EBSCN·2025-04-08 02:19Investment Rating - The report maintains an "Overweight" rating for the petrochemical and transportation sectors [5] Core Views - The report highlights the acceleration of domestic substitution in new materials due to the U.S. implementing reciprocal tariffs, which will increase the prices of certain chemical products from the U.S. and tighten the supply of imported chemical products [1][2] - In terms of energy security, the "Big Three" oil companies in China are increasing oil and gas production, enhancing traditional energy supply [2] - The report emphasizes the importance of food security, particularly in the seed and planting sectors, as tariffs on various agricultural products imported from the U.S. are set to rise significantly [2] Summary by Sections Chemical Market Overview - The report provides a review of the chemical market, including price changes for various petrochemical products, with Brent crude oil priced at $64 per barrel, down 8.6% from the previous month [8] - It notes that the prices of several chemical products have decreased, indicating a potential impact on profitability for companies in the sector [8] Energy Security - The report discusses the efforts of China's "Big Three" oil companies to boost oil and gas production, with a focus on integrated operations and refining upgrades [2] - It mentions that the profitability of natural gas is expected to improve further due to these initiatives [2] Food Security - The report highlights the increase in tariffs on 29 agricultural products from the U.S., which could lead to a cumulative tariff of up to 49% on certain items, thus impacting food supply chains [2] Domestic Substitution Focus - The report suggests focusing on semiconductor materials and OLED materials as key areas for domestic substitution, driven by the need for supply chain security [3] - It notes that the domestic semiconductor industry is expected to accelerate the adoption of local materials due to increased restrictions from overseas [3] Investment Recommendations - The report recommends continued investment in undervalued, high-dividend, and well-performing companies in the "Big Three" oil sector and oil service companies [4] - It also suggests looking at domestic material companies benefiting from the substitution trend, as well as companies in the pesticide and fertilizer sectors [4]