition [3] - The chemical ETF's price-to-book ratio is at 2.17, indicating a relatively low valuation compared to the past decade, suggesting a favorable long-term investment opportunity [3] Group 3 - The "anti-involution" policy is anticipated to be a long-term focus, potentially leading to the elimination of outdated production capacity and a more optimized competitive landscape in the chemical industry [4] - The changes in supply dynamics are expected to improve the profitability of chemical products, transitioning the industry from a "money pit" to a "cash cow" [4] - The chemical ETF (516020) provides an efficient way to invest in the sector, covering various sub-sectors and focusing on large-cap leading stocks [5]

Group 1 - The chemical sector experienced a sudden surge, with stocks such as Hangjin Technology hitting the daily limit, and Hongda Co. and Juhua Co. seeing significant increases of over 6% and 4% respectively, while the chemical ETF (516020) rose by 1.15% [1] - The recent "anti-involution" trend has benefited the chemical sector, attracting substantial capital inflows, with the chemical ETF (516020) seeing a net subscription of nearly 140 million yuan over the last five trading days [1][3] - As of August 21, the social security fund held 129 stocks with a total market value of 33.2 billion yuan, with the chemical sector being the largest holding at 6 billion yuan [3] Group 2 - The chemical industry is expected to see a phase of improvement as the "anti-involution" measures are implemented, alleviating issues of overcapacity and excessive competition [3][4] - The chemical ETF (516020) is currently at a relatively low price-to-book ratio of 2.17, indicating a favorable long-term investment opportunity [3] - Analysts suggest that the "anti-involution" trend will be a key policy focus through 2025, leading to a more orderly competitive environment in the chemical sector and potential recovery in profitability [4] Group 3 - The chemical ETF (516020) tracks the CSI segmented chemical industry index, covering various sub-sectors, with nearly 50% of its holdings in large-cap leading stocks [4] - The ETF has shown strong performance, with significant net subscriptions indicating investor confidence in the sector's recovery [3][4] - The potential for increased dividend yields and improved cash flow in the chemical sector is highlighted, suggesting a shift from being a "cash-consuming" industry to a "cash-generating" one [4]

Core Viewpoint - Zhejiang Juhua Co., Ltd. has successfully developed a "perfluoropolyether-based coolant," marking a significant milestone in breaking foreign technology monopolies in high-end coolant materials and achieving domestic substitution [2][3] Group 1: Product Development and Applications - The perfluoropolyether-based coolant product line includes JHT (high boiling point), JHLO (low viscosity), and JX (immersion type), applicable in various industries such as data centers, semiconductor manufacturing, chip packaging leak testing, machinery, and chemicals [2] - The JX series immersion coolant demonstrated exceptional cooling performance, achieving a PUE value as low as 1.065 in real-world tests at a megawatt-level data center, surpassing national energy efficiency standards and reaching international leading levels [2] Group 2: Industry Impact and Technological Breakthrough - The industrialization of the perfluoropolyether-based coolant represents a significant achievement in the fluorochemical industry, aligning with goals to extend, supplement, and strengthen the industrial chain [4] - Juhua's continuous technological advancements have not only overcome foreign technical barriers but also filled a domestic technological gap, providing strong momentum for the self-controlled development of related industries in China [3] Group 3: Future Outlook - Juhua has set a clear capacity planning goal, expecting to reach an annual production capacity of 5,000 tons of perfluoropolyether-based coolant by 2025, which will further meet the domestic demand for high-end coolant materials [5]

Investment Rating - The report maintains a "Positive" investment rating for the industry [12] Core Insights - The cooling methods for data centers are transitioning from air cooling to liquid cooling due to the increasing power consumption of chips and single cabinets. Liquid cooling technologies offer significant advantages such as higher cooling efficiency, lower energy consumption, and reduced total cost of ownership (TCO) [6][19] - The report highlights the growth of liquid cooling solutions, particularly single-phase cold plate cooling, which currently accounts for over 90% of liquid cooling applications in data centers. The technology is maturing, and small-scale commercial applications are being promoted [6][19] - The report suggests that various cooling media will emerge as opportunities in the liquid cooling market, with a focus on companies involved in the production of these cooling liquids [10][52] Summary by Sections Data Center Cooling Transition - The report discusses the shift to liquid cooling as a response to the rising power density of chips, particularly in AI servers, which are pushing the limits of traditional air cooling methods. The maximum power density for traditional air-cooled cabinets is around 20 kW, while future designs may reach up to 600 kW [7][25][29] Cooling Media Opportunities - Different cooling media are being explored for single-phase and two-phase cooling solutions. For single-phase cooling, common media include ethylene glycol solutions and propylene glycol solutions, while two-phase solutions primarily use refrigerants and low-boiling point fluids [8][41] - The report emphasizes the need for cooling liquids that meet specific technical requirements, such as excellent insulation properties, low surface tension, and high thermal conductivity [9][42] Investment Recommendations - The report recommends focusing on companies involved in the liquid cooling media industry, including: - Juhua Co., Ltd. (fluorinated liquids + refrigerants) - Sinoma Science & Technology (fluorinated liquids) - Yonghe Technology (fluorinated liquids + refrigerants) - Haohua Technology (fluorinated liquids + refrigerants) - Sanmei Co., Ltd. (refrigerants) - Xin'an Chemical (silicone oil) - Xingfa Group (silicone oil) [10][52]

