Investment Rating - The report maintains an "Outperform" rating for the chemical industry, indicating a positive outlook based on expected economic recovery and demand improvement [1]. Core Insights - The basic chemical industry is expected to see a recovery in profitability, with 2024 revenues projected to reach CNY 2,219.98 billion, a year-on-year increase of 2.66%, while net profit is expected to decline by 8.18% to CNY 108.87 billion [6][26]. - The oil and petrochemical sector is anticipated to maintain stable revenues and profits, with 2024 revenues estimated at CNY 7,941.40 billion, a decrease of 2.81%, and net profit expected to grow by 0.58% to CNY 372.14 billion [1][26]. - The report highlights that 23 out of 33 sub-industries in the basic chemical sector experienced revenue growth in 2024, with significant increases in chlor-alkali and textile chemicals [6][15]. Summary by Sections Industry Overview - The basic chemical industry is experiencing a decline in profitability, with gross and net profit margins at 16.27% and 5.13%, respectively, both down from 2023 [26]. - The report notes that the industry has been in a continuous decline in profitability from 2022 to 2024, but signs of stabilization are emerging [26]. Sub-Industry Performance - In 2024, chlor-alkali and textile chemicals showed the highest profit growth rates at 262.84% and 125.27%, respectively [15][26]. - Conversely, non-metallic materials and other plastic products faced significant profit declines of 79.24% and 67.49% [15][26]. Quarterly Analysis - For Q4 2024, the basic chemical industry reported revenues of CNY 565.72 billion, a year-on-year increase of 5.15%, but a quarter-on-quarter decline of 0.90% [6][7]. - Net profit for Q4 2024 was CNY 14.16 billion, down 10.73% year-on-year and 51.03% quarter-on-quarter [6][7]. Investment Recommendations - The report suggests focusing on companies in rapidly developing downstream sectors, particularly in new materials, energy security, and policy-driven demand recovery [1][26]. - Recommended companies include China National Petroleum, China National Offshore Oil, and various technology firms in the semiconductor and new energy materials sectors [1][26].

Group 1 - The core point of the article highlights the continued high enthusiasm for public fund research, with 125 public fund institutions participating in A-share company research during the week of May 12-18, 2025, covering 210 stocks across 76 secondary industries, resulting in a total of 972 research instances [1] - Among the stocks, 69 were researched at least 5 times, with 46 stocks receiving 5-9 instances, 16 stocks receiving 10-19 instances, and 7 stocks being researched at least 20 times [1] Group 2 - The top ten stocks by research frequency were all researched at least 16 times, with Anji Technology leading at 57 instances, attracting over 30% of public fund participation, making it the "research king" [2] - Following Anji Technology, Aobi Zhongguang received 30 public fund institution visits, indicating strong market interest in its 3D vision technology [3] - Huadong Medicine ranked third with 29 research instances, recognized for its growth potential driven by innovative drugs and medical aesthetics [3] Group 3 - The top ten researched stocks were primarily concentrated in technology innovation, healthcare, and consumer sectors, reflecting public funds' strategy to focus on high-quality targets aligned with national industrial policy and long-term growth potential [3] - The semiconductor industry topped the research frequency with 76 instances, indicating strong expectations for domestic semiconductor replacement processes, with companies like Canray Technology and Demingli receiving significant attention [3] - The general equipment industry followed with 60 research instances, showing institutions' intent for comprehensive layout in high-end equipment manufacturing [3]

Market Performance - The market rebounded last week, with the China Securities Xinhua National Brand Index rising by 0.94% to 1666.03 points [1] - The Shanghai Composite Index increased by 0.76%, the Shenzhen Component Index by 0.52%, the ChiNext Index by 1.38%, and the CSI 300 Index by 1.12% [1] Strong Stock Performances - Notable strong performers in the brand index included BGI Genomics, which rose by 17.27%, and Yiling Pharmaceutical, which increased by 9.81% [1] - Other significant gainers included Stone Technology and Marubi Biological, which rose by 7.18% and 6.79%, respectively [1] Year-to-Date Stock Gains - Since the beginning of 2025, Marubi Biological has surged by 60.82%, leading the gains, followed by Shanghai Jahwa with a 46.72% increase and BGI Genomics with a 34.45% rise [2] - Other stocks with notable increases include Anji Technology, Xintai, and Weir Shares, each rising over 20% [2] Market Outlook - Institutions expect the market to refocus on domestic economic fundamentals, with a positive policy response anticipated [2][3] - The current market is viewed as being in a high cost-performance range, with significant policy support expected to stabilize the economy and market [2] Economic Data Focus - Attention is drawn to upcoming economic data, particularly export performance and the sustainability of the export supply chain recovery [3] - The prevailing market conditions are supported by policy measures and liquidity easing, which are expected to bolster the stability of the domestic economy and capital markets [3]

