Market Overview - The electronic chemicals sector experienced a decline of 0.3% on October 28, with Siquan New Materials leading the drop [1] - The Shanghai Composite Index closed at 3988.22, down 0.22%, while the Shenzhen Component Index closed at 13430.1, down 0.44% [1] Stock Performance - Notable gainers in the electronic chemicals sector included: - Huate Gas (688268) with a closing price of 68.52, up 5.42% on a trading volume of 44,800 shares and a turnover of 297 million [1] - Jingrui Electric Materials (300655) closed at 18.25, up 4.23% with a trading volume of 3.09 million shares and a turnover of 56.791 million [1] - Conversely, Siquan New Materials (301489) saw a significant decline of 16.98%, closing at 203.30 with a trading volume of 138,900 shares and a turnover of 298.5 million [2] Capital Flow - The electronic chemicals sector experienced a net outflow of 1.446 billion in main funds, while retail investors saw a net inflow of 1.253 billion [2] - The capital flow for specific stocks showed: - Dinglong Co. (300054) had a main fund net inflow of 37.85 million, but retail investors had a net outflow of 22.91 million [3] - Huate Gas (688268) experienced a main fund net inflow of 8.2143 million, with retail investors seeing a net outflow of 8.6272 million [3]

Macro Highlights - The main goals for the "14th Five-Year Plan" period include significant achievements in high-quality development, substantial improvement in technological self-reliance, breakthroughs in comprehensive reforms, enhanced social civilization, improved quality of life, major progress in building a beautiful China, and a more solid national security barrier [1] - By 2035, the aim is to significantly elevate China's economic, technological, defense, and comprehensive national strength, with per capita GDP reaching the level of moderately developed countries, leading to a happier and better life for the people and basic realization of socialist modernization [1] Trade Relations - The Ministry of Commerce announced that a Chinese delegation led by Vice Premier He Lifeng will engage in economic and trade consultations with the U.S. in Malaysia from October 24 to 27, focusing on important issues in Sino-U.S. economic relations [1] EU Sanctions Response - The Ministry of Commerce expressed strong dissatisfaction and firm opposition to the EU's decision to sanction Chinese companies, including large oil refineries and traders, during the 19th round of sanctions against Russia, emphasizing the need to protect the legitimate rights and interests of Chinese enterprises [2] State-Owned Enterprises Planning - The State-owned Assets Supervision and Administration Commission held a meeting to discuss the "14th Five-Year Plan" for central enterprises, emphasizing the need to align with the strategic mission assigned by the Party Central Committee and to enhance core functions and competitiveness [3] - The meeting highlighted the importance of optimizing layout and structural adjustments in line with national needs and industry trends, and improving the quality of planning through thorough research and unified thinking [3] Foreign Exchange Management - The Deputy Director of the State Administration of Foreign Exchange encouraged the implementation of innovative and integrated exploratory policies in Shanghai, focusing on the use of AI and big data to enhance foreign exchange services [4] - The aim is to improve the cross-border financial service capabilities of Shanghai while balancing financial openness and security [4] Company News - Huagong Technology reported a 40.92% year-on-year increase in net profit for the first three quarters and is planning to issue H-shares for listing in Hong Kong [8] - Yangjie Technology terminated its acquisition of 100% equity in Better Electronics [8] - Xinda Securities received approval for the issuance of up to 10 billion yuan in technology innovation corporate bonds [8] - Shuangliang Energy plans to raise no more than 1.292 billion yuan for projects related to zero-carbon intelligent manufacturing [8] - New Lai Materials' subsidiary plans to invest 2 billion yuan in semiconductor core component projects [8] - Chuanfa Longmang's subsidiary intends to invest 366 million yuan in a 100,000 tons/year lithium dihydrogen phosphate project [8] - Steel Research High-tech plans to establish a subsidiary and new industrial base in Saudi Arabia [8] - Aote Electronics intends to terminate the smart integration project for intelligent outlets [8] - Shengyi Electronics expects a year-on-year net profit increase of 476% to 519% for the first three quarters [8] - Other companies reported significant year-on-year net profit growth, including Tianeng Heavy Industry (1359.03%), Te Yi Pharmaceutical (985.18%), and Zhuanlei Technology (598.09%) [8][9]

