Di Yi Cai Jing·2025-11-17 00:22Group 1 - The chemical industry has reached a peak in new capacity investments in recent years, and the actual peak of production has passed, leading to a reduction in capital expenditure going forward [1] - As capital expenditure decreases and demand gradually recovers, the supply-demand dynamics in the chemical industry are expected to improve, resulting in a potential increase in industry prosperity [1] - From a price-to-book (PB) valuation perspective, the current PB-LF valuation of the basic chemical industry is close to the bottom levels observed in 2019 and projected for 2024, indicating that the current valuation remains low [1] Group 2 - The ongoing improvement in supply-demand conditions is likely to sustain the upward trend in industry prosperity, while the PB valuation remains at historically low levels, suggesting a favorable outlook for valuation recovery in the chemical sector [1]