Di Yi Cai Jing·2025-11-17 00:24Core Viewpoint - The chemical industry is experiencing a peak in new capacity investments, but the actual peak has passed, leading to a reduction in capital expenditure going forward. This decrease, combined with a gradual recovery in demand, is expected to improve the supply-demand dynamics in the chemical sector, resulting in an upward trend in industry prosperity [1] Group 1 - The overall capital expenditure in the chemical industry is expected to decrease in the future [1] - The supply-demand balance in the chemical industry is anticipated to improve, leading to a potential increase in industry prosperity [1] - Current PB-LF valuation levels for the basic chemical industry are close to the bottom levels observed in 2019 and projected for 2024, indicating that the valuation remains low [1] Group 2 - The continuous improvement in supply-demand dynamics is likely to sustain the upward trend in industry prosperity [1] - The chemical sector is expected to experience a valuation recovery due to its current low valuation levels [1]