Core Viewpoint - The company, Ruilian New Materials, announced an expected net profit attributable to shareholders of 280.81 million yuan for the first three quarters of 2025, representing an increase of 95.51 million yuan compared to the same period last year, which corresponds to a year-on-year growth of 51.54% [2] Financial Performance - The projected net profit for the first three quarters of 2025 is 280.81 million yuan [2] - This figure indicates an increase of 95.51 million yuan compared to the previous year [2] - The expected growth rate is 51.54% year-on-year [2]

Core Viewpoint - 瑞联新材 (688550) expects a significant increase in net profit and revenue for the first three quarters of 2025, indicating strong performance across its business segments [1] Financial Performance - The company anticipates a net profit attributable to shareholders of 281 million yuan, representing a year-on-year growth of 51.54% [1] - Projected operating revenue for the first three quarters is 1.301 billion yuan, reflecting a year-on-year increase of 19.01% [1] Business Segments - The display materials segment has shown stable development, providing a solid foundation for the company's overall performance [1] - The pharmaceutical and electronic materials segments have experienced substantial revenue growth, effectively enhancing the company's overall revenue scale and contributing to the increase in net profit [1]

Revenue Growth - For the first three quarters of 2025, Xi'an Ruilian New Materials Co., Ltd. expects to achieve operating revenue of CNY 1,301.34 million, an increase of CNY 207.91 million, representing a year-on-year growth of 19.01%[3]. - The pharmaceutical and electronic materials sectors have shown significant revenue growth, enhancing the overall revenue scale and net profit level of the company[8]. Net Profit Projections - The net profit attributable to the parent company for the same period is projected to be CNY 280.81 million, an increase of CNY 95.51 million, reflecting a year-on-year growth of 51.54%[3]. - Excluding the impact of share-based payment expenses, the net profit attributable to the parent company is expected to reach CNY 307.41 million, an increase of CNY 111.51 million, with a year-on-year growth of 56.92%[3]. - The net profit attributable to the parent company after deducting non-recurring gains and losses is anticipated to be CNY 276.95 million, an increase of CNY 103.05 million, indicating a year-on-year growth of 59.26%[3]. - If excluding share-based payment expenses, the net profit after deducting non-recurring gains and losses is expected to be CNY 303.55 million, an increase of CNY 119.05 million, with a year-on-year growth of 64.53%[4]. - The company reported a total profit of CNY 212.58 million and a net profit attributable to the parent company of CNY 185.30 million for the first three quarters of 2024[7]. Performance Forecast Accuracy - The company has not identified any major uncertainties that could affect the accuracy of this performance forecast[9]. - The financial data in this performance forecast has not been audited by an accounting firm and is based on preliminary calculations by the company's finance department[9]. - The official financial data will be disclosed in the company's formal report for the third quarter of 2025[9].

Core Viewpoint - 瑞联新材 (688550.SH) is expected to achieve a net profit attributable to shareholders of 281 million yuan for the first three quarters of 2025, representing a year-on-year increase of 51.54% [1] Financial Performance - The company anticipates a net profit of 307 million yuan for the first three quarters of 2025, excluding the impact of share-based payment expenses, which reflects a year-on-year growth of 56.92% [1] - The expected net profit attributable to shareholders, after deducting non-recurring gains and losses, is projected to be 277 million yuan, marking a year-on-year increase of 59.26% [1] - When excluding the impact of share-based payment expenses, the net profit after deducting non-recurring gains and losses is expected to reach 304 million yuan, showing a year-on-year growth of 64.53% [1] Business Segments - The display materials segment has maintained stable development, providing a solid foundation for the company's overall performance [1] - The pharmaceutical and electronic materials segments have seen significant revenue growth, enhancing the overall revenue scale of the company and effectively driving the increase in net profit levels [1] - The company's profitability has further strengthened due to the growth in these segments [1]

Core Viewpoint - The company expects a significant increase in net profit for the first three quarters of 2025, driven by growth in its pharmaceutical and electronic materials segments [1] Financial Performance - The projected net profit attributable to the parent company is 281 million yuan, representing a year-on-year increase of 51.54% [1] - Excluding the impact of share-based payment expenses, the expected net profit is 307 million yuan, reflecting a year-on-year growth of 56.92% [1] Segment Performance - The display materials segment has maintained stable development during the reporting period [1] - The pharmaceutical and electronic materials segments have achieved substantial revenue growth, effectively contributing to the increase in net profit levels [1]