Group 1 - The chemical products sector increased by 0.71% on August 21, with Feilu Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3771.1, up 0.13%, while the Shenzhen Component Index closed at 11919.76, down 0.06% [1] - Notable gainers in the chemical products sector included Feilu Co., Ltd. with a closing price of 12.85, up 10.40%, and Boyuan Co., Ltd. with a closing price of 44.84, up 10.25% [1] Group 2 - The chemical products sector experienced a net outflow of 449 million yuan from institutional funds, while retail investors saw a net inflow of 500 million yuan [2] - The top individual stock performers in terms of net inflow included Wanhua Chemical with a net inflow of 4.24 billion yuan, while retail investors showed significant outflows in several stocks [3] - The overall trading volume and turnover in the chemical products sector reflected mixed investor sentiment, with some stocks experiencing substantial declines [2][3]

Group 1: Titanium Market Overview - The titanium concentrate market is facing a severe supply-demand imbalance, leading to a weak overall industry state with low purchasing willingness from downstream buyers and significant inventory accumulation [1] - The price of titanium dioxide (TiO2) is expected to be around 46%, with mainstream prices for titanium concentrate ranging from 1600 to 1700 CNY per ton [1] - The sponge titanium industry is experiencing rising inventory levels, with weak purchasing enthusiasm from downstream sectors, while military demand remains strong [1] Group 2: Titanium Dioxide Pricing Trends - As of the week of August 8-14, 2025, the mainstream price for sulfuric acid method rutile titanium dioxide is reported to be between 12200 and 13700 CNY per ton, with a weighted average price of 13302 CNY per ton, remaining stable compared to the previous week [2] - The "floor price" for titanium dioxide has been maintained for an extended period, with expectations for demand to improve and prices to stabilize [2] Group 3: Chemical Industry Performance - The CSI Chemical Industry Theme Index (000813) has seen a strong increase of 1.59%, with notable gains in stocks such as Nuclear Titanium White (10.11%) and Boyuan Chemical (6.22%) [3] - The Chemical ETF (159870) has risen by 1.39%, with a latest price of 0.66 CNY and a net subscription of 1.1 billion units during trading [3] Group 4: Chemical ETF Composition - The CSI Chemical Industry Theme Index consists of several sub-indices, with the top ten weighted stocks accounting for 43.54% of the index, including Wanhu Chemical and Salt Lake Co [4]

Group 1 - As of August 19, 2023, the National Social Security Fund has invested in 89 stocks among the top ten circulating shareholders, with the basic chemical industry being the most favored, holding 11 stocks with a total market value of 4.075 billion yuan [1] - Minsheng Securities suggests looking for stocks with good performance in the second quarter, particularly in the new materials industry benefiting from AI capital investment and industry leaders in segments affected by U.S. tariff conflicts [1] - The export window for phosphate fertilizer is approaching, with high demand expected to continue. The export guidance indicates that exports may occur in phases, with the first batch concentrated from May to September, and the total export quota for 2025 is expected to decrease compared to last year [1] Group 2 - As of August 20, 2025, the CSI Sub-Industry Chemical Theme Index (000813) increased by 0.39%, with notable stock performances including Lianhong New Science (up 10.01%) and Yuntianhua (up 4.84%) [2] - The Chemical ETF (159870) rose by 0.63%, with a latest price of 0.64 yuan and a net subscription of 100 million shares during the trading session [2] - The CSI Sub-Industry Chemical Theme Index tracks the performance of large and liquid listed companies in the chemical sector, reflecting the overall performance of these companies [4] Group 3 - As of July 31, 2025, the top ten weighted stocks in the CSI Sub-Industry Chemical Theme Index include Wanhua Chemical, Salt Lake Potash, and Juhua Co., with these stocks accounting for 43.54% of the total index weight [5]

Investment Rating - The report provides a standard investment rating for the chemical industry, indicating a positive outlook for specific sectors within the industry [5]. Core Insights - The report highlights the impact of the explosion at Kanto Denka's facility in Japan, which is expected to create opportunities for domestic electronic gas suppliers as Kanto Denka holds a 90% market share in nitrogen trifluoride production in Japan [6][13]. - The first World Humanoid Robot Games held in Beijing is seen as a catalyst for the robotics industry's development, showcasing technological innovation and attracting talent [6][14]. - The report emphasizes the structural optimization of supply in the chemical sector, suggesting a focus on sectors with significant elasticity and competitive advantages, such as organic silicon and membrane materials [6][15]. Industry Performance - The report notes that during the week of August 11 to August 15, 2025, the CSI 300 index rose by 2.37%, while the Shenwan Basic Chemical Index increased by 2.46%, outperforming the market slightly [6][18]. - The top-performing sub-sectors included modified plastics (up 12.29%) and fluorochemicals (up 5.81%), while the worst performers were civil explosives (down 3.02%) and compound fertilizers (down 1.81%) [6][19]. Price Trends - Key products that saw price increases included hydrochloric acid (up 15.38%) and propylene (up 4.00%), while notable declines were observed in butanone (down 7.16%) and liquid ammonia (down 5.89%) [6][26]. - The report tracks price differentials, with significant increases in the propylene-propane differential (up 33.47%) and decreases in the bisphenol A-phenol differential (down 26.57%) [6][28]. Investment Recommendations - The report suggests focusing on sectors that may benefit from supply-side reforms, particularly organic silicon, membrane materials, and dye sectors, with recommended companies including Hoshine Silicon Industry and Zhejiang Longsheng [6][15]. - It also highlights the growing demand for health additives and sugar substitutes driven by new consumer trends, recommending companies that emphasize technological and product differentiation [6][16][17].

