基础化工行业定期报告：三季度化工整体仍承压；资本开支连续四个季度同比负增

Investment Rating - The report maintains a rating of "Buy" for the chemical industry, indicating a positive outlook for investment opportunities in this sector [1]. Core Insights - The chemical industry is experiencing pressure, with capital expenditures showing a negative year-on-year growth for four consecutive quarters, reflecting a slowdown in production and expansion intentions [1][2]. - Despite the challenges, there are signs of improvement in the industry, with a focus on companies like Wanhua Chemical, Hualu Hengsheng, and Baofeng Energy, which are expected to benefit from growth and cost reduction strategies [2]. - The overall market sentiment is improving due to supportive policies and macroeconomic expectations, which may enhance the investment value of the chemical sector [1][2]. Summary by Sections Basic Chemical Industry Overview - The basic chemical industry reported a revenue increase of 2.3% year-on-year for the first three quarters of 2024, but net profit decreased by 7.5% during the same period [4]. - The industry is facing significant supply-side expansion pressures, but there are indications of marginal improvements in conditions [2][4]. Capital Expenditure Trends - Capital expenditures in the basic chemical industry have shown a year-on-year decline of 16.4% for the first three quarters of 2024, with a continued negative trend expected into the fourth quarter [4][5]. - The total capital expenditure for the first three quarters of 2024 is approximately 422.2 billion yuan, reflecting a significant contraction in investment activity [1][4]. Market Performance and Valuation - The total market capitalization of the chemical industry is approximately 32,510.34 billion yuan, with a circulating market value of 29,292.33 billion yuan [1]. - The industry is currently at a historical low in terms of profitability and valuation, providing a substantial safety margin for potential investments [1][4]. Key Company Insights - Wanhua Chemical, Hualu Hengsheng, and Baofeng Energy are highlighted as key players with growth potential due to their strategic positioning in the market [2]. - The report emphasizes the importance of monitoring the performance of these companies as they navigate the current market challenges [2].