Group 1 - The "Shenyang Employment" live-streaming recruitment initiative was launched to address a significant labor shortage at Sailun (Shenyang) Tire Co., Ltd., which is facing a gap of over a thousand workers as it prepares to launch a new production line [3][4] - The live-streaming event was organized quickly, with the team contacting the local human resources department on January 10 and starting the live broadcast on January 12, showcasing the company's facilities and job opportunities [3][5] - The live-stream attracted a total of 27,600 viewers during the event, with over 100,000 cumulative views across five days and more than a thousand resumes submitted [4][5] Group 2 - The company offered monthly salaries ranging from 4,000 to 7,000 yuan, with additional benefits such as subsidized accommodation and full social insurance coverage, which were highlighted during the live-stream [4] - The initiative involved collaboration with 13 districts to maximize outreach, allowing job seekers to apply directly through links provided during the live broadcast [4][5] - The immediate success of the live-stream led to the scheduling of interviews the following day, with the first batch of 30 candidates already undergoing health checks for employment [5]

Group 1: JinGu Co., Ltd. - JinGu Co., Ltd. has developed a low-carbon wheel named "Avatar," which is significantly lighter and stronger than traditional steel wheels, reducing weight by nearly half and improving fuel efficiency and carbon emissions [5][6][7] - The "Avatar" wheel weighs 18 kg compared to the traditional 44 kg steel wheel, allowing for a total weight reduction of over 500 kg for heavy trucks, potentially saving over 10,000 yuan in fuel costs annually for truck operators [5][6] - The company has transitioned from producing agricultural machinery wheels to becoming a primary supplier for domestic automotive manufacturers, including General Motors and Volkswagen [6][7] - JinGu's R&D team, consisting of experts from top universities, has successfully enhanced the strength of steel wheels by 3 to 4 times through innovative manufacturing processes [7] - The company plans to establish 20 production lines for the "Avatar" wheels over the next five years, aiming for an annual output of 50 million units and a projected revenue of 15 billion yuan [7][8] Group 2: Sailun Group - Sailun Group has introduced a colorful tire series called "Liquid Gold," which offers a variety of colors while maintaining performance, marking a significant innovation in the tire industry [9][11] - The company has developed a continuous liquid-phase mixing technology that overcomes the traditional "magic triangle" challenge of achieving low rolling resistance, high wet traction, and excellent wear resistance [12][13] - The "Liquid Gold" tires can reduce fuel consumption by 8% for gasoline vehicles and 12% for electric vehicles, while also improving wear resistance by 20% to 30% [13] - Sailun has established a comprehensive R&D platform and has been recognized for its innovative tire solutions, which are now marketed globally [14] Group 3: Pacific Precision Forging - Pacific Precision Forging specializes in the production of differential gears, essential for vehicle safety during turns, and has become a leader in this niche market [18][19] - The company has invested 5% of its sales into R&D for over 20 years, focusing on innovation and quality improvement to meet the growing demands of the automotive industry [20] - With the rise of electric vehicles, Pacific Precision Forging has capitalized on the increased demand for high-performance differential assemblies, securing contracts with major brands like Tesla and NIO [21] - The company is also exploring new markets, including robotics, to diversify its product offerings and enhance its competitive edge [21]

Core Viewpoint - The company is strategically shifting its production of semi-steel tires for the EU market to Southeast Asia in response to impending anti-dumping duties set to be finalized by June 2025 [2] Group 1: Company Strategy - The company has confirmed that the final anti-dumping tax rate for Chinese semi-steel tires will be determined by the EU in mid-June [2] - The company is committed to a global layout strategy and has already begun transferring EU semi-steel tire orders to its factories in Southeast Asia [2] - The current production capacity at the company's factories in Vietnam and Cambodia is operating at full capacity, with efforts underway to further enhance production capabilities [2] Group 2: Market Position - The company has a substantial backlog of semi-steel tire orders for the EU market, indicating strong demand [2] - The ongoing optimization of global production capacity aims to better meet the needs of consumers worldwide [2]

Core Viewpoint - The European Union will not release the preliminary anti-dumping tax rate for Chinese semi-steel tires, with the final ruling expected in mid-June 2025, which may impact the sales of the company’s semi-steel tires [1] Group 1: Company Strategy - The company has been implementing a globalization strategy and has already begun transferring its semi-steel tire orders for the EU to factories in Southeast Asia [1] - The current order backlog for semi-steel tires in the EU is substantial, with production capacity at the factories in Vietnam and Cambodia being fully utilized [1] - The company is actively working to enhance its production capacity to better meet global consumer demand [1]

Core Viewpoint - The company is strategically adapting to the EU's anti-dumping investigation on semi-steel tires by shifting production to Southeast Asia, ensuring a robust order backlog and optimizing global capacity to meet consumer demand [1]. Group 1: Impact of EU Anti-Dumping Investigation - The EU's final anti-dumping tax rate for Chinese semi-steel tires will be determined in mid-June 2025, as per the information released in December 2025 [1]. - The company has proactively transferred its EU semi-steel tire orders to factories in Southeast Asia, specifically in Vietnam and Cambodia, to mitigate potential impacts from the investigation [1]. Group 2: Production Capacity and Strategy - The current production capacity at the company's factories in Vietnam and Cambodia is operating at a very full capacity, indicating strong production capabilities [1]. - The company is focused on continuously optimizing its global production layout to better satisfy global consumer needs [1].

