Investment Rating - The report maintains a "Recommended" rating for the chemical industry [1] Core Insights - The chemical industry in China is expected to undergo a revaluation due to anti-involution measures, which may lead to a significant slowdown in global chemical capacity expansion. This shift could enhance the cash flow and dividend yield of Chinese chemical companies, transforming them from cash-consuming entities to profit-generating ones [6][29] - The demand for chromium salts is anticipated to rise significantly due to increased orders for gas turbines and commercial aircraft engines in Europe and the US, leading to a projected shortfall of 250,000 tons by 2028, which is about 23% of the total annual production [6] - The report highlights four key investment opportunities: low-cost expansion, improving industry conditions, new materials, and high dividend yields from state-owned enterprises [7][8] Summary by Sections Recent Performance - The basic chemical sector has shown a performance increase of 51.0% over the past 12 months, compared to 42.5% for the CSI 300 index [4] Investment Recommendations - The report emphasizes the potential for low-cost expansion in major companies such as Wanhua Chemical, Hualu Hengsheng, and others, alongside sectors like tires and fertilizers [7] - It also points out the improving conditions in various segments, including chromium salts, phosphate rock, and agricultural chemicals [8] Key Products Analysis - Recent price increases were noted for acrylic acid and esters, with butyl acrylate priced at 7,600 RMB/ton, reflecting a 3.40% increase [10] - The report also mentions the price of polymer MDI in East China at 15,550 RMB/ton, up by 1.97% [10] Company Tracking and Earnings Forecast - The report provides a detailed earnings forecast for key companies, indicating a positive outlook for many, with several companies rated as "Buy" [30]

Group 1 - The company, Kaisheng New Materials (301069), reported that as of September 10, 2025, the number of shareholders is 34,572 [1]

Market Overview - On September 12, the chemical raw materials sector declined by 0.41%, with Dayang Bio leading the drop [1] - The Shanghai Composite Index closed at 3883.69, up 0.22%, while the Shenzhen Component Index closed at 12996.38, up 0.13% [1] Stock Performance - Notable gainers in the chemical raw materials sector included: - Zhenhua Co., Ltd. (603067) with a closing price of 18.59, up 4.97% [1] - ST Yatai (000691) with a closing price of 7.44, up 4.94% [1] - Shilong Industry (002748) with a closing price of 10.17, up 4.31% [1] - Major decliners included: - Dayang Bio (003017) with a closing price of 33.78, down 3.82% [2] - Sanyou Chemical (600409) with a closing price of 5.97, down 2.45% [2] - Kaisheng New Materials (301069) with a closing price of 23.12, down 2.41% [2] Capital Flow - The chemical raw materials sector experienced a net outflow of 209 million yuan from main funds, while retail funds saw a net inflow of 89.33 million yuan [2] - Key stocks with significant capital flow included: - Longbai Group (002601) with a main fund net inflow of 26.73 million yuan [3] - Zhongke Titanium White (002145) with a main fund net inflow of 25.74 million yuan [3] - Huayi Group (600623) with a main fund net inflow of 22.27 million yuan [3]

Core Viewpoint - Kaisheng New Materials (301069.SZ) has begun supplying thionyl chloride products to lithium battery electrolyte manufacturers, indicating a strategic move into the lithium battery supply chain [1] Group 1 - The company has confirmed its thionyl chloride products are being supplied to lithium battery electrolyte production facilities [1] - Currently, the company has not established direct business cooperation with CATL (Contemporary Amperex Technology Co., Limited) [1]

Market Overview - On September 5, the chemical raw materials sector rose by 2.24%, with Hongxing Development leading the gains [1] - The Shanghai Composite Index closed at 3812.51, up 1.24%, while the Shenzhen Component Index closed at 12590.56, up 3.89% [1] Stock Performance - Hongxing Development (600367) closed at 18.01, with a gain of 10.02% and a trading volume of 189,300 shares, totaling a transaction value of 334 million [1] - Other notable performers included: - Kaisheng New Materials (301069) at 22.69, up 6.43%, with a transaction value of 454 million [1] - Sanxiang New Materials (603663) at 29.80, up 6.39%, with a transaction value of 1.033 billion [1] - Ti'an Co. (603067) at 17.32, up 6.19%, with a transaction value of 416 million [1] Capital Flow - The chemical raw materials sector saw a net inflow of 363 million from institutional investors, while retail investors experienced a net outflow of 335 million [2][3] - The main capital inflow was concentrated in: - Hongxing Development with a net inflow of 1.29 billion, accounting for 38.52% of its trading volume [3] - Sanxiang New Materials with a net inflow of 105 million, accounting for 10.14% [3] - Kaisheng New Materials with a net inflow of 44.64 million, accounting for 9.84% [3]

Group 1 - The core point of the article highlights that Kaisheng New Materials reported a significant decrease in the number of shareholders, with a reduction of 6,169 accounts, representing a decline of 15.28% compared to the previous period [2] - As of the latest data, the closing price of Kaisheng New Materials was 21.32 yuan, reflecting a drop of 2.38%, and the stock has cumulatively decreased by 12.94% since the concentration of shares began, with 4 days of increase and 7 days of decrease during this period [2] - The margin trading data indicates that as of September 3, the total margin balance for the stock was 393 million yuan, with a decrease of 7.8562 million yuan, or 1.96%, since the concentration of shares began [2] Group 2 - The company's semi-annual report shows that it achieved an operating income of 533 million yuan in the first half of the year, representing a year-on-year growth of 7.66% [2] - The net profit for the same period was 88.4849 million yuan, which is a significant increase of 63.83% year-on-year, with a basic earnings per share of 0.2104 yuan and a weighted average return on equity of 5.27% [2]

Group 1 - The company, Kaisheng New Materials (301069.SZ), has not yet established direct business cooperation with drone manufacturers [1] - The company can provide PEKK granules and modified enhanced composite materials for downstream aircraft manufacturing [1]

Core Viewpoint - The company has reported an improvement in the yield rate of its PEKK products and is progressing with market expansion as planned [1] Group 1 - The yield rate of PEKK products has been continuously improving this year [1] - Market development is proceeding according to the company's plans [1]

Core Viewpoint - The company is considering the potential of developing and producing both PEKK and PEEK materials, recognizing the broader market opportunities for PEEK, especially in the context of the upcoming humanoid robot trend [1] Group 1 - The company has successfully developed and launched PEKK materials, which have significant potential in high-end markets such as aerospace and medical [1] - There is a suggestion from investors that the company should also focus on PEEK materials due to their wider applicability and larger market [1] - The company acknowledges the investor's suggestion and will consider it carefully [1]

Group 1 - The company has not yet established direct business cooperation with drone manufacturers regarding PEKK weight reduction orders [2] - The company can provide PEKK granules and modified enhanced composite materials for downstream aircraft manufacturing [2]