Investment Rating - The report indicates a positive investment outlook for the basic chemical industry, particularly for refrigerants and glyphosate, which are experiencing high demand and price increases [1][5]. Core Insights - The glyphosate market is showing strong demand, with prices rising to 26,699 CNY/ton, an increase of 300 CNY/ton from the previous week, while the profit margin has also improved [3][17]. - Refrigerant prices, particularly for R134a and R32, have increased due to steady demand driven by high summer temperatures and supply constraints from quota policies [4][27]. - The polyester filament and viscose staple fiber markets are witnessing slight price rebounds as manufacturers reduce production to restore profitability [4][29]. Summary by Sections (1) Key Chemical Product Price Tracking - Glyphosate prices have risen to 26,699 CNY/ton, with a weekly increase of 300 CNY/ton, while production has decreased by 16.24% to 0.7 million tons [3][17]. - Prices for polyester filament (POY, FDY, DTY) have increased slightly, with POY averaging 6,775 CNY/ton, up 125 CNY/ton [4][29]. (2) Polyurethane: MDI and TDI Price Trends - MDI prices have decreased due to weak demand from end-users, with the average price for polymer MDI in South China at 15,700 CNY/ton, down 1.88% [15]. - TDI prices have also dropped, with the average price in East China at 16,250 CNY/ton, down 2.99% [15]. (3) Agricultural Chemicals: Glyphosate Price Increase - Glyphosate prices continue to rise, supported by good downstream demand and tight supply, with a current price of 26,699 CNY/ton [17]. - The profit margin for glyphosate has increased to 3,725.1 CNY/ton, reflecting a rise of 317.9 CNY/ton from the previous week [17]. (4) Fluorochemicals: Refrigerant Price Increases - Prices for R134a and R32 have increased due to strong seasonal demand, with R134a at 51,000 CNY/ton and R32 at 57,500 CNY/ton [27]. - The supply of refrigerants is constrained by quota policies, leading to a tight market situation [27]. (5) Tire Industry: Raw Material Price Trends - Prices for natural rubber and synthetic rubber have shown slight increases, with natural rubber at 15,017 CNY/ton, up 1.24% [29]. - The prices of accelerators and anti-aging agents have also increased, indicating a positive trend in the tire industry [29].

Industry Investment Rating - The industry investment rating is "Outperform" and is maintained [2] Core Views - The report highlights strong performance in the PEEK and liquid cooling sectors, with key companies such as Wanhua Chemical, Yangnong Chemical, and Hongsheng Real Estate being recommended for investment. Additionally, the report emphasizes the focus on pesticide anti-involution lines, particularly in Limin Co., Ltd. [5][6] - The basic chemical sector has shown a weekly increase of 2.46%, outperforming the CSI 300 index, which increased by 2.37% [6][19] Summary by Relevant Sections Industry Overview - The closing index for the basic chemical sector is at 3908.04, with a weekly high of 3908.04 and a low of 2687.54 [2] - Year-to-date performance shows the basic chemical index has decreased by 13.10%, while the CSI 300 index has increased by 24.10%, indicating a lag of 10.99 percentage points [19] Key Companies and Investment Ratings - Wanhua Chemical: Buy, closing price 63.0, market cap 197.19 billion, EPS 137.4, PE 14.4 [12] - Yangnong Chemical: Buy, closing price 64.9, market cap 26.33 billion, EPS 13.8, PE 19.0 [12] - Hualu Hengsheng: Buy, closing price 24.5, market cap 51.93 billion, EPS 40.5, PE 12.8 [12] - Juhua Co., Ltd.: Not rated, closing price 28.5, market cap 76.83 billion, EPS 42.6, PE 18.0 [12] Weekly Stock Performance - Top gainers include: - Kaimete Gas: +34.73% - Weike Technology: +31.54% - Xinhang New Materials: +31.43% [7][19] - Top losers include: - Zhizheng Co., Ltd.: -13.04% - Donghua Energy: -11.49% - Renzhi Co., Ltd.: -10.00% [8][22] Commodity Price Movements - Significant price increases were noted in: - Liquid chlorine: +29.05% - Industrial-grade lithium carbonate: +19.42% - Battery-grade lithium carbonate: +17.48% [9][25] - Price declines were observed in: - Methyl chloride: -10.64% - Butanone: -8.91% - Organic silicon DMC: -8.00% [10][27]