Investment Rating - The report maintains a "Positive" investment rating for the chemical industry [11] Core Insights - The report emphasizes the importance of addressing "involution" in the chemical industry, with multiple government meetings in 2024 highlighting the need to combat "malicious competition" and promote product quality [6][16] - The focus is on identifying potential investment opportunities within the chemical sector that can benefit from the government's "anti-involution" policies [17] Summary by Sections Why Focus on Chemical Industry Investment Opportunities? - The report outlines the government's commitment to addressing "involution" through various meetings and policy announcements, including the emphasis on supply-side structural reforms and the need for industry self-discipline [6][16] - The report suggests that the chemical industry can find opportunities under the current "anti-involution" policies, particularly through the identification of sectors with stable supply-demand dynamics [17] Which Sub-industries May Benefit from Anti-involution? - The report identifies several sub-industries likely to benefit from the anti-involution policies, including: 1. Comprehensive Chain: Chromium salts, caustic soda, industrial silicon, organic silicon 2. Agricultural Chain: Glyphosate, urea, methanol, sucralose/aspartame, MSG, lysine 3. Real Estate Chain: PVC, soda ash, titanium dioxide, MDI/TDI 4. Electronics Chain: Photoinitiators, refrigerants R134a/R32 5. Textile Chain: Dyes, viscose staple fiber, spandex, viscose filament, polyester filament 6. Automotive Chain: Polyester industrial yarn [7][8][20] Investment Recommendations - The report recommends focusing on sub-industries that meet specific criteria such as slowing capacity growth, high operating rates, high concentration, minimal cost differences among leading companies, and products at the bottom of the price cycle [8][9] - Key sub-industries to watch include organic silicon, polyester filament, photoinitiators, glyphosate, industrial silicon, and MSG/amino acids, with specific companies highlighted for potential investment [9][29]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company plans to invest 100 million RMB in Lif Biotechnology, acquiring a 7.0175% stake, which is a strategic move to position itself in the bio-based polyester industry chain [6][7] - Lif Biotechnology is a leading manufacturer of bio-based FDCA, a key material in the "green chemistry" sector, which has the potential to replace petrochemical-based PET in the long term [6][7] - The investment is expected to create synergies with the company's existing polyester business, despite short-term challenges such as the target company's losses and industrialization risks [7] Financial Summary - The company’s projected net profits for 2025, 2026, and 2027 are 1.344 billion, 1.845 billion, and 2.234 billion RMB respectively, with corresponding P/E ratios of 12.65, 9.21, and 7.61 [8] - Revenue is expected to grow from 67.091 billion RMB in 2024 to 81.610 billion RMB in 2027, with a compound annual growth rate (CAGR) of approximately 6.5% [11] - The gross margin is projected to improve from 5.6% in 2024 to 7.5% in 2027, indicating enhanced profitability [11]

Investment Rating - The report maintains an "Outperform" rating for the basic chemical industry [2] Core Viewpoints - The basic chemical sector has outperformed the market, with the industry index rising by 1.8% from July 11 to July 18, compared to a 0.7% increase in the Shanghai Composite Index [9][20] - The report highlights significant price increases in TDI, glyphosate, and glufosinate due to supply disruptions and rising demand, particularly in South America [6][31][33] Summary by Sections 1. Core Viewpoints - The basic chemical sector is expected to benefit from supply-side reforms and improved demand due to recent government policies aimed at stabilizing the economy [17] - The report emphasizes the potential for long-term investment in core assets as the profitability of chemical products has likely bottomed out, suggesting a recovery in valuations [17][18] 2. Overall Performance of the Chemical Sector - The basic chemical industry index has shown a year-to-date increase of 10.8%, outperforming both the Shanghai Composite and ChiNext indices by 5.4% and 4.5%, respectively [20][26] 3. Individual Stock Performance in the Chemical Sector - Among 424 stocks in the basic chemical sector, 251 stocks rose while 162 fell during the reporting week, with notable gainers including Shangwei New Materials (+148.8%) and Dongcai Technology (+33.2%) [29][30] 4. Key News and Company Announcements - A fire at Covestro's TDI plant in Germany has led to significant supply disruptions, creating opportunities for price increases in TDI [31][32] - Glyphosate prices have increased to 25,500 CNY per ton, reflecting a 7.16% month-over-month rise, driven by reduced inventory levels [33] - New regulations on glufosinate are expected to constrain supply, potentially leading to price increases as the market adjusts [34]

Core Viewpoint - The company plans to invest 100 million RMB in Hefei Lif Biological Technology Co., acquiring a 7.0175% stake, marking its entry into the high-end bio-based fiber sector [2][3]. Group 1: Investment Overview - The investment in Lif Biological represents a strategic move to enhance the company's competitiveness while expanding into emerging industries [3]. - Lif Biological is recognized as a pioneer in the research of furan-based materials, focusing on bio-based furan materials characterized by being environmentally friendly, low-carbon, and high-performance [3][4]. Group 2: Lif Biological's Market Position - Lif Biological is a leader in the domestic FDCA (Furan-2,5-dicarboxylic acid) industry, with its products exhibiting superior quality compared to competitors [4]. - The company has established the world's first 1,000-ton FDCA production line and plans to launch a 10,000-ton production line by 2025, with the 1,000-ton line achieving a product purity of 99.99% [4]. - Following the launch of the 10,000-ton line, the expected price of FDCA is projected to decrease to 50,000-60,000 RMB per ton by 2025, and further to 20,000-30,000 RMB per ton after 2027 [4]. Group 3: Applications of FDCA - FDCA can be used to synthesize various polymers, including polyesters, polyurethanes, and polyamides, and is also applicable in producing plasticizers and new semi-aromatic nylon [5]. - PEF (polyethylene furanoate), derived from FDCA, exhibits superior mechanical properties, heat resistance, and gas barrier properties compared to PET (polyethylene terephthalate), making it suitable for a wide range of applications, particularly in packaging [5].

Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Views - The company is actively investing in strategic emerging industries while consolidating its traditional business, specifically by investing 100 million RMB in Lif Biotechnology, aiming to enter the high-end bio-based fiber sector [2][3]. - Lif Biotechnology is recognized as a leader in the domestic FDCA (Furan-2,5-dicarboxylic acid) industry, with plans to establish the world's first 10,000-ton FDCA production line by 2025, which is expected to significantly reduce the price of FDCA in the coming years [3]. - The downstream applications of FDCA are extensive, with PEF (polyethylene furanoate) showing superior performance compared to PET (polyethylene terephthalate) in various properties, making it suitable for a wide range of industries including packaging, electronics, automotive, and construction [4]. Financial Forecasts and Valuation - The company has adjusted its profit forecasts for 2025-2026, with expected net profits of 1.466 billion RMB (down 28%), 1.882 billion RMB (down 22%), and 2.207 billion RMB for 2027, translating to EPS of 0.96, 1.23, and 1.45 RMB respectively [4][6]. - The company is expected to maintain its leading position in the polyester market, with increasing market share as polyester production capacity expands [4].

Group 1 - The chemical sector showed strong performance with the chemical ETF (516020) experiencing a maximum intraday increase of 1.63% [1] - Major stocks in the sector saw significant gains, with Wanhua Chemical rising by 7%, Huafeng Chemical increasing over 4%, and several others gaining more than 3% [1] - The basic chemical sector attracted substantial capital inflow, with net inflows exceeding 5 billion yuan, ranking second among 30 major sectors [1][3] Group 2 - The chemical ETF (516020) is currently trading at a price-to-book ratio of 1.94, which is at a low point historically, indicating potential for long-term investment [4] - Analysts predict a recovery in the chemical industry, with improvements expected in supply-demand dynamics and a gradual increase in industry sentiment [5][6] - The government is focusing on reducing disorderly competition and promoting product quality, which may lead to a more favorable environment for the chemical sector [6] Group 3 - The chemical ETF (516020) tracks the CSI sub-sector chemical industry index, providing exposure to major companies and various sub-sectors within the chemical industry [7] - Investors can also consider the chemical ETF linked funds (A class 012537/C class 012538) for broader exposure to the sector [7]

Group 1 - The company held its 36th meeting of the 6th Board of Directors on July 17, 2025, with all 8 directors present, ensuring compliance with legal and procedural requirements [1][2] - The Board approved a resolution to invest RMB 100 million in Hefei Lif Biotechnology Co., Ltd., resulting in the company holding a 7.0175% equity stake in Lif Biotechnology after the investment [1]

| 股票代码：603225 | 股票简称：新凤鸣 | | 公告编号：2025-064 | | --- | --- | --- | --- | | 转债代码：113623 | 转债简称：凤 21 | 转债 | | 新凤鸣集团股份有限公司 ●本次投资事项不构成关联交易，不属于《上市公司重大资产重组管理办法》 规定的重大资产重组情形。 ●相关风险提示： （一）投资风险 市场需求的不确定性可能使得标的公司未来的经营情况存在一定的不确定性， 导致公司投资存在一定的风险。 （二）投后管理风险 对外投资公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大 遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： ●投资标的名称：合肥利夫生物科技有限公司（以下简称"利夫生物"或"标 的公司"） ●投资金额：新凤鸣集团股份有限公司（以下简称"公司"）拟以人民币 10,000 万元增资标的公司，增资后持有其 7.0175%股权。 ●本次交易已经公司第六届董事会第三十六次会议审议通过，无需提交公司股 东大会审议。 本次交易完成后，利夫生物将成为公司的参股公司，公司与利夫生物业务的协 ...

| 股票代码：603225 | 股票简称：新凤鸣 | | | 公告编号：2025-065 | | --- | --- | --- | --- | --- | | 转债代码：113623 | 转债简称：凤 | 21 | 转债 | | 新凤鸣集团股份有限公司 第六届董事会第三十六次会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗 漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 一、董事会会议召开情况 新凤鸣集团股份有限公司（以下简称"公司"）第六届董事会第三十六次会 议于 2025 年 7 月 17 日以现场表决和通讯表决相结合的方式在公司二十四楼会议 室召开。本次董事会会议通知于 2025 年 7 月 11 日以电话方式发出。会议由董事 长庄耀中先生召集并主持，会议应出席董事 8 名，实际出席董事 8 名，公司监事、 高级管理人员列席了本次会议。本次会议的召开和表决程序符合《公司法》《证 券法》和本公司章程的有关规定，合法有效。 表决结果：8 票同意，0 票反对，0 票弃权。 特此公告。 新凤鸣集团股份有限公司董事会 2025 年 7 月 18 日 1 二、 ...

Core Viewpoint - The company plans to invest 100 million yuan in Hefei Lif Biotechnology Co., Ltd., acquiring a 7.0175% stake in the company [1] Group 1 - The investment does not constitute a related party transaction and is not classified as a major asset restructuring [1] - The investment risks include uncertainties in market demand, post-investment management risks, and uncertainties in expected investment returns [1]