Market Performance - The electronic chemicals sector increased by 2.31% on October 21, with Siquan New Materials leading the gains [1] - The Shanghai Composite Index closed at 3916.33, up 1.36%, while the Shenzhen Component Index closed at 13077.32, up 2.06% [1] Top Gainers in Electronic Chemicals - Siquan New Materials (301489) closed at 210.38, up 6.32% with a trading volume of 98,100 shares and a transaction value of 2.022 billion [1] - Xingfu Electronics (688545) closed at 37.17, up 6.20% with a trading volume of 83,700 shares and a transaction value of 308 million [1] - Sanhu Xinke (688389) closed at 60.08, up 5.96% with a trading volume of 22,300 shares and a transaction value of 131 million [1] Fund Flow Analysis - The electronic chemicals sector saw a net inflow of 272 million from institutional investors, while retail investors experienced a net outflow of 246 million [2] - The main funds showed varying net inflows and outflows across different stocks, indicating selective investment behavior [3] Individual Stock Fund Flow - Shanghai Xinyang (300236) had a net inflow of 73.46 million from main funds, while retail investors saw a net outflow of 81.89 million [3] - Anji Technology (688019) experienced a net inflow of 35.75 million from main funds, with retail investors also showing a net outflow [3]

Investment Rating - The report maintains an "Optimistic" rating for the chemical industry [3][4]. Core Insights - The report highlights a recovery opportunity at the bottom of the chemical cycle, particularly in the titanium dioxide sector, with major companies expanding globally and focusing on asset acquisitions [3][4]. - Global oil supply is expected to increase significantly, driven by non-OPEC production, while demand remains stable with a projected global GDP growth of 2.8% [4][5]. - The report emphasizes the importance of various chemical chains, including textiles, agriculture, and exports, as well as the potential for recovery in profitability for titanium dioxide due to easing trade tensions and improved overseas real estate conditions [3][4]. Summary by Sections Industry Dynamics - Oil supply is anticipated to rise, with OPEC+ expected to increase production, while demand is stable but may slow due to tariffs [4]. - Coal prices are expected to stabilize at a low level, and natural gas exports from the U.S. are likely to increase, reducing import costs [4]. Chemical Product Prices and Trends - The report notes that the PPI for all industrial products fell by 2.3% year-on-year in September, indicating a narrowing decline compared to August [5]. - Manufacturing PMI rose to 49.8%, suggesting a continued recovery in manufacturing activity [5]. Investment Analysis - The report suggests focusing on four key areas for investment: textiles, agriculture, export-related chemicals, and sectors benefiting from reduced competition [3]. - Specific companies to watch include Lu Xi Chemical, Tongkun Co., and Huafeng Chemical in the textile chain, and various firms in the agricultural sector such as Hualu Hengsheng and Baofeng Energy [3][4]. Key Company Valuations - The report provides a valuation table for key companies, indicating their market capitalization and projected earnings for the coming years [14].

Investment Rating - The report maintains an "Optimistic" rating for the chemical industry [3][4]. Core Insights - The report highlights the global expansion of major titanium dioxide manufacturers, emphasizing the opportunity for industry recovery from the bottom of the cycle. The acquisition of Venator UK's titanium dioxide assets and the establishment of subsidiaries in Malaysia and the UK are key developments [4][5]. - The macroeconomic outlook for the chemical sector indicates stable oil demand despite a slight slowdown due to tariffs, with global GDP growth projected at 2.8%. The report also notes that coal prices are stabilizing and natural gas export facilities in the U.S. are expected to accelerate [4][5]. - The report suggests investment strategies across various sectors, including textiles, agriculture, and chemicals, with a focus on companies benefiting from the "anti-involution" policies [4][5]. Summary by Sections Industry Dynamics - The report discusses the current macroeconomic conditions affecting the chemical industry, including oil supply and demand dynamics, with a forecast of increased production from non-OPEC sources and stable global oil demand [5][6]. - It notes that the PPI for industrial products decreased by 2.3% year-on-year in September, indicating a stabilization in prices due to improved supply-demand structures [6]. Investment Analysis - The report recommends a diversified investment approach focusing on sectors such as textiles, agriculture, and export-oriented chemicals, highlighting specific companies for potential investment [4][18]. - Key materials for growth are identified, including semiconductor materials and packaging materials, with specific companies mentioned for each category [4][18]. Price Movements - The report provides detailed price movements for various chemical products, including titanium dioxide, fertilizers, and pesticides, indicating a mixed outlook with some prices stabilizing while others show slight declines [11][14][20]. - It highlights the impact of external factors such as raw material costs and international trade dynamics on pricing trends within the chemical sector [11][14].