Investment Rating - The report maintains a "Positive" investment rating for the industry [11] Core Viewpoints - The EU's anti-dumping measures against Chinese semi-steel tires are expected to be implemented by mid-2026, potentially leading to a demand shift of approximately 8.7 million units overseas. Current Chinese tire manufacturers have an overseas semi-steel tire capacity of only 17.6 million units per year, which is insufficient to meet the combined demand of approximately 25.1 million units from Europe and the US [3][10][76] - The semi-steel tire segment is characterized by strong consumer attributes, making it the most profitable category in the tire industry. The global demand for semi-steel tires is around 1.6 billion units annually, with an average price of $71 per tire, resulting in a market size of $114 billion [6][25] - Chinese semi-steel tire production capacity is projected to reach 82 million units per year by 2024, with an annual output of approximately 64 million units, accounting for about 40% of global supply. Exports constitute about 52% of China's semi-steel tire production [7][41] Summary by Sections EU Anti-Dumping Measures - The EU has initiated anti-dumping and countervailing investigations against Chinese semi-steel tires, with a final decision expected by June 2026. In 2024, the EU is projected to consume approximately 400 million semi-steel tires, with 90 million units imported from China, representing 60% of non-EU imports [8][59][60] Overseas Expansion of Chinese Tire Companies - Chinese tire manufacturers are increasingly establishing overseas production capacities, with approximately 22.2 million units per year already operational and an additional 28.7 million units planned. The EU's anti-dumping measures are expected to create a capacity gap that will take time to fill [9][68] - The US imports about 164 million semi-steel tires annually, with significant competition expected between the EU and the US for semi-steel tire capacity. The demand from the EU for 8.7 million units per year is likely to shift from China to overseas production [9][71] Investment Recommendations - The report suggests focusing on opportunities arising from both volume and price increases. Companies with greater marginal increases in overseas capacity and a higher proportion of total capacity in overseas production are expected to benefit more. Recommended companies include Senqilin, Sailun Tire, Zhongce Rubber, and Linglong Tire [10][76]

Group 1 - The stock price of Sailun Tire has dropped by 3.18% to 15.53 CNY per share, with a total market capitalization of 51.064 billion CNY, and a cumulative decline of 7.8% over the last four days [1] - Sailun Group Co., Ltd. is based in Qingdao, Shandong Province, and was established on November 18, 2002. It was listed on June 30, 2011, with its main business involving the research, production, and sales of tire products, which account for 98.89% of its revenue [1] Group 2 - According to data from the top ten holdings of funds, one fund under GF Fund has a significant position in Sailun Tire. The GF Jubilee Mixed A Fund increased its holdings by 40,700 shares in the third quarter, bringing its total to 184,100 shares, which represents 1.46% of the fund's net value [2] - The GF Jubilee Mixed A Fund has a current scale of 87.9884 million CNY, with a year-to-date return of 0.1% and a one-year return of 8.18%, ranking 6,798 out of 8,091 in its category [2] - The fund manager, Liu Zhihui, has been in charge for 9 years and 60 days, with the fund's total assets amounting to 24.133 billion CNY. The best return during his tenure is 48.99%, while the worst is -0.65% [2]

Core Insights - The chemical industry is expected to experience a recovery in profitability in 2026, marking a new starting point for supply-demand rebalancing, driven by anti-involution policies and advancements in new productive forces such as AI and robotics [2][5]. Group 1: Industry Overview - The chemical industry faced a downturn in profitability and valuation in 2025, but signs of stabilization and recovery are anticipated in 2026 [2]. - The peak of capital expenditure in the chemical sector has passed, with fixed asset investment turning negative in the second half of 2025, indicating the end of the capacity expansion cycle [5][14]. - The Producer Price Index (PPI) for chemicals is expected to gradually turn positive in 2026 after a prolonged period of decline [14]. Group 2: Investment Themes - Capital expenditure is decreasing, and leading companies like Wanhua Chemical are expected to see a recovery in profitability as they reduce capital spending and increase their global market share in MDI [5]. - The anti-involution policy is reshaping supply dynamics, with a focus on quality development and the exit of outdated capacities, benefiting companies with innovative capabilities and export advantages [5]. - New materials are driving demand growth in traditional chemicals, with companies like Dinglong Technology and Anji Technology positioned to benefit from domestic substitution in high-end materials [5]. Group 3: Market Dynamics - Chemical prices have been under pressure, with the chemical product price index declining approximately 8.8% in 2025, but stock prices in the sector have rebounded by 33.3% [10][16]. - The operating rates of mainstream chemical products are showing signs of weakness, with inventory levels varying significantly across different products [17][18]. - The supply-demand balance for phosphate rock remains tight, with stable prices for high-grade phosphate rock, while the market for phosphate fertilizers is influenced by policy and demand fluctuations [46][43]. Group 4: Global Trends - The global chemical supply is shifting towards China, which has become the largest chemical producer, while European chemical production faces challenges due to high energy costs [31][33]. - The restructuring of supply chains due to tariff disturbances is prompting companies to adapt, with a focus on overseas expansion for leading chemical firms [26][22]. - The anti-involution policies are expected to enhance industry cash flow and promote sustainable development by curbing disorderly expansion and prioritizing profitability [40].

