Huafu Securities·2025-04-06 13:41Investment Rating - The report maintains an "Outperform" rating for the chemical industry [6] Core Views - The chemical sector is experiencing a mixed performance, with the overall market indices showing declines, while specific sub-sectors like food and feed additives are performing positively [2][16] - Key investment themes include the competitiveness of domestic tire manufacturers, the potential recovery in consumer electronics, and the resilience of certain cyclical industries [3][4][5] Summary by Sections Market Overview - The Shanghai Composite Index fell by 0.28%, the ChiNext Index by 2.95%, and the CSI 300 by 1.37% during the week [16] - The CITIC Basic Chemical Index decreased by 1.36%, and the Shenwan Chemical Index dropped by 1.19% [16] - The top-performing sub-sectors included food and feed additives (0.65%), membrane materials (0.32%), and potassium fertilizers (0.26) [18] Major Industry Developments - Wanhua Chemical's 1.2 million tons/year ethylene plant commenced production successfully on April 3, 2025 [3][25] - TBEA announced a large-scale coal-to-natural gas project with an investment of approximately 17.034 billion yuan, expected to start production in the fourth year [3] Investment Themes - Tire Sector: Domestic tire companies are becoming increasingly competitive, with a focus on scarce growth stocks such as Sailun Tire and Linglong Tire [3] - Consumer Electronics: A gradual recovery is anticipated, with upstream material companies expected to benefit from the improving demand in the panel supply chain [4] - Cyclical Industries: Emphasis on industries with strong resilience and inventory destocking, particularly in phosphate and fluorine chemicals [5] - Leading Companies: As the economy improves, leading companies in the chemical sector are expected to benefit significantly from the recovery in prices and demand [5][10] - Vitamin Supply: Attention is drawn to vitamin products due to supply disruptions announced by BASF, which may lead to a supply-demand imbalance [10]