Core Viewpoint - The A-share market has seen a significant increase in institutional research activity since May, with over 2,000 listed companies being investigated, particularly in high-end manufacturing, semiconductors, and healthcare sectors [1][2]. Group 1: Institutional Research Trends - Public fund research has accelerated, with notable interest in high-end manufacturing, semiconductors, and healthcare, highlighting a strong focus on technological breakthroughs and policy benefits [2][3]. - The top three public funds conducting research are Bosera Fund with 51 instances, followed by Fortune Fund and Penghua Fund with 49 and 46 instances respectively, indicating a trend of high-frequency research to identify quality targets [3]. - The research frequency in high-end manufacturing, semiconductor equipment, and innovative pharmaceuticals accounts for over 60% of total investigations, reflecting a structural preference among institutional investors [3][4]. Group 2: Sector Focus - The computer, communication, and other electronic equipment manufacturing sectors lead with over 34 companies being researched, focusing on semiconductor materials, consumer electronics, and industrial automation [4]. - The healthcare manufacturing sector follows with 23 companies under investigation, with firms like BeiGene and Sunlight Nuohe gaining attention due to innovative drug development and recovery in medical consumption [4]. - Specific companies such as BeiGene-U, Anji Technology, and Hengerd have received the highest attention from institutions, with 256, 241, and 234 institutions respectively conducting research on them [4]. Group 3: Overseas Market and Tariff Impact - Fund managers are particularly focused on companies' overseas market strategies and the impact of US-China tariffs, with firms like Shenzhen South Circuit revealing significant investments in Thailand to enhance global supply chain capabilities [5]. - The expectation of a recovery in market sentiment regarding US-China trade tensions is influencing investment strategies, with a focus on self-sufficiency and domestic demand-driven opportunities [5][6]. Group 4: Investment Outlook - The current market environment is seen as a critical transition period for asset allocation, with expectations of gradual strengthening in the stock market despite potential volatility [7]. - There is a growing interest in "safe" assets such as military, gold, and rare earths, alongside technology sectors represented by AI and high-end manufacturing, as key investment themes moving forward [7].

Core Viewpoint - Anji Technology (688019) has become the most researched stock in the past week, with 241 institutions participating in the survey, indicating strong interest and confidence in the company's growth prospects [1][4]. Group 1: Company Developments - Anji Technology has completed the platform construction for electroplating liquids and additives used in integrated circuit manufacturing and advanced packaging, which strengthens its position in the wafer-level packaging sector and expands into upstream applications [1]. - The company reported smooth progress in local production and supply of electroplating liquids for 2024, with ongoing development and validation of advanced packaging tin-silver electroplating [1]. - Anji Technology has strategically upgraded its functional wet electronic chemicals segment, aiming to become a market leader and overcome technological challenges, with rapid growth in products like post-etch cleaning liquids and post-polishing cleaning liquids [1]. Group 2: Stock Performance - Anji Technology's stock price has seen a significant increase, with a cumulative rise of nearly 16% in 2023 and approximately 14% in 2024, totaling over 28% this year [2]. - The average increase for stocks under institutional research was 1.45%, with notable performers like Heng Erda and Guohang Ocean, which saw substantial price increases [7]. Group 3: Institutional Interest - In the past week, Anji Technology led with 241 institutions conducting research, followed closely by Heng Erda with 239 institutions [4]. - Other companies like Haitai New Light and Naipu Mining also attracted significant institutional attention, indicating a broader interest in the sector [4].

Market Performance - The A-share market showed stable performance from May 12 to May 16, with the Shanghai Composite Index rising by 0.76% to close at 3367.46 points, the Shenzhen Component Index increasing by 0.52%, and the ChiNext Index gaining 1.38% [2] Institutional Research - A total of 163 listed companies disclosed institutional research records during the week, with Anji Technology being the most popular among institutions, attracting 241 participating institutions [2] - New Times Group received attention from 82 institutions regarding the progress of Haier's acquisition, which involves a transaction amount of 1.3 billion yuan [3][4] Anji Technology - Anji Technology, established in 2006, focuses on high-end semiconductor materials, including chemical mechanical polishing liquids and functional wet electronic chemicals, widely used in integrated circuit manufacturing [2] - The company has completed the platform construction for its electroplating liquids and additives, with significant growth in its functional wet electronic chemicals business, particularly in post-etching and post-polishing cleaning liquids [2] - Anji Technology expressed a cautious outlook for market demand in the second half of the year, noting that its revenue may not align with some downstream wafer manufacturers' performance due to business diversification and timing discrepancies [3] New Times Group - New Times Group specializes in elevator control, robotics, and control systems, with its elevator controller business ranking second globally and SCARA robots ranking fourth globally [3] - The company plans to enhance collaboration with Haier Group post-acquisition, leveraging Haier's global supply chain and digital marketing capabilities to strengthen their position in the industrial automation sector [4] Aobi Zhongguang-UW - Aobi Zhongguang-UW is a key player in the humanoid robot industry, recognized as a significant supplier of 3D vision sensors, which are essential for robotic applications [5] - The company has achieved a high market share in the service robot sector in China and has established partnerships with several leading service robot companies [5] - Aobi Zhongguang-UW aims to increase investments in downstream sectors over the next three to five years to maintain its technological and market leadership [5]