Investment Rating - The report maintains a "Recommended" rating for the chemical industry [1] Core Insights - The chemical industry is expected to experience an upward cycle due to the implementation of "anti-involution" policies in China and the accelerated exit of some European facilities [29] - The report highlights the potential for domestic substitution of semiconductor materials from Japan due to rising geopolitical tensions, which could benefit various companies in the sector [5] - The chromium salt industry is undergoing a value reassessment driven by increased demand from AI data centers and commercial aircraft engines, with a projected supply-demand gap of 340,900 tons by 2028 [8] Summary by Sections Industry Performance - The chemical industry has shown strong relative performance with a 1-month increase of 10.7%, 3-month increase of 9.6%, and a 12-month increase of 45.1%, outperforming the CSI 300 index [3] Price Trends - Key products such as lithium carbonate and polysilicon have seen significant price increases, supported by policy guidance and industry self-discipline [12] - The price of chromium salts has remained stable, with metal chromium priced at 82,000 CNY/ton as of January 9, 2026 [15] Investment Opportunities - Focus on companies with low-cost expansion capabilities, such as Wanhu Chemical and Hualu Hengsheng, as well as those in sectors with improving market conditions like chromium salts and phosphates [6][9] - High dividend yield opportunities are identified in state-owned enterprises like China Petroleum and China National Chemical [10] Key Company Tracking - Companies such as Dongfang Shenghong and Huabei Yihua are highlighted for their earnings potential, with projected EPS growth for 2026 [30] - The report tracks specific price movements for various chemicals, including a notable increase in the price of ammonium phosphate and a stable price for urea [17][19]

Investment Rating - The report maintains a positive outlook on the basic chemical industry, highlighting strong performance in various sub-sectors and suggesting potential investment opportunities in specific companies [3][4][5]. Core Insights - The restructuring of China Petroleum & Chemical Corporation (Sinopec) and China Aviation Oil (China National Aviation Fuel) is a significant development, marking the first major state-owned enterprise restructuring in 2026, which is expected to enhance the production and application of sustainable aviation fuel (SAF) [3]. - The domestic urea market has shown signs of recovery, with prices rising to over 1700 RMB per ton, a 9% increase from the lowest point in October 2025, driven by steady demand and reduced supply [3][4]. - The report identifies several investment themes, including the competitiveness of domestic tire manufacturers, the potential recovery in consumer electronics, and the resilience of certain cyclical industries [4][5][7]. Summary by Sections Market Performance - The Shanghai Composite Index rose by 3.82%, the ChiNext Index by 3.89%, and the CSI 300 Index by 2.79%. The CITIC Basic Chemical Index increased by 5.39%, and the Shenwan Chemical Index by 5.03% [13][16]. - The top-performing sub-sectors included rubber additives (17.27%), electronic chemicals (15.08%), and modified plastics (9.87%) [16]. Key Industry Dynamics - Sinopec and China Aviation Oil's restructuring aims to streamline operations and enhance the production of SAF, positioning the companies for future growth in a low-carbon economy [3]. - The urea market is expected to continue its upward trend, with a forecast for moderate price increases in the near future due to favorable supply-demand dynamics [3][4]. Investment Themes - **Tire Industry**: Domestic tire manufacturers are becoming increasingly competitive, with recommended stocks including Sailun Tire, Senqcia, General Tire, and Linglong Tire [4]. - **Consumer Electronics**: A gradual recovery in consumer electronics is anticipated, with upstream material companies expected to benefit. Recommended stocks include Dongcai Technology, Stik, Lite-On Optoelectronics, and Ruian New Materials [4]. - **Cyclical Industries**: Focus on industries with strong resilience and inventory destocking, particularly in phosphate and fluorine chemicals, as well as polyester filament [5][7]. - **Vitamin Supply**: Attention is drawn to vitamin products due to supply disruptions from BASF, which may lead to market imbalances [7].