Tebon Securities·2025-05-19 09:43Investment Rating - The report maintains an "Outperform" rating for the basic chemical industry [2] Core Viewpoints - The basic chemical sector has shown better performance than the market, with a year-to-date increase of 5.1%, outperforming the Shanghai Composite Index by 4.7 percentage points [19] - Recent easing of US-China tariff policies has boosted global economic confidence, leading to a recovery in chemical product demand and prices [32] - Key projects in leading companies are gradually coming online, which is expected to restore valuation expectations [33] - The capital expenditure in the chemical industry has shown a downward trend, confirming the turning point in the capacity cycle [34] Summary by Sections 1. Core Viewpoints - Policy initiatives are expected to improve supply-demand dynamics, creating investment opportunities in the chemical sector [16] - Core assets are entering a long-term value zone, with potential for valuation and profit recovery [16] - Supply constraints in certain sectors are likely to lead to price elasticity and performance improvements for specific companies [17] - Demand certainty is expected to rise in sectors like civil explosives and modified plastics, which are poised for growth [18] 2. Overall Performance of the Chemical Sector - The basic chemical industry index increased by 1.8% during the week, outperforming both the Shanghai Composite Index and the ChiNext Index [19] - Year-to-date, the basic chemical industry index has increased by 5.1%, significantly outperforming the broader market indices [19] 3. Individual Stock Performance in the Chemical Sector - Among 424 stocks in the basic chemical sector, 303 stocks rose while 110 fell during the week [27] - The top ten performing stocks included Yushansha A (+50.6%) and Jitai Co. (+47.1%) [27] 4. Key News and Company Announcements - Recent US-China tariff adjustments are seen as a potential best configuration window for leading chemical companies [31] - The easing of tariffs is expected to stimulate export demand and improve the pricing environment for various chemical products [32] - Major projects from leading companies are expected to come online, enhancing their market positions [33]