Core Viewpoint - The company reported a strong performance in Q1 2025, with a revenue increase of 44.08% year-on-year, driven by its focus on the "3+1" technology platform and effective market expansion strategies [1][2] Financial Performance - In Q1 2025, the company achieved a net profit growth of 60.66% and a non-deducted net profit growth of 53.03% compared to the same period last year [1] - The company’s revenue for the previous year increased by 48.24%, with functional wet electronic chemicals growing at a remarkable rate of 78.91% [2][3] Market Strategy - The company aims to expand its production capacity to meet the growing demand from new wafer fabs both domestically and internationally [1] - The company is committed to maintaining a strong relationship with major clients like SMIC and TSMC, which contribute over 80% of its revenue, while also seeking to diversify its customer base [2][5] Product Development - The company is focused on developing high-performance materials for various semiconductor applications, including logic chips, memory chips, and third-generation semiconductors [1][3] - The company has successfully developed advanced post-etch cleaning solutions and is expanding its product line to include various cleaning agents for semiconductor manufacturing [3][4] Intellectual Property and Innovation - The company emphasizes the importance of intellectual property in maintaining its competitive edge and has established a comprehensive management system for its patents [1][4] - The company invests significantly in R&D, with a 40% increase in R&D expenses in 2024, while maintaining a slight decrease in the R&D expense ratio [4][5] Sustainability and ESG Initiatives - The company has integrated environmental, social, and governance (ESG) principles into its operations, focusing on sustainable development and reducing energy consumption and pollution [4][5] - The company is actively working on increasing the proportion of self-sourced core raw materials to enhance supply chain stability [4][5] Customer Engagement - The company has established a customer service team that focuses on enhancing customer satisfaction and loyalty through tailored solutions [2][5] - The company is implementing measures to optimize customer certification processes, aiming to shorten the certification cycle [4][5]

Core Viewpoint - Anji Technology (688019) reported a significant increase in revenue and profit for Q1 2025, driven by its focus on the "3+1" technology platform and continuous product innovation [1][2] Group 1: Financial Performance - The company achieved a 44.08% year-on-year increase in revenue for Q1 2025 [1] - Net profit and net profit excluding non-recurring items grew by 60.66% and 53.03% respectively [1] - The growth in revenue was supported by effective internal management and operational efficiency, with the increase in operating expenses being lower than revenue growth [1] Group 2: Business Strategy and Expansion - The company is actively pursuing new orders, clients, and applications to enhance its market presence [1] - Plans for new production facilities are in place to meet the growing demand from domestic and international wafer fabs [1] - The strategic positioning of the company emphasizes "rooted in China, serving globally" [2]

Core Viewpoint - Anji Technology is focusing on enhancing the self-sufficiency of core raw materials through research and development, aiming to improve product performance and ensure long-term supply reliability [1][2] Group 1: Company Strategy - The company is accelerating the establishment of self-controllable supply capabilities for core raw materials, optimizing product performance to enhance competitiveness [1] - Anji Technology is committed to high-tech barrier, high growth rate, and high-function materials research and industrialization, adhering to a strategy of "rooted in China, serving globally" [2] Group 2: Product Development - The company has successfully developed multiple silicon sol applications that are now in mass production and contributing to sales growth [1] - Through self-research and construction, Anji Technology has strengthened its capability in the preparation of cerium oxide particles, with several products passing client verification and achieving mass supply [1]

Group 1 - The semiconductor materials ETF (562590) has seen a decline of 1.20%, with a latest price of 1.07 yuan, while it has increased by 30.22% over the past year [3][4] - The liquidity of the semiconductor materials ETF shows a turnover rate of 0.95% with a transaction volume of 302.02 million yuan, and an average daily transaction volume of 16.30 million yuan over the past year, ranking it among the top two comparable funds [3] - The ETF's scale has grown significantly, with an increase of 609.55 million yuan over the past week, placing it second among comparable funds [3] Group 2 - The semiconductor materials ETF has reached a new high of 296 million shares, marking a peak in the last month [3] - The ETF has experienced continuous net inflows over the past four days, with a maximum single-day net inflow of 542.63 million yuan, totaling 1.30 billion yuan, and an average daily net inflow of 325.99 million yuan [3] - As of May 14, 2025, the tracking error of the semiconductor materials ETF over the past two months is 0.013%, the highest among comparable funds [4] Group 3 - The semiconductor sector is expected to see a recovery in overall performance in 2024, with the first quarter of this year showing a continued recovery trend [4] - The integrated circuit manufacturing and analog sub-sectors have returned to profitability, while other sub-sectors have achieved double-digit year-on-year growth in net profit, driven by terminal recovery, AI computing power construction, and demand in materials and advanced packaging [4] - The index tracks 40 listed companies involved in semiconductor materials and equipment, reflecting the overall performance of these securities [4] Group 4 - The top ten weighted stocks in the semiconductor materials equipment index account for 62% of the index, with notable companies including Northern Huachuang (002371) and Zhongwei Company (688012) [4][6] - The weightings of the top stocks include Northern Huachuang at 16.44%, Zhongwei Company at 13.55%, and Hu Silicon Industry at 5.61% [6]